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 Disadvantages

Data Fit Accuracy

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 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

RetailMeasurement

Consumer Panel

• 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

ACNielsen Links Store Data to the Consumer Behind the Purchase•What brand sold

•At what price

•Under what conditions

(e.g., coupon used?)

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

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 non-rigorous standards

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

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)

Allow on-line WOMC Monitor and get ideas and insights

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.