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Chapter 3

Exploratory research and qualitative

analysis


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Questions?

Is it possible to make good marketingdecisions without marketing research?

Design these research:

You want to find out who plays bingo

What Uni students have for lunch

Food company wants to know what types offood are carried in packed lunches

Heart Foundation wants to know whodonates


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What is the iceberg principle

Good or bad?:

Farm equipment manufacturer: Ourobjective is to learn the most effectiveform of advertising so we can maximise

profit. TV producer: We have a marketing

problem. The programs rating are low.We need to learn how to improve our

ratings.

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Defining Research Design

The detailed blueprint or plan to guidethe implementation of a research study

A research design includes: Type of research

Measurement and scaling

Construct and pre-test questionnaire Sampling process and sample size

Data analysis plan

Budget and scheduling


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Criteria Qualitative Research Quantitative Research

Objective To gain a rich understanding ofreasons and motivations

To quantify data and generalise theresults from the sample to thepopulation of interest

Sample Small number and unrepresentative Large number and representative

Data collection Unstructured Structured

Data analysis Non-statistical, based on judgementand interpretation of the researcher

Statistical

Strength Rich source of information, canprobe deeply

Can generalise results to a largerpopulation

Weakness Can not generalise results Loss of richness of data

Outcome Develop an initial understanding Recommend a final course of action


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A Classification of Marketing Research Designs

Exploratory

Research Design

Single

Cross-sectional

Design

Multiple

Cross-sectional

Design

Cross-sectional

Design

Longitudinal

Design

Descriptive

Research

Causal

Research

Conclusive

Research Design

Research DesignSource: Malhotra et al (2004), p. 63.


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Research Approaches

Exploratory

Descriptive

Causal

Combination


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Exploratory Research

Explores

Provides insights into the general

nature of a problem Little or no prior knowledge required

Highly flexible

Unstructured Qualitative


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Common Uses ofExploratory Research

Diagnosing problems Discovering new ideas

Screening alternatives

Gain background information Define a problem more precisely

Identify alternative sources of action

Develop hypotheses

Isolate key variables and relationships forfurther examination

Gain insight for developing an approach tothe problem

Establish priorities for further research


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Methods of Exploratory Research

Survey of experts

Analysis of secondary data

Pilot studies Qualitative research

Depth interviews

Focus groups


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Exploratory Research:

Strengths and Weaknesses Strengths

ability to generate insights

clarify problems

Weaknesses

results cannot be generalisedshould not be a basis for decision

making


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Descriptive Research &

Common Uses Major objective: the description of

something - usually market characteristicsor functions.

Provides answers to questions such asWho, What, Where, When, Why andHow are they related to the research

problem. Includes studies on the market, market

share, sales analysis, image, product usage,distribution, pricing, advertising


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Methods of Descriptive

Research Secondary data

Surveys

Panels Observational and other data

Internet


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Descriptive Research:

Strengths and Weaknesses Strengths

Ability to provide an accurate description

Can be a basis for decision making

Weaknesses

Causal links not establishedCan be more expensive and time

consuming than exploratory


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Forms of Descriptive

ResearchCross-sectional Design

Collection of information from any given

sample of the population elements onlyonce snapshot

Often a large representative sample

Can be single or multiple cross-sectional


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Research cont.Cohort Analysis A series of surveys

conducted at appropriate

time intervals. The cohort refers to thegroup or respondentswho experience the sameevent within the sametime interval.e.g., A study on leisure timeactivities of Baby Boomers.

Source: http://www.decemberfilms.com.au/Nomads/index.html
http://www.decemberfilms.com.au/Nomads/index.htmlhttp://www.decemberfilms.com.au/Nomads/index.html


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Case Study: Tweens Research company Millward

Brown conducted over 2000surveys spread across 11countries on Tweens (8 to 14year olds) to understand

their relationship to brands. Some of the findings include:

Kids influence more than 67%of all brands their parents buy

Tweens spent $US1 trillionacross the globe last yearAustralian children watch

between 20,000 and 40, 000television commercials a year.

Source: McCausland, V. (2003) When Kids control the spending, DailyTelegraph (5 July), p. 29.


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Research cont.Longitudinal design

A type of research design involving a

fixed sample of population elements(i.e.. Panel) which is measuredrepeatedly over time.

Measures changes over time.

Some potential problems includerespondent refusal to co-operate,mortality, response bias and possible

payment.


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Relative Advantages and Disadvantages ofLongitudinal and Cross-sectional Design

Evaluation criteria Cross-sectional design Longitudinal design

Detecting change - +

Large amount of datacollection

- +

Accuracy - +

Representativesampling

+ -

Response bias + -

Note: + indicates a relative advantage; whereas - indicates a relative disadvantage


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Causal Research, Common

Uses & Collection Methods Used when it is necessary to show that

one variable causes or determines the

value of other variables

Experiments

Test marketing a product

Taste tests

Advertising effectiveness


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Causal Research: Strengths

and Weaknesses Strength

Ability to establish a causal link

Weaknesses

Time required

Cost

Control

Secrecy


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A Comparison of Basic ResearchDesign

Exploratory Descriptive Causal

Objective Discovery of ideas andinsights

To describe marketcharacteristics

Determine cause andeffect relationships

Characteristics Flexible, versatile.

Often starts theresearch process

Research testinghypotheses

Preplanned andstructured design.

Manipulation of one ormore independentvariables

Hypotheses None or very vague andill defined

Tentative andspeculative

Very specific


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A Comparison of Basic ResearchDesign cont.


Type of data Qualitative Quantitative Quantitative

Methods Expert surveysPilot surveys

Case studies

Secondary data

Qualitative research

Secondary data

Surveys

Panels

Observational data

Experiments.

Ability tomeasure

causality

None Can predict but cannot confirm

Establishes a cause-effect relationship


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A Comparison of Basic ResearchDesign cont.


Sampling Often small andchosen using non-

probability methods

Larger sample size,often using probability-

based samplingmethods

Can be generaliseddepending on sample

size and method

Generalisability Can not begeneralised

Can be generaliseddepending on samplesize and method

Can be generaliseddepending on samplesize and method

Cost Low Medium High

TimeQuickest Moderate Longest


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Debate: Qual vs Quant

Tourism development on Magnetic Island

The organisation wishes to determine the viability ofestablishing a tourist operation with glass bottom boats,which would enable visitors to easily observe the reef.

They approached the local University to conduct a study todetermine the market for possible interest in such anoperation. The specific objectives of the study would be as

follows:

To determine if there is a need and a demand for such abusiness.

To determine the price customers are willing to pay for thisservice.

To determine how the islands inhabitants and otherbusinesses on the island might view such a business.

The organisation is interested in minimising the cost of theresearch.


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The importance of quantitative research.

Peter Kenny, Managing Director

Colmar Brunton


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Contents of a Research Brief

Introduction and Background

Outline of previous or existing research

Research problem Proposed research design

Reporting schedule

Proposed budget and timeline


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Research Proposals

The plan for conducting and controllinga research project.

Alsosummary of major decisions in

research process

contractused to make a choice between

suppliers


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Content of a Research

Proposal Covering letter

Executive summary

Introduction and background Problem definition

Research design

Time and cost estimates Appendices

Reporting schedule


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Exploratory research

Useful when researcher has limited amount of

experience or knowledge about a research issue.

Provides qualitative data focusing on words and

observations. Conducted for three purposes:

Diagnosing a situation


Discovering new ideas.


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Diagnosing a situation

Used to diagnose the dimensions of

problems.

Helps set priorities for research. Gathering information an unfamiliar topic.


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Used to determine the best alternatives when

there are budget constraints.

Concept testing: purpose is to test some sort ofstimulus as a proxy for a new, revised, or

repositioned product or service.

For example, Kelvinator launched microwave

ovens to cook everyday Indian meals.


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Discovering new ideas

Used to generate ideas for new products,

advertising copy etc.,

Uncovering consumer needs Determine what problems consumers have

with a product category.

Dog food smells bad in the refrigerator.


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Categories of exploratory

research Experience surveys

Secondary data analysis

Case studies Pilot studies.


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Experience surveys

Ask knowledgeable individuals about a

particular research problem most are quite

willing.

For example, a chainsaw manufacturer and amushroom expert.


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Secondary data analysis

Data collected for a purpose other than the

project at hand.

Economical Quick source for background information.


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Case study method

Intensely investigates one or a few situations

similar to the problem.

Investigate in depth Careful study

May require cooperation

Example of market anthropology.


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Pilot study

A collective term for any small scale exploratory studythat uses sampling but does not apply rigorous

standards.

Generates primary data but usually for qualitative

analysis qualitative research.

Major categories include:

Focus group interviews

Projective techniques Depth interviews.


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Focus group interviews

It is an unstructured, freeflowing interview

with a small group of people.

The group meets at a central location with a

moderator who encourages discussion of a

brand, advertisement, or newproduct

concept.

Allow people to discuss their true feelings,anxieties, and frustrations in their own words.


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Group composition

Six to 10 people

Relatively homogeneous

Similar lifestyles and experiences andcommunication skills

Researchers who wish to collect information

from different types of people should conduct

several focus groups.


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Environmental conditions

Commercial facilities that have videotape

cameras in observation rooms behind one

way mirrors and microphone systems

connected to tape recorders and speakers toallow observation by others who arent in the

room.

Mood as relaxed and natural as possible.


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The moderator

Develops rapport helps people relax

Promotes interaction among its members

Listens to what people have to say

Everyone gets a chance to speak.


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Planning the focus group outline

Discussion guide: a document prepared by

the focus group moderator that contains

remarks about the nature of the group andoutlines the topics or questions to be

addressed.

Example and description of a discussion

guide in Exhibit 3.2 on page 71.


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Advantages of a focus group

Fast, inexpensive, and easy to execute.

Numerous topics can be discussed and many

insights can be gained.

Synergy: combined effort of the group will produce awider range of information, insights, and ideas.

Snowballing: bandwagon effect where a comment

from one individual triggers a chain of responses

from others. Includes brainstorming.


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Advantages of a focus group

Serendipity: more often that some idea drops

out of the blue. Also greater opportunity to

develop an idea to its full potential.

Security: individual can find some comfort

when others share similar feelings.

Spontaneity: individual responses can be

more spontaneous if they are not required toanswer any given question.


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Shortcomings of a focus group

Focus groups require sensitive and effectivemoderators.

Since focus group participants are screened to havesimilar backgrounds and experiences, they many notbe representative of the entire market.


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Depth interviews

A relatively unstructured, extensive interview

in which the interviewer asks many questions

and probes for in depth answers.

Probing questions:

Can you give me an example of that?

Why do you say that?


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A warning about exploratory

research Exploratory research cannot take the place of

conclusive, quantitative research.

This can lead to incorrect decisions. Interpretation of the findings typically is

judgemental.

Most exploratory techniques use small samples

which may not be representative.


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Chapter 4

Digital research using secondary data

Th S d D t S h


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The Secondary Data Searchand Evaluation Process


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Primary vs. Secondary DataPrimary data

Originated by the research for the specificpurpose of addressing the problem at hand.

e.g., Interviewing respondents to determinetheir satisfaction with their Internet ServiceProvider

Secondary data

Data which has been collected for purposesother than the problem at hand.

e.g., ABS data reporting the proportion ofAustralian households who have access to theInternet.

Comparison of Primary and Secondary


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Comparison of Primary and Secondarydata

Primary Data Secondary Data

Collection purpose

Collection process

Collection cost

Collection time

For the problem at hand

Very involved[5 Steps]

High

Long

For other problems

Rapid and easy

Relatively low

Short


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Uses of Secondary Data

Could resolve the problem

Source of new ideas

Help define and/or provide betterunderstanding of problem

Guidance for collection of primary data

Reference point for primary dataExhaust all appropriate secondary data sources beforeproceeding to undertake primary data.

Why?


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What role does secondary data play in the research youconduct at Colmar Brunton?

Peter Kenny, Managing DirectorColmar Brunton


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Other Uses of Secondary Data

Identify the problem

Better define the problem Develop an approach to the problem

Formulate an appropriate researchdesign

Answer certain research questions andtest some hypotheses

Interpret primary data more insightfully

Demand estimation Monitoring the environment

Segmentation and targeting

Developing a business intelligence


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Benefits of Secondary Data Easily accessible

Relatively inexpensive

Obtained quickly

Sometimes more accurate than primary

data Some information is only available fromsecondary sources (e.g., population of thecountry)

Enhances existing primary data Familarise the researcher with theindustry

Identify concepts, data and terminology

Limitations of


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Limitations ofSecondary Data

Collected for some other purpose

No control over data collection

May not be very accurate

Mismatching the units of measurement Differing definitions used to clarify the

data

Recency of the secondary data

Lack of information needed to assess thecredibility of the data

A number of assumptions have to bemade


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A Classification of

Secondary Data

Ready to use Requires further

processing

Internal

Published

sources

Computerised

databases

Syndicated

services

External

Secondary Data

I t l S d D t


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Internal Secondary Data

Data generated within the organisation

for which the research is beingconducted.

e.g., sales invoices, accounting data,

sales reports, inventory reports,customer feedback and database,Annual reports, CRM

Easily available and inexpensive.

Example of a customer feedback form


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External Secondary Data Data generated by sources outside the

organisation.Examples

Government publications

Government sponsored sources Periodicals and books

Marketing and trade journals

Business magazines and newspapers

Academic publications Syndicated data from households

Syndicated data on industry andbusiness


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Government Sources

Information published by Government

Examples

census data

other government publications

Example of ABS Data


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Example of ABS Data

Source: ABS (2003) Australian Demographic Statistics, Cat. 3101.0, June, ABS, Canberra, p.18

Example of ABS Data cont


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Example of ABS Data cont.

Source: ABS (2000) Use of the Internet by Household, Cat. 8147.0, November, ABS, Canberra, p.11


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Computerised Databases

Information made available in computer-readable form for electronic distribution.

Advantages

Current information

Faster data search

Low costConvenience

Examples of Computerised


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Examples of ComputerisedDatabases

http://library.vu.edu.au Academic Search Elite

ATI

Annual Reports AusStats

Business Source Premier

Emerald Fulltext Factiva

Market Comparative Analysis

Sport Discus

Web of knowledge
http://library.vu.edu.au/http://library.vu.edu.au/


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Syndicated Sources

of Marketing Data Many information users with commoninformation needs

Cost of satisfying individual users isprohibitive

Increasing use of scanner systemsfacilitates standardised sources


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Syndicated Sources

of Marketing Data cont. Applications:

Measure product sales and market

shareMeasure advertisement exposureand effectiveness

Measure promotion effectivenessEstimation and evaluation of models


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Syndicated Sources of Secondary Datacont.Source: Malhotra et al (2004), p. 95.


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Example of Syndicated

Services Nielsen NetRatings

Quantum Market Research YouthSCAN

Roy Morgan Single Source Data Grey worldwide Eye on Australia

Roy Morgan MindSets

OzTamPeoplemetersRefer to Table 4.3 p. 99.


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External Sources of

Secondary Data Access methodsonline

electronic

hard copy

experts

Refer to Table 4.2 p. 94.


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Evaluating Secondary Data

Who collected data?

Why was data collected?

How was the data collected? What data was collected?

When was data collected?


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Identifying Gaps in

Information Required Compare information gathered with

information required in research

objectives

Research objectives may sometimes be

met with no need for further research

Think about this in relation to your

literature review


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Secondary data research

Data gathered and recorded by someone

else prior to and for purposes other than the

current project.

Historical

Already assembled

Needs no access to subjects.


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Advantages

Faster and less expensive than primary data

Particularly for electronic retrieval of

digitally stored data.


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Disadvantages

Not designed specifically to meet theresearchers needs.

Researchers must ask how pertinent the dataare to their particular project.

Is the subject matter consistent with ourproblem definition?

Do the data apply to the population of

interest? Do the data apply to the time period ofinterest?


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Evaluating secondary data


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Evaluating secondary data


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Typical objectives

for secondary data research designs


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Factfinding

For example, a marketer of frozen foodshould be interested in knowing the size of

the frozen pizza market.

Identifying consumer behaviour for a product

category

Trend analysis

Example: finding a trend in online

advertising in Australia.

Environmental scanning.


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Model building

Use of secondary data to specifyrelationships between two or more variables.

Extends to development of descriptive or

predictive equations. Used to estimate market potential for

geographic areas.

Example: savoury biscuits marketer using

population data.


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Model building


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Model building

Also used to forecast sales.

For example, Australian Recording

Industry Association uses past sales to

forecast future sales. Used to analyse trade areas and sites.

Example:retail saturation data.


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Data mining

Use of powerful computers to dig through

volumes of data to discover patterns about an

organisations customers and products.

Neural networks: artificial intelligence inwhich a computer is programmed to mimic

the way that the human brain processes

information.


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Market basket analysis

Analyses anonymous pointofsaletransaction databases to identify coinciding

purchases or relationships between products

purchased and other retail shopping

information.

Example: Osco Drugs discovered men buy

nappies with beer.

Customer discovery and sequence discovery.


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Marriot vacation club international

Sells vacation timeshare condos using direct

mail.

Starting with data on hotel guests, they

looked at motor vehicle and property records,ages, estimated income to enrich the

prospect list.

The result was less wastage and a higher

response rate.


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Sources of secondary data

Internal and proprietary data sources

originate inside the organisation.

Sales orders, customer complaints, service

records. External data is created, recorded or

generated by an entity other that the

researchers organisation.

Government, newspapers and journals,

trade associations.

I f ti d t d it


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Information as a product and its

distribution channels


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I f ti d t d it


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Information as a product and its

distribution channels Libraries

The Internet

Vendors

Producers

Books and periodicals

Government sources

Media sources Trade association sources

Commercial sources.

A li f th di d t


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A sampling of the diverse data

available

Market share and consumption and purchase

behaviour data

ACNielsen with scannerbased data

Demographic and census updates

ABS

Consumer attitude and public opinion research

Roy Morgan Australia opinion polls

Advertising research

OzTAM television audience ratings.


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What changes have you noticed in the use of trackingmonitors?

William Burlace, Director, Media ServicesRoy Morgan Research


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Question:

You have been hired by the AutismAssociation to learn how they canincrease the number of fathers whovolunteer to help with therapy forautism children?

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Why conduct exploratory research?


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Why conduct exploratory research?

Uncertainty about the precise statement

of the problem that we faceHelps better understand a situation

Helps screen alternatives

Helps in coming up with new ideas

Purpose is to crystalise the problemrather than to measure & quantify

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Qualitative ways to explore


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Qualitative ways to explore

Stories

Visual portrayals Intrepretations

Can look at trends

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Discovering ideas.Screening alternatives?


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Screening alternatives? Exploratory research is used to find new

product ideas. Eg design your own car

When there are a number of options

open to you & you need to select Eg new product ideas what will work;

market size, etc

Concept testing need to get a feel for

the merits of an idea before makingR&D commitments and using resources

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