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Primary-Data Collection : Primary-Data Collection Chapter 6


Who Are the Air Travelers and What Do They Do in the Airport? : Who Are the Air Travelers and What Do They Do in the Airport? Washington National Surveys passengers every two months about their travel habits and shopping preferences and locates stores based on survey results British Airways Authority Asks passengers to rate BAA’s services, about cleanliness,flight information, and baggage trolleys, as well as about aircraft checks, check-in-procedures,baggage claim, comfort, congestion, BAA staff, and value for money


Who Are the Air Travelers and What Do They Do in the Airport? (Cont’d) : Who Are the Air Travelers and What Do They Do in the Airport? (Cont’d) Philadelphia International Airport Developed retail mall to overcome limited food choices and high prices Used focus groups consisting of 20 participants, including business and leisure travelers and people who picked up and dropped off travelers, to fine tune the retail mall Baltimore Washington International Airport Gathers information by taking photographs of vehicles in the parking lots Conducts this observational study every 18 months to pinpoint their target market


Data Collection Methods : Data Collection Methods Gap, Inc., a national chain of clothing stores, wants to evaluate the effectiveness of a special point-of-purchase promotion for its Gap brand men's shirts The promotion consists of a decorative display in which Gap brand shirts are prominently and attractively featured. How will you evaluate the effectiveness of the point-of-purchase promotion?


Data Collection Methods (Cont’d) : Data Collection Methods (Cont’d) Method A : Brief personal interview Method B : Telephone survey Method C : Mail questionnaires to a sample of residents Method D : Online questionnaire Method E : Hire someone to observe customers Method F : Videotape customer reactions Method G : Program the store’s electronic cash registers


Method A: Conduct a Brief Personal Interview : Method A: Conduct a Brief Personal Interview Brief personal interview of a sample of store customers during the promotional period Ask the customers whether they bought Gap brand men's shirts, and, if so, what motivated them to make the purchase Ask them specific questions about their reactions to the special display


Method B: Telephone Survey : Method B: Telephone Survey At the conclusion of the special promotion, call residents in the store's trading area to ascertain whether they visited the store during the promotional period If they did, find out their reactions and responses to the special display


Method C: Mail Questionnaire : Method C: Mail Questionnaire Same as method B, except that instead of conducting a telephone survey, mail questionnaires to a sample of residents, along with stamped envelopes for returning completed questionnaires


Method D: Online Questionnaire : Method D: Online Questionnaire E-mail a sample of store customers during the promotional period and request that they respond to the questionnaire posted on the company’s web site Ask them whether they bought Gap brand men's shirts If they did, find out what motivated them to make the purchase Ask them specific questions about their reactions to the promotional display


Method E: Hire an Observer : Method E: Hire an Observer Hire someone to observe customers and record their reactions as they pass by the special display Ask the observer to record such things as: whether customers stop to look at the display how long they spend at the display how interested they appear to be in it


Method F & G: Videotape and Program the Electronic Register : Method F & G: Videotape and Program the Electronic Register Videotape the area where Gap brand shirts are featured to generate a continuous record of customer reactions and behavior as they approach and pass by the special display Program the store's electronic cash registers to automatically keep track of the total number of Gap brand men's shirts sold during the promotional period


Types of Marketing Research : Types of Marketing Research Exploratory Research Descriptive Research Experimental Research


Data Collection Methods (Cont’d) : Data Collection Methods (Cont’d) Questioning Active Interview or a formal questionnaire Question design Observation Passive In-person or mechanical devices Time consuming


Observation vs. Questioning: Versatility : Observation vs. Questioning: Versatility Observation may be inconclusive How does a customer feel? Questioning may not be possible Difficult to get answers from children


Observation vs. Questioning: Time and Cost : Observation vs. Questioning: Time and Cost Questioning A variety of avenues are available Can search for the most rich data source Observation Can involve large amount of inactivity


Observation vs. Questioning: Data Accuracy : Observation vs. Questioning: Data Accuracy Questioning Unable to recall reaction/purchase–Chrysler Minivan Unwilling or unable to reveal the truth-no erroneous answers Survey research did not support the introduction of minivan Observation Observation is more accurate for behavior Lack of interaction minimizes data distortion Pre-release observation of “Junior”(movie) showed support, but the movie was a box office failure


Observation vs. Questioning: Respondent Convenience : Observation vs. Questioning: Respondent Convenience Questioning Answers specific questions Inaccurate Participation problems Observation Respondents do not participate Inability to account for all variables Waiting for events to take place


Exhibit 6.1 Choosing Between the Questioning and Observation Approach : Exhibit 6.1 Choosing Between the Questioning and Observation Approach Use the questioning approach No Yes Yes Yes No No No


Types of Questionnaires : Types of Questionnaires Structured, Non-disguised Clear and direct Appropriate for large samples and descriptive research Non-structured, Non-disguised Flexible and direct Appropriate when looking for in depth answers and exploratory research Structured, Disguised Clear and investigative Used to uncover people’s attitudes towards sensitive issues Non-structured, Disguised Flexible and investigative Appropriate in motivation research


Structured Question : Structured Question Presented to everyone with fixed responses What are the strengths of Ivory Soap in comparison to Dial Soap? __Costs less __Lasts longer __Smells better __Produces more lather __More Convenient Sizes


Non-structured Question : Non-structured Question Questions can change and there are no fixed responses Probe customer’s perceptions of Ivory’s strengths Open-ended or Free response Non-structured but the question does not change What are the strengths of Ivory Soap in comparison to Dial Soap? ______________________________________________


Advantages and Disadvantages of Structured Questions Relative to Nonstructured Questions : Advantages and Disadvantages of Structured Questions Relative to Nonstructured Questions Evaluation Criteria–Versatility Advantages Can be used to study diverse populations Literacy levels and communication skills of respondents not as critical as for nonstructured questions More topics/issues can be covered in interview/questionnaire of given length Disadvantages Not as good in providing new insights/ideas as nonstructured questions Cannot obtain in-depth or detailed responses


Advantages and Disadvantages of Structured Questions Relative to Nonstructured Questions (Cont’d) : Advantages and Disadvantages of Structured Questions Relative to Nonstructured Questions (Cont’d) Evaluation Criteria–Time Advantages Less time to respond as well as to record responses Collected data can be quickly transferred to computer memory for analysis In some studies recording coded responses directly into computer terminals as interview is taking place may be possible Disadvantages May take more time to design, unless researcher has clear idea of what to ask and what specific responses to expect


Advantages and Disadvantages of Structured Questions Relative to Nonstructured Questions (Cont’d) : Advantages and Disadvantages of Structured Questions Relative to Nonstructured Questions (Cont’d) Evaluation Criteria–Cost Advantages Cheaper since interviewer time and skill levels required to record and interpret data are usually lower than nonstructured questions


Advantages and Disadvantages of Structured Questions Relative to Nonstructured Questions (Cont’d) : Advantages and Disadvantages of Structured Questions Relative to Nonstructured Questions (Cont’d) Evaluation Criteria–Accuracy Advantages Less chance of interviewer and respondent errors in recording answers Disadvantages No guarantee that checked response fully and/or truly reflect respondents’ intended answers


Advantages and Disadvantages of Structured Questions Relative to Nonstructured Questions (Cont’d) : Advantages and Disadvantages of Structured Questions Relative to Nonstructured Questions (Cont’d) Evaluation Criteria – Respondent Convenience Advantages More convenient to respondents in terms of time needed to respond and ease of responding


Disguised Questions : Disguised Questions Used to examine issues in which direct questions may not elicit truthful answers. Would the people you associate with buy a cheap brand of liquor and serve it from a bottle of an expensive brand to impress their guests? VERSUS Would YOU buy a cheap brand of liquor and serve it from a bottle of an expensive brand to impress YOUR guests? Constructing and interpreting disguised questions requires special skills, such as psychology and psychoanalysis


Table 6.1 Determinants of Questionnaire Format : Table 6.1 Determinants of Questionnaire Format


Nonstructured, Nondisguised Questionnaire : Nonstructured, Nondisguised Questionnaire When researcher wants to give respondents a free hand in providing information Popular in exploratory-research Questionnaire is checklist of relevant issues Let respondents provide as much information as possible in as unrestricted a fashion as possible In-depth interviews of senior managers evoke more thoughtful, deliberate answers about broad strategic issues


Structured, Disguised Questionnaires : Structured, Disguised Questionnaires A number of factual items to which respondents provide structured answers Wide variety of items, ranging in degree of favorableness toward the issues being investigated, are included in the questionnaire Discover people’s attitudes toward sensitive issues such as: Abortion Pollution Deregulation


Non-structured, Disguised Questionnaires : Non-structured, Disguised Questionnaires Different tools are utilized to uncover people’s motivations and feelings Techniques include: Projective Techniques Word Association Tests Sentence Completion Tests Thematic Apperception Tests Cartoon “Balloon” Test


Questionnaire Administration Methods : Questionnaire Administration Methods Different approaches to collecting data through questionnaires Personal Interview Telephone Surveys Mail Surveys Internet/Web-based Surveys


Versatility : Versatility Personal Interview The most versatile, especially useful for stimuli response, such as a taste test, and longer unstructured surveys Telephone/Mail Surveys Limited by deficiencies in presenting different stimuli to respondents Internet/Web-based Surveys Very useful in structured surveys as previous answers can be used to direct respondents to other questions


Cost and Time : Cost and Time Cost Personal Interviews: Very expensive, interviewers, set-up central location or travel Telephone: Expensive, interviewers and facilities Web-based:Very Inexpensive, no interviewers or data entry Time Personal Interviews: Very time consuming Telephone: Effective, Second only to Web-based Mail: May suffer from postal delays Web-based: Most effective, can generate reports almost instantly


Accuracy : Accuracy Sampling Control Ability to identify and reach respondents Ability to secure cooperation Supervisory Control Opportunity for Clarification


Sampling Control: Personal Interview : Sampling Control: Personal Interview Ability to collect data from a sample that adequately represents relevant segments of the population of interest Personal Interview Most capable of overcoming sample problems More difficult to refuse face-to-face


Sampling Control: Telephone : Sampling Control: Telephone A number of difficulties stand in the way Proliferation of unlisted numbers, answering machines, cellular telephones and Caller ID hinder sample representativeness Random digit dialing and Computer Assisted Telephone Interviewing (CATI)


Sampling Control: Computer- Assisted Telephone Interviews : Sampling Control: Computer- Assisted Telephone Interviews Continuously keeps track of the number and nature of respondents as the interviews are completed Will disallow interviews that do not fit into the desired demographic group whose group’s quota has already been filled


Sampling Control: Mail Surveys : Sampling Control: Mail Surveys Low response rates and significant differences between respondents and non-respondents People with higher incomes and/or higher education levels are more likely to respond to mail surveys Incentives, while increasing response rates, may not improve sample representativeness


Sampling Control: Internet/Web-Based Surveys : Sampling Control: Internet/Web-Based Surveys Sample representativeness is a severe problem due to two hurdles Respondents must go to the appropriate website containing the survey Hard to get respondents to take the survey on the web


Sampling Control: Avon’s Internet Decision : Sampling Control: Avon’s Internet Decision Previously used intercept interview method of company representatives to estimate new product demand Avon tried Internet surveys and found that both methods generated similar results The company switched to Internet surveys


Supervisor Control : Supervisor Control Definition: Ability to minimize errors such as failure to follow instructions, mistakes in recording answers, and cheating Personal Interviews Very prone to problems stemming from interviewer error Telephone Surveys When conducted from a central location and assisted by computer and/or audio equipment, the results are much better than personal interviews Mail/Web-based Surveys Superior because there is no interviewer or biases


Opportunity for Clarification : Opportunity for Clarification Definition: Ability to detect and overcome problems that respondents may experience in answering certain questions Personal Interviews/Telephone Surveys Respondents can seek clarification from interviewers Mail Surveys Most difficult as there is no direct interaction Web-based Surveys Results and patterns can be observed and midcourse corrections can be made


Respondent Convenience : Respondent Convenience Personal Interview The most disruptive as respondents may find it difficult to say no to a persistent interviewer Telephone Surveys Disruptive as calls, telemarketing and research, can come too often in some markets Mail/Web-based Surveys Fairly low impact, when complete simply click “Submit” or put the survey in the mail


Table 6.2 Comparison of Questionnaire Administration Methods : Table 6.2 Comparison of Questionnaire Administration Methods


International Marketing Research : International Marketing Research


Potential Research Constraints in Other Countries : Potential Research Constraints in Other Countries


Potential Research Constraints in Other Countries (Cont’d) : Potential Research Constraints in Other Countries (Cont’d)


Potential Research Constraints in Other Countries (Cont’d) : Potential Research Constraints in Other Countries (Cont’d) Cont...


Potential Research Constraints in Other Countries (Cont’d) : Potential Research Constraints in Other Countries (Cont’d) Cont...


Potential Research Constraints in Other Countries (Cont’d) : Potential Research Constraints in Other Countries (Cont’d)


Potential Research Constraints in Other Countries (Cont’d) : Potential Research Constraints in Other Countries (Cont’d)


Potential Research Constraints in Other Countries (Cont’d) : Potential Research Constraints in Other Countries (Cont’d)


Potential Research Constraints in Other Countries (Cont’d) : Potential Research Constraints in Other Countries (Cont’d) Source: Compiled from a number of articles


Observation Techniques : Observation Techniques The Five Dimensions of Observation Methods: Natural vs. Contrived Settings Disguised vs. Non-Disguised Observation Human vs. Mechanical Observation Direct vs. Indirect Observation Structured vs. Non-structured Observation


Natural vs. Contrived Settings : Natural vs. Contrived Settings Natural Observers are sent into the field to observe consumers as they interact with the item or topic of interest Considered by many to be more revealing than traditional research methods when dealing with non-western cultures Contrived A setting that is artificially created to observe consumer behavior under controlled circumstances Important for testing the performance of new products before they enter the marketplace


Observational Studies in Natural Settings : Observational Studies in Natural Settings Best Western asked 25 over-55 couples to videotape themselves on cross-country trips to learn how they decide when and where to stop for the night 3Com opted for the video ethnographic approach to understand its home customers. 3Com, in its design of Audrey, first in the line of its Ergo line of Internet appliances, wanted to ease access to e-mail, the Internet, and electronic calendars


Observational Studies in Natural Settings (Cont’d) : Observational Studies in Natural Settings (Cont’d) Moen, Inc., a plumbing fixture maker, using video ethnography, to observe how consumers used their shower devices Hewlett-Packard (HP) frequently uses observational research to design new products HP’s medical products division sent researchers to hospitals to observe surgeons during operations


Observational Studies in Natural Settings (Cont’d) : Observational Studies in Natural Settings (Cont’d) Robert V. Kozinets developed “netnography”, an online ethnographic marketing research technique to study online communities. Kozinets’s research focussed on understanding the meaning of coffee consumption by downloading messages from “alt.coffee” newsgroup 1Source: Adopted from Gerry Khermouch, “Consumers in the Mist,” Business Week, February 26, 2001, pp.93-94. 2 Bob Becker, “Take a Direct Route When Data-gathering,” Marketing News, September 27, 1999, p. 29


Disguised vs. Non-Disguised Observation : Disguised vs. Non-Disguised Observation Disguised As consumer’s are unaware that they are being observed, results are not contaminated by false reactions Raises a number of ethical questions about how far research can and should go Non-Disguised Data may be richer as this form of observation can be complimented by an interview or questionnaire to further explain the consumer’s behaviors


Mystery Shopping Program Drives Employee Incentives at Office Depot : Mystery Shopping Program Drives Employee Incentives at Office Depot Office Depot: Relies on mystery shopping for rewarding its employees Monitor employee performance at all its retail locations Mystery shoppers visit each Office


Mystery Shopping Program Drives Employee Incentives at Office Depot (Cont’d) : Mystery Shopping Program Drives Employee Incentives at Office Depot (Cont’d) Office Depot store brings in a mystery shopper once a month to rate the store on the following 8 dimensions: 1) Staffing 2) Business machine knowledge 3) Dress-code and greeting 4) Copy & print knowledge 5) Furniture assistance 6) Service at registers 7) Front end supervisions 8) Cashier interaction


Mystery Shopping Program at Bose Corporation : Mystery Shopping Program at Bose Corporation Customer perspectives, a mystery shopping firm, conducts mystery shopping for Bose in two stages: First stage begins with a phone call to the store, where the store is rated on several dimensions: Answering questions clearly Employee friendliness, and helpfulness (using an excellent, satisfactory, and unsatisfactory scale)


Mystery Shopping Program at Bose Corporation (Cont’d) : Mystery Shopping Program at Bose Corporation (Cont’d) In the second stage, a mystery shopper rates in-store performance on several dimensions: Bose equipment Selling and closing skills Exploration of customer needs Product demonstration and knowledge Overall impressions


Human vs. Mechanical Observation : Human vs. Mechanical Observation Human Often more expensive, in the long run, and less exacting than mechanical means Interpretation of observations remain the realm of humans Mechanical Can more precisely monitor virtually anything that a human observer is capable of and more Likely to be less conspicuous Hidden cameras


Mechanical Devices : Mechanical Devices Eye-tracking equipment Measures what part of an ad or package attracts a customer’s attention Response Latency Measurement and Voice Pitch Analysis Determines how strongly a respondent feels about an answer or how much emotional commitment is attached to it People Meter An electronic device used by AC Nielsen Company to monitor television viewing behavior


Web-based Observation : Web-based Observation DoubleClick Monitors consumer’s movements on the Internet to target ads to an individual’s preferences “Cookies” are used to anonymously track a individual’s online activity Privacy concerns


Direct vs. Indirect Observations : Direct vs. Indirect Observations Direct Observation The actual behavior or phenomenon is observed Counting the number of customers entering a store during different months of the year Indirect Observation Examining the results or consequences of the behavior or phenomenon Comparing the amount of wear a floor receives over those periods


Direct Observation: Competitive Intelligence at Staples : Direct Observation: Competitive Intelligence at Staples Observe non-competing retailers to pick up new pointers in retailing Stores are evaluated on the following dimensions: Store layout Product assortment Store atmospherics Customer service Important purpose of the visit is to identify things that are carried out better at the competitor’s store and learn from them


Indirect Observation: Competitive Intelligence at Oracle : Indirect Observation: Competitive Intelligence at Oracle Oracle used an indirect observation technique to help the government’s antitrust case against Microsoft Bought Microsoft’s trash Hired investigators to dig through it Gathered information that government lawyers were not privy to


Structured vs. Non-structured Observations : Structured vs. Non-structured Observations Structured Observations: Used when the study’s data requirements are well-established and can be broken down into discrete, clearly defined categories The number of groups and their size that visit a restaurant Unstructured Observations: Used when the data requirements are vague and less clear The moods and behaviors of single and group customers