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required form May be outdated May not meet requirements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.