SCANNER DATA AND ONLINE MARKET RESEARCH

SCANNER DATA AND ONLINE MARKET RESEARCH Scanner data Impact of Internet on market research Types of online research Challenges in online research Excel, Part II MKTG 476 MARKET RESEARCH Lars Perner, Instructor 1 Scanner Data Panel members in test communities agree to   Swipe a card prior to each purchase Have purchases matched to demographic profiles media/coupon exposure promotional status of competing brands past purchases Problems:   Aggregation over household Aggregation bias--averages of disparate segments obscure! MKTG 476 MARKET RESEARCH Lars Perner, Instructor 2 Scanner Data Research No. of ads seen by shopper Ads seen for competing brands “Split cable” RECORDED PURCHASES TELEVISION EXPOSURE HOUSEHOLD FILE DEMOGRAPHIC INFORMATION Family size Occupation Family size Income Home MKTG 476 ownership Purchase on occasion: Yes, no Time since previous purchase Previous purchases Current price Previous price Current promotional status Previous promotional status Current display status Previous display status Display status of competing brands Promotional status of competing brands Coupon used: Yes, no Coupon available: Yes, no Coupon available for other brands? Yes, no Amount of coupon ANALYSIS MARKET RESEARCH Lars Perner, Instructor 3 IMPACT OF INTERNET ON MARKET RESEARCH Information not previously collectible Speed and reduced cost Large scale data collection Access to new customer groups Observation of consumer interaction MKTG 476 MARKET RESEARCH Lars Perner, Instructor 4 Information Not Previously Observable Traditional questionnaires relied on questions Now possible to measure behavior—e.g.,   Time spent Number of products browsed MKTG 476 MARKET RESEARCH Lars Perner, Instructor 5 Possibilities That Overlap With Scanner Data Analysis of purchase history Assess impact of     Price Price of competing product Featured “space” Promotion MKTG 476 MARKET RESEARCH Lars Perner, Instructor 6 Cost and Efficiency Reduced “interviewer” costs   No travel Customer does the entry work Increased speed MKTG 476 MARKET RESEARCH Lars Perner, Instructor 7 Large-Scale Data Collection Lower cost means more cost effective opportunities to collect data Larger sample size reduces sampling errors Data can be briefly collected through online visits for other purposes MKTG 476 MARKET RESEARCH Lars Perner, Instructor 8 Access to New Customer Groups Access to   Time constrained professionals Consumers in remote geographic areas Value of new customer groups Representativeness of general population studies MKTG 476 MARKET RESEARCH Lars Perner, Instructor 9 Observation of Interaction Examining word of mouth   Visits to chat rooms Examination of postings on web sites and Usenet groups MKTG 476 MARKET RESEARCH Lars Perner, Instructor 10 Data Analysis Tools: Data Mining Use of “brute force” power to find relationships Feasible because of the low cost of data processing Chance results: When much data is examined, coincidence may stand out  Need for replication through “hold back samples” MARKET RESEARCH Lars Perner, Instructor MKTG 476 11 Data Analysis: Other Test of hypotheses/assessments of magnitudes     Logistic regression: Flexible data analysis method requiring large data sets Real-time data Immediate feedback on current results Opportunities for Inventory adjustments Price/promotion adjustments  Analysis of individual-level data MARKET RESEARCH Lars Perner, Instructor MKTG 476 12 Types of Online Research CUSTOMER CONTACT NO CUSTOMER CONTACT QUALITATIVE QUANTITIAVE Online focus groups In-depth interviews Surveys Search log analysis Click pattern analysis Lars Perner, Instructor MKTG 476 MARKET RESEARCH 13 Online Focus Groups Methods  Large set-up cost methods Teleconferencing Home-based “web cam” and microphone setup  Lower cost: Online “chat” format  Impact of non-verbal communication MKTG 476 MARKET RESEARCH Lars Perner, Instructor 14 Search Log Analysis Unmet demand—search for product not found on siste Brand identity—search for discontinued brand Message comprehension—comparison of search terms to media message Consumer vocabulary Feedback analysis Forecasting opportunities based on seasonal changes MKTG 476 MARKET RESEARCH Lars Perner, Instructor 15 Surveys Conditional branching—direct skip to relevant question Quality of response    Time pressures Willingness to write out answers or respond to multiple closed-ended questions Willingness to read and follow instructions Reliability and browser compatibility issues MKTG 476 MARKET RESEARCH Lars Perner, Instructor 16 Click-Stream Analysis Analysis of “clicking” path—how does the consumer get to a desired page or product? Advertising as traffic generator evaluation Shopping cart analysis MKTG 476 MARKET RESEARCH Lars Perner, Instructor 17 Online Market Research Concerns Representativeness of   Population—are relevant groups reached in desired proportions? Sample—even if the desired population is reached, do respondents respond in desired proportions? Consumer acceptance of research—is this regarded as spam? Panel recruitment Privacy MKTG 476 MARKET RESEARCH Lars Perner, Instructor 18 Excel, Part II Graphs    Line Bar Pie Copying graphs to other applications Scenario analysis Optimization MKTG 476 MARKET RESEARCH Lars Perner, Instructor 19