Question 1: What is exploratory research, and what are some of its common uses? Answer 1: Exploratory research is used to gain background information about the issues, clarify the problem, or suggest specific research questions. In contrast, descriptive research is used to measure marketing phenomena, consumer or buyer characteristics, and attitudes about certain products. Finally, causal research is used to determine if a cause and effect relationship exists between two variables. For example, is increased sales caused or influenced by factors such as the introduction of a new advertising campaign, a new pricing strategy, or a new rebate program? Exploratory research can be used for the following purposes: Gain background information: Even an experienced researcher will usually review available internal and external information to ensure that he or she is not missing data that will provide useful background information on the market, industry, and the client s company Define terms: Researchers are always concerned that they properly define the constructs and operational definitions of the variables that they desire to study. In addition, the researcher may find welldesigned studies that provide measurement scales and questions needed to measure the variables Clarify problem statements and hypotheses: Previous studies may help the researcher formulate a hypothesis about the problem being studied. Establish research priorities: Sometimes, a research project can be complex and involve numerous studies. Internal documents can be useful in identifying which areas or problems are the most critical and should be studied first. Question 2: What are the differences between cross-sectional and longitudinal studies? Answer 2: Both are descriptive in nature, but they track different information. Crosssectional studies are designed to gather data from the entire target population, but at one point in time. Each study is one snapshot of the 1
population, designed to develop profiles of consumers, their buying behavior, or attitudes toward certain products or issues. Researchers can also analyze the total market to detect differences that may identify separate market segments because cross-sectional studies are designed to collect information from consumers in the total population. Then researchers can analyze consumer profile or buying behavior differences among segments. Finally, a series of snapshots can be taken and used to conduct trend analysis, in which researchers study changes in consumption, buyer behavior, and attitudes. Longitudinal studies are designed to track trends over time by tracking the same respondents (for example, a panel) and taking multiple measurements from these respondents. This approach allows researchers to track any changes in behavior, attitudes, or perceptions about a variety of products, brands, or organizations. Question 3: What are some examples of exploratory research? Answer 3: One example of an exploratory technique is the focus group, which is a small group of people who are brought together and guided by a moderator through an unstructured, spontaneous discussion about some topic. This approach can accomplish the following objectives: Generate ideas Understand consumer vocabulary Identify consumer needs, motives, perceptions, and attitudes about a product or service Help understand findings from quantitative studies Another approach involves conducting in-depth interviews with people who are considered experts in a certain field, or are familiar with a problem and can provide excellent insights into the issues surrounding a research problem. This approach allows the interviewer to ask follow-up questions and explore issues in-depth. 2
Question 4: What are the advantages of secondary data? Answer 4: The following are four main advantages to using secondary data: They can be obtained quickly because the data were already collected and analyzed It is usually much more inexpensive than the cost of collecting primary data. Secondary data are broadly available, especially with ever-increasing search capability and access over the Internet. They provide benchmark information, such as industry ratios, performance guidelines, and other metadata that can serve as general guidelines for your own focused primary data collection efforts. Question 5: What issues should a researcher analyze before using secondary data? Answer 5: The following are several issues that the researcher should address before using secondary data sources: Check to ensure that the data and results are not outdated. Data decay depends on the rapidity of change related to the problems you are studying. For example, 3-year-old research studies on Internet usage would be outdated, and other than showing trends, would not reflect current usage patterns or attitudes toward the Internet. The focus of the secondary studies may not match the population that you wish to study. A study of baby boomers buying behavior would not provide relevant background information if you are studying the behavior of Generation Y consumers. The researcher must evaluate the units of measurement and the scales that are used to gather the data. Often, profile data, such as demographics, are not collected consistently from study to study. This makes it difficult for researchers to determine if the respondents from the secondary study are comparable to the population that is currently being studied. In other cases, consistent data are being collected, but the scales are not comparable. In many studies, responses are grouped into intervals. For example, one study defines the age 3
intervals of the respondents using the following intervals: 18 25, 26 33, and so on. Another study defines the age intervals as: 15 20, 21 26, 27 32, and so on. The researcher will have trouble comparing buying behavior by age between the two studies because of the inconsistency in age grouping. The researcher must also be aware of any bias in secondary studies. Sponsors frequently fund secondary studies, and these sponsors have much to gain from the study findings, so there is always the danger of the sponsor influencing the research agenda or wording of questions. These conditions can result in inaccurate data or erroneous reporting of findings. For example, the pharmaceutical companies who are selling drugs sponsor many studies reporting the effectiveness of those drugs. In another example, an activist group developed and reported questionable conclusions about child hunger. In one case, a reputable television station then developed a report in which it used questionable conclusions to support its own beliefs and developed even more questionable, unsupported conclusions, and then proceeded to report them on the air as fact. Question 6: When is it appropriate to use observation techniques? Answer 6: Observation is appropriate when one or more of the following conditions exist: Respondents cannot accurately recall the details of their activities, or the order in which they were performed. In some cases, actions are more habit than planned, and people are not even aware of the pattern of their actions. For example, it is much more accurate to record individual s eye movements when individuals are asked to view an advertisement; therefore, researchers use cameras to record eye movements to determine the pattern of observation, as well as the length of time spent observing each part of the ad. Researchers also use cameras to record shopping behavior and patterns. Patterns include the shopping sequence of customers, including which aisles they walk through and in what order, where on the shelves patrons look, as well as the impact of marketing materials that are designed to attract patrons attention, such as sale signs, coupons, and price comparison signs. Cameras are also important tools to measure time and frequency, as well as behavior. For example, how long will people stand in line 4
before leaving? Are there noticeable changes in customer attitudes as the wait increases that are reflected by observable actions? How long does it take to process a customer through checkout? How many people walk into a store during certain days of the week or times during the day? What amenities in the store are used the most and by what types of customers? In some situations, respondents are not able to communicate verbally. Researchers use observation to record young children s behavior and attraction to products, such as new toys. They also observe animal behaviors to determine pet habits, and measure like and dislike of certain foods and snacks. There are also situations in which observation is used for feedback purposes. Innocent actions can sometimes be misunderstood, especially where cultural differences exist. For instance, facial expressions, hand movements, proximity to someone else (e.g., public vs. private space) all send messages. In some cultures, certain movements are considered negative, while in others they are considered positive. Observation is an excellent method for capturing human interactions, analyzing them, and learning from them. Lessons that are learned can than be applied to marketing mix decisions, especially advertising and sales. Question 7: Online surveys are very popular. What are some of the pros and cons of the online survey method? Answer 7: Major consumer companies collect about 50% of their consumer survey data from online surveys. Online surveys are popular because they are fast, easy to administer, flexible, and inexpensive compared to more traditional methods. In addition, they provide visual options that traditional methods do not, including the presentation of pictures, diagrams, and displays, in either standardized format or on an individual basis, depending upon the subject s responses. Data are also available to the researcher on a real-time basis. Survey progress can be monitored, and decisions of when to end the survey are also made in real time, depending on the results. This minimizes costs, as well as the time that it takes to collect the data. 5
Unfortunately, the online survey methodology also has limitations. The most critical issue is that of sample representativeness. Current information suggests that, at a minimum, online surveys will only reach about 50% of residents in even the technically advanced countries. In less advanced countries, online surveys can only reach about 10% of the population. The percent that are actually willing to participate will be even smaller. Obviously, a researcher requires a sample that fairly represents the population under study, or he or she cannot generalize the findings. Internet connectivity will continue to expand throughout the world, but until the time when penetration rates are much higher, researchers must be careful not to overlook this serious limitation. Online surveys usually do not provide an effective method for real-time probing, in which the subject is asked to explain or expound on one or more of their answers, but e-mail provides a mechanism for the research team to follow up with additional interview questions at a later time. Similarly, the quality of responses to open-ended questions is lower because there is no two-way communication to clarify questions or provide immediate feedback to a subject s questions or responses. Respondent confidentiality is also problematic. Most technically savvy subjects are very aware that technology provides the potential for tracking respondents electronically. This is also true if the researcher desires to validate subject interviews, and requests an e-mail address or telephone number for callback. The lack of perceived anonymity may create concerns, and subjects may refuse to answer what they consider to be sensitive questions. Question 8: What are the differences between dependent and independent variables in an experiment? Answer 8: Normally, the purpose of an experiment is to study the impact of one or more variables (i.e., independent variables) on some other variable or set of variables (i.e., the dependent variables). Independent variables are those factors that the researcher will manipulate. For example, the researcher might want to study whether the level of lighting 6
influences shopping behavior. The researcher would vary the intensity of the light in a store (or laboratory) and record the results. The dependent variable would be the effect. In this experiment, some measure of shopping behavior would be measured, such as time spent looking at store items, number of items purchased, amount of money spent, and so on. The intensity of the light would be carefully manipulated, and the shopping behavior would be measured. The researcher might hypothesize that there is a relationship between the two variables. That softer light has a positive effect on shopping behavior, and conversely, harsh light has a negative effect on shopping behavior. Think for a moment about your own shopping experiences. Would you rather shop in a store with very bright lights or in one with softer lighting? Do you think that lighting affects your shopping behavior? 7