Marketing Research

WEEK 3 & 4
ASSESS THE DATA NEEDS
RESEARCH DESIGN
 Determine Preparation Phase
Define the Assess Data
Research
Problem Needs Design

Determine Design Data Determine

Measurement Collection Sampling Action Phase
Issue Forms Issue

Prepare Analyse Prepare MR

Data Data Report Conclusion Phase
 Assess the Data Needs

Internal
Secondary
Data
External
Data Type
Qualitative
Primary
Quantitative
 Pros and Cons of Secondary Data

§ Advantages of Secondary Data:

ØAvailability /Efficiency
ØSometimes can be more valid and objective

§ Disadvantages of Secondary Data:

ØRecency / relevancy of data can be a problem
Ø Source credibility
Ø Appropriateness of methodology

Ø Source bias
 Evaluate Secondary Data

§ Methodology used to collect the data

§ Accuracy of data

§ When the data was collected

§ The purpose of the study

§ The content of the data

 Assess the Data Needs

§ Secondary Data

vInternal secondary data

üCustomer database
üSales/reports, marketing report, etc
 Assess the Data Needs
§ Secondary Data

vExternal secondary data

üBusiness/nongovernmental data (business/industry associations)

ü government data (census data) www.gso.gov.vn

ühttp://www.consumerreports.org/cro/index.htm
üwww.worldbank.org

ühttp://statista.com
üACNeilson, Kantar, Vietnam Report, YouNet Media and Buzzmetrics,
Decision lab
 Assess the Data Needs

§ Primary Data:
ØQualitative: exploratory research (interviews, focus
groups, observations)
ØQuantitative: descriptive, causal (surveys, experiments)
 Case study
• After more than 22 years of operation in Vietnam, Big C is honored to be one of
the retail brands loved and trusted by Vietnamese people. The market is
witnessing a big change in the shopping behavior of Vietnamese customers.
With the mission of taking customers as the center and the goal of serving
customers better with a more modern and professional shopping experience,
the Big C Hypermarket system rebrands into GO! with many improvements in
the shopping space, improving service quality and aiming for a completely new
customer experience.
 Case study

• You are hired to conduct a research to assess GO’s market potential

in Vietnam and provide recommendations on whether GO should
open a first store in An Giang.

Ø MD?

Ø MR?

ØData needs?
Research Design
§ What is a Research Design?
ØA description of the method or procedure for collecting and
analysing the needed information which addresses the
research problem. Exploratory
Research

§ Three Basic Types of Design:

Research
Design

Causal Descriptive
Research Research
 Exploratory Research

Exploratory Research is:

ØUsually conducted at the beginning of the MR project.

ØTo understand the purpose of the research

ØTo discover symptoms of the problem,
ØTo understand possible causes of the problem
ØTo identify key variables to measure
ØTo establish research priorities.
 Exploratory Research

Exploratory Research Methods:

Focus
Interviews Observations
Groups
• In-depth
Interviews
• Projective
Interviews
 Exploratory Research

§ In-depth Interviews:
ØA process in which the
interviewer asks a subject
a set of semi-structured
questions usually in a
face-to-face setting.
 Exploratory Research

§ In-depth Interview Example:

ØObjective: to understand male consumers’ opinions and
behaviours toward facial skin care products for men.
ØSample products:
üMoisturizer
üEye cream
üBody lotion
 Exploratory Research

§ Techniques for In-depth Interviews:

ØDesign an interview guide
ØDesign an interview protocol
ØProvide a comfortable environment
ØAllow the subject time to think
ØSummarize subjects’ words to ensure understanding
ØAsk for clarification if not clear
ØAvoid evaluative comments or leading questions
ØLet the subject do the talking
 Exploratory Research

§ Interview Guide Tips:

ØAsk open ended questions. “Are you happy with the clinic’s
services”? Or “Please describe your attitude towards the
clinic’s services”
ØAsk factual questions before opinion questions.

ØUse probes as needed. “Would you give me an example?”

“Can you elaborate?” “Is there anything else?”
 Exploratory Research
§ Christine: First off I have a couple questions in order to get to know you
better. Tell me a little bit about yourself. ..
§ Subject ….
§ Christine: [introduce the products] After hearing about these products
what is your first impression about them?
§ Subject: Ummm…[silence], the eye tightening skin gel, that is kind of
feminine for a guy to use…maybe guys who use that are a bit
worried…[a bit uncertain]
§ Christine: so are you saying that men who use these products are a bit
worried? What do you mean “they are worried”? Worried about what?
§ Subject: Umm…maybe worried about their appearance, worried that they
are not attractive to others…
§ Christine: then are you saying men who use these products are not
confident?
§ Subject: yeah…that could be…not sure…maybe that is true…
 Exploratory Research
§ Nate: What types of facial skin products are you aware of?
§ Subject: well, there are so many of them, but all for girls, like Nivea,
Lancôme, Olay, Dove….
§ Nate: What I mean was, what Type, not brands, of facial skin care products
are you aware of?
§ Subject: Oh, you mean the moisturizer and other stuff…
§ Nate: “Other stuff”. What do you mean?
§ Subject: You know, girls put all kinds of stuff on their face in the morning,
which takes them forever to be ready. Like cream, eye gel, some kind of
water or powder, and then makeup…But I think they are all the same stuff,
or at least they are doing the same job.
§ Nate: Oh really? Could you explain why that is?
§ Subject: ....
 Exploratory Research

§ Projective Interviews:

ØA process which helps uncover subjects’ true feelings or

opinions about a topic.
ØTalk about what “other people” would feel, think or do.
Ø Interpret or produce pictures (ZMET)
 Exploratory Research
§ Projective Interviews Example:
Shopping list 1 Shopping list 2
• Pound and a half of hamburger • Pound and a half of hamburger
• 2 loaves Wonder bread • 2 loaves Wonder bread
• Bunch of carrots • Bunch of carrots
• 1 can Rumford’s Baking Powder • 1 can Rumford’s Baking Powder
• Maxwell House coffee (drip ground) • Nescafe instant coffee
• 2 cans Del Monte peaches • 2 cans Del Monte peaches
• 5 lbs. potatoes • 5 lbs. potatoes

- Subjects were asked to project themselves into the situation as far as possible
- Then they had to characterize the woman who bought the groceries
- Then they were asked to briefly describe the personality and character of that person.
 Exploratory Research
§ Projective Interviews Example:

Shopping list 1 Shopping list 2

• Pound and a half of hamburger • Pound and a half of hamburger
• 2 loaves Wonder bread • 2 loaves Wonder bread
• Bunch of carrots • Bunch of carrots
• 1 can Rumford’s Baking Powder • 1 can Rumford’s Baking Powder
• Maxwell House coffee (drip ground) • Nescafe instant coffee
• 2 cans Del Monte peaches • 2 cans Del Monte peaches
• 5 lbs. potatoes • 5 lbs. potatoes
Lazy 4% 48%
Fails to plan household schedule 12% 48%
Thrifty 16% 4%
Not a good wife 0% 16%
 Exploratory Research
§ Focus Groups:
ØA process of bringing a small group of people together for
an interactive discussion on a topic.
ØFormat of a focus group:
v8-10 pre-screened subjects/participants
vRun by a moderator to lead the discussion
vAudio/video taped and observed live via a two-way
mirror

https://www.youtube.com/watch?v=j_cUnlQl29Q
https://www.youtube.com/watch?v=scyTIRNDu_A
 Exploratory Research
§ Focus Groups:
ØHow to select subjects for a focus group:
vSpecifies the characteristics of subjects needed for
the research
vSelect subjects randomly
vWhenever possible, select a group of homogenous
subjects instead of heterogeneous subjects
 Exploratory Research

§ Advantages of Focus Groups:

ØProduce more insights than the total of individual replies

ØStimulate and trigger members to express ideas
ØAllows for spontaneous, less conventional responses
ØProvides security as subjects in a group are similar
Observation Methods

“You See,
But You Do Not Observe.”
- Sherlock Holmes
 Observation Methods

§ Observation In Market Research

ØPhysical action (Shopping patterns or driving habits)
ØExpressive behaviours (tone of voice, facial expression,
body language)
ØVerbal behaviours (statements made by customers
waiting in line)
ØTemporal behaviours (how long consumers spend in a
store)
ØSpatial relationships and locations (how close people
stand to each other in the store)
ØPhysical objects (which products/brands are purchased)
 Observation Methods
§ Examples of Observation Methods
ØWhy We Buy (Paco Underhill; Envirosell)
ØTrack consumers as they move through stores, observe (unobtrusively) their
browsing and purchasing patterns, and take detailed notes of how long they
spend in each area of the store, what they touch and look at, what they buy,
how much they spend, etc.
ØAim: To improve the retail environment and sell more products

https://www.halversongroup.com/our-industries/case-studyoptimizing-store-
merchandising-lean-cuisine/
https://www.youtube.com/watch?v=DNlrFrPeVjw
https://www.youtube.com/watch?v=SQxrsUXqKCM
 Observation Methods
§ Examples of Observation Methods

vWhat keeps consumers longer in the store?

--- Observation: Kids and husbands cut the trip short
--- Suggestion: Keep the shopping companions happy
vHow should you place the products?
--- Observation: Browse from right to left
--- Suggestion: Attraction right, last chance left
v What makes a consumer frustrated in the store?
--- Observation: Line dancing
--- Suggestion: Clear waiting lines
 Observation Methods
§ Examples of Observation Methods

v When do consumers buy more?

--- Observation: cart is too big, basket is too heavy
--- Suggestion: Shopping basket with wheels
 Observation Methods
§ Categories of Observation

ØDirect vs. Indirect Observation

vObserve behaviours as they occur or behaviours in the past
 Observation Methods

§ Categories of Observation
ØDisguised vs. Undisguised Observation
vMystery-shopper vs. researcher
vhttps://www.youtube.com/watch?v=ErfUVt0fyK0
https://www.youtube.com/watch?v=WFZLsuGTJbk
 Observation Methods
§ Categories of Observation

ØStructured vs. Unstructured Observation

vObserve pre-selected events vs. random events
 Observation Methods
§ Categories of Observation
ØHuman vs. Mechanic Observation

vResearcher vs. mechanic device

vEye tracking monitor: Record a subject’s unconscious
eye movements.
https://www.youtube.com/watch?v=WFZLsuGTJbk
vPupilometer: Record changes in the diameter of a
subject’s pupils.
 Observation Methods

§ Conditions for Observation

ØThe information needed is observable
ØThe event must occur during a short time interval
ØThe observed behaviour need to occur in a public
setting

ØConsumers can not accurately recall their behaviours

ØConsumers are not willing to admit their behaviours
 Descriptive research
v Descriptive Research
Ø Typically generates quantitative data
Ø Describe symptoms
Ø Describe reactions to current situations
Ø Describe relative impact of different
variables and relationships between
variables
 Descriptive Research

§ Descriptive Research

ØCollects primary data using a survey

ØTypical questions addressed by descriptive research:
vDescribe profiles of the target market
vDescribe consumers’ behaviour and attitude in the
target market
vDescribe the symptoms of the management problem
vDescribe consumers’ reactions to the company’s
products and existing marketing programs
 Descriptive Research

§ Typical questions addressed by descriptive research:

vWho are the brand’s/firm’s customers?

vWhat products/brands/sizes are being purchased, and how much?
vWhere are the purchases being made? Which store/location?
vWhen are the purchases being made? How often?
vHow are the customers using the product?
 Descriptive Research
§ Two Types of Descriptive Research

ØCross-sectional studies:
vMeasure a sample of population at only one point in time
vMeasure the current status of a target market or a
problem

ØLongitudinal studies:
vMeasure the same sample of population multiple times
over a period of time.
vConsumers who agree to be measured repeatedly are
called a panel
vMeasure the changes of a target market or a problem
 Descriptive Research
§ Surveys

ØA method of collecting primary data from a

representative sample of population.
ØIt is the main method used in descriptive research.
ØAdvantages as compared to exploratory research
methods
§ Efficiency
§ Standardization
§ Easy to interpret and analyse data
§ Subgroup differences
 Descriptive Research

§ Disadvantages of Surveys
ØDo not know if subjects are being truthful
ØDo not know if subjects are serious
ØCan be a lengthy process
ØCan be frustrating!
 Descriptive Research

§ Types of Surveys

ØPerson-Administered Surveys
§ Face to face survey (door to door, or mall intercepts)
§ Telephone surveys

ØMail/Online Survey
ØComputer-Administered Surveys
Person-Administered Survey

Tell us about
your experience
with a face to
face survey.

What did you

like and dislike
about it?
 Person-Administered Survey

§ Advantages § Disadvantages
ØInstant Feedback ØHuman make errors
ØQuality control (know who ØQuestionnaire needs to be very short
answered questions, eliminate ØHigh cost
non-response questions) ØPossible biases: social desirability
ØFlexibility (adapt questions, ØSubjects may not be representative of
demonstrate products) the target market
Mail Survey

Tell us about your

experience with a
mail survey.

What did you like

and dislike about it?
 Mail Survey

§ Advantages § Disadvantages
ØRelatively low cost ØLow quality control
ØLittle social desirability bias ØSlow data collection process
ØEasy to follow up ØLow response rate, high non-
ØCan include more questions response question rate

in the survey ØPossible misunderstanding of

questions
Online Survey

Tell us about your

experience with
conducting an online
survey.

What were the

challenges you had to
collect the data?
 Online Survey

§ Advantages § Disadvantages

ØRelatively low cost ØDifficult to follow up

ØLittle social desirability bias ØPossible misunderstanding of

ØCan include more questions in questions

the survey

ØFlexibility (adapt questions,

demonstrate products)
ØEasy to input data
Step 3b: Research Design II:
Descriptive Research I
Step 3b: Research Design II:
Descriptive Research I
 Descriptive Research
Which survey method should Nivea use in the case below?

The Nivea company commissioned a marketing research agency to

conduct a survey to measure male consumers’ attitude toward their skin
care products for men, including facial moisturizer, eye cream, and body
lotion. The questionnaire consists of 30 questions and takes about 15
minutes to complete. The research agency plans to collect data from 200
respondents in HCM City, and the agency has 4 weeks to complete the
project.
 Descriptive Research

§ Factors for Selecting a Survey Method

Situational factors Task related factors Subject related factors

vBudget of vLength of the vDiversity of subjects

available resources questionnaire vIncidence rate
(dollars & hours) vStimuli to be vDegree of survey
vCompletion time presented in the participation
frame survey
vQuality vSensitivity of the
requirement of the research topic
data (how accurate
and representative
should the data
be?)
 Case Discussion

§ In response to Woolworths’ growing dominance in the market, Coles is

planning out a new five-year growth strategy. One major component of this
strategy is to create 80 new Super-Centres. So, to understand consumers’
needs and wants, Coles plans to do a survey among consumers.
§ To better understand the needs, wants, intentions and attitudes of
consumers with respect to the new Super-Centres, Coles is considering a
direct mail survey sent to a random sample of 2000 current customers
(generated from the company’s extensive internal database). What are the
pros and cons of Coles employing this survey method?
§ A second survey method that Coles is considering is a shopping-
centre/mall-intercept interview, where trained researchers would stop
shoppers at Coles and Kmart stores and interview them face-to-face.
Would you recommend Coles proceed with this survey method? Why/why
not?
 Causal Research

ØQuantitative data ØCasual relationships can only be

determined in controlled experiments
ØTests causal Ø Requirements to imply causation:
relationship between §The cause (independent variable) must
precede the effect (dependent variable)
variables in time
§ The cause and effect covary (they have a
predictable relationship)
§The relationship between variables cannot
be explained by another third or
confounding variable
 Recap
In-depth
Interviews
Interviews
Projective
Interviews
Exploratory Focus
Research Groups

Observations

Research Face-to-face
Person-
Design Administered
Survey
Telephone
Descriptive Mail/Online
Survey
Research Survey

Causal Computer-
Experiments Administered
Research Survey