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Chapter 3

Exploratory 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

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 programs rating are low. We need to learn how to improve our ratings.

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 Objective Sample

Qualitative Research
To gain a rich understanding of reasons and motivations Small number and unrepresentative

Quantitative Research
To quantify data and generalise the results from the sample to the population of interest Large number and representative Structured

Data collection Unstructured

Data analysis Strength


Weakness Outcome

Non-statistical, based on judgement and interpretation of the researcher Rich source of information, can probe deeply
Can not generalise results Develop an initial understanding

Statistical Can generalise results to a larger population


Loss of richness of data Recommend a final course of action

A Classification of Marketing Research Designs


Research Design
Source: Malhotra et al (2004), p. 63.

Exploratory Research Design

Conclusive Research Design

Descriptive Research

Causal Research

Cross-sectional Design

Longitudinal Design

Single Cross-sectional Design

Multiple Cross-sectional Design

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

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.

Forms of Descriptive Research cont.

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 Objective
Discovery of ideas and insights

Descriptive
To describe market characteristics

Causal
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 Tentative and ill defined speculative

Very specific

A Comparison of Basic Research Design cont.


Exploratory Type of data
Qualitative

Descriptive
Quantitative

Causal
Quantitative

Methods

Expert surveys Pilot surveys Case studies Secondary data Qualitative research

Secondary data Surveys Panels Observational data

Experiments.

Ability to measure causality

None

Can predict but can not confirm

Establishes a causeeffect relationship

A Comparison of Basic Research Design cont.


Exploratory Sampling Descriptive Causal
Can be generalised depending on sample size and method Can be generalised depending on sample size and method Often small and Larger sample size, chosen using non- often using probabilityprobability methods based sampling methods generalised Can be generalised depending on sample size and method

Generalisability Can not be

Cost Time

Low Quickest

Medium Moderate

High Longest

Debate: Qual vs Quant


Tourism 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 islands 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

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, freeflowing 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 newproduct 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 arent 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 4
Digital research using secondary data

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The Secondary Data Search and Evaluation Process

Primary vs. Secondary Data


Primary 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 For the problem at hand Very involved [5 Steps] For other problems Rapid and easy

Collection cost
Collection time

High
Long

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


Secondary Data

Internal

External

Ready to use

Requires further processing

Published sources

Computerised databases

Syndicated services

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 computerreadable 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

Source: Malhotra et al (2004), p. 95.

Syndicated Sources of Secondary Data cont.

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

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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Factfinding
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 organisations 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 pointofsale 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 timeshare 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 researchers 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 scannerbased data Demographic and census updates ABS Consumer attitude and public opinion research Roy Morgan Australia opinion polls Advertising research OzTAM television audience ratings.
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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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