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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: [email protected] 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...
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