Section 1 - Market Research Fundamentals

Session 1 \u201cMarket Research Fundamentals\u201d

Core Skills for Data Processing ORSC 2004 - Internal Training

Objective

At the end of the training program, participants should be able to \ue000

Understand Scope of Market Research

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Understand Research Process

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Understand functions of various departments

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In-depth understanding of Research Methodologies

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Role of data processing department

Case Study \ue000

A company wants to launch a new laser printer into the mark

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They have no idea who their customers are

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Whom should they target ?

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Where should they sell their goods?

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What should the price be?

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What should the brand name be?

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What is the type of advertising that they should do? DO YOU HAVE ANY SUGGESTIONS HOW DO THEY DO IT ? READ AHEAD TO FIND OUT HOW!!!!!

Market Research is the answer

What is Market Research?

To put it in simple terms Market Research is ‘A formal, planned approach to the collection, analysis, Interpretation and reporting of information required for marketing decision-making

What is Market Research? Market research is the process of collecting and analyzing information about the customers you want to reach, called your target market.

This information provides you with the business intelligenc you need to make informed decisions. Market research can help you create a business plan, launch a new product or service, fine tune your existing products and services, expand into new markets, develop an advertising campaign, set prices or select a business location

When is MR done?

Before starting a new business; When introducing a new product/service; To keep existing market share (markets are always changing). To identify new customers To measure customer/employee satisfaction

How is Market Research done?

2 ways of collection information

Primary Research

Secondary Research

Primary Research

Here data is collected specifically for the study at han It can be obtained either by the person observing the or phenomenon being studied Communicating directly or indirectly with the subject. Direct communication methods include Qualitative Research techniques as in-depth interview, focus gr and projective techniques, and Quantitative Research techniques such as Face to Face, telephone, selfadministered interview surveys

Secondary Research

Secondary research is based on existing data fro reference books, magazines and newspapers, industry publications, chambers of commerce, government agencies or trade associations. It yields information about industry sales trends and growth rates, demographic profiles and regional business statistics.

Using Market Research Market research allows you to pinpoint a host of key business factors about your market. It can help you identify: Growth trends in your business sector Size of your target market Best location for your business How your business stacks up against the competition Factors that influence buying decisions Degree of demand for your product or service

11

Using Market Research It also can reveal key information about your customers and prospects, including: Their demographic profile The types of features or special services they want What they like and dislike about your product or service How they use your product or service How often they buy and how much they will pay for your product or service

Understanding the Research Process

People Involved

Who all are involved ?

Client

Research

Field

Data Processing ( DP)

An outline of the Research Process Define the problem and Research ObjectivesClient &

Research

Developing the Research plan

Research

Collecting the Information

Field

Analysing the Information

DP

Presenting the findings

Research

Research Process - Roles Client: The person (could also be a group of people) who action/s the

Researcher: People who act as an interface between the Client, Researc Office and Field office. This is explained below in the diagram. Field:

The people who actually carry out the survey/interviews.

Data Processing: the computer

Client

The people who enter the data from the questionnaire

Research

Data Processing

Field

Role of a Researcher Identifies revenue generating clients for the agency

Acts as interface between the client and the agency; and field office agency Prepares Proposal for the research project being undertaken Determines the cost of the project Designs questionnaire for the research project Prepares all documents needed for field and DP Does analysis of data and prepares reports and presentations Makes presentation to client on Research findings Updates the client on the status of the Research project

Role of Field office/Interviewers

Understanding the questionnaire that is sent by the research office

Getting the questionnaire translated and sending it back to researc for checking. Identifying a team of people who actually carry out the survey Train the interviewers Identifying group of people amongst whom the interview is going to be carried out Guarantee the authenticity of the interviews done

Sending a weekly status report to the research office on the statu survey Finally to make sure that the survey is completed on time

Role of Data Processing/Analysis team

Understanding questionnaire, analysis plan, other documents and rese objective Prepare Data Structure to electronically capture questionnaire data Check the authenticity of the data collected by field department Control coding process for open-ended questions Validate/ clean the data Produce summary reports/ cross tabulation of data as per analysis plan Check the correctness of data and reports Perform Advanced Statistical Analysis Controls – Data Entry and Coding Teams Support function to the Research

Role of Analysis in ORSC Understanding questionnaire, analysis plan, other documents and research objective Validate/ clean the data Produce summary reports/ cross tabulation of data as per analysis plan Check the correctness of data and reports Perform Advanced Statistical Analysis Client interaction

Revenue Generating function to the Company

More on Research Methodologies

Research Tools

Research Tools can broadly be divided into 2 parts

Quantitative Research One to One Interviews

Qualitative Research Depth Interviews Group Discussions Observation Exercise

Research Approach Qualitative Exploratory In quest for finer nuances

Quantitative Quantifies or Provides numbers

Choice of a particular research approach is a function of Objectives of the study , Target group( Household / Industrial ) , product being studied (Financial products, Personal care etc.)

Quantitative Research

Research that measures (quantifies) responses to a structured questionnaire Conducted through Structured interviews Data is collected through interviews

Steps involved in Quantitative Research Define goals and objectives Define the Data collection method Determine feasibility Develop the Questionnaire Select Sample (Do we need to discuss the types of samples also?) Conduct Pilot Test If need be revise the questionnaire Conduct Research Analyse Data Prepare Report/ Presentation

Data collection methods

Face to Face Interviews (F2F/ Pen and Paper) Web Based Interviews (CAWI) Telephonic Interviews (CATI) Using Personal Computers (CAPI) Self-Completion (Postal)

All of these mostly for quantitative data collection

The Sampling Process The first step in the sampling process is defining the population. The population or universe is the entire set of elements being studied A sample by definition is a subset of a larger population

For example in a grocery store the desired population would probably consist of people who live in areas where the chain has stores and who shop for groceries . Quantitative Research is based on sampling which information only from some members of the population

involves

Types of Sampling Methods

2 types of Sampling Methods

Probability Samples

Non probability samples

Probability samples

Over here every member of the population has a chance of being in the sample

Probability methods include random sampling, systematic sampling stratified sampling

Random sampling - is the purest form of probability sampling member of the population has an equal and known chance of bein selected. Stratified Sampling – The population is separated into sub called strata and separate simple random samples are drawn from each sub group. For example in drawing a sample of students from a university, graduate and undergraduate students might be separated and each group sampled separately. Cluster Sampling – The population is separated into subgroups as ‘clusters‘ and a sample of clusters is drawn, can also sub sample within selected clusters. For example in drawing a sample of students from a university we could randomly select classes and then students within classes.

Non – Probability Samples

Are samples in which the selection of units is based on facto than random chance, e.g. convenience, prior experience or the judgment of the researcher. Types of Non – Probability samples are convenience, judgmental, and snowball samples

Convenience sampling as the name implies, the sample is selected bec they are convenient. This non probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample.

Judgement Sample is a type of non-probability sample where the selec units is based on the judgement of the researcher When using this method, the researcher must be confident that the chosen sample is truly representative of the entire population Quota Sampling – As the name suggests interviewers are given quotas number of interviews to be gathered in various sample groups . For example 20 men in the age group of 18 to 34 ; or married men in the age group of 35 to 64 and so on ….

The Questionnaire An important data collection tool used in Quantitative Research

To put it in simple terms is a structured technique for collecting data consi series of questions. Questionnaires can be self-completion or administered by an interviewer, they can be completed orally or in writing. Questionnaire preparation is a detailed and lengthy task. A badly created questionnaire will not achieve the desired objectives of the research The questionnaire is prepared by the researcher. It is administered by the person who is conducting the interview - Interviewer

General Structure of Questionnaire

The questionnaire is normally divided into 2 parts

Screening Questionnaire

Main Questionnaire

Screening/Listing Questionnaire

All respondents don’t qualify automatically for the interview they be asked some questions which qualify them for the interview.

In research "screening" questions are used to make sure that on people they are interested in participate in the survey.

Screening can be explained as the process of asking specific que to determine whether respondents are eligible to participate in a particu research study. This is done at the very beginning of an interview. Screening Questions are the questions at the beginning of an or questionnaire to ensure that a potential respondent is eligible for survey. It is only after Questionnaire.

this

process

that

the

respondents

proceed

to

Main Questionnaire The main questionnaire is the actual questionnaire itself. It should answer all the objectives of the research It should be easy and simple to understand The questionnaire should be short and simple

Types of Questions asked

Market research data usually contains case data collected using categorical questions. These are questions that have a predefined responses or categories. For example:

Sex: Age: WRITE IN EXACT AGE ...................

Numeric Question

Male Female

1 2

16-24 25-34 35-44 45-54 55-64 65+

1 2 3 4 5 6

Single Response

Type of questions Which of the following movies do you like ? Main Hoon Na

:

1

Deewar

:

2

Dev

:

3

Lakhsya

:

4

Saathiya

:

5

Multiple Response Question

Types of questions Scale questions

Extent of agreement with the following statements I care a lot about if my clothes are in style I sometimes do things to impress others I am the leader of my group Strongly disagree

:

1

Somewhat disagree

:

2

Neither agree nor disagree

:

3

Somewhat agree

:

4

Strongly agree

:

5

5 point Scale Most positive Most Negative Neutral

Types of questions Frequency questions On an average how often do you visit the cinema theatre in a month ?

Once every week

:

1

twice or thrice a month

:

2

once a month

:

3

less often

:

4

Never

:

5

Administering a Questionnaire

After the questionnaire is made the next step is to test the que amongst the target audience The purpose of the pilot test is to identify the following The time taken to complete the questionnaire is too long? Is it answering all the needs of the clients

After the test pilot is completed researchers carry out the ne changes in the questionnaire and send it to the field people.

Once the field people receive the questionnaire they translate the and send it back to the research office in order to ensure that there ar no discrepancies between the original and translated questionnaire.

Why are questionnaires translated ?

Not all interviews are carried out in the language in whi questionnaires are made in; very often some of them are translated into the local language of the respondents. This is done to facilitate the respondent.

The open ended responses are once again translated back int language the researcher/clients desires . However, it should be noted that at this step the essence verbatim response has not been lost ; for example – if a respondent says that I like the appearance of this biscuit ; it should not be confused with design. Design and appearance will classify as two different responses

Field Work

When researchers talk about Field work it means the place where interviewers go and conduct the interviews The interviews are conducted at peoples homes, public places, or a call centre. There are two main forms of field work – face-to-face interviews telephone interviews .

The interviewers very often are not permanent staff of the agency are recruited as and when projects come

Show Cards

Show cards - are a type of cards that are shown to participants research studies in order to enable them to answer certain questions For example if a question reads as “With the help of a Show you please tell me which movie is your favourite movie ?”. After reading the question the interviewer will hand the respondent the the list of movies and then mark his answer on the questionnaire

Main Hoon Na

:

1

Deewar

:

2

Dev

:

3

Lakhsya

:

4

Saathiya

:

5

Types of Quantitative Market Research Product Tests Advertising Tests Pricing Research Packaging Research Brand Health Checks Usage & Attitude studies Employee Satisfaction Studies Syndicated Studies

Product Testing Is used by the client in two situations When they want to launch a new product When they want to bring about changes in the existing product

There are different types of product tests that exist in th market to name a few Monadic, sequential monadic, paired-comparison, Central Location Tests and Round Robin Tests

Different Types of Product Testing Monadic Tests is on in which the respondents evaluate only one on its own merits and there is no comparison with other product.

Sequential monadic test are often used to reduce costs. In this each respondent evaluates two products (he or she uses one product and evaluates it, then uses the second product and evaluates it). Paired-comparison Tests - Here the consumer is asked to use products and determine which product is better

Central Location Test - is one in which the research is conducte premises such as a room in a shopping mall. Consumers would be recruited to participate in a research product on the shopping mall and the research would be conducted and completed at that time`

Advertisement Testing

Ad Testing or more correctly "Advertisement Testing", refers to methodologies focusing exclusively on measuring the effectiveness, perception or targeting of a series of, or a single advertisement in a given market.

Ad Testing can test ads in any advertising media including print, TV/Cab billboard or others. It can be used at any stage of the advertisemen development process including conceptualization, story board, or final stages. Advertisement Testing is most frequently used however to decide on effective advertisement from a series of alternatives at design stage.

Some Advertisement Testing techniques include asking respondents to bro magazine and then being asked to remember what advertisements they saw an what was most memorable about them

During television ad testing the respondents are often bought to a ce and then they are shown the ad and interviewed .

Attributes most often tested include memorability, liking (or persuasiveness, consumer identification with settings or situations understanding of the appeal, and brand integrity

Pricing Research Pricing Research is research that aims to find out how demand product or service will vary with changes in price. Pricing research aims to answer the following

How much will a respondent pay for an added value service/product over and above the present price? OR How much of a cutback in service / product requirement would necessitate a price reduction?

Other types of Quantitative Research Package Test or label.

is a test that measures consumer reactions to a pa

Usage & Attitude Surveys (U&A) are research projects that aim describe users (and non-users) of a product, together with their attitude towards the product Employee / Customer Satisfaction Surveys are done to measure Quality , Satisfaction and loyalty of a customer towards a particular brand/product/company. Brand Health Checks are research projects that are undertaken to determine how the customers brand is performing in a given market

Advantages of Quantitative Research

The results are statistically reliable. That is, quantitative research reliably determine if one idea, concept, product, package, etc., is bette than the alternatives. The results are able to be projected to the population. That proportion of respondents answering a certain way are similar to the proportion of the total population that would have answered that way if they all had been asked. Quantitative methods are well-suited to addressing the who, what, and where of consumer behavior

Quantitative methods have the advantage of allowing researcher measure and control the project

Disadvantages of Quantitative Research Quantitative research is not appropriate nor cost effective for why people act or think as they do.

The questions must be direct and easily quantified, and the samp be quite large (200 is an absolute minimum) so as to permit reliable statistical analysis.

The primary disadvantage of quantitative research is that issues measured if they are known prior to the beginning of the survey (and therefore, have been incorporated into the questionnaire). Quantitative research hypotheses"

requires

the

advance

formulation

of

spe

An Insight into Qualitative Research

Qualitative Research

Qualitative Research

involves the use of unstructured techniques

- Such as group discussions ( focused groups ) and in-depth interviews that are based on statistically small samples in order to understand a problem further.

Types of Qualitative Research

2 types of Qualitative Research

Focus Groups

In depth Interviews

Focus Group?

A focus group is a small group discussion without a fixed questionna not structured so that we can get spontaneous thoughts and ideas from th respondent A focus group consists of six to fifteen people. People are normally given an incentive to come to a focus group

Usually focus groups run for an hour, the time determined by the concentratio limits of participants The respondents are recruited by the field people

Focus groups are conducted by the researcher often referred to as th ‘moderator’

The moderators role is to ask the required questions, draw out answ encourage discussion, and an observation area usually behind one way mirrors, and video and/or audio taping facilities

Sometimes focus groups can be used as a good basis to make questio

When do we use focus groups? When a company wants to launch a new product ; if the presents the product to the group the respondents can be divided into categories

1) they love the product 2) They hate the product 3) or in betw Focus groups are good for learning how people use a product it means to them

They are also good for finding out problems or complaints tha have had with the product They can be used to find out why people are attached to brand.

In depth interviews

An individual in-depth interview is an unstructured conversation on given topic between a respondent and interviewer

The general purpose of an in-depth interview is the same as that Focus Group.; that is to obtain attitudes and feelings about a product or service that would not come out in a structured interview.

They can also be used to when the researcher wants all participa express opinions on the same topic

And when the researcher wants the participants to respond to ph stimuli such as projective measures.