Internal Data

There are old research reports in the company library. Summer placement reports of MBA students in the company’s archives are also useful. The information is free of cost.

Census Report

Census is conducted by the Govt of India every ten years, and it covers the whole of India — state by state, city by city, town by town and village by village. It is a very rich source of demographic data.

NCAER

The National Council of Applied Economic Research publishes income pattern reports. Their studies on product penetration and usage are very useful.

The Centre for Monitoring the Indian Economy  (CMIE)

It publishes a monthly information bulletin and industry reports. It collates corporate and government data.

Industry Bodies

Industry bodies like associations and chambers of commerce publish data at regular intervals. These data are gathered from the members and from the market. The Automobile Manufacturer’s Association, Federation of Indian Chambers of Commerce and Industry are examples of such bodies. National Association of Software and Services Companies ( NASSCOM ) and Organisation of Pharmaceutical Products of India ( OPI ) actively present information to gain media and government attention.

Media Research

National Redearship Survey ( NRS ) throw up a large data about media circulation, reach, household size distribution, SEC distribution, income-age distribution, and media habits of people. It also provides data of product usage.

Internet

Web-based information services of networks like VANS and Indian Market Monitor collate data from diverse sources, and make them available to paid users. India Infoline is another source for data on Indian corporates.

 

 

Merits

1. It is more economical and time saving to use secondary data.

2. As secondary data are collected after the occurence of an event, they are not biased. Besides collecting primary data may be very tedious, whereas the secondary data are freely available off-shelf.

Limitations

1. The secondary data may have limited application. There are many problems. The unit of measurement, the definition of data classes and the outdated nature of data may make the data irrelevant. The data must be modified before using.

2. The accuracy of secondary data may be questionable. If the data are inaccurate, the prsent research findings will be distorted.

Question: What information is gathered ? Issue: Is it relevant ?

Question: When has it been gathered ? Issue : Is it outdated ?

Question ; Where has it been gathered ? Issue : Is it from markets similar to those of our products ?

Question : How has the information been gathered ? Issue : Was the methodology appropriate ?

Question: Who sponsored the research ? Issue : Are they objective ?

Question : Who conducted the research ? Issue : Are they competent ?

Question : Who gave the information ?  Issue : Are they representative of the target audience ?

Question : Who reported the information ? Issue : Are they objective ?

Types and Importance of Data in Marketing Research. We have already examined, though somewhat briefly, the nature and scope of marketing research and its applications. But it must be borne in mind that without any data, no research can be meaningful. We should, therefore, have sufficient data. In this section, we shall discuss the types of data and their application in marketing research.

The kinds of facts or data used in marketing research are many and varied. One useful classification divides marketing data into primary data and secondary data.

Primary data are the data that have been observed or recorded by the researchers for the first time to their knowledge.

Secondary data may be described as those data that have been copiled by some agency other than the user. But the issue is not so simple. For example, if a company is subscribing to one of the syndicated data services requests special information that is not ordinarily tabulated but is available in the data collected by the services, is the company seeking primary or secondary data ? If the available data are secured rapidly and at low cost, there is no sense in spending time and effort to acquire primary data. Such considerations as the availability of experienced personnel and access to the sources of data materially affect the decision to collect primary data. Most marketing decisions do not warrant the time or cost involved in the collection of primary data. Even if it is necessary or desirable to obtain the original information in a research project, secondary data are still useful in the total research effort. The secondary data are useful in the exploring research, especially for the hypothetical solutions of the problem, suggested or inspired by other publications or data. Secondary data are essential in planning the sample from which the information is to be obtained. They may be usedto describe the target population that is to be sampled, as parameters and guide in the actual sample selection process, and are a base for validating the obtained sample. Moreover, secondary data often enables us to carry out conclusiveresearch to verify the expected effect of hypothesis under consideration.

The source of secondary data are many and varied. They may be grouped into two general kinds:

( i ) Internal data — that is, data available within the organisation for which the research is being done, and

( ii ) External data, which are obtained from outside sources.

Internal Sources : Secondary data may be gathered from within the organisation for which the marketing research programme is carried out. A giant firm would have sufficient sources for the generation of secondary data in the form of customer billing, sales activity, information by selling activity, stock availability and product costs. When the information listed on a product, customer and/or area basis is available, we can examine the changes between areas, product and customers over time. Standards or norms may be established to evaluate different parts of the marketing programme. There are various and obvious methods by which internal data may contribute to research studies. Most of the basic data are available in the accounting department, but co-ordination is essential between their recording procedures and the needs of marketing administration. Other types of data are not available from the accounting records. These data are frequently neglected, although they can be compiled and reported or at least filled in a manner which facilitates retrieval. Public utility firms often keep files of customer complaints that are analysed periodically. Marketing management also obtains important clues to protect deficiencies by examining service records which, in the absence of these records, would require large expenditure before the same information can be tabulated by collection of eliciting customer’ views as primary data.

External Sources : External sources are numerous and obvious. Some of these are :

Libraries : Libraries are useful sources of information. Most universities have schools of business and have special divisions or rooms to serve these schools. Various institutions and large companies maintain libraries with an excellent collection of information in the fields of their individual activity. They may be found in leading research institutions, banks, insurance companies, public utilities and manufacturing concerns.

Literature : A great volume of literature is published on various subjects with which the marketing researcher may be concerned. Even a librarian has difficulty in keeping abreast of all the new writings and the accumulated writings of the past. When research is undertaken in some area of marketing in a particular industry, a sizable task is involved in gathering these materials.

Trade Associations :  For the collection of data relating to a particular industry, its trade association, if one exists, may be an excellent source. The trade association may have basic information that is not available in libraries. In Indian context. you can approach a specialised board for a particular industry and the chambers of commerce with a view to collecting the relevant data.

Publishers : The leading publishers of general magazines and newspapers as well as the television networks have been highly enterprising in collecting data or conducting marketing research.

State and Central Governments : Governments also provide useful data. Often, different government departments have information that rarely find its way into public or private libraries.

Other external sources are private sources, such as specialsed marketing research firms, statistics available with private institutions or specialised agencies and so on.

Distinction between Primary and Secondary Data

Primary data are first-hand original data collected by the researcher through various methods. Secondary data are second-hand data collected by some other agency but not by the researcher.

Primary data collection is time and cost consuming. It is complicated too. Secondary data is easy and quick to collect at less cost.

Sources of primary data are the sampling units chosen. Secondary data sources could be internal or external records.

Primary data are reliable and accurate when properly collected. Secondary data supplements the primary data.

Primary data affect the research directly. Secondary data provide the secondary information.

Primary data are the latest and are useful for current problems. Secondary data are historical.

Primary data are reasearch related and relevant. We have to modify the secondary data and be selective about it.

A research problem is identified, and the need to receive the necessary information is determined. The next step is to look for the sources of data to fulfill the research objectives. Generally, researchers plunge into data collection by doing a survey. However, it is desirable that the secondary source of data are tapped first to get the required information. The primary data is then collected to meet the gaps in the desired information. Secondary data should be tapped first before collecting the primary data.

Broadly, data are put into two categories ( a ) primary data and ( b )  secondary data . Primary data means to generate the data first hand with respect to a problem at hand by doing surveys, using panels, doing observations or experimentation. Secondary data, on the other hand,is data already collected beforehand by someone and which has relevance for the study the researcher has undertaken.

We can illustrate the distinction between the primary data and secondary data by taking an example. Suppose we conduct a study the ‘ effectiveness of Fair and Lovely TV commercials ‘ in 2001. Later in 2003, again there was a need to conduct the same study. We can use some relevant data from 2001 study, which is the use of secondary data. The additional data can be collected by survey, which we call the primary data. Thus the primary data of the 2001 one study becomes the secondary data for 2003 study.

A research problem can be tackled partially at least by using the secondary data lying scattered across several sources. After exhausting these existing sources of secondary data, we shall resort to primary data collection. But the use of secondary data must be intelligent. We should be aware of the metodology by which the data are collected. We should be in a position to evaluate the secondary data. For this we must be familiar with the techniques of collecting primary data. If the available secondary data is not usable, we should go in for primary data 100 per cent. Secondary data are valuable if the present problem has relationship with earlier problems.

Marketing research is based upon the collection , processing and interpretation of data to aid the decision making in the marketing area. By data, we mean both the quantitative data and the qualitative data. Data collection thus is one major component of marketing research. Data was collected primarily through surveys in which questionnaires were used, and the field staff used to fill in the answers by putting the questions to the sample. Internet has changed this –we now have more real time data either through cell phones or the social media. The client thus gets more authentic data than the traditional techniques.

In a sense, what we call Big Data these days once upon a time started as marketing research.

The data collection work can be automated. The qualitative inputs interpreted by trained people still holds as you have to get into human psychology here.

Instead of field investigators, the work first shifted to the call centers or BPOs. Later online research took over. Big Data is based on analytics. Data collection no longer makes money in the marketing research field. The premium is now placed on research expertise and the asking of right questions. Big Data has facilitated MR and also threatens it. However, Big Data facilitated only when the complex social issues are understood. A client may need to know how to motivate a community to adopt family planning.Or for that matter, how the mid-day meals lead to better attendance at schools. How to make people hygeine conscious in India? These are all valid questions but these would not be addressed by Big Data. An MR agency uses today data from social media, cell phones, online communities. Its a combination. Online behaviour also generates valuable data. An MR agency is the data integrator which designs questions after collecting data from all the  sources.

The difference in IT and MR is getting blurred. It is used to do the research. Behavioural economists and psychologists are used to put appropriate questions. A major part of the business is still creative and analytical in combination.

Depth interviews are conducted generally at the site of the research agency. People are invited telephonically, and are paid some amount by way of an incentive for participation.

Prior to being subjected to depth interview, the respondents are expected to fill up a questionnaire eliciting the background data. The interview room is well-appointed and has facilities for observation and videography.

The initial questions are simple, and are designed to break the ice between the interviewer and the respondent. The interviewer may talk about children or weather. Soon afterwards, the interviewer presents a brief introduction to the interview. He may say, ‘ I have some pictures of consumers shopping at a departmental store. I would like you to react to them.’ The interviewer then shows a picture of a woman taking a sari from a counter, and puts the question to the respondent what thoughts come to his mind on seeing this picture.

If the respondent responds to the stimulus, saying that the someone is buying a sari, the interviewer waits to get further comments or might probe in a non-directive manner by asking what more you have got to say. The interviewer may want the respondent to focus on a specific part of the stimulus.He can ask, ‘ What kind of a woman shopper is she ?’

Projective stimuli are not always necessary in a depth interview. The discussion can be set rolling by asking a question as to what type of customer drinks Pepsi or what are the occasions for you to use Pepsi. The idea is to make the respondent talk about the desired topic.

There are two approaches after the discussion starts. The discussion is not interrupted by changing the topic. Non-directive probes like ‘ Please tell me more’ or ‘ Why do you say so’ are used. Another approach expects the interviewer to cover pre-specified topic, and intervenes if some topics are left out. But here also the intervention comes late in the discussion.

The depth interview lasts for half an hour to one and a half hour. When the time is up or the topic is exhausted, the interview is closed. The respondent is thanked.

A depth interview with an executive is conducted at his office. Instead of monetary compensation, he can be given a copy of the report.

Interview Guide

Depth interviews are conducted by an interview guide.

Paired-Depth Interviews

Individual depth interviews are costlier than a focus group. It helps to conduct Paired-Depth Interviews with two participants.

Merits and Demerits of Depth Interviews

Depth interviews, as the name itself indicates, provide depth — they explore the subject deeply. It enables us to have a look at the respondent’s world. Thus another strength of depth interviews is that they give as a point of view.

Depth interviews have some demerits. As compared to surveys, they are costlier. The sample size is small, and it is not representative. Surveys generate homogeneous data. Depth interviews generate heterogeneous data  — each respondent discusses different issues, in his own diction, as per the sequence he likes, and with varying levels of depth. The analysis of depth interview is thus subjective. The emphasis is on interpretertion rather than counting.

As compared to focus groups, depth interviews have greater depth and flexibility.But the weaknesses are the higher cost per person, less vivid, and no advantage of group interaction. The vivid nature suffers as depth interviews are generally not observed and videotaped. Executives rely upon the reports of the individual interviews.

Uses of Individual Depth Interviews

1.      They are useful to understand the product usage.
2.      They give us a better picture of consumers lives.
3.      They enable us to measure the bases of brand image.
4.      They are the first step in developing a structured questionnaire later.

Between Focus Groups and Depth Interviews

Sometimes focus groups may not be possible. It is difficult to gather a group of CEOs to discuss Executive Class air-travel. It is then advisable to conduct a depth interview. Sometimes a topic is a taboo, e.g. sexual preferences. The focus group is then not advisable.

Expert Depth Interviews

These are individual depth interviews which highlight the emerging new markets or marketing trends. Experts also provide clues to the behaviour of individual consumers. The experts are technically qualified persons from their respective fields, e.g. automobiles engineers for cars, beauticians for cosmetics, chemists for OTC products and agents for financial services.

Individual Depth Interviews

An individual depth interviews is an unstructured conversation between a respondent and interviewer. Its objective is to elicit attitudes and feelings about a product, which would not emerge from a structured interview. In this respect, it is similar to focus group. There are two occasions to use depth interviews, when opinions are to be obtained from all participants on the same topic and when participants are expected to react to physical stimuli such as projective measures. Let us understand the team projective measure. It is a stimulus which prompts respondent to project their thoughts and feelings. Some commonly used techniques are:

 

Drawing Pictures Respondents might be asked to draw pictures of a good doctor and a bad doctor to identify the cues that ultimately affect the quality of service.

Situation Description Respondents might be asked to describe the situation in which they will eat Uncle’s Chips.

User Description Respondents might be asked to describe the type of person who would use a particular product. For example, Femina might be read by a young working woman.

Picture Interpretation Respondents are asked to interpret an ambiguous picture.

Completing Missing Links Respondents are asked to look at a scene, and complete the missing links. For instance, respondents are asked to look at an incomplete list of cosmetics and asked what else should be included.

We have already given you some projective measures for use in focus groups and theses could also be used in depth interviews. But mostly projective measures are used in depth interviews.

 

 

Field operations are a major expense of marketing research firms. It is possible to outsource these operations from independent firms abroad. In India, we do not have many such companies. IMRB has between 3000 — 4000 permanent and temporary employees in the field at any point of time. Even companies like NFO India has around 2000. There are not many mainline research firms because of the high cost of setting up field operations. Though there are efforts to outsource these, the experiences are not good. Clients should also take interest in the field work by checking interviewers. They do go in for qualitative research focus groups. But quantitative research is ignored. If clients attend interviews, they will know whether there is understanding of questions and whether these are being asked properly. The order, the tone, the recording — all these make a difference. HUL takes field work seriously. They conduct field audits also. Such audits can be conducted by independent field investigators on the lines of audit by CAs. Research firms are thinking of setting separate firms for field operations. AC Neilson India has put in place an elaborate systems of data checks at multiple levels. Gallap MBA has a system of project managers, one in each region, who has overall responsibility of ensuring that each project is completed in time, and that quality standards are maintained. NFO India has put an All-India Field Information System which allows jobs to be monitored online.

As this is a people-oriented business, we have to focus on HR. The job is low paid and laborious. It is not easy to motivate such a force. There is a burnout after putting in some years. People tend to cut corners, and fudge data. The turnover is high. Mostly people are sourced through educational institutes and households. But we need highly educated researchers for complex projects. They may require special skills. Higher  pay scales attract career-oriented people now. They may progress into data processing research management and as heads of field operations. Recognition is the most important thing.

Gallup conducts polls.Its three practice areas are employee engagement, customer engagement and well-being. Gallup earns from large polls to corporations and governments. Gallup turns classical economics on its head to stand out. Gallup perspective is growth. They look things from the perspective of behavioural economics. ‘Gallup Path’ is unique proprietary model. Basically Gallup capitalised on human nature, which plays a role in business outcomes. Gallup Path is pretty much the operating system in a clutch of companies. Jin Cliffon is the CEO of Gallup since 1988.

According to the research study done by Akshay R. Rao, Carlson School of Business, University of Minnesota, a consumer prefers a bonus extra quantity promotion of a product, rather than a price discount for the same quantity. A 100 gm  coffee pack with 80 p.c. extra quantity is preferable rather than a 100 gm coffee pack at a price discount of 30 p.c.. Essentially, this occurs because of the ‘base value neglect’ when dealing with percentages. Adding of percentages as if they are whole numbers is also erroneous. A store offering 20 per cent off Diwali sale and another 25 per cent off Diwali sweets is not offering a total discount of 45 per cent. If suppose the base value is 100, 20 p.c. off reduces the price to Rs. 80. Another 25 p.c. of the base of value of 80 is Rs. 20, reducing the price further to Rs. 60. It means overall discount of 40 percent.