Introduction to Data
Marketing Research Process
1. Formulate Problems 6. Research Report - Specify Research Objectives
2. Research Design 5. Data Analysis - Exploratory, - Interpretation Descriptive, Causal
3. Data Collection Method 4. Sample Design -Primary, secondary - Sampling frame, -Questionnaire Design sample selection, -Attitude Measurement sample size
Sources of Data
• Secondary data: data that has been previously gathered for some purposes.– Advantage: inexpensive, can be secured
quickly.– Disadvantage: unknown accuracy, ill fitting
for the problem
• Primary data: data gathered for the specific problem at hand.
Data Type
Secondary Primary
Internal External Non-experimental Experimental
Qualitative Quantitative Field Laboratory
Sources of Secondary Data
Secondary Data
Internal
External
Published data
Standardized sources of marketing data
Internet
•Sales/patronage results (outcomes)
•Marketing activity (inputs)
•Cost information
•Distributor reports/feedback
•Customer feedback
•Store audits
•Warehouse withdrawal services
•Consumer purchase panels
•Single source data
•Nielsen’s television index
•Starch scores
•Arbitron panel
•Multimedia services
Printed
Electronic
•Government
•Trade associations
•Periodicals
•Newspapers
•Books
•Annual reports
•Private studies
Uses of Secondary Data
Can solve the problem on hand all by its own Can lead to new ideas and other sources Helps to define the problem more clearly Can help in designing the primary data
collections process Helps in defining the population / sample Can serve as a reference base
Benefits and Limitations of Secondary Data
Benefits Low cost Less effort Less time Some information
only from secondary sources
Limitations Collected for other purpose No control over data
collection Potential accuracy problem May not be reported in
required form May be outdated May not meet requirements
Appraising Secondary Sources
Factors to Be Considered Who has collected the data (did they have adequate
resources)? Why was the data collected (how the interests of
agency match with ours)? How the data was collected (to determine the quality
of data on-hand)? What data was collected (geographic and
demographic limitations)? When the data was collected (how old/obsolete is the
data)?
Standardized Sources
Syndicated sources of marketing data: Store audits consumer panels scanner based systems and single source
data
Retail Store Audits
Personally record store inventories and movements for any brand and size
Basic measurement tool in lieu of scanning data
Common categories: Health and Beauty, Durable, Confectionery, Liquor.
Example: Nielsen Retail Index
Consumer Purchase Panels
Audits and scanner data do not cover: Who buys (consumer demographics) Frequency of purchases Switching behavior between brands
and stores Level of deal sensitivity
What is a “Panel’’?• Representative sample
of households
• Records all purchases made over time
(cross-section/time-series)
• Records all coupons used
• Receive incentive for co-operation
• ACNielsen’s Consumer Panel: “Homescan”Consists of 40,000 demographically balanced U.S. households that use hand-held scanners to record every bar-coded item purchased
Advantage/Limitation of PanelAdvantage: Can Provide Information On Aggregate Sales Activity Brand Shares Shifts in Buyer Characteristics Shifts in Retail Outlets
Limitation: Possibility of Selection Bias Mortality Effect -move, illness, refusal Testing Effects - first month records are discarded
Scanner Data
Have revolutionized grocery (and retail ) industry
Generates huge amounts of data Main suppliers: IRI, Nielsen Kraft Food spends more than $30
million per year on scanner data In comparison to survey
research: scanner data reveal actual consumer behavior
Primary Data and Collection
Demographic/socioeconomic characteristicsPsychographic/lifestyle analysis
Attitude/opinionsAwareness/knowledge
IntentionsMotivationBehavior
salesPAIMARY DATACollected via
Communication Observation(Versatility, Speed, Cost) (Objectivity, Accuracy)
• Communication– A method of data collection involving questioning of respondents to secure the desired information, using a data collection instrument called a questionnaire.– Stated preference–personal interview, telephone interview, mail questionnaire
• Observation–A method of data collection in which the situation of interest is watched and the relevant facts, actions, or behaviors are recorded.– Revealed preference– human observation, mechanical observation
Primary Data Collection Method
Primary Data Collection Method
Structure: degree of standardization imposed on data collection instrument.
Are there clearly specified hypotheses to be tested?
Disguise. Amount of knowledge about the purpose
of study communicated to respondents (communication).
Subjects awareness of being observed for research.
STRUCTURED UNSTRUCTURED
Undisguised
Standardized questionsStandardized responses Ex) fixed alternative questions Simple administrationSimple analysisSuitable for facts or clear-cut opinions
Nonstandardized questionsNonstandardized responses Ex) depth interviews FlexibleDifficult interpretationInterviewer influencedBetter for exploratory research
Disguised
Standardized questionsStandardized responsesSimple administrationSimple analysis Difficult interpretationLeast used method
Nonstandardized questionsNonstandardized responses Ex) projective techniquesDifficult analysisSubjective interpretationSuitable for exploratory research
Summary
• Secondary data: Internal/External• Growth of Standardized source of data• Store audit/panel/scanner/single-source data Primary data is collected through communication
and/or observation. Both methods are classified according to degree
of structure and degree of disguise. Degree of structure depends on research design,
whether specific research hypotheses have been developed.
Degree of disguise depends on how subject awareness may affect research outcome.