Exploratory Research & Secondary Data

1. Exploratory Research & Secondary Data

2. 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

3. 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)

4. 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)

5. 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)?

6. 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

7. Literature Reviews/Secondary Data • Secondary Data -- data gathered for purposes other than the present study • Advantages • Cheap in terms of time and money • Disadvantages • Data Fit • Accuracy

8. 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

9. 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

10. 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)

11. Literature Reviews/Secondary Data • Secondary Data (External) • Library Sources (Magazines and Other Publications – many on Internet) • Government Sources • Census data • State/Country economic data

12. Literature Reviews/Secondary Data • Secondary Data (External) • Standardized Marketing Information Services • Market Share Data • Nielsen Retail Index

13. 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?

14. 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

15. 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 Consumer PanelTracking what happens in the home

16. ACNielsen Links Store Data to the Consumer Behind the Purchase • Who buys what • Where do they shop • How often do they shop • What’s in the shopping basket • How loyal are shoppers • Are shoppers switchers • What brand sold • At what price • Under what conditions • (e.g., coupon used?) Consumer Panel RetailMeasurement

17. 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 -- don’t limit their responses

18. 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

19. Other Types of Exploratory Research • Unstructured Methods (e.g., Qualitative Research) -- a collection of various small scale techniques that uses sampling but non-rigorous standards

20. Types of Exploratory Research • Unstructured Methods • Depth Interviews -- unstructured extensive interview in which the researcher probes for in-depth answers to questions • Requires a skilled interviewer and sometimes multi-media equipment

21. 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

22. 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

23. 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) • Allow on-line WOMC • Monitor and get ideas and insights • Built-in research participants • Sound out ideas

24. Assignment • Briefly “design” an on-line community for Laczniak Yogurt • Objectives • What “data” would you gather from members? EXPLAIN.