Exploratory Research & Secondary Data
Exploratory Research
What if problem cannot be defined? What if managerial problem cannot be transferred to a research problem? What if hypotheses cannot be generated? EXPLORATORY RESEARCH
Research whose primary objective is to insights into a problem situation
Exploratory Research
Objective of Exploratory Research
Gather ideas and insights for developing a better understanding of a problem Help define a problem Help develop hypotheses Establish priorities for future research Not answers
Characteristic of Exploratory Research
Flexibility (not rigid)
Types of Exploratory Research
Exploratory Research Methods
Secondary Data/Literature Reviews Experience Surveys Analysis of Stimulating Examples (i.e., Case Analyses) Unstructured Methods (i.e., Qualitative Research)
Assignment
Starbucks mission stay local with a global brand What does it mean to stay local? How can Starbucks do find that out (via research)?
Literature Reviews/Secondary Data
Literature Reviews
Review of previous studies and articles Internal and external sources should be consulted Guidelines for search
Ideas and insights -- not conclusions
Literature Reviews/Secondary Data
Secondary Data -- data gathered for purposes other than the present study
Advantages
Cheap in terms of time and money Data Fit Accuracy
Disadvantages
Literature Reviews/Secondary Data
Types of Secondary Data
Internal -- originates within the organization for which the research is being conducted
Least costly type of secondary data
External -- data found from sources external to the organization commissioning the research
Cost more than internal data, but a wealth is available
Library Sources Government Sources Syndicated Sources
Literature Reviews/Secondary Data
Internal Secondary Data
Financial Statements Sales Reports (by Region, Sales Person, Etc.) Customer Databases
Collection of data about customers developed from internal sources (could be from MR activities) Needs to be large and extensive to be effective
Literature Reviews/Secondary Data
Internal Secondary Data
Customer Databases
Data mining (use of statistical techniques to identify patterns hidden in a database) is needed
Complex statistical methods need to be used Uses of data mining Customer Acquisition -- look to identify types of customers to whom we appeal Customer Retention (Abandonment) identify customers to keep (get rid of)
Literature Reviews/Secondary Data
Secondary Data (External)
Library Sources (Magazines and Other Publications many on Internet) Government Sources
Census data State/Country economic data
Literature Reviews/Secondary Data
Secondary Data (External)
Standardized Marketing Information Services
Market Share Data Nielsen Retail Index
Nielsen Retail Index
ACNielsen provides information like the following to the grocery, health & beauty care, tobacco, snack foods and beverage industries. Sales volume - How big is my market? Trends - Is my market growing or shrinking? Shares - Are competitors taking my business? Pricing - Can I raise my price and increase profits? Brand Shifting - Who will my new products get volume from? Distribution- Can consumers find my new product? Trial and Repeat - Who is trying my new product? Will they buy it again?
Tracking What Happens at the Retailer Point of Sale . . .
ACNielsen Collects Data in:
In over 36,000 retail outlets (US)
Through Scanning and in store Auditing
ACNielsen Consumer Panel Tracking what happens in the home
61,500 Households Geographically dispersed & demographically balanced Methodology allows for all-channel and retail account analysis Projectable at the national, regional, market & account level
ACNielsen Links Store Data to the Consumer Behind the Purchase
Who buys what What brand sold At what price Under what conditions (e.g., coupon used?) Where do they shop How often do they shop Whats in the shopping basket
Consumer Panel
Retail Measurement
How loyal are shoppers Are shoppers switchers
Other Types of Exploratory Research
Experience Surveys -- attempts to tap the knowledge and experience of those familiar with the subject being investigated
Not a probability sample, a purposive sample
Sample should be comprised of people who may have ideas
Provide sample with freedom in providing insights -- dont limit their responses
Other Types of Exploratory Research
Analysis of Stimulating Examples (i.e., Case Analyses) -- an intensive study of selected cases of the phenomenon under investigation
Seek possible explanations rather than testing explanations Seek many possibilities (more better than less) Intensely analyze possibilities
Other Types of Exploratory Research
Unstructured Methods (e.g., Qualitative Research) -- a collection of various small scale techniques that uses sampling but nonrigorous standards
Types of Exploratory Research
Unstructured Methods
Depth Interviews -- unstructured extensive interview in which the researcher probes for indepth answers to questions Requires a skilled interviewer and sometimes multi-media equipment
Other Types of Exploratory Research
Focus Groups -- unstructured interview with a small group of respondents
Idea -- synergy among group members will lead to responses and ideas that would not be generated in individual settings Keys to focus group success
Moderator Purposive Sample Objective -- ideas, not answers Group Composition -- 6-10 homogeneous members Environment -- professional with ability to have researchers observe Planned, but loose, agenda
Other Types of Exploratory Research
Unstructured Methods
Projective Techniques -- Disguised unstructured method that allows respondents to project beliefs or feelings to a third party
Story-telling approach (e.g., tap childhood memories)
Nescafe Example
Other Types of Exploratory Research
Unstructured Methods
Develop on-line communities
Create membership
Gather demographic data on users Have users feel part of a community (they are not alone) Monitor and get ideas and insights
Allow on-line WOMC
Built-in research participants
Sound out ideas
Assignment
Briefly design an on-line community for Laczniak Yogurt
Objectives What data would you gather from members? EXPLAIN.
