Page 529 - Encyclopedia of Business and Finance

eobf_M 7/5/06 3:15 PM Page 506

Marketing Research

findings of interest to the business community niques, but they can be an effective choice for companies
through their research bureaus and institutes. big and small.
• Corporate annual reports—Corporate annual and 10- Primary research data are often obtained by inter-
K reports are also useful sources of information on views, either in person or over the telephone. For example,
specific companies or general industry trends. These one might personally interview consumers to determine
reports may not provide great detail; nevertheless, a their opinions of a new line of low-fat foods or personally
general picture of the nature and scope of the firms interview a few executives to determine their opinions of
in an industry as well as their general direction can a nationally known advertising agency. An advantage of
be constructed. personal interviews is that the interviewer can adapt the
• Commercial data services—Many firms offer market- question to the specific situation at hand. A limitation to
ing research and commercial data services. Some this method is that the interviewer can introduce bias into
provide custom research; they design the research the process by asking leading questions or by giving some
project specifically to meet the client’s needs. This indication of the preferred answer. A lot of time, supervi-
can be expensive. Others, such as Nielsen Media sion, and interviewer training are needed to implement
Research, offer standardized information, compiled personal interviews successfully.
regularly and made available to clients on a sub-
scription basis. Sample Design. When research is being conducted, it is

After all the secondary data sources have been important to determine the appropriate target population
checked and the needed data have not been found, the of the research—the group of people possessing character-
third aspect of a research projected begins—the collection istics relevant to the research problem from whom infor-
of data through primary research. Primary research can be mation will be obtained. Although this may appear to be
best looked at in terms of three areas: data collection, sam- easy, it is often one of the most difficult tasks in a market-
ple design, and data processing and analysis. ing research project because of the wide variety of factors
entering into the determination. For example, it might be
Data Collection. If it has been determined that the important that only recent users of the product be sur-
required data are not currently available, then the next veyed. Or perhaps the purchasers of the product, not the
step is to collect new data. To develop the data-collection users, should be the focus of the research.
procedure, the researcher must establish an effective link Once the target population is determined, a decision
between the information needs and the questions to be is needed on how best to represent this population within
asked or the observations to be recorded. The process of the time and cost constraints of the research budget.
collecting data is critical because it typically involves a Because there are many different methods used to draw
large proportion of the research budget. The most widely this sample—the group of units composed of nonoverlap-
used methods of data collection are focus groups, surveys, ping elements that are representative of the population
or interviews.
from which it is drawn—the best one needs to be chosen
Focus groups are often used to collect primary data. for the specific research project.
A focus group consists of a discussion, usually lasting one
and a half to two hours, with eight to twelve individuals
Data Processing and Analysis. After the data are col-
and a moderator who is intent on encouraging in-depth lected, the processing begins, which includes the func-
discussion of a topic or product. The discussion allows for
tions of editing and coding. Editing involves reviewing
flexibility and provides broad, in-depth knowledge that the data forms to ensure legibility, consistency, and com-
cannot be obtained through any other research method.
pleteness. Coding involves establishing categories for
Surveys, also known as questionnaires, are the most
responses or groups of responses so that numerals can be
common instrument for data collection. A survey consists used to represent the categories.
of a set of questions presented to respondents for their
answers. Surveys need to be carefully developed, tested, It is important that the data analysis be consistent
and debugged before they are used; they can be adminis- with the requirements of the information needs identified
tered over the phone, through the mail, via e-mail, or when the research objectives were defined. Data analysis is
online. Web-based surveys and other forms of online usually performed with an appropriate software applica-
research are popular choices because of their many advan- tion. This data analysis, whether done by simple numeric
tages—timely, reliable data collection providing real-time, counting or by complex computer-assisted analytical tech-
instant access to target audiences’ opinions at reduced niques, should provide meaningful information appropri-
costs. Web surveys do not replace the traditional tech- ate for managerial decisions.

506 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION