Training on Research Methodology, Data Collection and Analysis (Part II)

Training on Research Methodology, Data Collection and Analysis (Part II)

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Unformatted text preview: TRAINING ON RESEARCH TRAINING ON RESEARCH METHODOLOGY, DATA COLLECTION AND ANALYSIS PART II. Types of Data and Methods of Data Collection Flordeliza A. Lantican and Karen P. Quilloy Professor and Graduate Teaching Assistant, CEM­UPLB Email: flantican@yahoo.com Types of Data Types of Data 1. Secondary data existing data that were previously collected and compiled for specific purposes known as desk research; available and inexpensive drawbacks: suitability to the research information needs and difficulty in verifying accuracy Sources of Secondary Data Sources of Secondary Data 1. Internal Secondary Data a. Sales invoices – customer profile, sales trends b. Accounts receivable reports – product’s profit margin, customer returns and charge backs, revenues c. Quarterly sales reports – plan vs actual sales, effective sale techniques, competitive intelligence Sources of Secondary Data Sources of Secondary Data 1. Internal Secondary Data d. Sales activity reports – sales, competition and competitive activities, changes in the marketplace e. Financial reports – cost in procurement of raw materials, production and distribution of goods, labor costs, transportation and storage costs f. Human resource data – employee turnouver, strength of employees Sources of Secondary Data Sources of Secondary Data 2. External Secondary Data a. Government statistics (NSO) – population census, exports/imports, family expenditure surveys b. Trade associations – business/trade directory, industry statistics c. Syndicated reports – published research reports for a fee (e.g., supply and demand, market share) Sources of Secondary Data Sources of Secondary Data 2. External Secondary Data d. National and international institutions/organizations (e.g., WB, WHO, ADB, FAO, International Monetary Fund, International Fund for Agricultural Development, UNDP, International Labor Organization) e. Online databases (e.g., www.marketresearch.com, www.etrade.com) Secondary Data Secondary Data a. Finance/credit data: annual financial statements from microfinance­ oriented banks and cooperatives (e.g., balance sheets and financial statements); sources of funds; total amount of loans available for microfinancing operation per year; total amounts of loan paid; list of borrowers per year; borrower’s purpose of loan; household information Secondary Data Secondary Data b. Marketing/trade data: domestic production and consumption volume and value of exports and imports prices at the farm, wholesale and retail levels members of registered processors/exporters Types of Data Types of Data 2. Primary data ­ first hand information collected from the respondents by a person or a representative of a research organization or government office, a newspaper or magazine select an appropriate data collection instrument given the characteristics of the respondents and the needs of the research Primary Data Primary Data a. Finance/credit data: microlending policies from managers and/or officers of the participating microfinance­oriented banks and cooperatives (e.g., interest rate; maximum loanable amount, loan maturity); procedures (e.g., loan application requirements, screening of loan applicants, loan processing and release, and monitoring of borrowers); loan collection rate; problems encountered in their microfinancing operation Primary Data Primary Data b. Marketing/Trade data: volume purchased and sold, buyer’s quantity and quality requirements, geographic flows, marketing practices, costs and returns Methods of Primary Data Collection Methods of Primary Data Collection 1. Observation – involves watching, recording and compiling the behavioral patterns of people, objects and events in a systematic manner to obtain information about the phenomenon of interest. The observer does not question or communicate with the people being observed. Information may be recorded as the events occur or from records of past events. Observation Observation Structured vs Unstructured a. Structured observation ­ the researcher specifies in detail what is to be observed and how the measurements are recorded. Example: Observe the length of time it will take for a bank manager to approve the application of a client for savings or checking accounts. Observation Observation b. Unstructured observation ­The researcher monitors all relevant event or behavioral data without specifying the details in advance. Example: Observe the number of brand names of coffee including prices and packaging materials in different supermarkets in a particular location. Observation Observation Direct vs Indirect a. Direct observation ­ the process of observing and recording of actual behavioral patterns or events as they occur either by using human observers or mechanical devices Observation Observation b. Indirect observation ­ the process of observing a record of past behavior or events by looking at the existing artifacts (e.g., video, audiotape or a written transcript) Observation Observation Human vs Mechanical a. Human observation ­ a highly trained researcher manually observes and records actual behavior as it occurs Example: Observe/record the most frequent brand of fruit juices purchased by consumers Human Observation Human Observation • the most preferred credit card by company (e.g., Master Card, VISA Card, Express Card) Internet • • a very good source of observation and can provide valuable information observe the number of times the Web page is visited Human Observation Human Observation Audit • the researcher collects data by examining financial statements of the bank, physical records or performing inventory analysis in shopping malls • during store audit, the researcher takes an inventory of brands, quantities, and package sizes Audit Audit Advantages: 1. Reduces respondent’s recall error, response bias and refusal to participate; and 2. Provides data that are collected in less time and at lower cost( mechanical observation) Audit Audit Disadvantages: 1. Less versatile and non­reactive as it does not involve respondents; 2. Difficult to understand and logically explain the reason why the observed behavior or events occur; 3. Difficult to generalize or infer accurately about larger groups of respondents; Audit Audit Disadvantages: 4. Difficult for trained observers to record all the activities occurring during the same time frame; and 5. Potential for faulty recall on the part of human observer due to natural time lag between observing and recording of the behavior or event. Observation Observation b. Mechanical observation ­ mechanical devices rather than human observers recording the phenomenon being observed Example: On­site cameras (still, motion picture or video) are used by shopping malls to assess package designs, counter space, floor displays, and traffic flow patterns • the Universal Product Code (UPC) system, together with optical scanners, allows for mechanized information collection regarding consumer purchases by product category, brand, store type, price and quantity Methods of Primary Data Collection Methods of Primary Data Collection 2. Consumer and media panels ­ are used to gather repeated primary data from the same sample of respondents over an extended period of time • data are mostly actual purchasing behavior for products or services and media consumption habits or exposure, respectively Consumer panel ­ data are collected using a highly structured questionnaire Consumer and Media Panels Consumer and Media Panels • Media panel ­ data are collected on television, cable, and home video viewing habits using an electronic devise (e.g., people meter) that monitors and records the frequency, length of time spent on viewing the channel, and the people watching it. Data gathered are communicated back to the central computer by telephone advisable to use if data collection is constrained by limited time and resources to cover a large proportion of the target population Consumer and Media Panels Consumer and Media Panels Advantages: 1. Low cost of data collection, rapid availability and timeliness; 2. Consumer panels can be used for impact assessment studies of a credit program or a program on its beneficiaries; and Consumer and Media Panels Consumer and Media Panels Advantages: 3. Media panel is also useful in financial analysis­information on audience volume, demographics, and viewing habits for calculating media efficiency by determining the lowest cost possible for an optimal number of target audiences. Consumer and Media Panels Consumer and Media Panels Disadvantages: 1. Sampling errors ­ any type of bias due to mistakes in the selection process of sampling and/or determining of the sample size. Consumer panels may under represent minorities (i.e., low­class respondents, indigenous ethnic groups, etc.) making it highly skewed towards other respondents; Consumer and Media Panels Consumer and Media Panels Disadvantages: 2. Turnover ­ panel members are not obliged to remain on the panel for the entire duration of data collection. A poor proxy representative can spoil the feature of representativeness and internal validity of the data; and Consumer and Media Panels Consumer and Media Panels Disadvantages: 3. Response bias ­ high level of response bias occurs when panel respondents tend to either answer questions in a socially desirable manner or not answer at all, knowing their purchases are being examined. Methods of Primary Data Collection Methods of Primary Data Collection 3. Focus group discussion (FGD)­ involves an interactive and spontaneous conversation on a certain topic within a small group of people that were brought together in an informal group setting Focus Group Discussion Focus Group Discussion consider this technique as synonymous with qualitative research purpose is to gain insights by listening to a group of people from the appropriate target market talk about issues of interest to the researcher Focus Group Discussion Focus Group Discussion Table 2.1. Characteristics of Focus Groups Group size Group composition Physical setting Time duration Recording Moderator 8­12 Homogeneous; respondents prescreened Relaxed, informal atmosphere 1­3 hours Use of audiocassettes, videotapes, meta cards Observational, interpersonal, and communication skills of the moderator Source: Malhotra (2007) Focus Group Discussion Focus Group Discussion Homogeneous in terms of demographic and socioeconomic characteristics. For example, if the purpose is to get the problem of non­repayment rate by farmers who avail of credit from the bank, do not mix borrowers from non­borrowers Focus Group Discussion Focus Group Discussion Length of discussion (1­3 hours) ­ the moderator can elicit and take note of the ideas, reactions, attitudes, feelings, experiences, and other relevant information about the topic Focus Group Discussion Focus Group Discussion Focus group interviews are recorded, often on tape or videotape, for subsequent replay, transcription and analysis Establish rapport with the participants, keep the discussion moving forward, and probe the respondents to elicit insights Focus Group Discussion Focus Group Discussion The moderator should possess the skill, experience, knowledge of the topic to be discussed, and an understanding of the nature of group dynamics Focus Group Discussion Focus Group Discussion Procedure for planning and conducting focus group discussion: 1. Determine the objectives of the finance or marketing research project and define the problem 2. Specify the objectives of qualitative research 3. State the objectives/questions to be answered by focus groups Focus Group Discussion Focus Group Discussion 4. Write a screening questionnaires 5. Develop a moderator’s outline 6. Conduct the focus group discussion 7. Review tapes, responses and analyze the data 8. Summarize the findings and plan follow­up research or action Focus Group Discussion Focus Group Discussion Application of focus group discussion on marketing­related research 1. Understanding consumers’ perceptions, preferences, and behavior concerning a product category 2. Obtaining impressions of new products, concepts 3. Generating new ideas about older products Focus Group Discussion Focus Group Discussion 4. Developing creative concepts and copy materials for advertisements 5. Securing price impressions 6. Obtaining preliminary consumer reaction to specific marketing programs Focus Group Discussion Focus Group Discussion The methodological applications of focus group discussion include: 1. Defining a problem more precisely 2. Generating alternative courses of action 3. Developing an approach to a problem Focus Group Discussion Focus Group Discussion 4. Obtaining information helpful in structuring consumer questionnaires 5. Generating hypotheses that can be tested quantitatively 6. Interpreting previously obtained quantitative results Focus Group Discussion Focus Group Discussion Advantages: 1. Advisable to use when the concept or idea to be evaluated is new and is evaluated best if critiqued by the target beneficiaries; 2. Can be done as a brainstorming mechanism and for instance, in pilot testing of a questionnaire; and 3. Online FGDs allow customization of any business needs. Methods of Primary Data Collection Methods of Primary Data Collection 4. Experimentation ­ is used to infer causal relationship. Marketing effects are caused by multiple variables, and the relationship between cause and effect tends to be probabilistic. Moreover, we can never prove causality (i.e., demonstrate it conclusively); we can only infer a cause­ and­ effect relationship. In other words, it is possible that the true causal relation, if one exists, may not have been identified. Experimentation Experimentation causality, three conditions must be satisfied, namely: (1) concomitant variation, (2) time order of occurrence of variables, and (3) elimination of other possible causal factors. These conditions are necessary but not sufficient to demonstrate causality. Before making causal inferences, or assuming Experimentation Experimentation a cause, X, and an effect, Y, occur together or vary together in the way predicted by the hypothesis under consideration. • Example: Consider a survey of 1,500 respondents regarding the purchase of organically grown rice in Metro Manila supermarkets. The respondents have been classified into income bracket: low income, middle income and high income. Concomitant variation ­ is the extent to which Experimentation Experimentation Table 2.2. Evidence of concomitant variation between purchase of organically grown vegetables and income group. Income Group (X) High Middle Low Purchase of Organically Grown Rice (Y) High Medium Low Total 750 (83%) 100 (11%) 50(6%) 900 (100%) 275 (66%) 75(20%) 25(4%) 375 (100%) 100 (44%) 80(36%) 45((20%) 225 (100%) The purchase of organically grown rice is influenced by income group. Respondents with high income group are likely to purchase more organically grown rice. Eighty­three percent of high income group have the highest purchase level, whereas only 66 percent of middle income and 44 % of low income have high purchase level. Experimentation Experimentation • states that the causing event must occur either before or simultaneously with the effect; it cannot occur afterwards Time order of occurrence of variables • By definition, the effect cannot be produced by an event that occurs after the effect has taken place. A variable can be both a cause and effect in the same causal relationship. Time Order of Occurrence of Time Order of Occurrence of Variables department store are more likely to have the charge or credit card. Also customers who have the credit card are more likely to shop there frequently. Example: Customers who shop frequently in a Time Order of Occurrence Time Order of Occurrence of Variables customers who save in the bank. If the bank service is the cause of an increase in number of clients, then improvement in bank service must be made before, or at least simultaneously with, an increase in the number of bank clients. Consider the bank services and number of Experimentation Experimentation Absence of other possible causal factors • The factor or variable being examined should be the only possible causal explanation. Experimentation Experimentation Test marketing • Field test of marketing mix variables is usually conducted in one or more markets under specified market performance indicators • aims to predict sales, acquire valuable market information, or anticipate adverse consequences of a marketing program Types of Test Marketing Types of Test Marketing a. Traditional test marketing • investigation of a product’s marketing mix variables in actual distribution channels • Example: Evaluation of consumer’s willingness to accept a new product or variation of an existing product, evaluation of the potential of new marketing concepts, and determination of the level of trade support for the test product Types of Test Marketing Types of Test Marketing b. Controlled test market • is performed by distributing the test product in different outlets of selected test areas • done by outside research firm who guarantees and handles inventory, stocking, pricing and billing for its clients during the test market Controlled Test Market Controlled Test Market • Example: ACNielsen and Audit & Surveys offer controlled test marketing services; the use of UPC system Controlled Test Market Controlled Test Market Advantages: 1. Assures the distribution of test product by the outside firm; 2. Incurs low cost; 3. Saves time; and 4. Reduces the exposure to other competitors. Disadvantages: 1. Difficulty of accurately projecting sales and market penetration, level of trade acceptance and support and evaluating the effect of an advertising program. Types of Test Marketing Types of Test Marketing c. Electronic test market • test procedure employed to gather data from consumers who carry a special identification card which they present upon purchase at the market outlet in pre­specified areas Electronic Test Market Electronic Test Market 1. Identification card allows the collection of demographic data and record of product purchase of the consumers buying the test product. Disadvantages: 1. Card­carrying buyers may not represent the entire market; and 2. High cost associated with the technology to be used. Advantage: Types of Test Marketing Types of Test Marketing d. Simulated test market • known as laboratory test or test market simulation • sample respondents are observed and interviewed on their purchases and attitudes toward the test product • used to evaluate consumer acceptance of a new product or marketing mix strategy Simulated Test Market Simulated Test Market Steps in the Conduct of Simulated Test Market 1) Potential participants are pre­selected based on a certain demographic and product usage criteria. 2) Commercials or other forms of advertisements for the test product, as well as for other substitute or related products are shown to the participants. Simulated Test Market Simulated Test Market Steps in the Conduct of Simulated Test Market 3) Participants are then allowed to purchase items in the simulated retail store. Afterwards, they are given free sample for them to use for a certain period of time, regardless of whether or not they purchased the test product. 4) After the usage period, participants are asked for feedbacks to gather information on the product and their repurchase intentions. Types of Test Marketing Types of Test Marketing e. Web­based TV test market • use of Web­enabled multimedia communication technology like broadband interactive TV • it computerizes the consumer’s TV set with a “set­top” box with a hard drive that contains data such as video clips of a 60­second commercial or a 30­minute interactive product demonstration Test Marketing Test Marketing f. Virtual test market • uses completely computerized systems in setting up a test score, • allows the participants to view and interact with the product in a virtual store as if they are in the actual store’s environment Virtual Test Market Virtual Test Market • Participants view store shelves of different kinds of products, then pick up and examine an item by clicking or touching its image on the monitor and by moving a mouse to rotate the image. • Information generated: time spend in shopping each product category, quantity purchased and order of items purchased Virtual Test Market Virtual Test Market Disadvantages: 1. Expensive computer hardware and software needed for its operation; and 2. Consumers cannot feel, smell or touch the product. Methods of Primary Data Collection Methods of Primary Data Collection 5. Survey • involves obtaining raw data from a representative sample of respondents by asking them a set of questions and recording their responses Types of Survey Methods by Types of Survey Methods by Mode of Administration a. Personal interviewing method • is categorized as face­to­face interview or computer­assisted interview Personal Interviewing Method Personal Interviewing Method Face­to­face interview – respondents are interviewed personally at home or in a designated place (e.g., farm, warehouse, market, processing plants, banks, malls, office) Need prepared questionnaire as a guide Face­to­face Interview Face­to­face Interview Advantages: 1. Makes possible to plan/execute a sound, well­planned sampling design 2. The distribution of the respondents is controllable 3. Secures a great amount of information Face­to­face Interview Face­to­face Interview 4. Offers the widest range of interviewing techniques and is the most flexible means of obtaining data 5. Permits more accurate classification of respondents 6. High percentage of complete returns compared to mail or telephone survey Advantages: Face­to­face Interview Face­to­face Interview Disadvantages: 1. Expensive and time consuming 2. Technical skills and experience to plan and execute a competent personal interview survey are necessary 3. Field­force training and supervision is a major element 4. May require additional risk or expense when interviewing some respondents Personal Interviewing Method Personal Interviewing Method Computer­assisted personal interviewing (CAPI) ­ the respondents sit in front of a computer terminal and answer a questionnaire on the computer screen by using the keyboard or a mouse. There are several user friendly electronic packages that design questions that are easy for the respondent to understand. Help screens and courteous error messages are also provided. Computer­assisted Personal Computer­assisted Personal Interviewing (CAPI) This method has been classified as a personal interview technique since an interviewer is usually present to serve as a host or hostess and to guide the respondent as needed. CAPI has been used to collect data at shopping malls, product clinics, conferences and trade shows or fairs. One way to administer CAPI is through the use of kiosks. Types of Survey Methods by Types of Survey Methods by Mode of Administration b. Telephone methods ­ traditional telephone interviews or computer­assisted telephone interviews Traditional telephone interviews involve phoning a sample respondents and asking them a series of questions. The interviewer uses a paper questionnaire and records the responses with a pencil or pen. Traditional Telephone Interviews Traditional Telephone Interviews Advantages: 1. No field staff required 2. Less costly than mail surveys and personal interviews 3. Quickest method of data collection Traditional Telephone Interviews Traditional Telephone Interviews Advantages: 4. Provide greater flexibility than mail surveys 5. Useful in reaching respondents located in restricted areas. 6. Sampling is relatively simple with the use of telephone directories. Traditional Telephone Interviews Traditional Telephone Interviews Disadvantages: 1. Restricted to person who has access to telephone 2. Questions must be short and easy to understand 3. The task of checking the no­answers, wrong numbers or busy signals istime consuming Traditional Telephone Interviews Traditional Telephone Interviews Disadvantages: 4. Phoning too early or too late may antagonize the respondent 5. Misinformation is hard to detect and check in short inquiries Telephone Methods Telephone Methods Computer­assisted telephone interviewing (CATI) uses a computerized questionnaire administered to respondents over the telephone. A computerized questionnaire maybe generated using a main frame computer, a minicomputer, or a personal computer. The interviewer sits in front of a computer terminal or wears mini­headset substitutes for a telephone. Computer­assisted Telephone Computer­assisted Telephone Interviewing (CATI) Upon command, dial the telephone number to be called. When contact is made, the interviewer reads questions posed on the computer screen and records the respondent’s answers directly into the computer’s memory bank. Computer­assisted Telephone Computer­assisted Telephone Interviewing (CATI) The computer systematically guides the interviewer. Only one question at a time appears on the screen. The computer checks the responses for appropriateness and consistency. It uses the responses as they are obtained to personalize the questionnaire. The data collection flows naturally and smoothly. More popular than the traditional telephone method in the developed countries. Computer­assisted Telephone Computer­assisted Telephone Interviewing (CATI) Advantages: 1. Interviewing time is reduced, 2. Data quality is enhanced, and 3. The laborious steps in the data collection process, coding questionnaires and entering the data into the computer, are eliminated. Types of Survey Methods by Types of Survey Methods by Mode of Administration c. Mail methods • can be conducted via ordinary mail or mail panel Mail Methods Mail Methods Traditional mail interview ­ questionnaires are mailed to pre­selected potential respondents. A typical mail interview package consists of the outgoing envelope, cover letter, questionnaire, return envelop, and possibly an incentive. The respondents complete and return the questionnaires. Traditional Mail Interview Traditional Mail Interview Get mailing lists complied from telephone directories, customer rosters, or association membership rolls or purchased from publication subscription lists or commercial mailing list of companies. A mailing list should be current and closely related to the population of interest. Mail Methods Mail Methods Mail panels ­ A mail panel consists of a large, nationally representative sample of households that have agreed to participate in periodic mail questionnaires and product tests. Households are compensated with various incentives. Data on the panel members are updated yearly. Response rates are relatively higher in mail panels than in the traditional mail interview. Mail Methods Mail Methods Electronic methods • electronic survey can be conducted by email or administered by the Internet or the Web Electronic Methods Electronic Methods • • E­mail interviews a list of email addresses of the target respondents should be available. The e­mails are sent out over the Internet. E­mail surveys use pure text (ASCII) to represent questionnaires and can be received and responded to by anyone with an e­mail address, whether or not they have access to the Web. Email Interviews Email Interviews Respondent type the answers to either closed­ended or open­ended questions at designated places, and click on reply. Responses are data entered and tabulated. • E­mail Interviews E­mail Interviews Limitations: 1. Given the technical limitations of most e­mail systems, questionnaires cannot utilize programmed skip patterns, logic checks, or randomization. 2. Some e­mail software products limit the length of the body of an e­mail message. d. Internet Interviews • use hypertext markup language (HTML), the language of the Web, and are posted on a Web site. • Respondents maybe recruited over the Internet from potential respondent databases maintained by the marketing research firm, or they can be recruited by conventional methods (mail, telephone). Types of Survey Methods by Types of Survey Methods by Mode of Administration Internet Interviews Internet Interviews • Respondents are asked to go to a particular Web location to complete the survey. • Many times, respondents are not recruited; they happen to be visiting the Web site where the survey is posted (or other popular Web sites) and they are invited to participate in the survey. Internet Interviews Internet Interviews Advantages: 1. Possible to construct buttons, check boxes, and data entry fields that prevent respondents from selecting more than one response where only one is intended, or from otherwise typing where no response is required. 2. Skip patterns can be programmed and performed automatically as in CATI or CAPI. 3. Possible to validate responses as they are entered. Internet Interviews Internet Interviews Advantages: 4. Additional survey stimuli such as graphs, images, animations, and links to other Web pages may be integrated into or around the survey. • The responses are collected in an adjoining database. • The data require some processing before they can be tabulated or used in a statistical package. Internet Interviews Internet Interviews Limitations: 1. The need for possible cleanup from the messages; 2. Limited forms that must be strictly adhered to by the user to ensure no cleanup is required; and 3. E­mail system compatibility issues. References References Batungbacal, E.P T., J.M. and A. Velasco (2004). Capital investments for export and domestic markets, are they sustainable? Philippines: Tambuyog Development Center. 18 p. Burke, R. R (1996). “Virtual Shopping: Breakthrough in Marketing Research,” Harvard Business Review, March/April 1996, 120 p. Coffey, J. L. (2005). Report on Credit Card “Opt­out” Studies and Rule. 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