5.1: Exploratory Research
The first step in identifying a decision problem is to conduct some exploratory research, usually through informational interviews with important partners or staff members involved in the research effort. Asking at least three important people a series of open-ended questions will provide insights into the issues at hand. Develop a list of six to ten open-ended questions, ask the same questions in each interview, and make sure to record the answers.
Market Research in Action: Isabella
Isabella is thinking about selling her honey at an additional three farmers’ market in the area. She isn’t sure if the price that she charges now end up being profitable after the cost of driving to the markets and setting up a booth. Isabella decides to do some exploratory research and decides to identify three people – another farmer who is a friend, a coordinator at the market where she already sells her honey and her husband, who is also her business partner. Here are the questions that Isabella will ask these three people:
- Do they think that the current price she charges for her honey is competitive with other farmers?
- How far are the additional three farmers’ markets from her location, and what would be the approximate transportation costs?
- What booth fees or setup costs are associated with each of these new markets?
- Do they know if there is demand for honey at these new markets?
- Are there any competitors selling similar honey products at these markets, and at what prices?
- How does the foot traffic and general market atmosphere compare across these three additional markets?
- What additional marketing or promotional efforts would be required to attract customers at these new markets?
- Are there any ways to reduce expenses to expand to these markets such as consolidating trips or sharing booth space?
Isabella will record the answers of all questions so the answers can be reviewed as part of the next step.
