MARK312_CH3_Exploratory research

Exploratory research
- Conduct in initial stage to understand situation clearer
- Preliminary research to increase understanding
o Clarify nature of problem or identify variable
o Identify important variable to be studied
- Way to conduct research
o Pilot studies: survey using limited number of respondents
 Employ less complicated sampling technique
o Experience survey analysis: interview to specialist group of people
 Talking with knowledgeable individual provided insight into the problem
 Include a formal questionnaire
o Secondary data analysis: data used for other purpose but used as reference at
minimal expense
 Using for other purpose
o Case analysis: method of similar situation in past to apply on current situation
 Review information from few other situations that are similar to present
research problem
 Find company with similar problem  implement their method
 Careful to determine relevancy of any case study to present
research problem
o Focus group: ask related question to group of consumers
 Consisting of 8-12 participants led by moderator
 Help to clarify and understand the problem
 Limited to one particular concept, idea or theme
 General idea is to have one person say generated thought then
other comment on it to create group dynamic
Qualitative research: as supplementary to support the conclusion
- No numeric result
- Focus group, case study, experience survey, in-depth interview
- Cannot use as stand-alone method
Quantitative research
- Numeric and statistical method
- Survey, experiment, secondary data
- Can be used alone
Focus group [8-12 person]  most popular qualitative method
- Small number of participants  in-depth discussion
o Focus on group dynamics and interpersonal interaction
 - Advantage
o Obtain detailed information
o Save time and money than individual interview
o Provide broader range of information

Secondary data [already available]

- Publication
o Census: procedure of acquiring and recording information about member in given
population
- Internal record/ customer database
- Scanner data
Advantage Disadvantage
Low cost Collected for some other purpose
Less effort expended No control over data
Less time taken May not be very accurate
Sometime more accurate than primary May not be reported in required form
Help clarify or redefine problem during May be outdated
exploratory research
May provide a solution to problem Lack of relevance
May provide primary data research method Lack of availability
alternative
Alert marketing researcher to potential Inaccuracy
problem and difficulties
Insufficiency

Database marketing
- Form of direct marketing using database of customers to generate personalized
communication
o Using customer’s transaction information
- Application:
o RFM [recency, frequency, monetary]  rank by 3 dimensional analysis
 Recency: how long since last purchase
 Frequency: how many time per year
 Monetary: how much money they spend
 RFM used to identify different target group
o Cross-selling: sell new product to existing customer based on their historical
purchase
o Customer poaching: acquiring customer from competitor
 New customer get special offer to capture market share
 Loyal customer or shifting customer
 If there are shifting cost  loyal is better-off
  In competitive industry, shifting give you special promotion
- Scanner data
o Universal product code [UPC] provide unique identification data
 Price, quantity, special in-store, also contain demographic information
o Application
 Customer segmentation
 Market share and promotional effectiveness
 Demand estimate