Page 122 - Foundations of Marketing

Marketing Research and Information Systems | Chapter 4 89

Exploratory Research

When marketers need more information about a problem or want to make a tentative hypoth-
esis more specific, they conduct exploratory research . The main purpose of exploratory
research is to better understand a problem or situation and/or to help identify additional data
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needs or decision alternatives. For example, China is the world’s largest auto producer and
has made great strides in developing high-efficiency vehicles, yet exports practically none
of them. Chinese automakers have begun to see opportunities abroad as countries increase
fuel-efficiency standards and demand for efficient cars grows. Geely Group, which acquired
Volvo Cars of Sweden, for instance,
has begun conducting exploratory
research in major Western markets, Most Widely Used Qualitative Marketing
such as Britain, to determine which
of its low-cost and high-fuel-effi- Research Methods Percentage of Use
ciency models would be most popular
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there. Exploratory research can help 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
marketers better understand how
Traditional (in Person)
consumers view a topic or a product, Focus Group 82%
which can assist a firm as it develops
better products and more targeted Traditional (in Person) 47%
marketing mixes. In-Depth Interviews Snapshot
Some organizations utilize cus-
tomer advisory boards , which are Ethnographic Research 32%
small groups of actual customers
who serve as sounding boards for In-Store/Shopping 28%
Observations
new product ideas and offer research-
ers insights into their feelings and
Telephone
attitudes toward a firm’s marketing In-Depth Interviews 23%
strategy, including products, promo-
tion, pricing, and distribution. While
these advisory boards can help com- Source: GreenBook Research Industry Trends Report Spring 2012, www.greenbookblog.org/
panies maintain strong relationships GRIT-Spring-2012/
with valuable customers, they can
also generate a greater understanding of marketing research questions. For example, Modulo,
a major IT and risk and compliance contractor, formed a customer advisory board to help the
firm confront the fast-changing environment of IT security. The board meets quarterly and
exploratory research Research
helps the firm identify opportunities and threats facing international security and banking, and
conducted to gather more
to identify changes in governance for the markets in which it has clients. information about a problem or
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One common method for conducting exploratory research is through a focus group. to make a tentative hypothesis
A focus group brings together multiple people to discuss a specific topic in a group setting more specific
facilitated by a moderator. Focus groups are often conducted informally, without a structured customer advisory boards
questionnaire. They allow customer attitudes, behaviors, lifestyles, needs, and desires to be Small groups of actual customers
explored in a flexible and creative manner. Questions are open-ended and stimulate respon- who serve as sounding boards
dents to answer in their own words. A traditional focus group session consists of 8 to 12 indi- for new-product ideas and
viduals and is led by a moderator, who is an independent individual hired by the research firm offer insights into their feelings
and attitudes toward a firm’s
or the company. The moderator encourages all of the participants to engage in the conversa-
products and other elements of
tion and directs the discussion by asking questions when needed.
its marketing strategy
Focus groups can provide companies with ideas for new products or can be a forum to test
focus group An interview that
marketing strategies for existing products. This format can yield detailed information, includ-
is often conducted informally,
ing on topics about which researchers might not have thought to ask participants because they
without a structured question-
can engage with one another.
naire, in small groups of 8 to 12
In-person focus groups have some disadvantages, however. For instance, sometimes the people, to observe interaction
focus group’s discussion can be hindered by overly talkative, confrontational, or shy individu- when members are exposed to
als. Some participants might be less than honest in an effort to be sociable or to receive money an idea or a concept

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