Exploratory Research

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Exploratory Research
MKTG 3710 Audhesh Paswan
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Chapter 6
Secondary Data and Online Information Databases
MKTG 3710 Audhesh Paswan
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Primary Versus Secondary Data

• Primary data information that is developed or
  gathered by the researcher specifically for the
  research project at hand
• Secondary data information that has previously
  been gathered by someone other than the
  researcher and/or for some other purpose than the
  research project at hand

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Classification of Secondary Data

• Internal secondary data data that have been
  collected within the firm
• Internal databases databases (collection of data
  and information describing items of interest)
  consisting of information gathered by a company
  typically during the normal course of business
  transactions
• External secondary data data obtained from
  outside the firm
• Published
• Syndicated Services Data
• External Databases

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Classification of External Secondary Datacont.

• Published sources of information prepared for
  public distribution and found in libraries or a
  variety of other entities
• Syndicated Services Data data provided by firms
  that collect data in a standard format and make
  them available to subscribing firms
• External Databases databases provided by outside
  firms many are now available online (online
  information databases)
• Bibliographic databases..citations by subject,
  i.e. ABI Inform, EBSCOhost, Science Direct etc.
• Numeric or statistical databases, 2000 Census
• Directory or list databases
• Comprehensive databases, Contain all of the
  above, i.e.Lexis-Nexis

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Dis/Advantages of Secondary Data

• Advantages
• Obtained quickly
• Inexpensive
• Usually available
• Enhances existing primary data
• Disadvantages
• Mismatch of the units of measurement (All
  restaurants may be Eating Drinking Places)
• Differing classification definitions (Income
  reported only up to 50,000 over)
• Timeliness of secondary data
• Lack of information to assess the credibility of
  the reported data
• Some interest groups have names that are
  intentionally misleading so that readers of their
  research cannot identify any hidden motives
  underlying their research findings

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Evaluating Secondary Data

• What was the purpose of the study?
• Who collected the information?
• What information was collected?
• How was the information obtained?
• How consistent is the information with other
  information?

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Locating Secondary Data Sources

• Step 1 Identify what you wish to know and what
• you already know about your topic.
• Step 2 Develop a list of key words and names.
• Step 3 Begin your search using several library
• sources.
• Step 4 Compile the literature you have found and
• evaluate your findings.
• Step 5 If you are unhappy with what you have
  found or are
• otherwise having trouble and the reference
  librarian
• has not been able to identify sources, use an
• authority.
• Step 6 Report results.

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Key Sources of Secondary Data for
Marketers Survey of Buying Power

• Effective Buying Income (EBI) is income after
  taxes
• Buying Power Index (BPI)
• How to calculate BPI
• BPI (Population of Market Area A/Total U.S.
  Population 2)
• (EBI of Market Area A/Total U.S. EBI) 5
• (Retail Sales of Market Area A/Total U.S.
  Retail Sales) 3
• Demographics USA provides several other indices
  for measuring a markets buying power, i.e.
  Hi-Tech BPI, Manufacturing BPI, and BPIs for
  Premium, Moderate and Economy Priced products.

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Chapter 7
Standardized Information Sources
MKTG 3710 Audhesh Paswan
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What is standardized information?

• Standardized information type of secondary data
  in which the data collected and/or the process of
  collecting data are standardized for all users
• 1. Syndicated data data that are collected in a
  standard format and made available to all
  subscribers, i.e. Nielsen Television Index
• 2. Standardized services a standardized
  marketing research process that is used to
  generate information for a particular user, i.e.
  ACORN segmentation system

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ACNielsens Scantrack Services collects scanning
data weekly from over 4800 stores and makes this
data available to all who subscribe to their
service. This is an example of syndicated
data data arethe same for all
subscribers.Read more about this service
athttp//www.acnielsen.com/products/reports/scant
rack/
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Claritas offers Standardized Information Services
(process is same data are different)

• PRIZM identifies target customers at the census
  block level
• MicroVision Banking
• Classifies all households into 31segments
  based upon financial services

• ConneXions classifies households for video,
  voice and data services
• Go to www.claritas.com to see their many other
  services

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Dis/Advantages of Syndicated (Standardized) Data

• Advantages
• Shared costs
• High quality of data
• Speed with which data are collected and made
  available for decision making
• Disadvantages
• Little control over what data are collected
• Buyers must commit to long-term contracts
• Competitors have access to the same information

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Dis/Advantages of Standardized Information
Services

• Advantages
• Using the experience of the firm offering the
  service
• Reduced cost
• Increased speed of conducting the service
• Disadvantages
• Inability to customize services
• Service firm not being knowledgeable of the
  clients industry

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Application Areas of Standardized Information

• Measuring consumer attitudes and opinion polls
• Yankelovich Monitor
• Harris Poll
• Gallup Poll
• Defining market segments
• Providing information on members of the
  industrial market
• SIC
• NAICS
• Duns Market Identifiers

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Application Areas of Standardized
Informationcont.

• Providing information on members of the consumer
  market
• VALS-2
• GIS (Geodemographic Information Systems)
• Geodemographics is the term used to describe the
  classification of arbitrary, usually small,
  geographic areas in terms of characteristics of
  their inhabitants.
• PRIZM
• Conducting market tracking
• Tracking studies are those that monitor, or
  track, a variable such as sales or market share
  over time.

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Application Areas of Standardized
Informationcont.

• Market tracking at the retail level
• ACNielsen Scantrack Services
• InfoScan Syndicated Data Service
• Retail Store Audits
• Market tracking at the household level
• Infoscans Combined Outlet Consumer Panel
• ACNielsen Homescan Panel
• Diary
• Audit

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Application Areas of Standardized
Informationcont.

• Monitoring media usage and promotion
  effectiveness
• Television
• Nielsen Television Index (NTI)
• Radio
• Arbitron
• Print
• RoperASWs Starch Readership Service
• Multimedia
• Simmons Study of Media and Markets

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New Trends

• A problem with todays IT environment is
  information overload. There is a need to help
  managers trying to digest thousands of pages of
  scanning data. How do you turn tracking data
  into intelligence?
• Research firms designed standardized information
  services to help
• IRIs Builder
• AC Nielsens Category Business Planner (see next
  slide)

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ACNielsens Category Business Planner allows
manufacturers to see how their products are
performing within each retailers own proprietary
product planning process
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Single-Source Data

• Single source data data that contain information
  on several variables such as promotional message
  exposure, demographics, and buyer behavior
• BehaviorScan An IRI panel in which consumers may
  be sent test tv commercials panel member cards
  are shown at supermarket checkout. This gives
  IRI ability to see what consumers buy as a result
  of different tv ads and in-store promotions.

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Chapter 8
Observation, Focus Groups, and Other Qualitative
Measures
MKTG 3710 Audhesh Paswan
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Research

• Quantitative research research involving the use
  of structured questions in which response options
  have been predetermined and a large number of
  respondents involved
• Qualitative research research involving
  collecting, analyzing, and interpreting data by
  observing what people do and say
• Pluralistic research combination of both
  quantitative and qualitative research methods in
  order to gain the advantages of both

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Observation Techniques

• Observation methods techniques in which the
  researcher relies on his or her powers of
  observation rather than communicating with a
  person in order to obtain information
• Types of observation
• Direct versus indirect
• Disguised versus undisguised
• Structured versus unstructured
• Human versus mechanical

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Observation Techniquescont. Direct versus
Indirect

• Direct observation observing behavior as it
  occurs
• Indirect observation observing the effects or
  results of the behavior rather than the behavior
  itself
• Archives
• Physical traces
• Structured versus unstructured
• Human versus mechanical

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Observation Techniquescont.

• Disguised observation subject is unaware that he
  or she is being observed
• Undisguised observation respondent is aware of
  observation
• Structured observation researcher identifies
  beforehand which behaviors are to observed and
  recorded
• Unstructured observation No restriction is
  placed on what the observer would note all
  behavior in the episode under study is monitored.
• Human observation observer is a person hired by
  the researcher, or, perhaps the observer is the
  researcher
• Mechanical observation human observer is
  replaced with some form of static observing device

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Observation Techniquescont. Appropriate
Conditions Advantages, and Limitations

• Appropriate For
• Short duration
• Public
• Faulty recall conditions
• Advantages
• Insight into actual, not reported, behaviors
• No chance for recall error
• Better accuracy
• Less cost
• Limitations
• Small number of subjects
• Subjective interpretations
• Inability to pry beneath the behavior observed
• Motivations, attitudes, and other internal
  conditions are unobserved

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Focus Groups

• Focus groups small group discussions led by a
  trained moderator
• Objectives
• Generate ideas
• Understand consumer vocabulary
• Reveal consumer needs, motives, perceptions, and
  attitudes on products and services
• Understand findings from quantitative studies

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Focus Groups Moderators Role and Responsibilities

• Focus group moderator a person who conducts the
  entire sessions and guides the flow of group
  discussion across specific topics desired by the
  client
• Characteristics
• Experienced
• Enthusiastic
• Prepared
• Involved
• Energetic
• Open-minded

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Focus Groups Reporting and Use of Focus Group
Results

• Factors to remember when analyzing data
• Some sense must be made by translating the
  qualitative statements of participants into
  categories and then reporting the degree of
  consensus apparent in the focus groups
• Demographics and buyer behavior characteristics
  of focus group participants should be judged
  against the target market profile to assess what
  degree the groups represent the target market
• A focus groups analysis should identify major
  themes as well as salient areas of disagreement
  among the participants

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Focus Groups Online Focus Groups

• Online focus group one in which the respondents
  and/or clients communicate and/or observe by use
  of the Internet
• Advantages
• No physical setup is necessary
• Transcripts are captured on file in real time
• Participants can be in widely separated
  geographical areas
• Participants are comfortable in their home or
  office environments
• The moderator can exchange private messages with
  individual participants

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Focus Groups Online Focus Groupscont.

• Disadvantages
• Observation of participants body language is not
  possible
• Participants cannot physically inspect products
  or taste food items
• Participants can lose interest or become
  distracted

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Focus Groups

• Advantages
• Generation of fresh ideas
• Client interaction
• Versatility
• Ability to tap special respondents
• Disadvantages
• Representative of the population?
• Subjective interpretation
• High cost-per-participant

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Other Qualitative Research Techniques

• Depth interview is a set of probing questions
  posed one-on-one to a subject by a trained
  interviewer so as to gain an idea of what the
  subject thinks about something or why he or she
  behaves a certain way
• Protocol analysis involves placing a person in a
  decision m-making situation and asking him or her
  to verbalize everything he or she considers when
  making a decision

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Other Qualitative Research Techniquescont.

• Projective techniques
• Word association test
• Sentence completion
• Picture test
• Cartoon or balloon test
• Role-playing activity
• Physiological measurements monitoring
  involuntary responses to stimuli via the use of
  electrodes and other equipments
• Pupilometer
• Galvonometer