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 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 Panel Tracking 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 ACNielsen Homescan is the only source for detailed insights into longitudinal consumer shopping and purchase behavior. The Homescan consumer panel is a nationally projectable sample of households who scan their purchasing of all UPC coded items across all classes of trade. There are 61,500 households in the panel, from all across the U.S, representative of all demographic groups. 5 3 3

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 Retail Measurement

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.