- [Instructor] This is the video lecture
for Market Research, part two.
So in part one, we talked about secondary data,
which is data which have already been collected
by someone else.
But since this is explicit knowledge,
it tends to be very general
and these folks were not working for you,
it may be or it's very likely that there will be gaps,
really specific questions to your business,
your organization, your supply chain,
which there hasn't been research done.
So this is where you jump into primary data.
So you do this once you've sort of exhausted secondary data
and it fills the gaps.
It's very specific to your business,
and we're gonna talk about both qualitative
and quantitative data that you may choose to collect.
So we're gonna start with qualitative.
So observation is a qualitative research method.
Basically, it is observing people behave.
So you may simply go to a store,
where your and your competitors' products are on the shelves
or where competing products are on the shelves.
And how do consumers interact?
What are they buying?
Do they read the labels?
How many options do they sort of go through?
Do they pick up a bunch of them
and read them and think about it?
Do they go right to the brand that they know best?
How many other similar products are on the shelf?
So the pros of this is it's fairly flexible.
There's many, many things that you can observe for,
that you can get large amounts of data.
The downside is that they're fairly unreliable,
that you can't observe everyone.
So it's sort of limited to just those people that you see.
If it's a true observation,
you don't talk to them afterwards
so you really don't have a chance to say,
"Oh, why did you pick that one up?
And what did you look for on the label?"
Or any sort of questions like that.
Another qualitative method
very commonly used in market research is a focus group.
So here you bring a number of people
and have them in the same room
or now I guess that you could use something like Zoom
or Google Meet App,
but you have them all sort of hearing
and talking to each other.
So this is a group interview,
tends to be something like six to 10 folks at one time.
You have a moderator.
Usually, you have to pay them
and you have them discuss their awareness and attitudes
and beliefs about a product or a service.
What do they do now?
What do they want?
What's missing?
What do they wish they had?
And the key is they're hearing each other
and building on each other's responses.
(clears throat)
The pros of this
are you get a good mix of depth and breadth.
You can do some great depth,
and that by building on each other,
you get a lot of interaction
and the synergy of one response sort of leading to another
and getting more depth there.
The cons is they can be a bit hard to organize
and the data analysis may also be a challenge.
The final qualitative method is an in-depth interview.
So you talk one-on-one with somebody
who you want to gain information from,
probably a prospective customer.
So might just be the kind of whoever you encounter
on the street.
It might be in a store or at a shop,
where you will find people who are interested,
so thinking about your target market,
where do they hang out,
go find them there and ask them things.
If you're in a B2B model,
it might be the buyers, suppliers, distributors,
those whom you want to be your supply chain collaborators.
The pros of this is you can go into great depth,
and you can get the respondents' answers in their own words.
So you're not just making them choose
from a list of things that you give.
You ask an open-ended question
where they can give their experiences.
The cons is they do tend to be a bit time consuming
so you can only get the data from a few individuals.
And here's just a short list of questions
that you may choose to ask in your in-depth interviews.
Those were the qualitative methods.
Now I'm gonna walk you through
the most common quantitative message,
which you should probably be familiar with,
a survey.
So this is where probably a fairly large group of people
all answer the same questions.
So the pros of this is you can get information
from a fairly large amount of respondents.
You may be able to do statistical analysis.
The downsides are that you can't really go back
and ask new questions or ask them,
"Oh, what did you mean by that?"
So once you've administered it,
sort of the data that you have
is the data that you will always have,
and it's hard to go back and sort of get more data
or more depth from the respondents.
There's two main types,
might be face to face again,
so sort of go to where you think
that likely consumers are hanging out,
the sort of intercept or convenience,
samples.
You may want to sort of show them a product
or give them a sample and say,
"Well, what do you think about this?"
There's also many online survey platforms.
You may be familiar with SurveyMonkey.
A more sophisticated one is Qualtrics.
These are all online surveying platforms.
A very common technique that's used in market research
is conjoint analysis.
This is one kind of survey.
So basically, you give the consumer a number of options
of hypothetical products
where maybe one high and low price.
I've done some work,
this was many years ago,
and offering them organic, nonorganic fair trade,
non fair trade,
and sort of give them a number of options
that have these attributes,
high, low, present, absent,
and then have them choose,
"Which one would you buy first?
Which one would you buy next,"
where they're sort of ranking the thing
which would be the most desired product,
then next,
then next.
And in this way, you can calculate
what are called part worths.
So how much does the presence of an attribute value?
How much worth do they put on,
say, fair trade in relationship to organic or low price?
Which of these sort of creates more value
or in economics terms,
creates more utility for the consumer?
So those of you who have had me
or have had another professor for CDAE 250
or if you have me now,
you'll see that there's a number of parallels
between academic and market research.
So you start with the background data,
you go through secondary data in academic research,
you do a lit review.
So we find out what do we know
and what do we need to know?
How do we build on that?
And then use primary data where you design the tool,
collect data,
do the analysis,
and then come up with recommendations or next steps.
So the research design means
first coming up with research questions,
what we wanna know,
what's the information that we can act on
and use to further the mission of our organization.
And then again,
those of you who have or have me for 250
know that I'm a huge proponent of mixed methods,
so starting with secondary data
and then use qualitative
to sort of get what are the big ideas out there?
What are the key issues?
And then use a survey to sort of count
how often do people say these things,
and what's the relationship among the responses,
so sort of count and correlate.
Once you have the data,
then you can begin to take action.
So use this to inform your marketing mix,
your product price promotion
to better identify your target market,
where they are,
how do you reach them?
What are their behaviors?
Use this to make changes,
and then go back and monitor,
what happened as a result and why?
So the three part types of knowledge
can come into play here.
So explicit is, what did you learn?
So being able to write down or say
what's new,
what are the new results?
The tacit is,
how do I apply this specifically to my business?
And then with co-created,
how can I use this to create even value
to co-create value for them?
How do I design the product or how I deliver it
to really meet their needs
and to create even greater value for them?
So here's just one more
showing you again this diagram
and how co-created knowledge
has really high strategic value,
that if you can really get a sense
of what your consumers want
and use it in ways where you're working with them,
this has incredibly high strategic value,
because it's very unlikely that someone
can sort of copy or steal this
because it's such a great fit.
It's such a one size fits one
that it would be very hard for anyone to copy this.
So here's a recap of what we did.
So one more time, here is your homework.
So you will use market research tools
to better understand your target market.
So first,
use two of the library resources that Trina presented
to create a rich description
and answer the questions on the next slide.
What information did you glean?
What did you learn about them?
What are the insights that you gained,
and did they sorta paint a common picture
or was it all over the place?
And then in part two,
I don't expect you to actually do this research,
but map out, what are the methods that you would use?
How would you gain the information that you need and why
to make a clear case of why the methods that you chose
will yield the needed information?
So this is the end of part two.
There are only two parts.
So make sure that you watch this
and do the assessment before class.
And I look forward to discussing this in class with you.
Thank you.