MARKETING RESEARCH

CHAPTERS 4: Exploratory Research Design: Secondary Data5. Exploratory Research Design: Syndicated Sources of Secondary Data6. Exploratory Research: Qualitative Research

Primary vs Secondary Data

• Exploratory research is used to gather insight.

• Often, secondary data sources are used. Secondary data represent any data that have already been collected for purposes other than the problem at hand.

• Primary data are new data you collect to help solve the problem at hand.

• . Primary Data Secondary Data

Collection purposeFor the problem at hand

For other problems

Collection process Very involved Rapid and easy

Collection cost High Relatively low

Collection time Long Short

Table 4.1 A Comparison of Primary and Secondary Data

Primary vs Secondary Data: Advantages of Secondary Data

• Identify problem

• Better understand the problem

• Develop an approach to the problem

• Formulate an appropriate research design

• Help answer research questions and help formulate hypotheses

• Interpret primary data with more insight

Primary vs Secondary Data: Problems of Secondary Data

• Must identify the methodology used to collect the secondary data.

• Must check the accuracy of the data.

• Must check the timeliness of the data

• Must check the purpose for which the data were collected.

• Must understand the content of the data.

• Must assess the dependability of the data.

Primary vs Secondary Data:Types and Sources

Secondary Data

InternalExternal

Ready to Use

Requires Further Processing

Published

Syndicated

Computerized

• Database marketing involves using computers to capture and track customer profiles and purchase detail.

• Some of these give free access and others are syndicated. Some may give customized reports for which you must pay.

Primary vs Secondary Data:Types and Sources: Continued

Computerized Databases

Online Offline

Special Purpose Databases

Directory Databases

Full-TextDatabases

BibliographicDatabases

Numeric Databases

Figure 4.6 A Classification of Computerized Databases

Classification of Computerized Databases

• Bibliographic databases are composed of citations to articles.

• Numeric databases contain numerical and statistical information.

• Full-text databases contain the complete text of the source documents comprising the database.

• Directory databases provide information on individuals, organizations, and services.

• Special-purpose databases provide specialized information.

Primary vs Secondary Data:Types and Sources: Continued

• You may go online to investigate some of these databases:

• http://www.rrdonnelley.com

• http://www.experian.com

• http://www.polk.com

Published External Secondary DataGuides• An excellent source of standard or recurring information• Helpful in identifying other important sources of directories, trade

associations, and trade publications• One of the first sources a researcher should consult• Examples: Business Information Sources, Encyclopedia of

Business Information Sources

Directories• Helpful for identifying individuals or organizations that collect

specific data• Examples: Consultants and Consulting Organizations Directory,

Encyclopedia of Associations, FINDEX: The Directory of Market Research Reports, Studies and Surveys

Indices• Helpful in locating information on a particular topic in several

different publications• Examples: Business Index, Business Periodical Index

Primary vs Secondary Data:Types and Sources: Continued

• General Business Data

• Government Sources

• Internet Databases

• Offline Databases

Exploratory Research Design: Syndicated Sources of Secondary

Data

• Syndicated sources are companies that collect and sell common pools of data designed to serve information needs shared by a number of clients, including competing firms in the same industry.

Exploratory Research Design: Syndicated Sources of Secondary

Data-Types

• Surveys

• Diary purchase panels

• Diary media panels

• Scanner volume tracking

• Scanner diary panels with cable tv

• Audit services

Syndicated ServicesType Characteristics Advantages Disadvantages UsesSurveys Surveys conducted at

regular intervalsMost flexible way of obtaining data; information on underlying motives

Interviewer errors; respondent errors

Market segmentation, advertising theme selection and advertising effectiveness

Purchase Panels

Households provide specific information regularly over an extended period of time; respondent asked to record specific behaviors as they occur

Recorded purchase behavior can be linked to the demographic/ psychographic characteristics

Lack of representativeness; response bias; maturation

Forecasting sales, market share and trends; establishing consumer profiles, brand loyalty and switching; evaluating test markets, advertising, and distribution

Media Panels Electronic devices automatically recording behavior, supplemented by a diary

Same as purchase panel

Same as purchase panel

Establishing advertising rates; selecting media program or air time; establishing viewer profiles

Type Characteristics Advantages DisadvantagesScanner Volume Tracking Data

Household purchases are recorded through electronic scanners in supermarkets

Data reflect actual purchases; timely data, less expensive

Data may not be representative; errors in recording purchases; difficult to link purchases to elements of marketing mix other than price

Scanner Diary Panels with Cable TV

Scanner panels of households that subscribe to cable TV

Data reflect actual purchases; sample control; ability to link panel data to household characteristics

Data may not be representative; quality of data limited

Exploratory Research Design: Qualitative Research

• Qualitative Research: an unstructured, exploratory research methodology based upon small samples, which provides insights and understanding of the problem setting.

• Quantitative Research: a research methodology that seeks to quantify the data and, typically, applies some form of statistical analysis

Qualitative vs Quantitative

Objective

Sample

Data Collection

Data Analysis

Outcome

Qualitative Research

To gain a qualitative understanding of the underlying reasons and motivations

Small number of non-representative cases

Unstructured

Non-statistical

Develop an initial understanding

Quantitative Research

To quantify the data and generalize the results from the sample to the population of interest

Large number of representative cases

Structured

Statistical

Recommend a final course of action

Exploratory Research Design: Qualitative Research

Qualitative Research Procedures

Direct Indirect

Focus Groups Depth Interviews Projective Techniques

Association Completion Construction Expressive

Focus Groups

• Group Size 8-12

• Group Composition Homogeneous, respondents,prescreened

• Physical Setting Relaxed, informal atmosphere

• Time Duration 1-3 hours

• Recording Use of audiocassettes and videotapes

• Moderator Observational, interpersonal, and communication skills of the

moderator

Procedure for Planning and Conducting Focus Groups

Determine the Objectives and Define the Problem

Specify the Objectives of Qualitative Research

Develop a Moderator’s Outline

Conduct the Focus Group Interviews

Review Tapes and Analyze the Data

Summarize the Findings and Plan Follow-Up Research or Action

State the Objectives/Questions to be Answered by Focus Groups

Write a Screening Questionnaire

Variations in Focus Groups• Respondent-moderator group. The moderator asks

selected participants to play the role of moderator temporarily to improve group dynamics.

• Client-participant groups. Client personnel are identified and made part of the discussion group.

• Mini groups. These groups consist of a moderator and only 4 or 5 respondents.

• Tele-session groups. Focus group sessions by phone using the conference call technique.

• Online Focus groups. Focus groups conducted online over the Internet.