1. Chapter 3
Exploratory research and qualitative
analysis
1

2. Questions?
• Is it possible to make good marketing
decisions without marketing research?
• Design these research:
– You want to find out who plays bingo
– What Uni students have for lunch
– Food company wants to know what types of
food are carried in packed lunches
– Heart Foundation wants to know who
donates <$500 per yr
– Forecast sales of flight simulators and pilot
training over next 5 years
2

3. What is the iceberg principle
• Good or bad?:
• Farm equipment manufacturer: Our
objective is to learn the most effective
form of advertising so we can maximise
profit.
• TV producer: We have a marketing
problem. The program’s rating are low.
We need to learn how to improve our
ratings.
3

4. Defining Research Design
• The detailed blueprint or plan to guide
the implementation of a research study
• A research design includes:
– Type of research
– Measurement and scaling
– Construct and pre-test questionnaire
– Sampling process and sample size
– Data analysis plan
– Budget and scheduling

5. Criteria Qualitative Research Quantitative Research
Objective To gain a rich understanding of To quantify data and generalise the
reasons and motivations results from the sample to the
population of interest
Sample Small number and unrepresentative Large number and representative
Data collection Unstructured Structured
Data analysis Non-statistical, based on judgement Statistical
and interpretation of the researcher
Strength Rich source of information, can Can generalise results to a larger
probe deeply population
Weakness Can not generalise results Loss of richness of data
Outcome Develop an initial understanding Recommend a final course of action

6. A Classification of Marketing Research Designs
Research Design
Source: Malhotra et al (2004), p. 63.
Exploratory Conclusive
Research Design Research Design
Descriptive Causal
Research Research
Cross-sectional Longitudinal
Design Design
Single Multiple
Cross-sectional Cross-sectional
Design Design

7. Research Approaches
• Exploratory
• Descriptive
• Causal
• Combination

8. Exploratory Research
• Explores
• Provides insights into the general nature
of a problem
• Little or no prior knowledge required
• Highly flexible
• Unstructured
• Qualitative

9. Common Uses of
Exploratory Research
• Diagnosing problems
• Discovering new ideas
• Screening alternatives
• Gain background information
• Define a problem more precisely
• Identify alternative sources of action
• Develop hypotheses
• Isolate key variables and relationships for
further examination
• Gain insight for developing an approach to
the problem
• Establish priorities for further research

10. Methods of Exploratory Research
• Survey of experts
• Analysis of secondary data
• Pilot studies
• Qualitative research
– Depth interviews
– Focus groups

11. Exploratory Research:
Strengths and Weaknesses
• Strengths
–ability to generate insights
–clarify problems
• Weaknesses
–results cannot be generalised
–should not be a basis for decision
making

12. Descriptive Research &
Common Uses
• Major objective: the description of
something - usually market characteristics
or functions.
• Provides answers to questions such as
Who, What, Where, When, Why and
How are they related to the research
problem.
• Includes studies on the market, market
share, sales analysis, image, product usage,
distribution, pricing, advertising

13. Methods of Descriptive
Research
• Secondary data
• Surveys
• Panels
• Observational and other data
• Internet

14. Descriptive Research:
Strengths and Weaknesses
• Strengths
– Ability to provide an accurate description
– Can be a basis for decision making
• Weaknesses
– Causal links not established
– Can be more expensive and time
consuming than exploratory

15. Forms of Descriptive
Research
Cross-sectional Design
• Collection of information from any given
sample of the population elements only
once “snapshot”
• Often a large representative sample
• Can be single or multiple cross-sectional

16. Forms of Descriptive
Research cont.
Cohort Analysis
• A series of surveys
conducted at appropriate
time intervals.
• The cohort refers to the
group or respondents
who experience the same
event within the same
time interval.
e.g., A study on leisure time Source: http://www.decemberfilms.com.au/Nomads/index.html
activities of Baby Boomers.

17. Case Study: Tweens
• Research company Millward
Brown conducted over 2000
surveys spread across 11
countries on Tweens (8 to 14
year olds) to understand
their relationship to brands.
• Some of the findings include:
–Kids influence more than 67%
of all brands their parents buy
–Tweens spent $US1 trillion
across the globe last year
–Australian children watch
between 20,000 and 40, 000
television commercials a year.
Source: McCausland, V. (2003) “When Kids control the spending”, Daily
Telegraph (5 July), p. 29.

18. Forms of Descriptive
Research cont.
Longitudinal design
• A type of research design involving a
fixed sample of population elements
(i.e.. Panel) which is measured
repeatedly over time.
• Measures changes over time.
• Some potential problems include
respondent refusal to co-operate,
mortality, response bias and possible
payment.

19. Relative Advantages and Disadvantages of
Longitudinal and Cross-sectional Design
Evaluation criteria Cross-sectional design Longitudinal design
Detecting change - +
Large amount of data - +
collection
Accuracy - +
Representative + -
sampling
Response bias + -
Note: + indicates a relative advantage; whereas - indicates a relative disadvantage

20. Causal Research, Common
Uses & Collection Methods
• Used when it is necessary to show that
one variable causes or determines the
value of other variables
• Experiments
– Test marketing a product
– Taste tests
– Advertising effectiveness

21. Causal Research: Strengths
and Weaknesses
• Strength
–Ability to establish a causal link
• Weaknesses
–Time required
–Cost
–Control
–Secrecy

22. A Comparison of Basic Research
Design
Exploratory Descriptive Causal
Objective Discovery of ideas and To describe market Determine cause and
insights characteristics effect relationships
Characteristics Flexible, versatile. Research testing Manipulation of one or
hypotheses more independent
Often starts the variables
research process Preplanned and
structured design.
Hypotheses None or very vague and Tentative and Very specific
ill defined speculative

23. A Comparison of Basic Research
Design cont.
Exploratory Descriptive Causal
Type of data Qualitative Quantitative Quantitative
Methods Expert surveys Secondary data Experiments.
Pilot surveys Surveys
Case studies Panels
Secondary data Observational data
Qualitative research
Ability to None Can predict but can Establishes a cause-
measure not confirm effect relationship
causality

24. A Comparison of Basic Research
Design cont.
Exploratory Descriptive Causal
Sampling Often small and Larger sample size, Can be generalised
chosen using non- often using probability- depending on sample
probability methods based sampling size and method
methods
Generalisability Can not be Can be generalised Can be generalised
generalised depending on sample depending on sample
size and method size and method
Cost Low Medium High
Time Quickest Moderate Longest

25. Debate: Qual vs Quant
Tourism development on Magnetic Island
• The organisation wishes to determine the viability of
establishing a tourist operation with glass bottom boats,
which would enable visitors to easily observe the reef.
• They approached the local University to conduct a study to
determine the market for possible interest in such an
operation. The specific objectives of the study would be as
follows:
– To determine if there is a need and a demand for such a
business.
– To determine the price customers are willing to pay for this
service.
– To determine how the island’s inhabitants and other
businesses on the island might view such a business.
• The organisation is interested in minimising the cost of the
research.

26. The importance of quantitative research.
Peter Kenny, Managing Director
Colmar Brunton

27. Contents of a Research Brief
• Introduction and Background
• Outline of previous or existing research
• Research problem
• Proposed research design
• Reporting schedule
• Proposed budget and timeline

28. Research Proposals
• The plan for conducting and controlling
a research project.
• Also…
–summary of major decisions in
research process
–contract
–used to make a choice between
suppliers

29. Content of a Research
Proposal
• Covering letter
• Executive summary
• Introduction and background
• Problem definition
• Research design
• Time and cost estimates
• Appendices
• Reporting schedule

30. Exploratory research
• Useful when researcher has limited amount of
experience or knowledge about a research issue.
• Provides qualitative data focusing on words and
observations.
• Conducted for three purposes:
– Diagnosing a situation
– Screening alternatives
– Discovering new ideas.
30

31. Diagnosing a situation
• Used to diagnose the dimensions of
problems.
• Helps set priorities for research.
• Gathering information an unfamiliar topic.
31

32. Screening alternatives
• Used to determine the best alternatives when
there are budget constraints.
• Concept testing: purpose is to test some sort of
stimulus as a proxy for a new, revised, or
repositioned product or service.
– For example, Kelvinator launched microwave
ovens to cook everyday Indian meals.
32

33. Discovering new ideas
• Used to generate ideas for new products,
advertising copy etc.,
• Uncovering consumer needs
– Determine what problems consumers have
with a product category.
• ‘Dog food smells bad in the refrigerator.’
33

34. Categories of exploratory
research
• Experience surveys
• Secondary data analysis
• Case studies
• Pilot studies.
34

35. Experience surveys
• Ask knowledgeable individuals about a
particular research problem — most are quite
willing.
• For example, a chainsaw manufacturer and a
mushroom expert.
35

36. Secondary data analysis
• Data collected for a purpose other than the
project at hand.
• Economical
• Quick source for background information.
36

37. Case study method
• Intensely investigates one or a few situations
similar to the problem.
• Investigate in depth
• Careful study
• May require cooperation
• Example of market anthropology.
37

38. Pilot study
• A collective term for any small scale exploratory study
that uses sampling but does not apply rigorous
standards.
• Generates primary data but usually for qualitative
analysis — qualitative research.
• Major categories include:
– Focus group interviews
– Projective techniques
– Depth interviews.
38

39. Focus group interviews
• It is an unstructured, free–flowing interview
with a small group of people.
• The group meets at a central location with a
moderator who encourages discussion of a
brand, advertisement, or new–product
concept.
• Allow people to discuss their true feelings,
anxieties, and frustrations in their own words.
39

40. Group composition
• Six to 10 people
• Relatively homogeneous
• Similar lifestyles and experiences and
communication skills
• Researchers who wish to collect information
from different types of people should conduct
several focus groups.
40

41. Environmental conditions
• Commercial facilities that have videotape
cameras in observation rooms behind one–
way mirrors and microphone systems
connected to tape recorders and speakers to
allow observation by others who aren’t in the
room.
• Mood as relaxed and natural as possible.
41

42. The moderator
• Develops rapport — helps people relax
• Promotes interaction among its members
• Listens to what people have to say
• Everyone gets a chance to speak.
42

43. Planning the focus group outline
• Discussion guide: a document prepared by
the focus group moderator that contains
remarks about the nature of the group and
outlines the topics or questions to be
addressed.
• Example and description of a discussion
guide in Exhibit 3.2 on page 71.
43

44. Advantages of a focus group
• Fast, inexpensive, and easy to execute.
• Numerous topics can be discussed and many
insights can be gained.
• Synergy: combined effort of the group will produce a
wider range of information, insights, and ideas.
• Snowballing: bandwagon effect where a comment
from one individual triggers a chain of responses
from others. Includes brainstorming.
44

45. Advantages of a focus group
• Serendipity: more often that some idea drops
out of the blue. Also greater opportunity to
develop an idea to its full potential.
• Security: individual can find some comfort
when others share similar feelings.
• Spontaneity: individual responses can be
more spontaneous if they are not required to
answer any given question.
45

46. Shortcomings of a focus group
• Focus groups require sensitive and effective
moderators.
• Since focus group participants are screened to have
similar backgrounds and experiences, they many not
be representative of the entire market.
46

47. Depth interviews
• A relatively unstructured, extensive interview
in which the interviewer asks many questions
and probes for in – depth answers.
• Probing questions:
– ‘Can you give me an example of that?’
– ‘Why do you say that?’
47

48. A warning about exploratory
research
• Exploratory research cannot take the place of
conclusive, quantitative research.
• This can lead to incorrect decisions.
• Interpretation of the findings typically is
judgemental.
• Most exploratory techniques use small samples
which may not be representative.
48

49. Chapter 4
Digital research using secondary data
49

50. The Secondary Data Search
and Evaluation Process

51. Primary vs. Secondary Data
Primary data
• Originated by the research for the specific
purpose of addressing the problem at hand.
e.g., Interviewing respondents to determine
their satisfaction with their Internet Service
Provider
Secondary data
• Data which has been collected for purposes
other than the problem at hand.
e.g., ABS data reporting the proportion of
Australian households who have access to the
Internet.

52. Comparison of Primary and Secondary
data
Primary Data Secondary Data
Collection purpose For the problem at hand For other problems
Collection process Very involved Rapid and easy
[5 Steps]
Collection cost High Relatively low
Collection time Long Short

53. Uses of Secondary Data
• Could resolve the problem
• Source of new ideas
• Help define and/or provide better
understanding of problem
• Guidance for collection of primary data
• Reference point for primary data
Exhaust all appropriate secondary data sources before proceeding to
undertake primary data.
Why?

54. What role does secondary data play in the research you conduct
at Colmar Brunton?
Peter Kenny, Managing Director
Colmar Brunton

55. Other Uses of Secondary Data
• Identify the problem
• Better define the problem
• Develop an approach to the problem
• Formulate an appropriate research
design
• Answer certain research questions and
test some hypotheses
• Interpret primary data more insightfully
• Demand estimation
• Monitoring the environment
• Segmentation and targeting
• Developing a business intelligence

56. Benefits of Secondary Data
• Easily accessible
• Relatively inexpensive
• Obtained quickly
• Sometimes more accurate than primary
data
• Some information is only available from
secondary sources (e.g., population of the
country)
• Enhances existing primary data
• Familarise the researcher with the industry
• Identify concepts, data and terminology

57. Limitations of
Secondary Data
• Collected for some other purpose
• No control over data collection
• May not be very accurate
• Mismatching the units of measurement
• Differing definitions used to clarify the
data
• Recency of the secondary data
• Lack of information needed to assess the
credibility of the data
• A number of assumptions have to be
made

58. A Classification of
Secondary Data
Secondary Data
Internal External
Ready to use Requires further Published Computerised Syndicated
processing sources databases services

59. Internal Secondary Data
• Data generated within the organisation
for which the research is being
conducted.
• e.g., sales invoices, accounting data,
sales reports, inventory reports,
customer feedback and database,
Annual reports, CRM
• Easily available and inexpensive.
Example of a customer feedback form

60. External Secondary Data
• Data generated by sources outside the
organisation.
Examples
• Government publications
• Government sponsored sources
• Periodicals and books
• Marketing and trade journals
• Business magazines and newspapers
• Academic publications
• Syndicated data from households
• Syndicated data on industry and business

61. Government Sources
• Information published by Government
• Examples
– census data
– other government publications

62. Example of ABS Data
Source: ABS (2003) Australian Demographic Statistics, Cat. 3101.0, June, ABS, Canberra, p.18

63. Example of ABS Data cont.
Source: ABS (2000) Use of the Internet by Household, Cat. 8147.0, November, ABS, Canberra, p.11

64. Computerised Databases
• Information made available in computer-
readable form for electronic distribution.
• Advantages
– Current information
– Faster data search
– Low cost
– Convenience

65. Examples of Computerised
Databases
http://library.vu.edu.au
• Academic Search Elite
• ATI
• Annual Reports
• AusStats
• Business Source Premier
• Emerald Fulltext
• Factiva
• Market Comparative Analysis
• Sport Discus
• Web of knowledge

66. Syndicated Sources
of Marketing Data
• Many information users with common
information needs
• Cost of satisfying individual users is
prohibitive
• Increasing use of scanner systems
facilitates standardised sources

67. Syndicated Sources
of Marketing Data cont.
• Applications:
–Measure product sales and market
share
–Measure advertisement exposure
and effectiveness
–Measure promotion effectiveness
–Estimation and evaluation of models

68. Syndicated Sources of Secondary Data
cont.
Source: Malhotra et al (2004), p. 95.

69. Example of Syndicated
Services
• Nielsen NetRatings
• Quantum Market Research YouthSCAN
• Roy Morgan Single Source Data
• Grey worldwide Eye on Australia
• Roy Morgan MindSets
• OzTam ‘Peoplemeters’
Refer to Table 4.3 p. 99.

70. External Sources of
Secondary Data
• Access methods
– online
– electronic
– hard copy
– experts
Refer to Table 4.2 p. 94.

71. Evaluating Secondary Data
• Who collected data?
• Why was data collected?
• How was the data collected?
• What data was collected?
• When was data collected?

72. Identifying Gaps in
Information Required
• Compare information gathered with
information required in research objectives
• Research objectives may sometimes be
met with no need for further research
Think about this in relation to your
literature review

73. Secondary data research
• Data gathered and recorded by someone
else prior to and for purposes other than the
current project.
• Historical
• Already assembled
• Needs no access to subjects.
73

74. Advantages
• Faster and less expensive than primary data
– Particularly for electronic retrieval of
digitally stored data.
74

75. Disadvantages
• Not designed specifically to meet the
researchers’ needs.
• Researchers must ask how pertinent the data
are to their particular project.
– Is the subject matter consistent with our
problem definition?
– Do the data apply to the population of
interest?
– Do the data apply to the time period of
interest?
75

76. Evaluating secondary data
76

77. Evaluating secondary data
77

78. Typical objectives
for secondary data research designs
78

79. Fact–finding
• For example, a marketer of frozen food
should be interested in knowing the size of
the frozen pizza market.
• Identifying consumer behaviour for a product
category
• Trend analysis
– Example: finding a trend in online
advertising in Australia.
• Environmental scanning.
79

80. Model building
• Use of secondary data to specify
relationships between two or more variables.
• Extends to development of descriptive or
predictive equations.
• Used to estimate market potential for
geographic areas.
– Example: savoury biscuits marketer using
population data.
80

81. Model building
81

82. Model building
• Also used to forecast sales.
– For example, Australian Recording Industry
Association uses past sales to forecast
future sales.
• Used to analyse trade areas and sites.
– Example:retail saturation data.
82

83. Data mining
• Use of powerful computers to dig through
volumes of data to discover patterns about an
organisation’s customers and products.
• Neural networks: artificial intelligence in which
a computer is programmed to mimic the way
that the human brain processes information.
83

84. Market basket analysis
• Analyses anonymous point–of–sale
transaction databases to identify coinciding
purchases or relationships between products
purchased and other retail shopping
information.
• Example: Osco Drugs discovered men buy
nappies with beer.
• Customer discovery and sequence discovery.
84

85. Marriot vacation club international
• Sells vacation time–share condos using direct
mail.
• Starting with data on hotel guests, they
looked at motor vehicle and property records,
ages, estimated income to enrich the
prospect list.
• The result was less wastage and a higher
response rate.
85

86. Sources of secondary data
• Internal and proprietary data sources
originate inside the organisation.
– Sales orders, customer complaints, service
records.
• External data is created, recorded or
generated by an entity other that the
researcher’s organisation.
– Government, newspapers and journals,
trade associations.
86

87. Information as a product and its
distribution channels
87

88. 88

89. Information as a product and its
distribution channels
• Libraries
• The Internet
• Vendors
• Producers
• Books and periodicals
• Government sources
• Media sources
• Trade association sources
• Commercial sources.
89

90. A sampling of the diverse data
available
• Market share and consumption and purchase
behaviour data
– ACNielsen with scanner–based data
• Demographic and census updates
– ABS
• Consumer attitude and public opinion research
– Roy Morgan Australia opinion polls
• Advertising research
– OzTAM television audience ratings.
90

91. What changes have you noticed in the use of tracking
monitors?
William Burlace, Director, Media Services
Roy Morgan Research

92. Question:
• You have been hired by the Autism
Association to learn how they can
increase the number of fathers who
volunteer to help with therapy for
autism children?
92

93. Why conduct exploratory research?
• Uncertainty about the precise statement
of the problem that we face
– Helps better understand a situation
– Helps screen alternatives
– Helps in coming up with new ideas
• Purpose is to crystalise the problem
rather than to measure & quantify
93

94. Qualitative ways to explore
• Stories
• Visual portrayals
• Intrepretations
• Can look at trends
94

95. Discovering ideas.
Screening alternatives?
• Exploratory research is used to find new
product ideas. Eg design your own car
• When there are a number of options
open to you & you need to select
• Eg new product ideas – what will work;
market size, etc
• Concept testing – need to get a feel for
the merits of an idea before making
R&D commitments and using resources
95