Lecture on Market Research: Qualitative vs. Quantitative Data

Introduction

• Purpose of Market Research: Gathers data from participants to aid business decisions.
• Types of Data:
  • Qualitative Data: Expressed in words, focuses on opinions and reasons.
  • Quantitative Data: Structured, statistical, expressed in numbers.

Qualitative Data

• Characteristics:
  • Expressed in words.
  • Gathers opinions, thoughts, perspectives.
  • Provides context and meaning behind answers.
• Utility:
  • Helps understand customer wants and needs.
  • Used for decision-making.
• Collection Methods:
  • Open-ended questions: "How" and "Why"
  • Surveys, questionnaires, focus groups, interviews, observations.
• Pros & Cons:
  • Provides detailed, meaningful insights.
  • Smaller sample size, longer collection and analysis time, higher cost.

Quantitative Data

• Characteristics:
  • Structured and statistical.
  • Uses closed-ended questions: "Who," "What," "When."
  • Presented in numerical form (graphs, charts).
• Utility:
  • Confirms or tests theories/assumptions.
  • Quick to collect and analyze.
• Collection Methods:
  • Yes/no questions, multiple-choice, rating systems.
• Pros & Cons:
  • Fast, easy to analyze, provides clear results.
  • Lacks depth, context, and insight into motivations.

Combining Qualitative and Quantitative Data

• Overall Strategy:
  • Use both methods to complement each other's strengths and weaknesses.
  • Provide a comprehensive understanding by combining numerical data with detailed insights.

Example: Five Guys

• Quantitative Questions:

  1. Would you visit Five Guys again? (Yes/No)
  2. How likely are you to visit again? (Likert scale)
  3. How often do you plan to visit? (Frequency options)

• Qualitative Questions: 4. If you plan to return, why? 5. What could deter you from returning?

• Insights Gained:

  • Develops customer profiles based on behavior, preferences, and motivations.
  • Identifies positive drivers and potential deterrents for customer visits.

Conclusion

• Summary:

  • Balanced use of qualitative and quantitative data enhances market research effectiveness.
  • Businesses like Five Guys can tailor strategies based on comprehensive insights.

• Additional Information:

  • Encouragement to engage with educational content for further learning.