1 00:00:02,070 --> 00:00:03,490 - [Instructor] This is the video lecture 2 00:00:03,490 --> 00:00:05,653 for Market Research, part two. 3 00:00:10,030 --> 00:00:15,030 So in part one, we talked about secondary data, 4 00:00:15,100 --> 00:00:17,820 which is data which have already been collected 5 00:00:17,820 --> 00:00:19,520 by someone else. 6 00:00:19,520 --> 00:00:22,630 But since this is explicit knowledge, 7 00:00:22,630 --> 00:00:24,860 it tends to be very general 8 00:00:24,860 --> 00:00:29,763 and these folks were not working for you, 9 00:00:30,620 --> 00:00:34,130 it may be or it's very likely that there will be gaps, 10 00:00:34,130 --> 00:00:38,360 really specific questions to your business, 11 00:00:38,360 --> 00:00:42,190 your organization, your supply chain, 12 00:00:42,190 --> 00:00:46,090 which there hasn't been research done. 13 00:00:46,090 --> 00:00:50,423 So this is where you jump into primary data. 14 00:00:51,560 --> 00:00:55,370 So you do this once you've sort of exhausted secondary data 15 00:00:55,370 --> 00:00:56,770 and it fills the gaps. 16 00:00:56,770 --> 00:01:00,340 It's very specific to your business, 17 00:01:00,340 --> 00:01:03,730 and we're gonna talk about both qualitative 18 00:01:03,730 --> 00:01:08,730 and quantitative data that you may choose to collect. 19 00:01:11,170 --> 00:01:13,253 So we're gonna start with qualitative. 20 00:01:16,040 --> 00:01:20,670 So observation is a qualitative research method. 21 00:01:20,670 --> 00:01:25,670 Basically, it is observing people behave. 22 00:01:25,760 --> 00:01:28,200 So you may simply go to a store, 23 00:01:28,200 --> 00:01:33,200 where your and your competitors' products are on the shelves 24 00:01:33,550 --> 00:01:37,170 or where competing products are on the shelves. 25 00:01:37,170 --> 00:01:39,623 And how do consumers interact? 26 00:01:40,490 --> 00:01:42,170 What are they buying? 27 00:01:42,170 --> 00:01:44,810 Do they read the labels? 28 00:01:44,810 --> 00:01:47,710 How many options do they sort of go through? 29 00:01:47,710 --> 00:01:51,440 Do they pick up a bunch of them 30 00:01:51,440 --> 00:01:53,490 and read them and think about it? 31 00:01:53,490 --> 00:01:57,163 Do they go right to the brand that they know best? 32 00:01:59,380 --> 00:02:04,380 How many other similar products are on the shelf? 33 00:02:04,860 --> 00:02:08,430 So the pros of this is it's fairly flexible. 34 00:02:08,430 --> 00:02:12,080 There's many, many things that you can observe for, 35 00:02:12,080 --> 00:02:15,570 that you can get large amounts of data. 36 00:02:15,570 --> 00:02:19,510 The downside is that they're fairly unreliable, 37 00:02:19,510 --> 00:02:23,030 that you can't observe everyone. 38 00:02:23,030 --> 00:02:28,030 So it's sort of limited to just those people that you see. 39 00:02:29,790 --> 00:02:31,600 If it's a true observation, 40 00:02:31,600 --> 00:02:33,800 you don't talk to them afterwards 41 00:02:33,800 --> 00:02:36,157 so you really don't have a chance to say, 42 00:02:36,157 --> 00:02:37,850 "Oh, why did you pick that one up? 43 00:02:37,850 --> 00:02:40,780 And what did you look for on the label?" 44 00:02:40,780 --> 00:02:43,233 Or any sort of questions like that. 45 00:02:46,510 --> 00:02:48,680 Another qualitative method 46 00:02:48,680 --> 00:02:53,220 very commonly used in market research is a focus group. 47 00:02:53,220 --> 00:02:57,570 So here you bring a number of people 48 00:02:57,570 --> 00:02:59,620 and have them in the same room 49 00:02:59,620 --> 00:03:04,230 or now I guess that you could use something like Zoom 50 00:03:04,230 --> 00:03:05,750 or Google Meet App, 51 00:03:05,750 --> 00:03:08,170 but you have them all sort of hearing 52 00:03:08,170 --> 00:03:09,530 and talking to each other. 53 00:03:09,530 --> 00:03:11,320 So this is a group interview, 54 00:03:11,320 --> 00:03:15,310 tends to be something like six to 10 folks at one time. 55 00:03:15,310 --> 00:03:17,460 You have a moderator. 56 00:03:17,460 --> 00:03:21,030 Usually, you have to pay them 57 00:03:21,030 --> 00:03:25,900 and you have them discuss their awareness and attitudes 58 00:03:25,900 --> 00:03:29,630 and beliefs about a product or a service. 59 00:03:29,630 --> 00:03:30,960 What do they do now? 60 00:03:30,960 --> 00:03:32,030 What do they want? 61 00:03:32,030 --> 00:03:35,540 What's missing? 62 00:03:35,540 --> 00:03:37,143 What do they wish they had? 63 00:03:38,400 --> 00:03:41,680 And the key is they're hearing each other 64 00:03:41,680 --> 00:03:44,283 and building on each other's responses. 65 00:03:46,260 --> 00:03:47,093 (clears throat) 66 00:03:47,093 --> 00:03:48,130 The pros of this 67 00:03:48,130 --> 00:03:51,793 are you get a good mix of depth and breadth. 68 00:03:52,970 --> 00:03:54,400 You can do some great depth, 69 00:03:54,400 --> 00:03:56,900 and that by building on each other, 70 00:03:56,900 --> 00:03:59,060 you get a lot of interaction 71 00:03:59,060 --> 00:04:04,060 and the synergy of one response sort of leading to another 72 00:04:05,980 --> 00:04:07,430 and getting more depth there. 73 00:04:08,530 --> 00:04:13,530 The cons is they can be a bit hard to organize 74 00:04:14,570 --> 00:04:19,570 and the data analysis may also be a challenge. 75 00:04:27,640 --> 00:04:32,640 The final qualitative method is an in-depth interview. 76 00:04:33,670 --> 00:04:38,080 So you talk one-on-one with somebody 77 00:04:38,080 --> 00:04:41,050 who you want to gain information from, 78 00:04:41,050 --> 00:04:44,420 probably a prospective customer. 79 00:04:44,420 --> 00:04:49,420 So might just be the kind of whoever you encounter 80 00:04:50,510 --> 00:04:51,890 on the street. 81 00:04:51,890 --> 00:04:55,530 It might be in a store or at a shop, 82 00:04:55,530 --> 00:05:00,380 where you will find people who are interested, 83 00:05:00,380 --> 00:05:03,280 so thinking about your target market, 84 00:05:03,280 --> 00:05:04,440 where do they hang out, 85 00:05:04,440 --> 00:05:06,963 go find them there and ask them things. 86 00:05:08,510 --> 00:05:11,120 If you're in a B2B model, 87 00:05:11,120 --> 00:05:15,890 it might be the buyers, suppliers, distributors, 88 00:05:16,890 --> 00:05:21,890 those whom you want to be your supply chain collaborators. 89 00:05:25,210 --> 00:05:29,670 The pros of this is you can go into great depth, 90 00:05:29,670 --> 00:05:34,670 and you can get the respondents' answers in their own words. 91 00:05:35,760 --> 00:05:38,190 So you're not just making them choose 92 00:05:38,190 --> 00:05:40,560 from a list of things that you give. 93 00:05:40,560 --> 00:05:42,660 You ask an open-ended question 94 00:05:42,660 --> 00:05:46,950 where they can give their experiences. 95 00:05:46,950 --> 00:05:51,240 The cons is they do tend to be a bit time consuming 96 00:05:51,240 --> 00:05:54,763 so you can only get the data from a few individuals. 97 00:05:59,170 --> 00:06:02,300 And here's just a short list of questions 98 00:06:02,300 --> 00:06:07,300 that you may choose to ask in your in-depth interviews. 99 00:06:12,730 --> 00:06:16,970 Those were the qualitative methods. 100 00:06:16,970 --> 00:06:18,450 Now I'm gonna walk you through 101 00:06:18,450 --> 00:06:21,130 the most common quantitative message, 102 00:06:21,130 --> 00:06:25,160 which you should probably be familiar with, 103 00:06:25,160 --> 00:06:26,960 a survey. 104 00:06:26,960 --> 00:06:31,960 So this is where probably a fairly large group of people 105 00:06:33,700 --> 00:06:37,680 all answer the same questions. 106 00:06:37,680 --> 00:06:42,680 So the pros of this is you can get information 107 00:06:44,200 --> 00:06:47,720 from a fairly large amount of respondents. 108 00:06:47,720 --> 00:06:51,660 You may be able to do statistical analysis. 109 00:06:51,660 --> 00:06:56,250 The downsides are that you can't really go back 110 00:06:56,250 --> 00:06:59,127 and ask new questions or ask them, 111 00:06:59,127 --> 00:07:01,720 "Oh, what did you mean by that?" 112 00:07:01,720 --> 00:07:04,750 So once you've administered it, 113 00:07:04,750 --> 00:07:06,460 sort of the data that you have 114 00:07:06,460 --> 00:07:10,000 is the data that you will always have, 115 00:07:10,000 --> 00:07:12,790 and it's hard to go back and sort of get more data 116 00:07:12,790 --> 00:07:16,793 or more depth from the respondents. 117 00:07:19,530 --> 00:07:21,120 There's two main types, 118 00:07:21,120 --> 00:07:23,670 might be face to face again, 119 00:07:23,670 --> 00:07:27,730 so sort of go to where you think 120 00:07:27,730 --> 00:07:30,650 that likely consumers are hanging out, 121 00:07:30,650 --> 00:07:33,803 the sort of intercept or convenience, 122 00:07:34,920 --> 00:07:36,100 samples. 123 00:07:36,100 --> 00:07:39,150 You may want to sort of show them a product 124 00:07:39,150 --> 00:07:40,437 or give them a sample and say, 125 00:07:40,437 --> 00:07:42,860 "Well, what do you think about this?" 126 00:07:42,860 --> 00:07:47,040 There's also many online survey platforms. 127 00:07:47,040 --> 00:07:48,940 You may be familiar with SurveyMonkey. 128 00:07:50,800 --> 00:07:54,640 A more sophisticated one is Qualtrics. 129 00:07:54,640 --> 00:07:59,193 These are all online surveying platforms. 130 00:08:02,930 --> 00:08:07,930 A very common technique that's used in market research 131 00:08:08,750 --> 00:08:10,590 is conjoint analysis. 132 00:08:10,590 --> 00:08:13,370 This is one kind of survey. 133 00:08:13,370 --> 00:08:18,370 So basically, you give the consumer a number of options 134 00:08:19,200 --> 00:08:22,170 of hypothetical products 135 00:08:22,170 --> 00:08:26,090 where maybe one high and low price. 136 00:08:26,090 --> 00:08:27,500 I've done some work, 137 00:08:27,500 --> 00:08:32,220 this was many years ago, 138 00:08:32,220 --> 00:08:36,370 and offering them organic, nonorganic fair trade, 139 00:08:36,370 --> 00:08:37,920 non fair trade, 140 00:08:37,920 --> 00:08:41,460 and sort of give them a number of options 141 00:08:41,460 --> 00:08:44,500 that have these attributes, 142 00:08:44,500 --> 00:08:47,400 high, low, present, absent, 143 00:08:47,400 --> 00:08:48,587 and then have them choose, 144 00:08:48,587 --> 00:08:50,440 "Which one would you buy first? 145 00:08:50,440 --> 00:08:52,470 Which one would you buy next," 146 00:08:52,470 --> 00:08:55,000 where they're sort of ranking the thing 147 00:08:55,000 --> 00:08:58,260 which would be the most desired product, 148 00:08:58,260 --> 00:08:59,290 then next, 149 00:08:59,290 --> 00:09:00,220 then next. 150 00:09:00,220 --> 00:09:04,103 And in this way, you can calculate 151 00:09:07,260 --> 00:09:08,790 what are called part worths. 152 00:09:08,790 --> 00:09:13,790 So how much does the presence of an attribute value? 153 00:09:15,450 --> 00:09:18,410 How much worth do they put on, 154 00:09:18,410 --> 00:09:23,410 say, fair trade in relationship to organic or low price? 155 00:09:25,540 --> 00:09:28,560 Which of these sort of creates more value 156 00:09:28,560 --> 00:09:31,480 or in economics terms, 157 00:09:31,480 --> 00:09:35,103 creates more utility for the consumer? 158 00:09:40,720 --> 00:09:43,470 So those of you who have had me 159 00:09:43,470 --> 00:09:48,470 or have had another professor for CDAE 250 160 00:09:49,000 --> 00:09:50,740 or if you have me now, 161 00:09:50,740 --> 00:09:53,830 you'll see that there's a number of parallels 162 00:09:53,830 --> 00:09:58,350 between academic and market research. 163 00:09:58,350 --> 00:10:01,220 So you start with the background data, 164 00:10:01,220 --> 00:10:06,220 you go through secondary data in academic research, 165 00:10:06,810 --> 00:10:08,780 you do a lit review. 166 00:10:08,780 --> 00:10:10,600 So we find out what do we know 167 00:10:10,600 --> 00:10:12,130 and what do we need to know? 168 00:10:12,130 --> 00:10:13,580 How do we build on that? 169 00:10:13,580 --> 00:10:18,580 And then use primary data where you design the tool, 170 00:10:19,330 --> 00:10:20,630 collect data, 171 00:10:20,630 --> 00:10:21,740 do the analysis, 172 00:10:21,740 --> 00:10:26,203 and then come up with recommendations or next steps. 173 00:10:30,290 --> 00:10:33,140 So the research design means 174 00:10:33,140 --> 00:10:36,160 first coming up with research questions, 175 00:10:36,160 --> 00:10:37,410 what we wanna know, 176 00:10:37,410 --> 00:10:40,140 what's the information that we can act on 177 00:10:40,140 --> 00:10:45,140 and use to further the mission of our organization. 178 00:10:45,850 --> 00:10:48,840 And then again, 179 00:10:48,840 --> 00:10:52,320 those of you who have or have me for 250 180 00:10:52,320 --> 00:10:56,260 know that I'm a huge proponent of mixed methods, 181 00:10:56,260 --> 00:10:59,930 so starting with secondary data 182 00:10:59,930 --> 00:11:01,570 and then use qualitative 183 00:11:01,570 --> 00:11:05,630 to sort of get what are the big ideas out there? 184 00:11:05,630 --> 00:11:07,640 What are the key issues? 185 00:11:07,640 --> 00:11:10,390 And then use a survey to sort of count 186 00:11:10,390 --> 00:11:13,960 how often do people say these things, 187 00:11:13,960 --> 00:11:17,300 and what's the relationship among the responses, 188 00:11:17,300 --> 00:11:19,623 so sort of count and correlate. 189 00:11:24,290 --> 00:11:26,910 Once you have the data, 190 00:11:26,910 --> 00:11:29,850 then you can begin to take action. 191 00:11:29,850 --> 00:11:34,120 So use this to inform your marketing mix, 192 00:11:34,120 --> 00:11:36,550 your product price promotion 193 00:11:36,550 --> 00:11:40,120 to better identify your target market, 194 00:11:40,120 --> 00:11:41,310 where they are, 195 00:11:41,310 --> 00:11:42,410 how do you reach them? 196 00:11:42,410 --> 00:11:44,840 What are their behaviors? 197 00:11:44,840 --> 00:11:47,910 Use this to make changes, 198 00:11:47,910 --> 00:11:50,430 and then go back and monitor, 199 00:11:50,430 --> 00:11:53,003 what happened as a result and why? 200 00:11:58,320 --> 00:12:02,680 So the three part types of knowledge 201 00:12:02,680 --> 00:12:04,620 can come into play here. 202 00:12:04,620 --> 00:12:06,670 So explicit is, what did you learn? 203 00:12:06,670 --> 00:12:09,180 So being able to write down or say 204 00:12:10,020 --> 00:12:10,853 what's new, 205 00:12:10,853 --> 00:12:13,210 what are the new results? 206 00:12:13,210 --> 00:12:14,850 The tacit is, 207 00:12:14,850 --> 00:12:19,280 how do I apply this specifically to my business? 208 00:12:19,280 --> 00:12:22,370 And then with co-created, 209 00:12:22,370 --> 00:12:27,140 how can I use this to create even value 210 00:12:27,140 --> 00:12:30,470 to co-create value for them? 211 00:12:30,470 --> 00:12:35,470 How do I design the product or how I deliver it 212 00:12:36,420 --> 00:12:38,090 to really meet their needs 213 00:12:38,090 --> 00:12:41,103 and to create even greater value for them? 214 00:12:45,690 --> 00:12:47,890 So here's just one more 215 00:12:50,620 --> 00:12:53,340 showing you again this diagram 216 00:12:53,340 --> 00:12:56,300 and how co-created knowledge 217 00:12:56,300 --> 00:12:58,730 has really high strategic value, 218 00:12:58,730 --> 00:13:00,760 that if you can really get a sense 219 00:13:00,760 --> 00:13:03,300 of what your consumers want 220 00:13:03,300 --> 00:13:07,480 and use it in ways where you're working with them, 221 00:13:07,480 --> 00:13:10,870 this has incredibly high strategic value, 222 00:13:10,870 --> 00:13:13,640 because it's very unlikely that someone 223 00:13:13,640 --> 00:13:16,910 can sort of copy or steal this 224 00:13:16,910 --> 00:13:18,860 because it's such a great fit. 225 00:13:18,860 --> 00:13:21,170 It's such a one size fits one 226 00:13:21,170 --> 00:13:25,493 that it would be very hard for anyone to copy this. 227 00:13:29,540 --> 00:13:32,823 So here's a recap of what we did. 228 00:13:37,590 --> 00:13:41,020 So one more time, here is your homework. 229 00:13:41,020 --> 00:13:44,890 So you will use market research tools 230 00:13:44,890 --> 00:13:48,010 to better understand your target market. 231 00:13:48,010 --> 00:13:49,240 So first, 232 00:13:49,240 --> 00:13:54,173 use two of the library resources that Trina presented 233 00:13:56,150 --> 00:13:59,340 to create a rich description 234 00:13:59,340 --> 00:14:02,463 and answer the questions on the next slide. 235 00:14:04,360 --> 00:14:07,600 What information did you glean? 236 00:14:07,600 --> 00:14:09,530 What did you learn about them? 237 00:14:09,530 --> 00:14:11,670 What are the insights that you gained, 238 00:14:11,670 --> 00:14:15,030 and did they sorta paint a common picture 239 00:14:15,030 --> 00:14:17,863 or was it all over the place? 240 00:14:20,000 --> 00:14:21,373 And then in part two, 241 00:14:22,210 --> 00:14:25,830 I don't expect you to actually do this research, 242 00:14:25,830 --> 00:14:30,670 but map out, what are the methods that you would use? 243 00:14:30,670 --> 00:14:34,500 How would you gain the information that you need and why 244 00:14:34,500 --> 00:14:38,150 to make a clear case of why the methods that you chose 245 00:14:38,150 --> 00:14:40,653 will yield the needed information? 246 00:14:43,740 --> 00:14:45,670 So this is the end of part two. 247 00:14:45,670 --> 00:14:47,680 There are only two parts. 248 00:14:47,680 --> 00:14:49,480 So make sure that you watch this 249 00:14:49,480 --> 00:14:51,630 and do the assessment before class. 250 00:14:51,630 --> 00:14:56,610 And I look forward to discussing this in class with you. 251 00:14:56,610 --> 00:14:57,443 Thank you.