Sources Of Primary Data

• Questionnaires
• Interviews
• Focus group interviews
• Observation
• Case-studies
• Diaries
• Critical incidents
• Portfolios.
Questionnaire
Advantages:
• Can be used as a method in its own right or as a basis for interviewing or a
telephone survey.
• Can be posted, e-mailed or faxed.
• Can cover a large number of people or organizations.
• Wide geographic coverage.
• Relatively cheap.
• No prior arrangements are needed.
• No interviewer bias.
Disadvantages:
• Design problems.
• Historically low response rate (although inducements may help).
• Time delay whilst waiting for responses to be returned.
• Require a return deadline.
• Several reminders may be required.
• Assumes no literacy problems.
• No control over who completes it.
• Not possible to give assistance if required.
• Problems with incomplete questionnaires.
• Replies not spontaneous and independent of each other.
• Respondent can read all questions beforehand and then decide whether to
complete or not. For example, perhaps because it is too long, too complex,
uninteresting, or too personal.

Interviews
Interviewing is a technique that is primarily used to gain an understanding of the
underlying reasons and motivations for people’s attitudes, preferences or behaviour.
Interviews can be undertaken on a personal one-to-one basis or in a group. They can be
conducted at work, at home, in the street or in a shopping centre, or some other agreed
location.
Personal Interview
• Advantages:
• Serious approach by respondent resulting in accurate information.
• Good response rate.
• Completed and immediate.
• Possible in-depth questions.
 • Interviewer in control and can give help if there is a problem.
• Can investigate motives and feelings
• Can use recording equipment.
• Characteristics of respondent assessed – tone of voice, facial expression,
hesitation, etc.
• Can use props.
• If one interviewer used, uniformity of approach.
• Used to pilot other methods.
Disadvantages:
• Need to set up interviews.
• Time consuming.
• Geographic limitations.
• Can be expensive.
• Normally need a set of questions.
• Respondent bias – tendency to please or impress, create false personal image, or
end interview quickly.
• Embarrassment possible if personal questions.
• Transcription and analysis can present problems – subjectivity.
• If many interviewers, training required.
Types of Interview:
Structured:
• Based on a carefully worded interview schedule.
• Frequently require short answers with the answers being ticked off.
• Useful when there are a lot of questions which are not particularly contentious or
thought provoking.
• Respondent may become irritated by having to give over-simplified answers.
Semi-structured
• The interview is focused by asking certain questions but with scope for the
respondent to express him or herself at length.
Unstructured interview
• This also called an in-depth interview. The interviewer begins by asking a general
question. The interviewer then encourages the respondent to talk freely. The
interviewer uses an unstructured format, the subsequent direction of the interview
being determined by the respondent’s initial reply. The interviewer then probes
for elaboration – ‘Why do you say that?’ or, ‘That’s interesting, tell me more’ or,
‘Would you like to add anything else?’ being typical probes.
• The following section is a step-by-step guide to conducting an interview. You
should remember that all situations are different and therefore you may need
refinements to the approach.
Primary Versus Secondary Data
• Primary data: information that is developed or gathered by the researcher
specifically for the research project at hand
• Secondary data: information that has previously been gathered by someone
other than the researcher and/or for some other purpose than the research
project at hand
Classification of Secondary Data
 • Internal secondary data: data that have been collected within the firm
• External secondary: data that have been collected outside the firm

• Internal secondary data:

• Sales Bills
• Planning Schedules
• Company Reports
• In House Journals
• Computer data base
• External secondary data: data obtained from outside the firm
• Types:

• Syndicated Services Data: data provided by firms that collect data in a

standard format and make them available to subscribing firms. For
Example:
• Nielsen Media Research
• InfoScan report of products sold in retail stores.
• Boston Consultancy

• Published: sources of information prepared for public distribution and

found in libraries or a variety of other entities. For Example:
• Indian Labor Journal
• Economic survey
• Reserve Bank Of India Bulletin
• Annual survey of Industries
• External Databases: databases provided by outside firms; many are
now available online (online information databases)
• Bibliographic databases..citations by subject, i.e. ABI Inform
• Numeric or statistical databases, 2000 Census
• Directory or list databases, AMA membership list
• Encyclopedias
• Directories
• Dictionaries
Advantages of Secondary Data
• Obtained quickly (compared to primary data gathering)
• Inexpensive (compared to primary data gathering)
• Usually available
• Enhances existing primary data
• Mismatch of the units of measurement
Need daily data yet only monthly available, need incomes of $75,000 and over only
available $50,000 and over
• Differing class definitions used – Need users “in between” heavy, medium or
light users
• Timeliness (how current is the secondary data)
• Data Are Out dated
 • Incompatible Reporting units
Evaluating Secondary Data
• What was the purpose of the study?
• Who collected the information and when was this done?
• What information was collected (questions, scales, etc.)?
• How was the information obtained (sampling frame, method of sample draw,
communication method, resulting sample, etc.)?
• How consistent is the information with other published information?
1
Recap
Step 1: Identify and define the Problem or Opportunity
Step 2: Define the Marketing Research Problem
Management Problem Marketing Research Problems
• Focus on symptoms
• Action oriented
• Focus on causes
• Data oriented
Problem Formulation and Approach
• Understanding the managerial decision problem/opportunity
• Translate into research objective(s) (what information is needed)
• Pose the right research questions
• State questions in terms of hypotheses
• Know what information is needed
The Marketing Research Process
MANAGEMENT PROBLEM
RESEARCH DESIGN
•Exploratory, Descriptive, Causal
•Primary/Secondary data
DATA COLLECTION
DATA ANALYSIS
RESEARCH REPORT
Today’s Focus
MARKETNG RESEARCH PROBLEM
Step 3: Specify the Research Design
ØWhat type of research is going to be used and the source(s) of the data.
ØFor example, deciding between exploratory, experimental, or descriptive research
Research Design
• Definition
– A framework or blueprint for conducting the marketing research project
• Components
– Information needed
– Data collection methods
– Measurement and scaling procedures
– Sampling process and sample size
– Data analysis procedures
2
A Broad Classification of Marketing Research Designs
Exploratory Research
Design
Secondary Research
Qualitative Research
Conclusive Research
Design
Descriptive Research
Causal Research
Exploratory Research
ØWhen looking for insights into the problem
ØTo help define hypotheses (but does not test) and key variables
ØTo identify alternative courses of action
Ø When Information needs vague
Ø For establishing priorities for further research
ØResearch is flexible and unstructured
ØFindings tentative
ØUsed as building block for more research
Øe.g. pilot surveys, secondary data, focus groups
ØDone on a small non-representative sample
Why is it used?
What are its characteristics?
Øsecondary data
Øqualitative research
Øfocus groups
Øcase studies
What Methods Are Used?
When is it done?
Ø Generally initial research conducted to clarify and define the nature of a problem
Exploratory Research Cont’d
ØDoes not provide conclusive evidence - subsequent research expected
What is it’s main limitation?
Ø to provide decision maker with the information needed to make sound decision.
Ø Testing hypotheses and insights and examining relationships
Ø Provides estimates of population parameters
Characteristics
Ø inflexible, versatile
Ø Results conclusive
Ø Research formal and structured
Ø Used when information needs clearly defined
Why is it Used?
Conclusive Research
Conclusive Research
Design
Descriptive Research
Causal Research
Descriptive Research
Ø More rigid than exploratory
Ø Problem well understood
Ø Tests specific hypotheses
Ø Formal and structured
Ø Large representative samples
Ø Provides a snapshot of the market environment
To describe something, e.g. Target market population characteristics, proportion of users,
predict future demand,
What are the characteristics of descriptive research?
What is the Objective?
3
What Methods are Used?
Descriptive Research
• Surveys (primary data)
• panels
• scanner data (secondary data) When Used?
• Often a follow-up to exploratory research
14
I keep six honest serving men, (they taught me all I knew), their names are what and why,
and when, and how, and where and who”
--Rudyard Kipling WestJet wants to know whether it should expand its flight offerings
into the International Market. In designing a market research project to provide WestJet
with information to help them decide, answer the following six questions.
1. Who should be considered?
2. Where should the respondents be contacted to obtain the right information?
3. When should the information be obtained from respondents
4. What information should be obtained?
5. Why are we obtaining the information from the respondents
6. How are we going to obtain information
Examples:
Ø Market segmentation studies, i.e., describe characteristics of various groups, size of
market, buying power of consumers.
ØAdvertising studies that describe media consumption habits and audience profiles for
specific television programs and magazines
Ø Sale potential studies for particular geographic region or population segment,
Ø Product usage studies that describe consumption patterns
Ø Price and promotion elasticity studies
Ø Determining perceptions of company or product characteristics
Descriptive Research Designs
• Two types of designs
– Cross-sectional designs
• Involves collection of information from sample of respondents only once
• Could have a single cross-sectional design (only one sample) or multiple cross-sectional
design(many samples of respondents)
• Most popular design in marketing research
• Example: Sample surveys
Descriptive Research Designs(contd.)
• Longitudinal Designs
– A fixed sample of the population is measured repeatedly, i.e., same respondents studied
over time
– Large amounts of data can be collected but can be expensive
– Useful for tracking changes in consumer attitudes and behavior over time
– Example: Diary panel data
4
Causal Research
Ø To obtain information regarding cause and effect Relationships Characteristics?
ØIndependent variable manipulated in a relatively controlled environment
ØMain method is experiment
ØUsed to understand which variables are causes (independent variables), and which
variables are the effects (dependent variables)
What is the objective of causal research?
Exploratory Research
(Unaware of Problem)
“Our sales are declining and we don’t know why.”
“Would people be interested in our new product idea?”
Descriptive Research
(Aware of Problem)
“What kind of people are buying our product?
Who buys our competitor’s product?”
“What features do buyers prefer in our product?”
Causal Research
(Problem Clearly Defined)
“Will buyers purchase more of our products in a new package?
“Which of two advertising campaigns is more effective?”
Uncertainty Influences The Type Of Research
COMPLETELY CERTAIN ABSOLUTE AMBIGUITY
CAUSAL OR
DESCRIPTIVE
EXPLORATORY
Need to establish Yes EXPERIMENT causality?
Good
Understanding of Problem?
Poor EXPLORATORY or
SECONDARY
RESEARCH
Objective answers by asking?
No
No
OBSERVATIONAL
RESEARCH
FOCUS GROUPS
No
Yes Need estimates Survey of prevalence?
Yes Need estimates of prevalence
Step 4: Develop the Data Collection Procedure
• Decide whether the data will be collected through surveys, interviews, focus groups,
etc.
Step 5: Design the Sampling Procedure
• Decide who will be in the sample, how those people are selected, and the size of the
sample.
Step 6: Collect the Data
• go out and collect as determined in steps 4 and 5
Step 7: Process and Analyze the Data
• Code and then analyze the data by testing hypotheses
Step 8: Present the Results
• Create an oral or written presentation of the results of the study
Gourmet Cookies in SW Calgary is planning on launching a new line of cookies and
wants to assess the market size. The cookies are a mixed-chocolate-pineapple flavour and
will be targeted at the premium end of the market
1. What is the management decision problem?
2. What is the marketing research problem
3. What might be some specific research questions for this problem?
4. How would you go about researching these questions?
DATA SOURCES
Secondary Primary
Internal External
5
Secondary Data
Data gathered and recorded by someone else prior to and for a purpose other than the
current project.
Is often:
• Historical
• Already assembled
• Internal to corporation
Fact Finding - Identifying consumption patterns
- Tracking trends
Model building - Estimating market potential
- Forecasting sales
- Selecting trade areas and sites
Data Base - Development of Prospect Lists
Marketing - Enhancement of Customer Lists
Common Research Objectives for Secondary Data Research
Advantages of Secondary Data
Ø Inexpensive
Ø Obtained Rapidly
Ø Needs no access to subjects or respondents (convenient)
Ø Information is not Otherwise Accessible
Ø Can Provide Insights into problem during exploratory phase
Ø Can provide background data on trends etc. which lends credibility to
the report
Disadvantages of Secondary
Data
Ø Lack of Availability (e.g. new products; image)
ØUncertain Accuracy
Ø Data Not Consistent with Needs (not relevant)
Ø Inappropriate Units of Measurement
Ø Time Period Inappropriate (Dated)
Evaluating Secondary Data
Does the data help to answer questions set out in the problem definition?
Does the data apply to the time period of interest?
Does the data apply to the population of interest?
Applicability to project objectives
Do the other terms and variable Classifications presented apply?
Are the units of Measurement comparable?
If possible, go to the original source of the data?
Evaluating Secondary Data (continued)
Applicability to project objectives
Accuracy of the data
6
Is the cost of data acquisition worth it?
Accuracy of the data
Is there a possibility of bias?
Can the accuracy of data collection be verified?
Evaluating Secondary Data (continued)
Internal Data
ØAccounting information
ØSales information
ØBackorders
ØCustomer complaints
Data Mining
The automated extraction of hidden predictive information from large databases
E.g. Blockbuster mines its video rental history database to recommend rentals to
individual customers
External Data
Created, recorded, or generated by an entity other than the researcher’s organization.
Sources of External Data
ØLibraries
ØThe Internet
ØVendors
ØProducers
ØBooks and periodicals
ØGovernment
ØTrade associations
ØNewspapers and journals

7 Commercial Sources
Ø Attitude and public opinion research—syndicated services report the findings of
opinion polls
Ø Consumption and purchase behavior data
Ø Advertising research—readership and audience data
Ø Market share data companies like A.C. Nielsen provide information about sales
volume and brand share over time
You have decided to open a new retail store in Calgary that will sell personal computers
and software.
What information do you need to help you determine whereto locate?
What secondary data are available to help you decide where to locate the store?