Primary Research Methods for Feasibility Analyses Diane M. Sullivan (2010)

Primary Research Primary Research Methods for Methods for

Feasibility AnalysesFeasibility Analyses

Diane M. Sullivan (2010)Diane M. Sullivan (2010)

Introduction to Primary Research Introduction to Primary Research Methods for Feasibility Analysis Methods for Feasibility Analysis

StudiesStudies Primary research involves interacting with people Primary research involves interacting with people

outside of the class and often outside of the Universityoutside of the class and often outside of the University

Remember you are asking people to take Remember you are asking people to take their their time to time to help help youyou

For this class project, please realize that you are For this class project, please realize that you are representing UD and the School of Business representing UD and the School of Business

Also, when conducting research such as this in the Also, when conducting research such as this in the “real world”, you are representing your organization “real world”, you are representing your organization or new venture or new venture Conduct yourself in a courteous and professional manner Conduct yourself in a courteous and professional manner

You gain respect and maintain your professional reputationYou gain respect and maintain your professional reputation

Increases the likelihood that they will assist youIncreases the likelihood that they will assist you You might also gain a customer or enhance your network of You might also gain a customer or enhance your network of

professional contactsprofessional contacts

General Research FlowGeneral Research Flow

Determine Determine whowho you need to study (e.g., users, you need to study (e.g., users, investors, industry folks, etc.)investors, industry folks, etc.)

Construct the research instrument (e.g., survey)Construct the research instrument (e.g., survey) Identify a Identify a specific samplespecific sample of individuals to study of individuals to study Collect the dataCollect the data from that sample from that sample AnalyzeAnalyze the data (e.g., data analysis software to the data (e.g., data analysis software to

determine results)determine results) Determine the Determine the substantive meaningsubstantive meaning of your results of your results

What did you learn about what you were studying—what What did you learn about what you were studying—what do your results tell you about your business concept, your do your results tell you about your business concept, your target market, etc.target market, etc.

TabulateTabulate these results in a form easily interpreted these results in a form easily interpreted by your audience (e.g., for investor presentations, by your audience (e.g., for investor presentations, for the business plan, etc.)for the business plan, etc.)

Who to StudyWho to Study Depends on the purpose of your study and the Depends on the purpose of your study and the

availability of your populationavailability of your population Try to study as many people as possible relevant to Try to study as many people as possible relevant to

your business concept (e.g., industry experts, your business concept (e.g., industry experts, competitors, users, suppliers, etc.)competitors, users, suppliers, etc.)

If you cannot directly study your desired population If you cannot directly study your desired population (e.g., users, etc.) don’t just quit. Try to study other (e.g., users, etc.) don’t just quit. Try to study other relevant industry/market participants.relevant industry/market participants.

How many peopleHow many people should I study? should I study? The more the better—studying more individuals The more the better—studying more individuals

generate more valid and generalizable research generate more valid and generalizable research resultsresults

Depends on the types of analyses conducted (e.g., Depends on the types of analyses conducted (e.g., more sophisticated analyses (e.g., regression) require more sophisticated analyses (e.g., regression) require larger samples) larger samples)

How do I Study my How do I Study my Population?Population?

In MGT 320, we are going to employ In MGT 320, we are going to employ surveys:surveys: SurveysSurveys

Telephone surveys Telephone surveys

Mail surveysMail surveys

Email surveys Email surveys

Internet surveysInternet surveys

SurveysSurveys Surveys are generally administered in Surveys are generally administered in

written form and must have two written form and must have two important qualities:important qualities:

1.1. They contain questions, called They contain questions, called itemsitems, , that properly and effectively elicit the that properly and effectively elicit the information of interestinformation of interest

Item wording is important Item wording is important

Item sequence is importantItem sequence is important

Survey aesthetic appearance is importantSurvey aesthetic appearance is important

2.2. They have a protocol for recording and They have a protocol for recording and analyzing the responsesanalyzing the responses

Surveys: Guidelines on Surveys: Guidelines on Survey Survey ItemsItems

Three basic factors to consider when developing survey items:Three basic factors to consider when developing survey items:1. 1. Item wordingItem wording is important: is important:

Keep the respondent in mindKeep the respondent in mind: be sure that participants can answer the : be sure that participants can answer the questions you askquestions you ask

Make it simpleMake it simple: Make sure that the words in each item are understandable to : Make sure that the words in each item are understandable to respondents (e.g., don’t use “big words” when surveying children)respondents (e.g., don’t use “big words” when surveying children)

Be specificBe specific: Don’t assume respondents share your frame of reference. Be sure to : Don’t assume respondents share your frame of reference. Be sure to provide specifics related to the who, what, when, where, and how to specify the provide specifics related to the who, what, when, where, and how to specify the context of responses to the itemscontext of responses to the items

Be honestBe honest: Do not lead respondents to the answer you hope will occur: Do not lead respondents to the answer you hope will occur Words to avoidWords to avoid: :

AbsolutesAbsolutes: words like : words like always, never, everyone, all,always, never, everyone, all, etc. are problems as these statements etc. are problems as these statements are almost always falseare almost always false

AndAnd: “and” usually signals that the item is assessing : “and” usually signals that the item is assessing two two ideas—double-barreled question. ideas—double-barreled question. YouYou. When using “you” clearly specify which “you” is being referred to (e.g., “you” the . When using “you” clearly specify which “you” is being referred to (e.g., “you” the

individual, the group of consumers, the organization within which “you” works, etc.)individual, the group of consumers, the organization within which “you” works, etc.) Adjectives describing frequency. Adjectives describing frequency. Words like “occasionally”, “sometimes”, “often”, mean Words like “occasionally”, “sometimes”, “often”, mean

different things to different people. Use numerical values when possible to obtain different things to different people. Use numerical values when possible to obtain numerical information numerical information ““Please indicate how many hours a week do you use a computer: ___ hours” or Please indicate how many hours a week do you use a computer: ___ hours” or ““Approximately how many hours a week do you use a computer?Approximately how many hours a week do you use a computer?

□ □ 1-2 hours per week1-2 hours per week □ □ 3-5 hours per week3-5 hours per week

□ □ 6-10 hours per week 6-10 hours per week □ □ More than 10-house per weekMore than 10-house per week


Three basic factors to consider when developing survey Three basic factors to consider when developing survey items:items:

2.2. Item sequenceItem sequence is important: is important: Respondents often hesitate to begin and complete a questionnaireRespondents often hesitate to begin and complete a questionnaire

Item order can impact their decision to begin and their willingness to Item order can impact their decision to begin and their willingness to finish surveysfinish surveys

It is helpful to start with items that are easy and interesting to completeIt is helpful to start with items that are easy and interesting to complete

Be sure that items follow comfortably from the previous question Be sure that items follow comfortably from the previous question Writing a questionnaire is similar to writing anything else, so transitions between Writing a questionnaire is similar to writing anything else, so transitions between

questions should be smooth questions should be smooth

Group similar questions together to make the questionnaire easier to completeGroup similar questions together to make the questionnaire easier to complete

Those that jump between unrelated topics are not likely to produce high response Those that jump between unrelated topics are not likely to produce high response ratesrates

Ask for demographic information lastAsk for demographic information last People are often reluctant to provide personal information and asking for it last increases People are often reluctant to provide personal information and asking for it last increases

the likelihood that they will complete it because they have already committed to the earlier the likelihood that they will complete it because they have already committed to the earlier part of the questionnairepart of the questionnaire

Also, you will have gained useful information about the respondent (e.g., perceptions of your Also, you will have gained useful information about the respondent (e.g., perceptions of your business concept, purchase intentions, etc.) even if they do not provide personal informationbusiness concept, purchase intentions, etc.) even if they do not provide personal information


Three basic factors to consider when developing survey Three basic factors to consider when developing survey items:items:

3. 3. Survey aesthetic appearanceSurvey aesthetic appearance is important is important Avoid clutter and be consistentAvoid clutter and be consistent

Be sure that there is enough “white space” on each page so that the survey Be sure that there is enough “white space” on each page so that the survey doesn’t look overwhelmingdoesn’t look overwhelming

Maintain consistency in formatting and style across the surveyMaintain consistency in formatting and style across the survey Place instructions exactly where that information is needed and not at Place instructions exactly where that information is needed and not at

the beginning of the questionnaire the beginning of the questionnaire Place items with the same response categories together (e.g., 5-point, Place items with the same response categories together (e.g., 5-point,

Likert-type items)Likert-type items) Maintain symmetry across survey (e.g., have response areas Maintain symmetry across survey (e.g., have response areas

symmetrically aligned across the survey questions)symmetrically aligned across the survey questions) Use an easy-to-read font and font size (which may vary depending upon Use an easy-to-read font and font size (which may vary depending upon

your target audience—people with sight problems might require a your target audience—people with sight problems might require a larger font)larger font) Times New Roman and Arial fonts with no less than 12-point font size is Times New Roman and Arial fonts with no less than 12-point font size is

appropriateappropriate Use highly contrasting font color and paper color (you can’t go wrong with Use highly contrasting font color and paper color (you can’t go wrong with

white paper and black font color)white paper and black font color) USE TABLES IN MS WORD TO DESIGN THE SURVEY!!!USE TABLES IN MS WORD TO DESIGN THE SURVEY!!!

Surveys: Surveys: Protocol for Recording Protocol for Recording ResponsesResponses

Deals with the numerical coding scheme(s) (called “scaling” used to enter Deals with the numerical coding scheme(s) (called “scaling” used to enter the data into the data analysis software—choose a scale that allows for the the data into the data analysis software—choose a scale that allows for the type of information neededtype of information needed

Highly dependent upon what types of information you are trying to collectHighly dependent upon what types of information you are trying to collect Example: If you are trying to determine the percentage of people in your Example: If you are trying to determine the percentage of people in your

population that would likely purchase your offering, you might ask the following:population that would likely purchase your offering, you might ask the following:

If you surveyed 30 people and 10 said yes, 10 no, and 10 don’t know, you could If you surveyed 30 people and 10 said yes, 10 no, and 10 don’t know, you could calculate the % of consumers that would likely purchase your product (e.g., 33%)calculate the % of consumers that would likely purchase your product (e.g., 33%)

With this type of item “scaling” you will primarily interpret the data as a measure With this type of item “scaling” you will primarily interpret the data as a measure of central tendency (e.g., means, medians, modes, etc.) (e.g., if the mean response of central tendency (e.g., means, medians, modes, etc.) (e.g., if the mean response was a 3.5, it is somewhat difficult to determine the substantive meaning of that was a 3.5, it is somewhat difficult to determine the substantive meaning of that data in this context)data in this context)

Based on the product description provided above, would you be likely to Based on the product description provided above, would you be likely to purchase this product? (please check the most appropriate response purchase this product? (please check the most appropriate response below)below)

YesYes NoNo Don’t KnowDon’t Know

Based on the product description provided above, please indicate how Based on the product description provided above, please indicate how likely you would be to purchase this product? (please circle your likely you would be to purchase this product? (please circle your response below)response below)

Highly likelyHighly likely Not likely at allNot likely at all

11 22 33 44

Surveys: Accompanying Cover Surveys: Accompanying Cover LetterLetter

The cover letter is an essential part of a survey and should be the first page The cover letter is an essential part of a survey and should be the first page of the survey of the survey For emails, the body will be the cover letter and should include all components For emails, the body will be the cover letter and should include all components

below, except datebelow, except date If using internet surveys and no email, be sure that the cover letter content is one If using internet surveys and no email, be sure that the cover letter content is one

of the first pages that respondents will viewof the first pages that respondents will view To a large degree, the cover letter will affect if the respondent completes the To a large degree, the cover letter will affect if the respondent completes the

questionnairequestionnaire It is important to maintain a friendly toneIt is important to maintain a friendly tone

Remember that you are asking the person for Remember that you are asking the person for their helptheir help

Main components of a survey cover letterMain components of a survey cover letter1.1.DateDate

2.2.Salutation (e.g., “Dear Participant”)Salutation (e.g., “Dear Participant”)

3.3.Briefly describe the purpose of the survey (e.g., why you are asking for Briefly describe the purpose of the survey (e.g., why you are asking for them to complete a survey), how long it should take to complete (e.g., how them to complete a survey), how long it should take to complete (e.g., how many minutes), and who is soliciting them (e.g., who you are) many minutes), and who is soliciting them (e.g., who you are)

4.4.Brief description of why their responses are important for the researchBrief description of why their responses are important for the research

5.5.Describe your "confidentiality/anonymity" policy (e.g., that their responses Describe your "confidentiality/anonymity" policy (e.g., that their responses are confidential)are confidential)

6.6.An indication of who to contact if they have questionsAn indication of who to contact if they have questions

7.7.Real signature(s) when possibleReal signature(s) when possible

Surveys: Some CautionsSurveys: Some Cautions Be sure that the survey and cover letter Be sure that the survey and cover letter

content is written properly—be sure to content is written properly—be sure to proofread the document several timesproofread the document several times

Before doing an email or internet survey, Before doing an email or internet survey, carefully consider the effect that this carefully consider the effect that this method might have on your results method might have on your results

For example, if you were studying the For example, if you were studying the purchase intentions of a technology-training purchase intentions of a technology-training service targeted to senior citizens, using service targeted to senior citizens, using email or the internet might bias your resultsemail or the internet might bias your results

Tabulating ResultsTabulating Results When presenting data (e.g., presentations, When presenting data (e.g., presentations,

business plan/venture docs), be consistent business plan/venture docs), be consistent in the presentation of the results in the presentation of the results Use easily interpretable formattingUse easily interpretable formatting

Use graphical representations as necessaryUse graphical representations as necessary Be honest—don’t try to adjust graph scaling to Be honest—don’t try to adjust graph scaling to

make the data appear more favorablemake the data appear more favorable Don’t be afraid to use tablesDon’t be afraid to use tables

Define unclear variables, scaling used, Define unclear variables, scaling used, analyses, or statistical terms as necessaryanalyses, or statistical terms as necessary

Representing Results: Some Representing Results: Some ExamplesExamples

Question 1: Likelihood of using Product/Service

Average Response: 5.39

0 2 4 6 8 10 12 14 16

1

2

3

4

5

6

7

Rati

ng

Number Responding

Question 1: Likelihood of using Product/Service

RatingNumber

Responding

1 (very likely) 0

2 1

3 4

4 10

5 4

6 15

7 (unlikely) 12

Total Respondents: 46

Average Response: 5.39

Representing Results: Some Representing Results: Some ExamplesExamples

Example of Summary Tables Including Multiple Questions

Question ScaleNumber of

RespondentsAverage Rating

1. How likely would you be to use the product/service we provide?

1 to 7, with 1 being very likely and 7 being unlikely

46 5.39

2. How likely do you think people different from yourself would be to use the product/service that we provide?

1 to 7, with 1 being very likely and 7 being unlikely

47 4.57

Question 1: Likelihood of you using

Product/Service

Question 2: Likelihood of Others using

Product/Service

Rating Responses Responses

1 (very likely) 0 3

2 1 7

3 4 10

4 10 2

5 4 0

6 15 15

7 (unlikely) 12 10

Total Respondents: 46 47

Average Response: 5.39 4.57

MGT 320 Assignment: MGT 320 Assignment: Cover LettersCover Letters

You must You must write 2 cover letterswrite 2 cover letters1.1. A cover letter to the target market for the A cover letter to the target market for the

concept statementconcept statement data collection data collection

1.1. Due with Checkpoint Due with Checkpoint #1#1

2.2. A cover letter to the target market for the A cover letter to the target market for the concept concept illustration illustration data collectiondata collection


Make sure that the cover letters are Make sure that the cover letters are complete, professionally formattedcomplete, professionally formatted

MGT 320 Assignment: MGT 320 Assignment: SurveysSurveys

You must You must write 2 surveyswrite 2 surveys1.1. A survey to the target market for the A survey to the target market for the concept concept

statementstatement data collection ( data collection (at least 3 at least 3 customerscustomers must complete survey) must complete survey)


2.2. A survey to the target market for the A survey to the target market for the concept concept test test illustrationillustration data collection (data collection (at least 20 at least 20 customerscustomers must complete survey) must complete survey)


Make sure surveys are complete, Make sure surveys are complete, professionally formattedprofessionally formatted

MGT 320 Assignment: MGT 320 Assignment: ResultsResults

You must present 2You must present 2 sets of resultssets of results1.1. Results from the target market’s evaluation of Results from the target market’s evaluation of

the the concept statementconcept statement


2.2. Results from the target market’s evaluation of Results from the target market’s evaluation of the concept the concept illustration illustration


Make sure results are complete, Make sure results are complete, professionally formatted using tables, professionally formatted using tables, graphs, etc. graphs, etc.

Documents

Primary Research Methods for Feasibility Analyses Diane M. Sullivan (2010)