Secondary and Standardized Sources of Marketing Data

MBACATÓLICA JAN/APRIL 2006 Marketing Research Fernando S. Machado Week 2 Secondary and Standardized Sources of Marketing Data Qualitative Research 1 Secondary and Standardized Sources of Marketing Data Sources and Uses of Secondary Data Standardized and Syndicated Services: an Overview 2 1

Sources of Secondary Data PRIMARY DATA SOURCES INTERNAL RECORDS SALES/PATRONAGE RESULTS ( OUTCOMES ) MARKETING ACTIVITY ( INPUTS ) COST INFORMATION DISTRIBUTOR REPORTS AND FEEDBACK CUSTOMER FEEDBACK CUSTOMER DATABASE DATA SOURCES ELECTRONIC SECONDARY DATA SOURCES PUBLISHED DATA PRINTED GOVERNMENT TRADE ASSOCIATIONS PERIODICALS NEWSPAPERS BOOKS ANNUAL REPORTS PRIVATE STUDIES EXTERNAL SOURCES Secondary Data: data collected for some purpose other than the problem at hand. INTERNET STANDARDIZED SOURCES OF MARKETING DATA 3 Benefits and Limitations of Secondary Data Benefits Limitations Low cost Less effort Less time At times, more accurate At times, only way to obtain data Collected for some other purpose No control over data collection May not be accurate May not be in correct form May be outdated May not meet data requirements Assumptions have to be made 4 2

Uses of Secondary Data Can solve the problem on hand all by its own (not often) Can lead to new ideas and other sources Helps to define the problem more clearly Can help in designing the primary data collection process Helps in defining the population / sample Can serve as a reference base against which to compare the validity or accuracy of primary data. 5 Standardized Services Projects conducted in standard, prespecified manner and supplied to several different clients. (e.g., standardized procedures for measuring advertising effectiveness) Syndicated Services Routinely collect information on several different issues and provide it to firms that subscribe to their services (e.g., Nielsen television index) Growth of Standardized Sources due to: Multitude of information users having common information needs When cost of satisfying individual user's need is prohibitive The increasing use of scanner systems at the check out points 6 3

Syndicated Data from Consumers Households / Consumers Purchase Diary Panels Media Electronic scanner services Surveys Scanner-based Audits Scanner Diary Panels Scanner Diary Panels with Cable TV Psychographic & Lifestyles General Advertising Evaluation 7 Single-source Systems Gather integrated information on household and marketing variables applicable to the same set of respondents. Usually set up in self-contained communities with their own newspapers and cable TV. A test panel of community households is recruited and monitored. The TV, reading and shopping habits of the panel members are followed continuously (through meters, surveys and UPC scanners). Researchers can relate the details of a household s purchase of each product to previously collected classification information about the household and any promotional stimuli to which they were exposed. 8 4

Some Applications of Standardized Sources of Data Measuring Promotion Effectiveness Scanner data Measuring Ad Exposure and Effectiveness Surveys Measuring Product Sales and Market Share Diary purchase panels Diary purchase panels Diary media panels Scanner diary panels w/ cable TV Retail audits Scanner data Internal records 9 Type Characteristics Advantages Disadvantages Uses Surveys Diary Purchase Panels Diary Media Panels Overview of Syndicated Services Surveys conducted at regular intervals Households provide specific information regularly over an extended period of time; respondent asked to record specific behaviors as they occur Electronic devices automatically recording behavior, supplemented by a diary Most flexible way of obtaining data; information on underlying motives Recorded purchase behavior can be linked to the demographic / psychographic characteristics Same as diary purchase panel Interviewer errors; respondent errors Lack of representativeness; response bias; maturation Same as diary purchase panel Market segmentation, advertising theme selection and advertising effectiveness Forecasting sales, market share and trends; establishing consumer profiles, brand loyalty and switching; evaluating test markets, advertising, and distribution Establishing advertising rates; selecting media program or air time; establishing viewer profiles 10 5

Type Characteristics Advantages Disadvantages Uses Scanner Volume Tracking Data Scanner Diary Panels with Cable TV Audit services Household purchases are recorded through electronic scanners in supermarkets Scanner panels of households that subscribe to cable TV Verification of product movement by examining physical records or performing inventory analysis Data reflects actual purchases; timely data, less expensive Data reflect actual purchases; sample control; ability to link panel data to household characteristics Relatively precise information at the retail and wholesale levels Data may not be representative; errors in recording purchases; difficult to link purchases to elements of marketing mix other than price Data may not be representative; quality of data limited Coverage may be incomplete; matching of data on competitive activity may be difficult Price tracking, modeling, effectiveness of instore promotions Promotional mix analyses, copy testing, new product testing, positioning Measurement of consumer sales and market share, competitive activity, analyzing distribution patterns: tracking of new products 11 Qualitative Research Qualitative versus Quantitative Research A Classification of Qualitative Research Procedures Focus Groups Other Methods of Qualitative Research Limitations of Qualitative Research Methods 12 6

Qualitative versus Quantitative Research: Why do smokers try to quit? A7. Think about the last time you stopped smoking. What was the main reason why you decided to give up smoking? CIRCLE ONE ONLY The amount of money I was spending on cigarettes 1 Concerns about my health at the time 2 Concerns about my future health 3 For the sake of my family 4 A change in lifestyle 5 I stopped enjoying smoking cigarettes 6 Reason for stopping Valid Missing Total Ammount of money Health at the time Future health Family Change in lifestyle Stopped enjoying Total System Cumulative Frequency Percent Valid Percent Percent 26 2,7 6,5 6,5 166 17,3 41,6 48,1 68 7,1 17,0 65,2 49 5,1 12,3 77,4 51 5,3 12,8 90,2 39 4,1 9,8 100,0 399 41,7 100,0 558 58,3 957 100,0 13 Q2. Please rate the relative importance of the factors you considered in selecting a hospital for delivery. Not So Important a. Reputation of hospital 1 2 3 4 5 6 b. Quality of care 1 2 3 4 5 6 c. Distance from home 1 2 3 4 5 6 d. Advice from doctor 1 2 3 4 5 6 e. Advice from friends 1 2 3 4 5 6 f. Advertisements 1 2 3 4 5 6 g. Friendliness of staff 1 2 3 4 5 6 h. State-of-the-Art maternity facilities 1 2 3 4 5 6 i. State-of-the-Art nursery facilities 1 2 3 4 5 6 j. maternity insurance 1 2 3 4 5 6 Very Important 14 7

Qualitative versus Quantitative Research Objective Sample Data Collection Data Analysis Outcome Qualitative Research To gain a qualitative understanding of the underlying reasons and motivations Small number of nonrepresentative cases Unstructured Non-statistical Develop an initial understanding Quantitative Research To quantify the data and generalize the results from the sample to the population of interest Large number of representative cases Structured Statistical Recommend a final course of action 15 A Classification of Qualitative Research Procedures Qualitative Research Procedures Direct (Non disguised) Indirect (Disguised) Focus Groups Depth Interviews Projective Techniques Association Techniques Completion Techniques Construction Techniques Expressive Techniques 16 8

1. Objectives and characteristics of focusgroups 2. Planning a Focus Group 3. Conducting the interviews 4. Analysing and reporting Focus-group: An interview conducted in an unstructured and natural manner by a trained moderator among a small group of respondents. The intent of focus groups is to promote self-disclosure. Focus groups allow for group interaction and greater insight into why certain opinions are held. 17 Some applications of Focus Groups Methodological applications: Defining a problem more precisely Generating hypothesis for quantitative testing Obtaining information helpful in structuring questionnaires Interpreting previously obtained quantitative results Substantive issues: Understanding consumer s perceptions and/or behavior concerning a product category Generating new ideas about older products Obtaining impressions of new product concepts Developing or evaluating copy material for advertisements Obtaining preliminary consumer reaction to specific marketing programs 18 9

When not to use Focus Groups To make a final decision To explore extremely sensitive or personal topics To answer How much or How many To evaluate a product, advertisement, etc. to which revisions will not be made despite the results of the study To save the money or time required for quantitative research To set prices for a product or service 19 Some characteristics of Focus Groups Group Size 8-12 Group Composition Physical setting Time duration Recording Homogeneous, respondents prescreened Relaxed, informal atmosphere 1-3 hours Use of audiocassettes and videotapes 20 10

Determine the purpose of the qualitative research 1. Objectives and characteristics of focus--groups 2. Planning a Focus Group 3. Conducting the interviews 4. Analysing and reporting Determine whom to study Writte a screening questionnaire Develop a moderator s outline Carry out selection and recruiting Number of focus groups and characteristics of its participants must be carefully defined, having in mind: purpose of the study previous knowledge about the target audience research budget 21 Moderator s outline Topic Guide Definition of significant classes of the attitude object Brand awareness Evaluation of attitude objects Attributes of the attitude object for each situational context.... Questioning Route What kinds of department stores are there? Which department stores are you familiar with? Which department store is best, worst and why? When you think about shopping, what features of the department store come to mind?... 22 11

3. Conducting the interviews 1. Objectives and characteristics of focus--groups 2. Planning a Focus Group 3. Conducting the interviews 4. Analysing and reporting Moderating skills Beginning the focus group discussion Asking questions in a focus group Some rules and techniques for conducting the discussion 23 Key Qualifications of Focus Group Moderators Kindness with firmness -must combine a disciplined detachment with understanding empathy so as to generate interaction. Permissiveness - must be permissive yet alert to signs that the group s cordiality or purpose is disintegrating. Involvement - must encourage and stimulate intense personal involvement. Incomplete understanding - must encourage respondents to be more specific about generalized comments by exhibiting incomplete understanding. Flexibility- must be able to improvise and alter the planned outline amid the distractions of the group process. Sensitivity - must be sensitive enough to guide the group discussion at an intellectual as well as emotional level. 24 12

Beguinning the focus group discussion Greeting Purpose of focus group Ground Rules We re tape recording the session We will be on a first name basis You may be assured of complete confidentiality Only one person should talk at a time We re just as interested in negative comments as positive comments. There are no right or wrong answers Our session will last about. Let s find out some more about each other (brief get-acquainted period). 25 Asking questions in focus-groups Questions should be carefully planned. Use open-ended questions. Avoid dichotomous choice questions (Yes/No). Why is rarely asked - since it implies a rational answer, developed by thought and reflection. Uncued Questions First, Cued Questions Second. Focus Group Questions Are Clear - Clarity has several attributes, including: length, unidimensionality, and wording. 26 13

Some rules and techniques for conducting the discussion Give License to Expressing Differing Points of View Participants may simply be echoing the same concept. Moderator can ask if anyone sees it differently, or if there are any other points of view. Responding to Participant Comments A single head nod can be helpful to elicit additional comments, though care is required not to allow it to signal agreement; Verbal responses such as correct, that s good, or excellent, should be avoided. Two essential techniques for soliciting additional information from participants The pause is used after a participant comment to prompt additional points of view. Eye contact is also useful. The probe is used when people make vague comments that could have multiple meanings: Would you explain further?, Would you give me an example of what you mean?, Is there anything else?, Please describe what you mean? 27 1. Objectives and characteristics of focus--groups 2. Planning a Focus Group 3. Conducting the interviews 4. Analysing and reporting Analysis Must be Systematic Sequencing questions to allow maximum insight Capturing and handling data Coding data: as the researcher comes across an idea or phenomenon a label is attached in the margin of the transcript. Whenever the idea re-appears the label is once again attached. Participant verification: provide chance to respond to the moderator s summary at the end of the session, or a post group verification of the written report. Debriefing between moderator and assistant moderator: immediately after the session in order to capture first impressions and highlight and contrast findings from earlier groups. 28 14

1. Objectives and characteristics of focus--groups 2. Planning a Focus Group 3. Conducting the interviews 4. Analysing and reporting Analysis Must be Focused A critical aspect of surviving the deluge of material is to focus the analysis. The researcher needs to place primary attention on questions that are at the foundation of the study. Analysis Should Entertain Alternative Explanations Alternative views must be sought out and examined. Rival explanations and suggestions should be exposed to rigorous cross-examination. 29 Advantages and Disadvantages of Focus Groups Synergism Snowballing Stimulation (+) (-) Misuse Misjudge Moderation Security Spontaneity Structure Speed Specialization Messy Misrepresentation 30 15

Recent Trends A growing number of focus groups have migrated from the real world to the virtual world (e.g. on line, conference calls, etc.) Changes in the focus groups environment (e.g. living-rooms, kitchens, playrooms, bars, etc.) Doubts about focus groups capacity to get in-depth insights. 31 A Classification of Qualitative Research Procedures Qualitative Research Procedures Direct (Non disguised) Indirect (Disguised) Focus Groups Depth Interviews Projective Techniques Association Techniques Completion Techniques Construction Techniques Expressive Techniques 32 16

Individual In-depth Interviews Interviews that are conducted face to face with the respondent, in which the subject matter of the interview is explored in detail. Nondirective interviews respondent enjoys maximum freedom Semi-structured or focused individual interviews covers a specific list of topics or subareas (trends in technology, market demand, legislation, etc.) 33 Projective Techniques Indirect forms of questioning that encourage the respondents to project their underlying motivations, beliefs, attitudes, or feelings regarding the issues of concern. Respondents are asked to comment upon rather unstructured or ambiguous object, activity. Projective Techniques are used when it is believed that respondents will not or cannot respond meaningfully to direct questions about: the reasons for their behaviours or attitudes, or what the act of buying, owning, or using the product or service means to them. 34 17

Projective Techniques (contd) Association techniques: the respondent is presented with a stimulus (eg. a word) and asked to respond with the first thing that comes to mind. Completion techniques: requires the respondent to complete an incomplete stimulus situation (phrase or story). Construction techniques: requires the respondent to construct a response in the form of a story, dialogue or description (picture response, cartoon tests). Expressive techniques: the respondent is presented with a verbal or visual situation and asked to relate the feelings and attitudes of other people to the situation (role playing, third person techniques) do you think that your neighbour is afraid of flying? 35 Association Techniques Word association techniques were used to study consumers attitudes towards detergents Stimulus Ms M Ms C Washday Fresh Pure Scrub Filth Bubbles Family Towels Everyday And sweet Air Doesn t; husband does This neighbourhood Bath Squabbles Dirty Ironing Clean Soiled Clean Dirt Soap and water Children Wash 36 18

A Cartoon Test Gee, I d much rather get housewares than jewelry. Thanks, you cheap *%#$!!!! Let s see if we can pick up some housewares at El Corte Inglês 37 Consumer Drawings 38 19

Limitations of Qualitative Methods Potential susceptibility of the results to get misused or misinterpreted Results not necessarily representative of the whole population Moderator or interviewer's role is extremely critical can lead to ambiguous or at times misleading results 39 20