Data types can be reliable in one way or another, it all depends on what sector they are being used for, and if they are appropriate and accurate enough to be used in the decision-making process. Tesco usually gathers it is information as mentioned earlier in the report in the forms of qualitative, quantitative, primary and secondary. Before they gather any form of research, they must make sure it is valid, reliable, timely, fit for purpose, accessible, cost-effective, accurate, relevant, appropriate source and understandable by the user. Tesco is a significant player in the industry they must always have accurate and reliable research on the market. They must use the correct data type for all types of research in order to expand effectively. One of the forms of judging research is within its validity. Collecting secondary data from third-party can be a significant benefit in entering a new a market.
Most secondary data is available to all companies in the industry. In this case, companies such as Tesco will want a competitive advantage in expanding into a new market; it would have to invest in a specialized market analysis. They did this when they expanded into the U.S Market, where it contacted market research company Mintel.
They do this because any data gathered through research can be affected by many factors, so they request specific analysis of the market. One of the main key points that Tesco or any company, in fact, would have to pinpoint is the reliability of their data. Reliable data is information that can be depended upon to make business decision. Tesco realizes that in some surveys there will be bias. The reason why this can occur is because Tesco offers rewards to those who complete a survey, and this can motivate bias. Tesco must always remain reliable as it has to gather information from all sorts of sources. Sources of information stem from different stores that come from less wealthy areas too far more wealthier areas all have to be considered. They do this to keep the validity in their data, and validity in data is the key to success.
Acting upon valid and reliable information, will usually always have a positive outcome, and all research orchestrated by Tesco must have an internal and external source.A key component is when was the research done, you must have up to date research. This is called timely data. Information from 2009 will have no place in 2017, as times have changed, trends have shifted, and infrastructure has changed drastically. In sporadic cases does data from the past, ever prove to be useful due to the significant changes in the industry. Figures and information that take a numeric form must always be updated, as quantitative data always changes, every single second and to make an accurate representation, they must be updated to follow through with a decision.
Research can be done on many things, however not all research can be used, you need information that is relevant to what you need it for. This is called fit for purpose. Earlier in the report, we mentioned Tesco entering the U.S. If Tesco, was to open in New York, looking at research done in San Francisco, would not be fit for purpose.Information that is instantly accessible is key to succeeding in the retail industry. Tesco, for example, has instant access to all the data logged by the Clubcard. You can view information, such as the sales figure, location of checkout and other information regarding what the user has done, all of this information is instantly accessible from a panel or a database that Tesco gives specific employees access too depending on what permission they have on the panel itself.
If the Clubcard information has to be exported from the database and then printed, it would not be accessible. Data and research being accessible is a key part to the success for any company.Information that is worth investing time and money into, is called cost-effective.
Tesco has demonstrated this when entering the U.S Market, by investing into the information Mintel provided to them. This has helped them make crucial decisions in terms of business decisions. Entering a new market requires time, money and intelligence, which is why cost-effective information is crucial in the development of a new competitor in a different continent. If Tesco has invested £100,000 and only saw a £500 increase in sales, it does not qualify to be cost-effective.
Cost effective information is when the investment is much lower than the profit made, by using the information to your advantage and benefit. Research done in a certain market must be accurate. This helps businesses grow, and take the correct route and make the correct decision. If Tesco was given inaccurate data for example that they have 20 Coca-Cola shipments coming and it ends up only being 5, this is inaccurate, which would put them in danger of losing customers for not having the supply for the demand which could lead to loss of customers.
All research that is given to Tesco must be relevant. It must be directly relevant to the market and industry you are in. In this case, it is the British Retail Market, any information given to Tesco about the Coal Industry in Iran, it would be completely irrelevant information the business. Relevant information for Tesco is the demand for a certain product or a high demand for a specific service.
One of the fundamental rules you must follow when gathering research of any kind, especially for a business purpose, you must obtain such information from a reputable and reliable source. This has been already practised by Tesco when entering the U.S market by requesting an analysis by a world renown specialists in the field of retail, which is reliable and trustworthy.