Research Design and Secondary Data
Research Design and Secondary Data
Research Design and Secondary Data
MANAGEMENT PROBLEM
RESEARCH PROBLEM
RESEARCH DESIGN
Today’s
•Exploratory, Descriptive, Causal
Focus •Primary/Secondary data
DATA COLLECTION
DATA ANALYSIS
RESEARCH REPORT
Step 3: Specify the Research Design
What type of research is going to be used and the source(s) of the data.
Exploratory Conclusive
Research Research
Design Design
Why is it used?
When looking for insights into the problem
To help define hypotheses (but does not test) and key variables
To identify alternative courses of action
When Information needs vague
For establishing priorities for further research
Exploratory Research Cont’d
What Methods Are Used?
secondary data
qualitative research
focus groups
case studies
When is it done?
Generally initial research conducted to
clarify and define the nature of a problem
Why is it Used?
to provide decision maker with the information needed to
make sound decision.
Testing hypotheses and insights and examining relationships
Provides estimates of population parameters
Conclusive
Research
Design
Descriptive Causal
Research Research
Descriptive Research
What is the Objective?
To describe something, e.g. Target market population
characteristics, proportion of users, predict future demand,
• After-Only Design: X O1
• One-Group, Before-After Design: O1 X O2
• Before-After with Control Group:
• Experimental group: O1 X O2
• Control group: O 3 O4
• Where E = (O2 – O1) – (O4 – O3)
How Valid Are Experiments?
CAUSAL OR EXPLORATORY
DESCRIPTIVE COMPLETELY CERTAIN ABSOLUTE AMBIGUITY
“Our sales are declining and “What kind of people are “Will buyers purchase more of
we don’t know why.” buying our product? our products in a new package?
“Would people be interested in Who buys our competitor’s
“Which of two advertising
our new product idea?” product?”
campaigns is more effective?”
“What features do buyers
prefer in our product?”
Understanding EXPLORATORY or
Poor
of problem?
Problem? SECONDARY
RESEARCH
Good
Secondary Primary
Internal External
Secondary Data
Data gathered and recorded by someone else prior to and
for a purpose other than the current project.
Is often:
• Historical
• Already assembled
• Internal to corporation
Common Research Objectives
for Secondary Data Research
Fact Finding - Identifying consumption patterns
- Tracking trends
Obtained Rapidly
Can provide background data on trends etc. which lends credibility to the
report
Disadvantages of Secondary
Data
Lack of Availability (e.g. new products; image)
Uncertain Accuracy
If possible, go to the
Accuracy original source of the
of the data data?
Evaluating Secondary Data (continued)
Accuracy
of the data
Is there a possibility
of bias?
Sales information
Backorders
Customer complaints
Data Mining
The automated extraction of hidden predictive
information from large databases
E.g. Blockbuster mines its video rental history database to
recommend rentals to individual customers
data mining is used to discover patterns and relationships in the
data in order to help make better business decisions.
Data mining can help spot sales trends, develop smarter marketing
campaigns, and accurately predict customer loyalty.
Uses
Market segmentation - Identify the common characteristics of customers who buy
the same products from your company.
Customer churn - Predict which customers are likely to leave your company and go
to a competitor.
Fraud detection - Identify which transactions are most likely to be fraudulent.
Direct marketing - Identify which prospects should be included in a mailing list to
obtain the highest response rate.
Interactive marketing - Predict what each individual accessing a Web site is most
likely interested in seeing.
Market basket analysis - Understand what products or services are commonly
purchased together; e.g., beer and diapers.
Trend analysis - Reveal the difference between a typical customer this month and
last.
External Data