research design & secondary data
TRANSCRIPT
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Chapter 3Exploratory research and qualitative analysis
Questions?
• Is it possible to make good marketing decisions without marketing research?
• Design these research:– You want to find out who plays bingo– What Uni students have for lunch– Food company wants to know what types of
food are carried in packed lunches– Heart Foundation wants to know who
donates <$500 per yr– Forecast sales of flight simulators and pilot
training over next 5 years
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What is the iceberg principle• Good or bad?:• Farm equipment manufacturer: Our
objective is to learn the most effective form of advertising so we can maximise profit.
• TV producer: We have a marketing problem. The program’s rating are low. We need to learn how to improve our ratings.
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Defining Research Design
• The detailed blueprint or plan to guide the implementation of a research study
• A research design includes:– Type of research
– Measurement and scaling
– Construct and pre-test questionnaire
– Sampling process and sample size
– Data analysis plan
– Budget and scheduling
Criteria Qualitative Research Quantitative Research
Objective To gain a rich understanding of reasons and motivations
To quantify data and generalise the results from the sample to the population of interest
Sample Small number and unrepresentative Large number and representative
Data collection Unstructured Structured
Data analysis Non-statistical, based on judgement and interpretation of the researcher
Statistical
Strength Rich source of information, can probe deeply
Can generalise results to a larger population
Weakness Can not generalise results Loss of richness of data
Outcome Develop an initial understanding Recommend a final course of action
A Classification of Marketing Research Designs
Exploratory
Research Design
Single
Cross-sectional
Design
Multiple
Cross-sectional
Design
Cross-sectional
Design
Longitudinal
Design
Descriptive
Research
Causal
Research
Conclusive
Research Design
Research DesignSource: Malhotra et al (2004), p. 63.
Research Approaches
• Exploratory
• Descriptive
• Causal
• Combination
Exploratory Research
• Explores• Provides insights into the general nature
of a problem• Little or no prior knowledge required• Highly flexible• Unstructured• Qualitative
Common Uses of Exploratory Research
• Diagnosing problems• Discovering new ideas• Screening alternatives• Gain background information• Define a problem more precisely• Identify alternative sources of action• Develop hypotheses• Isolate key variables and relationships for
further examination• Gain insight for developing an approach to
the problem• Establish priorities for further research
Methods of Exploratory Research
• Survey of experts• Analysis of secondary data• Pilot studies• Qualitative research
– Depth interviews– Focus groups
Exploratory Research: Strengths and Weaknesses
• Strengths
– ability to generate insights– clarify problems
• Weaknesses
– results cannot be generalised– should not be a basis for decision
making
Descriptive Research & Common Uses
• Major objective: the description of something - usually market characteristics or functions.
• Provides answers to questions such as Who, What, Where, When, Why and How are they related to the research problem.
• Includes studies on the market, market share, sales analysis, image, product usage, distribution, pricing, advertising
Methods of Descriptive Research
• Secondary data• Surveys• Panels• Observational and other data• Internet
Descriptive Research: Strengths and Weaknesses
• Strengths– Ability to provide an accurate description– Can be a basis for decision making
• Weaknesses– Causal links not established– Can be more expensive and time
consuming than exploratory
Forms of Descriptive Research
Cross-sectional Design• Collection of information from any given
sample of the population elements only once “snapshot”
• Often a large representative sample• Can be single or multiple cross-sectional
Forms of Descriptive Research cont.
Cohort Analysis• A series of surveys
conducted at appropriate time intervals.
• The cohort refers to the group or respondents who experience the same event within the same time interval.e.g., A study on leisure time activities of Baby Boomers.
Source: http://www.decemberfilms.com.au/Nomads/index.html
Case Study: Tweens• Research company Millward
Brown conducted over 2000 surveys spread across 11 countries on Tweens (8 to 14 year olds) to understand their relationship to brands.
• Some of the findings include:– Kids influence more than 67%
of all brands their parents buy– Tweens spent $US1 trillion
across the globe last year– Australian children watch
between 20,000 and 40, 000 television commercials a year.
Source: McCausland, V. (2003) “When Kids control the spending”, Daily Telegraph (5 July), p. 29.
Forms of Descriptive Research cont.
Longitudinal design• A type of research design involving a fixed
sample of population elements (i.e.. Panel) which is measured repeatedly over time.
• Measures changes over time. • Some potential problems include
respondent refusal to co-operate, mortality, response bias and possible payment.
Relative Advantages and Disadvantages of Longitudinal and Cross-sectional Design
Evaluation criteria Cross-sectional design Longitudinal design
Detecting change - +
Large amount of data collection
- +
Accuracy - +
Representative sampling
+ -
Response bias + -
Note: + indicates a relative advantage; whereas - indicates a relative disadvantage
Causal Research, Common Uses & Collection Methods
• Used when it is necessary to show that one variable causes or determines the value of other variables
• Experiments– Test marketing a product– Taste tests– Advertising effectiveness
Causal Research: Strengths and Weaknesses
• Strength
– Ability to establish a causal link
• Weaknesses
– Time required– Cost– Control– Secrecy
A Comparison of Basic Research Design
Exploratory Descriptive Causal
Objective Discovery of ideas and insights
To describe market characteristics
Determine cause and effect relationships
Characteristics Flexible, versatile.
Often starts the research process
Research testing hypotheses
Preplanned and structured design.
Manipulation of one or more independent variables
Hypotheses None or very vague and ill defined
Tentative and speculative
Very specific
A Comparison of Basic Research Design cont.
Exploratory Descriptive Causal
Type of data Qualitative Quantitative Quantitative
Methods Expert surveysPilot surveysCase studies Secondary dataQualitative research
Secondary dataSurveysPanelsObservational data
Experiments.
Ability to measure causality
None Can predict but can not confirm
Establishes a cause-effect relationship
A Comparison of Basic Research Design cont.
Exploratory Descriptive Causal
Sampling Often small and chosen using non-probability methods
Larger sample size, often using probability-based sampling methods
Can be generalised depending on sample size and method
Generalisability Can not be generalised
Can be generalised depending on sample size and method
Can be generalised depending on sample size and method
Cost Low Medium High
Time Quickest Moderate Longest
Debate: Qual vs QuantTourism development on Magnetic Island • The organisation wishes to determine the viability of
establishing a tourist operation with glass bottom boats, which would enable visitors to easily observe the reef.
• They approached the local University to conduct a study to determine the market for possible interest in such an operation. The specific objectives of the study would be as follows:
– To determine if there is a need and a demand for such a business.
– To determine the price customers are willing to pay for this service.
– To determine how the island’s inhabitants and other businesses on the island might view such a business.
• The organisation is interested in minimising the cost of the research.
The importance of quantitative research.
Peter Kenny, Managing Director
Colmar Brunton
Contents of a Research Brief
• Introduction and Background• Outline of previous or existing research• Research problem • Proposed research design• Reporting schedule• Proposed budget and timeline
Research Proposals
• The plan for conducting and controlling a research project.
• Also…
– summary of major decisions in research process
– contract– used to make a choice between
suppliers
Content of a Research Proposal
• Covering letter• Executive summary• Introduction and background• Problem definition• Research design• Time and cost estimates• Appendices• Reporting schedule
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Exploratory research
• Useful when researcher has limited amount of experience or knowledge about a research issue.
• Provides qualitative data focusing on words and observations.
• Conducted for three purposes:– Diagnosing a situation– Screening alternatives– Discovering new ideas.
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Diagnosing a situation
• Used to diagnose the dimensions of problems.
• Helps set priorities for research.• Gathering information an unfamiliar topic.
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Screening alternatives
• Used to determine the best alternatives when there are budget constraints.
• Concept testing: purpose is to test some sort of stimulus as a proxy for a new, revised, or repositioned product or service.
– For example, Kelvinator launched microwave ovens to cook everyday Indian meals.
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Discovering new ideas
• Used to generate ideas for new products, advertising copy etc.,
• Uncovering consumer needs– Determine what problems consumers have
with a product category.• ‘Dog food smells bad in the refrigerator.’
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Categories of exploratory research
• Experience surveys• Secondary data analysis• Case studies• Pilot studies.
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Experience surveys• Ask knowledgeable individuals about a
particular research problem — most are quite willing.
• For example, a chainsaw manufacturer and a mushroom expert.
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Secondary data analysis
• Data collected for a purpose other than the project at hand.
• Economical• Quick source for background information.
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Case study method
• Intensely investigates one or a few situations similar to the problem.
• Investigate in depth• Careful study• May require cooperation• Example of market anthropology.
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Pilot study
• A collective term for any small scale exploratory study that uses sampling but does not apply rigorous standards.
• Generates primary data but usually for qualitative analysis — qualitative research.
• Major categories include:
– Focus group interviews
– Projective techniques
– Depth interviews.
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Focus group interviews
• It is an unstructured, free–flowing interview with a small group of people.
• The group meets at a central location with a moderator who encourages discussion of a brand, advertisement, or new–product concept.
• Allow people to discuss their true feelings, anxieties, and frustrations in their own words.
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Group composition
• Six to 10 people• Relatively homogeneous• Similar lifestyles and experiences and
communication skills• Researchers who wish to collect information
from different types of people should conduct several focus groups.
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Environmental conditions
• Commercial facilities that have videotape cameras in observation rooms behind one–way mirrors and microphone systems connected to tape recorders and speakers to allow observation by others who aren’t in the room.
• Mood as relaxed and natural as possible.
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The moderator
• Develops rapport — helps people relax• Promotes interaction among its members• Listens to what people have to say• Everyone gets a chance to speak.
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Planning the focus group outline
• Discussion guide: a document prepared by the focus group moderator that contains remarks about the nature of the group and outlines the topics or questions to be addressed.
• Example and description of a discussion guide in Exhibit 3.2 on page 71.
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Advantages of a focus group
• Fast, inexpensive, and easy to execute.• Numerous topics can be discussed and many
insights can be gained.• Synergy: combined effort of the group will produce a
wider range of information, insights, and ideas.• Snowballing: bandwagon effect where a comment
from one individual triggers a chain of responses from others. Includes brainstorming.
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Advantages of a focus group
• Serendipity: more often that some idea drops out of the blue. Also greater opportunity to develop an idea to its full potential.
• Security: individual can find some comfort when others share similar feelings.
• Spontaneity: individual responses can be more spontaneous if they are not required to answer any given question.
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Shortcomings of a focus group
• Focus groups require sensitive and effective moderators.
• Since focus group participants are screened to have similar backgrounds and experiences, they many not be representative of the entire market.
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Depth interviews
• A relatively unstructured, extensive interview in which the interviewer asks many questions and probes for in – depth answers.
• Probing questions:– ‘Can you give me an example of that?’– ‘Why do you say that?’
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A warning about exploratory research
• Exploratory research cannot take the place of conclusive, quantitative research.
• This can lead to incorrect decisions.
• Interpretation of the findings typically is judgemental.
• Most exploratory techniques use small samples which may not be representative.
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Chapter 4Digital research using secondary data
The Secondary Data Search and Evaluation Process
Primary vs. Secondary DataPrimary data• Originated by the research for the specific
purpose of addressing the problem at hand.e.g., Interviewing respondents to determine their satisfaction with their Internet Service Provider
Secondary data• Data which has been collected for purposes
other than the problem at hand.e.g., ABS data reporting the proportion of Australian households who have access to the Internet.
Comparison of Primary and Secondary data
Primary Data Secondary Data
Collection purpose
Collection process
Collection cost
Collection time
For the problem at hand
Very involved[5 Steps]
High
Long
For other problems
Rapid and easy
Relatively low
Short
Uses of Secondary Data
• Could resolve the problem• Source of new ideas• Help define and/or provide better
understanding of problem• Guidance for collection of primary data• Reference point for primary data
Exhaust all appropriate secondary data sources before proceeding to
undertake primary data.
Why?
What role does secondary data play in the research you conduct at
Colmar Brunton?
Peter Kenny, Managing Director
Colmar Brunton
Other Uses of Secondary Data• Identify the problem• Better define the problem• Develop an approach to the problem• Formulate an appropriate research
design• Answer certain research questions and
test some hypotheses• Interpret primary data more insightfully• Demand estimation• Monitoring the environment• Segmentation and targeting• Developing a business intelligence
Benefits of Secondary Data• Easily accessible• Relatively inexpensive• Obtained quickly• Sometimes more accurate than primary
data• Some information is only available from
secondary sources (e.g., population of the country)
• Enhances existing primary data• Familarise the researcher with the industry• Identify concepts, data and terminology
Limitations of Secondary Data
• Collected for some other purpose• No control over data collection• May not be very accurate• Mismatching the units of measurement• Differing definitions used to clarify the data• Recency of the secondary data• Lack of information needed to assess the
credibility of the data• A number of assumptions have to be made
A Classification of Secondary Data
Ready to use Requires further
processing
Internal
Published
sources
Computerised
databases
Syndicated
services
External
Secondary Data
Internal Secondary Data• Data generated within the organisation
for which the research is being conducted.
• e.g., sales invoices, accounting data, sales reports, inventory reports, customer feedback and database, Annual reports, CRM
• Easily available and inexpensive.
Example of a customer feedback form
External Secondary Data• Data generated by sources outside the
organisation.Examples• Government publications• Government sponsored sources• Periodicals and books• Marketing and trade journals• Business magazines and newspapers• Academic publications• Syndicated data from households• Syndicated data on industry and business
Government Sources• Information published by Government • Examples
– census data– other government publications
Example of ABS Data
Source: ABS (2003) Australian Demographic Statistics, Cat. 3101.0, June, ABS, Canberra, p.18
Example of ABS Data cont.
Source: ABS (2000) Use of the Internet by Household, Cat. 8147.0, November, ABS, Canberra, p.11
Computerised Databases• Information made available in computer-
readable form for electronic distribution.
• Advantages– Current information– Faster data search– Low cost– Convenience
Examples of Computerised Databases
http://library.vu.edu.au • Academic Search Elite• ATI• Annual Reports• AusStats • Business Source Premier• Emerald Fulltext• Factiva• Market Comparative Analysis• Sport Discus• Web of knowledge
Syndicated Sources of Marketing Data
• Many information users with common information needs
• Cost of satisfying individual users is prohibitive
• Increasing use of scanner systems facilitates standardised sources
Syndicated Sources of Marketing Data cont.
• Applications:
– Measure product sales and market share
– Measure advertisement exposure and effectiveness
– Measure promotion effectiveness– Estimation and evaluation of models
Syndicated Sources of Secondary Data cont.Source: Malhotra et al (2004), p. 95.
Example of Syndicated Services
• Nielsen NetRatings• Quantum Market Research YouthSCAN• Roy Morgan Single Source Data• Grey worldwide Eye on Australia• Roy Morgan MindSets• OzTam ‘Peoplemeters’
Refer to Table 4.3 p. 99.
External Sources of Secondary Data
• Access methods– online– electronic– hard copy– experts
Refer to Table 4.2 p. 94.
Evaluating Secondary Data
• Who collected data?• Why was data collected?• How was the data collected?• What data was collected?• When was data collected?
Identifying Gaps in Information Required
• Compare information gathered with information required in research objectives
• Research objectives may sometimes be met with no need for further research
Think about this in relation to your
literature review
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Secondary data research
• Data gathered and recorded by someone else prior to and for purposes other than the current project.
• Historical• Already assembled• Needs no access to subjects.
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Advantages
• Faster and less expensive than primary data– Particularly for electronic retrieval of
digitally stored data.
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Disadvantages• Not designed specifically to meet the
researchers’ needs.• Researchers must ask how pertinent the data
are to their particular project.– Is the subject matter consistent with our
problem definition?– Do the data apply to the population of
interest?– Do the data apply to the time period of
interest?
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Evaluating secondary data
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Evaluating secondary data
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Typical objectives for secondary data research designs
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Fact–finding
• For example, a marketer of frozen food should be interested in knowing the size of the frozen pizza market.
• Identifying consumer behaviour for a product category
• Trend analysis– Example: finding a trend in online
advertising in Australia.• Environmental scanning.
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Model building• Use of secondary data to specify
relationships between two or more variables.• Extends to development of descriptive or
predictive equations.• Used to estimate market potential for
geographic areas.– Example: savoury biscuits marketer using
population data.
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Model building
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Model building
• Also used to forecast sales.– For example, Australian Recording Industry
Association uses past sales to forecast future sales.
• Used to analyse trade areas and sites.– Example:retail saturation data.
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Data mining
• Use of powerful computers to dig through volumes of data to discover patterns about an organisation’s customers and products.
• Neural networks: artificial intelligence in which a computer is programmed to mimic the way that the human brain processes information.
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Market basket analysis
• Analyses anonymous point–of–sale transaction databases to identify coinciding purchases or relationships between products purchased and other retail shopping information.
• Example: Osco Drugs discovered men buy nappies with beer.
• Customer discovery and sequence discovery.
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Marriot vacation club international
• Sells vacation time–share condos using direct mail.
• Starting with data on hotel guests, they looked at motor vehicle and property records, ages, estimated income to enrich the prospect list.
• The result was less wastage and a higher response rate.
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Sources of secondary data
• Internal and proprietary data sources originate inside the organisation.– Sales orders, customer complaints, service
records.• External data is created, recorded or
generated by an entity other that the researcher’s organisation.– Government, newspapers and journals,
trade associations.
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Information as a product and its distribution channels
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Information as a product and its distribution channels
• Libraries• The Internet• Vendors• Producers• Books and periodicals• Government sources• Media sources• Trade association sources• Commercial sources.
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A sampling of the diverse data available
• Market share and consumption and purchase behaviour data– ACNielsen with scanner–based data
• Demographic and census updates– ABS
• Consumer attitude and public opinion research– Roy Morgan Australia opinion polls
• Advertising research– OzTAM television audience ratings.
What changes have you noticed in the use of tracking
monitors?
William Burlace, Director, Media Services
Roy Morgan Research
Question:
• You have been hired by the Autism Association to learn how they can increase the number of fathers who volunteer to help with therapy for autism children?
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Why conduct exploratory research?
• Uncertainty about the precise statement of the problem that we face– Helps better understand a situation– Helps screen alternatives– Helps in coming up with new ideas
• Purpose is to crystalise the problem rather than to measure & quantify
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Qualitative ways to explore• Stories• Visual portrayals • Intrepretations• Can look at trends
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Discovering ideas.Screening alternatives?
• Exploratory research is used to find new product ideas. Eg design your own car
• When there are a number of options open to you & you need to select
• Eg new product ideas – what will work; market size, etc
• Concept testing – need to get a feel for the merits of an idea before making R&D commitments and using resources
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