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.