chapter six primary-data collection. copyright © houghton mifflin company. all rights reserved.6 |...

Chapter Six

Primary-Data Collection

Copyright © Houghton Mifflin Company. All rights reserved. 6 | 2

Chapter Objectives

• Describe a variety of data collection methods• Compare the advantages and disadvantages

of the questioning approach over the observation approach

• Describe the four different question formats used in questionnaires


Chapter Objectives (Cont’d)

• Identify the appropriate questionnaire administration method for each type of primary research

• Explain each of the five dimensions along which observation methods can vary


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 when it comes

to 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)

• 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

• 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)

• 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

• 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

• 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

• 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

• 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

• 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

• Videotape the area where Gap brand shirts are featured in order to record 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

• Exploratory Research: used to gain some initial insights. Loosely controlled settings.

• Descriptive Research: used to gather information of a specific nature. More controlled settings.

• Experimental Research: used to test hypotheses. Highest level of control.



• Questioning– Active

– Interview or a formal questionnaire

– Question design

• Observation– Passive

– In-person or mechanical devices

– Time consuming


Power and Benefits of Observation:How to Design a Car Interior?

• Johnson Controls: World’s leading supplier of automotive and interior systems

• Marketing research plays an important role in product development and selling

• Researchers-observed customers all around the world to better understand how they use their vehicle interiors


Power and Benefits of ObservationHow to Design a Car Interior? (Cont’d)

• Cameras given to customers to take pictures of what they like and don’t like about their car interiors

• Research led to imaginative observation techniques in designing new products like PlaySeat™ and AutoVision®


Observation vs. Questioning

• Versatility• Time and Cost• Data Accuracy• Respondent Convenience


Versatility

• Observation may be inconclusive– How does a customer feel?

• Questioning may not be possible– Difficult to get answers from children


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


RFID Tracking Products All the Way Home

• Radio frequency identification (RFID) technology is now being used by retailers to track products, manage inventory, and cutting loss and theft.

• RFID chips track the product as it moves from the warehouse, to the storeroom, to the store shelf and ultimately to the consumer’s home.

• For firms the benefits are clear, for consumers there is the benefit of having the right products in the right place, but also the risk of being tracked.


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


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


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


Types of Questionnaires (Cont’d)

• 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

• 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

• Questions can change and there are no fixed responses– Probe customers’ 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?


Non-structured Question

• Question can change and no fixed responses– Probe customers’ 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

• 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)

• 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



• Evaluation Criteria – Cost– Advantages

• Cheaper since interviewer time and skill levels required to record and interpret data are usually lower than nonstructured questions



• 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



• Evaluation Criteria – Respondent Convenience– Advantages

• More convenient to respondents in terms of time needed to respond and ease of responding


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


Nonstructured, Nondisguised Questionnaire

• Ideally suitable for situations where a researcher wants to give respondents a free hand in providing information

• Very popular in exploratory-research projects involving personal interviews

• Questionnaire consists of a checklist of relevant issues to be covered


Nonstructured, Nondisguised Questionnaire (Cont’d)

• Idea is to 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 consists of a number of factual items to which respondents provide structured answers such as a Yes/No, or True/False

• Wide variety of items, ranging in degree of favorableness toward the issues being investigated, are included in the questionnaire


Structured, Disguised Questionnaires (Cont’d)

• Researchers use structured, disguised questionnaires to uncover people’s attitudes toward sensitive issues such as– Abortion

– Pollution

– Deregulation


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

• Different approaches to collecting data through questionnaires– Personal Interview

– Telephone Surveys

– Mail Surveys

– Internet/Web-based Surveys


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– 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

• Sampling Control– Ability to identify and reach respondents

– Ability to secure cooperation

• Supervisory Control• Opportunity for Clarification


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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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


Saudi Arabia

Egypt IsraelJapan

ColumbiaBrazil China

France

India

ItalyGermany Mexico

CambodiaVietnam Thailand Singapore

International Marketing Research


Saudi Arabia

The gender of the interviewer can have a strong impact on the responses to questions

In Saudi Arabia, the English word “macho” does not exist and there is not a similar word or phrase to support this concept

The Japanese may not understand a letter-based performance measure as they generally use a 100-point scale for these purposesJapan

Potential Research Constraints in Other Countries


Potential Research Constraints in Other Countries (Cont’d)

Israel

Israel is a multilingual society that requires consideration in the advent of surveys and interviews

Egypt

In Egypt, social and cultural factors, such as low literacy rate and low education levels, prevent the same techniques from being applied that would be used in the United States



In Brazil, directories are unreliable because phone lines are bought and sold like commoditiesBrazil

Columbia

Respondents are often very cooperative, given a low level of telemarketing and the”surprise factor” of being called up from a distant location to answer a few questions about the local beer



Traditional methods such as door-to-door,central locations, and focus groups remain the backbone of market research in China. More advanced techniques, such as omnibus studies and panels, are making inroads. Widespread use of computers is increasing the feasibility of e-mail surveys

China

India

Telephone and mail surveys are rarely used due to inadequate telephone penetration (1% of households) and low literacy rates



France

French people like to answer surveys; they feel that they provide their opinion in order to produce a better product

Germany

Mall interviewing is limited due to the lack of shopping malls. Door-to-door interviewing is becoming more difficult in major cities due to crime. Panels are becoming more popular



Italy

Business practices are different from those in the United States. While a simple inquiry to someone’s employer would be considered a small thing in the United States, in Italy is equivalent to lodging a formal complaint

Mexico

Mexican consumers are relatively unfamiliar with the imagery used to market products in the United States. This is due to the fact that in the past, there was a limited product selection and even fewer advertisers differentiating their products



Cambodia

Vietnam

Vietnam and Cambodia have extremely high phone rates. In Vietnam it is not uncommon to have 10 families in one building sharing one phone line

In-person interviews are preferred as they allow the researcher to show the proper respect for the respondents



In Thailand, only 21% of the population lives in urban areas and 2/3 if that population is located in one city, BangkokThailand

Singapore

A questionnaire to be administered in Singapore must have an English version as well as equivalent Malay, Hokkien, Mandarin, Tamil, and Cantonese versions


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– 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

• 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

• The Thriftway grocery store chain is tracking the movement of the grocery cart and matching it to customers actual purchases.


Observational Studies in Natural Settings (Cont’d)

• Kozinets “netnography” to study online communities, specifically the meaning of coffee consumption behavior and usage trends of passionate coffee drinkers.

• HP’s medical products division sent researchers to hospitals to observe surgeons during operations


Observations in a Contrived Setting

• One example is a simulated test market (STM) used to predict how new products will perform in a marketplace

• STM can use either real settings or computer simulations to observe consumer behavior

• The benefit is a greater degree of control for the researcher


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

• Office Depot– Relies on mystery shopping for rewarding its

employees

– Monitor employee performance at all its retail locations

– Mystery shoppers visit each Office Depot


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 dimensions1) Staffing2) Business machine knowledge3) Dress-code and greeting4) Copy & print knowledge5) Furniture assistance6) Service at registers7) Front end supervisions 8) Cashier interaction


Mystery Shopping Program at Belk Inc.

• Belk, Inc. is a department store chain in the U.S. Southeast

• Belk’s goal is to have every customer approached and greeted within 60 seconds of entering the store

• Managers who meet the goal are rewarded with a 5% added to their annual bonus


Human vs. Mechanical Observation

• Human– Often more expensive, in the long run, and

less exacting than mechanical means– Interpretation of observations remains 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

• Brain Scan Measurement– Designed to measure inner desires using MRI

– Must remember that desires don’t always translates into actions

• Eye-tracking equipment– Measures what part of an ad or package

attracts a customer’s attention


Mechanical Devices (Cont’d)

• 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

• 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 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

• 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

• 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 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

chapter six primary-data collection. copyright © houghton mifflin company. all rights reserved.6 |...

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