Primary Research Primary Research Methods for Methods for

Feasibility AnalysesFeasibility Analyses

Diane M. Sullivan (2007)Diane M. Sullivan (2007)

Introduction to Primary Research Introduction to Primary Research Methods for Feasibility Analysis StudiesMethods for Feasibility Analysis Studies

Primary research in the context discussed here involves Primary research in the context discussed here involves interacting with people outside of the class and often outside interacting with people outside of the class and often outside of the Universityof the University

Keep in mind that you are asking people to voluntarily take Keep in mind that you are asking people to voluntarily take their their time to help time to help youyou

For the purposes of this class project, please realize that you For the purposes of this class project, please realize that you are representing UD and the School of Business are representing UD and the School of Business

Also, when conducting research such as this in the “real Also, when conducting research such as this in the “real world”, you are representing your organization or new venture world”, you are representing your organization or new venture Please be sure to conduct yourself in a courteous and professional Please be sure to conduct yourself in a courteous and professional

manner when interacting with people for help with your research manner when interacting with people for help with your research undertakingsundertakings

Not only will you gain their respect and maintain your professional Not only will you gain their respect and maintain your professional reputation, but you will also increase the likelihood that they will assist reputation, but you will also increase the likelihood that they will assist you in your researchyou in your research

You might also gain a customer or enhance your network of professional You might also gain a customer or enhance your network of professional contactscontacts

General Research FlowGeneral Research Flow Determine Determine whowho you need to study (e.g., users, investors, industry you need to study (e.g., users, investors, industry

folks, etc.)folks, etc.) Determine Determine how how best to study them (e.g., survey, interview, focus best to study them (e.g., survey, interview, focus

group, etc.)group, etc.) Develop Develop what what instruments you will use (e.g., surveys, focus instruments you will use (e.g., surveys, focus

group/interview questions, etc.)group/interview questions, etc.) Identify a specific sample of individuals to studyIdentify a specific sample of individuals to study

Select a sub-sample and pre-test (e.g., pilot test) your instrument with a Select a sub-sample and pre-test (e.g., pilot test) your instrument with a couple of individuals within the sample (particularly important for survey couple of individuals within the sample (particularly important for survey studies) studies)

Conduct the research (e.g., survey the full sample)Conduct the research (e.g., survey the full sample) Analyze the data (e.g., use MS Excel/data analysis software to Analyze the data (e.g., use MS Excel/data analysis software to

determine results)determine results) Determine the substantive meaning of your results (e.g., what did Determine the substantive meaning of your results (e.g., what did

you learn about what you were studying—what, in words, do your you learn about what you were studying—what, in words, do your results tell you about your business concept, your target market, results tell you about your business concept, your target market, etc.)etc.)

Tabulate these results in a form easily interpreted by your audience Tabulate these results in a form easily interpreted by your audience (e.g., for investor presentations, for the business plan, etc.)(e.g., for investor presentations, for the business plan, etc.)

Who to StudyWho to Study Depends on the purpose of your study and the Depends on the purpose of your study and the

availability of your populationavailability of your population Try to study as many people as possible relevant to your Try to study as many people as possible relevant to your

business concept (e.g., industry experts, competitors, business concept (e.g., industry experts, competitors, users, suppliers, etc.)users, suppliers, etc.)

If you cannot directly study your desired population (e.g., If you cannot directly study your desired population (e.g., users, etc.) don’t just quit. Try to study other relevant users, etc.) don’t just quit. Try to study other relevant industry/market participants.industry/market participants.

How many people should I study?How many people should I study? The more the better—studying more individuals generate The more the better—studying more individuals generate

more valid and generalizable research resultsmore valid and generalizable research results

Depends on the types of analyses conducted (e.g., more Depends on the types of analyses conducted (e.g., more sophisticated analyses (e.g., regression) require larger sophisticated analyses (e.g., regression) require larger samples) samples)

How do I Study my How do I Study my Population?Population?

The most common The most common primaryprimary research methods research methods are:are: Informally talking with people (e.g., true Informally talking with people (e.g., true social social

networking)networking) Focus groups Focus groups Personal interviews Personal interviews Surveys (our focus today)Surveys (our focus today)

Telephone surveys Telephone surveys Mail surveysMail surveys Email surveys Email surveys Internet surveysInternet surveys

Where unable to use primary research, try to Where unable to use primary research, try to find secondary research on your topic of interest find secondary research on your topic of interest (e.g., publications, others’ research, etc.)(e.g., publications, others’ research, etc.)

What Instruments: Personal What Instruments: Personal InterviewsInterviews

Good method to get in-depth and comprehensive informationGood method to get in-depth and comprehensive information Often used when the population is very small (e.g., businesses) or for a Often used when the population is very small (e.g., businesses) or for a

niche marketniche market

Also useful if unable to directly study the population of interest or when Also useful if unable to directly study the population of interest or when subjects are not likely to respond to other survey methodssubjects are not likely to respond to other survey methods

The interviewer should ask questions from a written questionnaire and The interviewer should ask questions from a written questionnaire and record answers verbatim (for guidelines on questions, see the record answers verbatim (for guidelines on questions, see the subsequent survey slides)subsequent survey slides) To obtain the most valid results, all interviews should be conducted in the To obtain the most valid results, all interviews should be conducted in the

exact same way (e.g., same order of questions, same interviewer, same exact same way (e.g., same order of questions, same interviewer, same answer recording method, etc.)answer recording method, etc.)

Various types of questions (e.g., Likert-type, open ended, etc.) can be Various types of questions (e.g., Likert-type, open ended, etc.) can be used during interviewsused during interviews Open-ended questions will generate the most in-depth information, but can Open-ended questions will generate the most in-depth information, but can

also sometimes lead to difficulties identifying consistencies across also sometimes lead to difficulties identifying consistencies across intervieweesinterviewees

Open-ended questions also sometime present difficulties when presenting data Open-ended questions also sometime present difficulties when presenting data to external others like investorsto external others like investors

Likert-type questions are the easiest to identify consistencies and to Likert-type questions are the easiest to identify consistencies and to present the data present the data

What Instruments: SurveysWhat Instruments: SurveysSurveys are generally administered in written Surveys are generally administered in written

form and they must have two important qualities form and they must have two important qualities to be of useto be of use

1. They contain questions, called 1. They contain questions, called itemsitems, that will properly , that will properly and effectively elicit the information of interestand effectively elicit the information of interest Item wording is important Item wording is important Item sequence is importantItem sequence is important Survey aesthetic appearance is importantSurvey aesthetic appearance is important

2.2. They have a protocol for recording and analyzing the They have a protocol for recording and analyzing the responsesresponses

Surveys will usually be accompanied by a cover Surveys will usually be accompanied by a cover letter explaining the purposes of the research and letter explaining the purposes of the research and what is expected of the participantwhat is expected of the participantCertain guidelines should be followed when Certain guidelines should be followed when

constructing a cover letter that accompanies a surveyconstructing a cover letter that accompanies a survey

Surveys: Guidelines on Surveys: Guidelines on Survey ItemsSurvey Items

Three basic factors to consider when developing survey items:Three basic factors to consider when developing survey items:1. Item wording is important: 1. Item wording is important:

Keep the respondent in mindKeep the respondent in mind: be sure that participants can answer the questions you : be sure that participants can answer the questions you askask

Make it simpleMake it simple: Make sure that the words in each item are understandable to : Make sure that the words in each item are understandable to respondents (e.g., don’t use “big words” when surveying children)respondents (e.g., don’t use “big words” when surveying children)

Be specificBe specific: Don’t assume respondents share your frame of reference. Be sure to : Don’t assume respondents share your frame of reference. Be sure to provide specifics related to the who, what, when, where, and how to specify the context provide specifics related to the who, what, when, where, and how to specify the context of responses to the itemsof responses to the items

Be honestBe honest: Do not lead respondents to the answer you hope will occur: Do not lead respondents to the answer you hope will occur Words to avoidWords to avoid: :

AbsolutesAbsolutes: words like : words like always, never, everyone, all,always, never, everyone, all, etc. create problems because statements etc. create problems because statements including them are almost always falseincluding them are almost always false

AndAnd: “and” usually signals that the item is assessing : “and” usually signals that the item is assessing two two ideas—double-barreled question. These ideas—double-barreled question. These are problematic because responses may vary depending on which “barrel” is being consideredare problematic because responses may vary depending on which “barrel” is being considered

YouYou. When using “you” clearly specify which “you” is being referred to. Is it “you” the individual, . When using “you” clearly specify which “you” is being referred to. Is it “you” the individual, the group of consumers the “you” represents, the organization within which “you” works, etc.the group of consumers the “you” represents, the organization within which “you” works, etc.

Adjectives describing frequency. Adjectives describing frequency. Words like “occasionally”, “sometimes”, “often”, mean Words like “occasionally”, “sometimes”, “often”, mean different things to different people. Use numerical values when possible to obtain numerical different things to different people. Use numerical values when possible to obtain numerical information information ““Please indicate how many hours a week do you use a computer: ___ hours” or Please indicate how many hours a week do you use a computer: ___ hours” or ““Approximately how many hours a week do you use a computer?Approximately how many hours a week do you use a computer?

□ □ 1-2 hours per week1-2 hours per week □ □ 3-5 hours per week3-5 hours per week

□ □ 6-10 hours per week 6-10 hours per week □ □ More than 10-house per weekMore than 10-house per week

Surveys: Guidelines on Surveys: Guidelines on Survey ItemsSurvey Items

Three basic factors to consider when developing survey Three basic factors to consider when developing survey items:items:

2.2. Item sequence is important: Item sequence is important: Respondents are often hesitant to begin and complete a questionnaire, Respondents are often hesitant to begin and complete a questionnaire,

and item order often impacts their decision to begin and most certainly and item order often impacts their decision to begin and most certainly impacts their willingness to complete the surveyimpacts their willingness to complete the survey

It is helpful to start with items that are easy and interesting to completeIt is helpful to start with items that are easy and interesting to complete

Be sure that items follow comfortably from the previous question Be sure that items follow comfortably from the previous question Writing a questionnaire is similar to writing anything else, so transitions Writing a questionnaire is similar to writing anything else, so transitions

between questions should be smooth between questions should be smooth

Group similar questions together to make the questionnaire easier to completeGroup similar questions together to make the questionnaire easier to complete

Those that jump between unrelated topics are not likely to produce high Those that jump between unrelated topics are not likely to produce high response ratesresponse rates

Ask for demographic information lastAsk for demographic information last People are often reluctant to provide personal information and asking for it last increases People are often reluctant to provide personal information and asking for it last increases

the likelihood that they will complete it because they have already committed to the earlier the likelihood that they will complete it because they have already committed to the earlier part of the questionnairepart of the questionnaire

Also, you will have gained useful information about the respondent (e.g., perceptions of Also, you will have gained useful information about the respondent (e.g., perceptions of your business concept, purchase intentions, etc.) even if they do not provide personal your business concept, purchase intentions, etc.) even if they do not provide personal informationinformation

Surveys: Guidelines on Surveys: Guidelines on Survey ItemsSurvey Items Three basic factors to consider when developing survey Three basic factors to consider when developing survey

items:items:

3. Survey aesthetic appearance is important3. Survey aesthetic appearance is important Avoid clutter and be consistentAvoid clutter and be consistent

Be sure that there is enough “white space” on each page so that the survey doesn’t Be sure that there is enough “white space” on each page so that the survey doesn’t look overwhelminglook overwhelming

Maintain consistency in formatting and style across the surveyMaintain consistency in formatting and style across the survey

Place instructions exactly where that information is needed and not at the Place instructions exactly where that information is needed and not at the beginning of the questionnaire beginning of the questionnaire

Place items with the same response categories together (e.g., 5-point, Place items with the same response categories together (e.g., 5-point, Likert-type items)Likert-type items)

Maintain symmetry across survey (e.g., have response areas symmetrically Maintain symmetry across survey (e.g., have response areas symmetrically aligned across the survey questions)aligned across the survey questions)

Use an easy-to-read font and font size (which may vary depending upon Use an easy-to-read font and font size (which may vary depending upon your target audience—people with sight problems might require a larger your target audience—people with sight problems might require a larger font)font) Times New Roman and Arial fonts with no less than 12-point font size is Times New Roman and Arial fonts with no less than 12-point font size is

appropriateappropriate

Use highly contrasting font color and paper color (you can’t go wrong with white Use highly contrasting font color and paper color (you can’t go wrong with white paper and black font color)paper and black font color)

Surveys: Surveys: Protocol for Recording Protocol for Recording ResponsesResponses

Deals with the numerical coding scheme(s) (called “scaling” used to enter Deals with the numerical coding scheme(s) (called “scaling” used to enter the data into the data analysis software—choose a scale that allows for the the data into the data analysis software—choose a scale that allows for the type of information neededtype of information needed

Highly dependent upon what types of information you are trying to collectHighly dependent upon what types of information you are trying to collect Example: If you are trying to determine the percentage of people in your Example: If you are trying to determine the percentage of people in your

population that would likely purchase your offering, you might ask the following:population that would likely purchase your offering, you might ask the following:

If you surveyed 30 people and 10 said yes, 10 no, and 10 don’t know, you could If you surveyed 30 people and 10 said yes, 10 no, and 10 don’t know, you could calculate the % of consumers that would likely purchase your product (e.g., 33%)calculate the % of consumers that would likely purchase your product (e.g., 33%)

With this type of item “scaling” you will primarily interpret the data as a measure With this type of item “scaling” you will primarily interpret the data as a measure of central tendency (e.g., means, medians, modes, etc.) (e.g., if the mean response of central tendency (e.g., means, medians, modes, etc.) (e.g., if the mean response was a 3.5, it is somewhat difficult to determine the substantive meaning of that was a 3.5, it is somewhat difficult to determine the substantive meaning of that data in this context)data in this context)

Based on the product description provided above, would you be likely to Based on the product description provided above, would you be likely to purchase this product? (please check the most appropriate response purchase this product? (please check the most appropriate response below)below)

YesYes NoNo Don’t KnowDon’t Know

Based on the product description provided above, please indicate how Based on the product description provided above, please indicate how likely you would be to purchase this product? (please circle your likely you would be to purchase this product? (please circle your response below)response below)

Highly likelyHighly likely Not likely at allNot likely at all

11 22 33 44

Surveys: Accompanying Cover Surveys: Accompanying Cover LetterLetter

The cover letter is an essential part of a survey and should be the first page The cover letter is an essential part of a survey and should be the first page of the survey distributed to participantsof the survey distributed to participants If using email, the email text will constitute the cover letter and should include all If using email, the email text will constitute the cover letter and should include all

components listed below except for the datecomponents listed below except for the date If using internet surveys and no email, be sure that the cover letter content is one If using internet surveys and no email, be sure that the cover letter content is one

of the first pages that respondents will viewof the first pages that respondents will view To a large degree, the cover letter will affect if the respondent completes To a large degree, the cover letter will affect if the respondent completes

the questionnairethe questionnaire It is important to maintain a friendly toneIt is important to maintain a friendly tone

Remember that you are asking the person for Remember that you are asking the person for their helptheir help The importance of the cover letter should not be underestimatedThe importance of the cover letter should not be underestimated

It also provides an opportunity to persuade the respondent to complete the surveyIt also provides an opportunity to persuade the respondent to complete the survey Main components of a survey cover letterMain components of a survey cover letter

1.1. DateDate

2.2. Salutation (e.g., “Dear Participant”)Salutation (e.g., “Dear Participant”)

3.3. Briefly describe the purpose of the survey (e.g., why you are asking for them to complete a Briefly describe the purpose of the survey (e.g., why you are asking for them to complete a survey), how long it should take to complete (e.g., how many minutes), and who is survey), how long it should take to complete (e.g., how many minutes), and who is soliciting them (e.g., who you are) soliciting them (e.g., who you are)

4.4. Brief description of why their responses are important for the researchBrief description of why their responses are important for the research

5.5. Describe your "confidentiality/anonymity" policy (e.g., that their responses will be Describe your "confidentiality/anonymity" policy (e.g., that their responses will be confidential)confidential)

6.6. An indication of who to contact if they have questionsAn indication of who to contact if they have questions

7.7. Real signature(s) when possibleReal signature(s) when possible

Survey Research MethodSurvey Research Method After drafting the cover letter and survey that meets After drafting the cover letter and survey that meets

the criteria discussed, conduct a pre-test (e.g., pilot the criteria discussed, conduct a pre-test (e.g., pilot test) of the surveytest) of the survey Ask 2-3 people from the target population to complete the Ask 2-3 people from the target population to complete the

surveysurvey Ask them to time themselves so you can include that Ask them to time themselves so you can include that

information in the final cover letterinformation in the final cover letter After they complete the survey, ask that they provide you After they complete the survey, ask that they provide you

feedback about the surveyfeedback about the survey Was the cover letter clear and was the survey too difficult to Was the cover letter clear and was the survey too difficult to

complete?complete? Did they understand how to complete the survey?Did they understand how to complete the survey? Did they have any problems or was anything frustrating?Did they have any problems or was anything frustrating? Any other feedback that they would like to provideAny other feedback that they would like to provide

After receiving the feedback from the pilot test, integrate After receiving the feedback from the pilot test, integrate appropriate changes into the final form of the cover appropriate changes into the final form of the cover letter/survey and distribute to the final sample of the target letter/survey and distribute to the final sample of the target populationpopulation

Surveys: Some CautionsSurveys: Some CautionsBe sure that the survey and cover letter Be sure that the survey and cover letter

content is written properly—be sure to content is written properly—be sure to proofread the document several timesproofread the document several times

Before doing an email or internet survey, Before doing an email or internet survey, carefully consider the effect that this carefully consider the effect that this method might have on your results method might have on your results

For example, if you were studying the For example, if you were studying the purchase intentions of a technology-training purchase intentions of a technology-training service targeted to senior citizens, using service targeted to senior citizens, using email or the internet might bias your resultsemail or the internet might bias your results

Tabulating ResultsTabulating ResultsWhen presenting data via presentations, When presenting data via presentations,

the business plan, or other venture the business plan, or other venture documents, be sure to be consistent in the documents, be sure to be consistent in the presentation of the results and to use presentation of the results and to use easily interpretable formattingeasily interpretable formatting

Use graphical representations as Use graphical representations as necessarynecessaryBe honest—don’t try to adjust graph scaling to Be honest—don’t try to adjust graph scaling to

make the data appear more favorablemake the data appear more favorableBe sure to define unclear variables, Be sure to define unclear variables,

scaling used, analyses, or statistical terms scaling used, analyses, or statistical terms as necessaryas necessary

Representing Results: Some Representing Results: Some ExamplesExamples

Question 1: Likelihood of using Product/Service

Average Response: 5.39

0 2 4 6 8 10 12 14 16

1

2

3

4

5

6

7

Rati

ng

Number Responding

Question 1: Likelihood of using Product/Service

RatingNumber

Responding

1 (very likely) 0

2 1

3 4

4 10

5 4

6 15

7 (unlikely) 12

Total Respondents: 46

Average Response: 5.39

Representing Results: Some Representing Results: Some ExamplesExamples

Example of Summary Tables Including Multiple Questions

Question ScaleNumber of

RespondentsAverage Rating

1. How likely would you be to use the product/service we provide?

1 to 7, with 1 being very likely and 7 being unlikely

46 5.39

2. How likely do you think people different from yourself would be to use the product/service that we provide?

1 to 7, with 1 being very likely and 7 being unlikely

47 4.57

Question 1: Likelihood of you using

Product/Service

Question 2: Likelihood of Others using

Product/Service

Rating Responses Responses

1 (very likely) 0 3

2 1 7

3 4 10

4 10 2

5 4 0

6 15 15

7 (unlikely) 12 10

Total Respondents: 46 47

Average Response: 5.39 4.57

AppendicesAppendices

Some Notes about Some Notes about

Talking with People and Talking with People and Focus GroupsFocus Groups

What Instruments: Talking with What Instruments: Talking with PeoplePeople

A good way to get information during the initial A good way to get information during the initial stages of researchstages of research Can be used to gather non-public information, or Can be used to gather non-public information, or

information that is too new to be in secondary research information that is too new to be in secondary research

Should be used in combination with other research Should be used in combination with other research methods (e.g., focus groups, in-depth interviews, surveys, methods (e.g., focus groups, in-depth interviews, surveys, etc.)etc.)

ExamplesExamples: meetings with prospective users, : meetings with prospective users, suppliers, and other conversations at trade shows, suppliers, and other conversations at trade shows, seminars, and association meetingsseminars, and association meetings

Caution: Caution: Although valuable, the information can Although valuable, the information can be suspect because it is very subjective and might be suspect because it is very subjective and might not truly represent your populationnot truly represent your population

What Instruments: What Instruments: Focus GroupFocus Group

Used for preliminary research to explore peoples’ ideas and attitudesUsed for preliminary research to explore peoples’ ideas and attitudes A group of 6 to 20 people meet in a conference-room-like setting with A group of 6 to 20 people meet in a conference-room-like setting with

a trained moderatora trained moderator People should be selected based on their membership to the population of People should be selected based on their membership to the population of

interestinterest Requires identifying a sample of the population and recruiting a sub-set to Requires identifying a sample of the population and recruiting a sub-set to

volunteervolunteer Generally requires some sort of incentive (e.g., money, gifts, etc.)Generally requires some sort of incentive (e.g., money, gifts, etc.) Primarily useful when used in combination with other methods (e.g., Primarily useful when used in combination with other methods (e.g.,

surveys)surveys)

The moderator leads the discussion and keeps the focus on the areas The moderator leads the discussion and keeps the focus on the areas under studyunder study Be sure to cover all topics of interest and allow for free discussionBe sure to cover all topics of interest and allow for free discussion

CautionsCautions: : Sample is small, usually self-selected, and may not be representative of Sample is small, usually self-selected, and may not be representative of

populationpopulation Must be careful of “group think” or the influence of others within the groupMust be careful of “group think” or the influence of others within the group If multiple focus groups conducted, maintain moderator consistencyIf multiple focus groups conducted, maintain moderator consistency