Exploratory Research & Secondary Data

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Exploratory Research Secondary Data
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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

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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)

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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)

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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)?

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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

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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

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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

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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

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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)

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Literature Reviews/Secondary Data

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

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Literature Reviews/Secondary Data

• Secondary Data (External)
• Standardized Marketing Information Services
• Market Share Data
• Nielsen Retail Index

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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?

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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

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ACNielsen Consumer PanelTracking 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

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ACNielsen Links Store Data to the Consumer Behind
the Purchase

• Who buys what
• Where do they shop
• How often do they shop
• Whats 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
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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

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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

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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

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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

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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

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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

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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

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Assignment

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