1. Exploratory Research & Secondary Data

2. 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

3. 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)

4. 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)

5. 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)?

6. 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

7. 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

8. 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

9. 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

10. 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)

11. Literature Reviews/Secondary Data
Secondary Data (External)
Library Sources (Magazines and Other Publications – many on Internet)
Government Sources
Census data
State/Country economic data

12. Literature Reviews/Secondary Data
Secondary Data (External)
Standardized Marketing Information Services
Market Share Data
Nielsen Retail Index

13. 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?

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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 homogeneous members
Environment -- professional with ability to have researchers observe
Planned, but loose, agenda

22. 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

23. 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

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