Chapter 6

1. Chapter 6 Exploratory and Conclusive Research

2. Qualitative Research Defined Exploratory research involves collecting information in order to provide insight into problem and identify courses of action. Research findings are not subject to quantitative analysis. • sources: • secondary data • focus group • in-depth interviews • depends on uncertainty & acceptable risk level • crucial decisions require both more information and more accurate information • low-risk decision options may not require conclusive research

3. Quantitative Research • Descriptive in nature. • Enables marketers to “predict” consumer behavior. • Research methods include experiments, and survey techniques. • Findings are empirical.

4. Comparison Dimension Qualitative Research Quantitative Research Types of questions Probing It depends Sample size Small Large Information per Rich Not as detailed respondent Ability to replicate Low High Qualitative vs. Quantitative Research Types of analysis Subjective, Statistical, Interpretive Summarization

5. Pros/Cons of Qualitative Research • Cheaper option than quantitative research. • Very useful to uncover hidden feelings and motivations. • Usually used as a precursor to quantitative research. • Small number problems. • Generalizability problems.

6. Focus Groups • What are Focus Groups? • Steps in Conducting a Focus Group 1. Focus Group Facility; Recruit the participants 2. Select a Moderator • Skills required • Discussion Guide 3. The Actual Focus Group 4. Report Generation

7. Advantages of Focus Groups • Lower cost • Possible stimulating effects from interaction & group dynamics among respondents • The opportunity to observe customers from behind one-way mirrors • Quickness of execution

8. Disadvantages of Focus Groups • Inductive approach • Faulty focus group setting / recruiting may lead to a lot of problems • Generalizability issues • Ambience • Dominance • “Moderator style” may contribute to respondent bias.

9. Good uses of Focus Groups • Concept testing • How do consumers use a product? • Good source of ideas about product improvements • Exploring problems • Why do consumers behave the way they do? • What issues to cover in a descriptive or a causal study? • TRENDS

10. Group design • Group design issues: • homogeneity of group • size & duration - generally 8 to 12 people for 1 to 2 hours • screening of participants • number of sessions • relaxed environment • cost • moderator - need skills to build respondent rapport

11. Choosing a Moderator • consider gender, whether same moderator should lead multiple sessions, and necessary skill set: • combination of empathy and firmness • permissiveness • encourages involvement • conveys incomplete understanding • flexibility • sensitivity • knowledge of subject • creativity • moderator's guide provides a detailed outline of the issues to be discussed and serves as a memory aid for the moderator

12. Analyzing Focus Groups (Report generation) • Step 1. review the research purpose • Step 2. study the group discussions • Step 3. create categories • demographic profile of respondent base, respondent profile, classification of comments • Step 4. identify potential relationships • Step 5. write report • executive summary • research purpose • methodology • results, identified hypothesis, implications for further study • appendix

13. Depth Interview • uses extensive probing to get a single respondent to freely express detailed beliefs and feelings • Advantages: • useful when questions are sensitive or potentially embarrassing • greater depth of insight that can be uncovered • ability to associate the response directly with the respondent • higher level of rapport possible

14. Depth Interview • Disadvantages: • complete reliance on the interviewer • difficult to average results across different interviewers • enormously demanding and time-consuming • few highly qualified interviewers at high cost • small sample size • costly

15. Flavored chip Strong taste Eat less Better figure Self-esteem Depth Interviews • Typically lasts 1-2 hours • Tips for in-depth interviews: • Be flexible • Don’t interrupt • Be silent: Real needs start surfacing under silence

16. Good Uses of Depth Interviews • Why do consumers use a product in a particular way? • Sometimes give the marketers a better feel for customers’ lives • Underlying bases can be identified easily • First step in developing a questionnaire

17. Group Vs Individual Interview -The distinguishing feature of the group is its “groupness” -Does this add to the data via the operation of group dynamics? -Does this contaminate the data via group dynamics?

18. Quantitative Techniques for Conclusive Research Conclusive research involves a systematic and objective process through which a target market is sampled and responses are measured. • results statistically and scientifically valid, to support predictions • types of data sought: • past behavior – may gather evidence on past behavior for the purpose of predicting future behavior • attitudinal data – may identify the nature of attitudes, measure them, and connect attitudes and eventual behavior statistically • respondent characteristics

19. 6-3c Respondent Characteristics • variables known to correlate well with eventual purchase behavior • demographics • socioeconomic variables • psychological variables • variables useful in sample stratification and validation • age • gender • marital status • family size • income • occupation • education level

20. 6-4 Methods of Collecting Respondent Data • communication method – direct questioning of respondents through questionnaire • personal (face-to-face) interview • telephone interview • mail interview • internet-based interview • observation method – recording behavior • natural vs. contrived environment • disguised vs. undisguised – aware of observation? • structured vs. unstructured – defined set of behaviors? • direct vs. indirect – behavior itself or indicator of past behavior • human vs. mechanical observation

21. 6-4b Personal Interview • interviewer asks questions of one or more respondents in a face-to-face situation and records the responses • advantages: • better rapport with respondent – can be freer with responses • more adaptable to respondent • disadvantages: • costly • time consuming • participants less free with responses on sensitive issues • may bias responses

22. 6-4c Telephone Interview • interviewer asks questions over the phone and records the responses • advantages: • efficient and economical procedures • application to a wide range of information needs • scalability if project expands • reduced potential for bias compared with face-to-face • disadvantages: • limited amount of data obtainable • impossibility of accurately recording non-verbal information • potential bias from incomplete listing of target population • shorter interview possible relative to face-to-face

23. 6-4d Mail Interview • questionnaire sent by post and completed questionnaire is returned by mail to the research organization • advantages: • respondent can take time in responding to questions • flexible in application • relatively low in cost if response rates are high • less potential for bias than face-to-face • disadvantage: nonresponse error • difficult to ensure that some specified number of total responses is received • impossible to ensure that those who return the questionnaire are representative of the sample or population of interest

24. 6-4e Internet-based Methods • advantages: • respondent can take time in responding to questions • branching prevents exposure to irrelevant questions • flexibility of question rotation (counterbalancing) • compilation of responses is automatic • disadvantage: • selection for internet access could result in sampling error • preferable when: • convenience sample is adequate • email addresses of target population are known • sample size large enough to justify the higher start-up costs • dealing with highly sensitive issues • employing many open-ended questions • survey includes digital interactive elements

25. 6-4f Criteria for Selecting the Communication Approach * exception: mail and web allow the respondent total flexibility as to when and where the interview takes place à web costs more up-front but can save funds in interviewing and data input

26. 6-4f Criteria for Selecting the Communication Approach (cont.) • response rate • methods for estimating nonresponse error: • sensitivity analysis – how different is each successive callback group is from the previous respondent group? • trend projection – if a trend develops on the variables of interest during successive callbacks, it can be used to estimate the characteristics of the nonrespondent group • subsample measurement – a specially designed interview is used to estimate the results of the nonrespondent group • subjective estimate – researcher uses experience and judgment to estimate the degree of nonresponse error