Market Research Articles
Improve your Profitability using Behavioural Science
Many Australian retailers are struggling to maintain their turnover and profit margins. We constantly hear that the Internet, global competition and the Aussie dollar are conspiring to depress the Australian retail sector. In essence there are rational reasons why retail spending has been in decline.
There is no doubt that customer purchasing behaviour is not only influenced by rational thought. Behavioural science examines how customer’s perceptions of an interaction are influenced by the amounts and sequencing of painful and pleasurable experiences during buying behaviour. Insight into the pleasure and pain that customers experience directly influences spend levels and customer satisfaction.
Out of the Picture
More than just a play on words, the above title (which is borrowed from the media) really speaks to the current plight of Kodak. Just recently it has been reported that Kodak has filed for Chapter 11 bankruptcy protection as it tries to restructure, boost cash and importantly, stay in business. These next two years will really determine how the company operates (if at all) into the future.
On face value, this story seems like any other story about disruptive technologies changing the market and the fallout from companies who were either on the front or back foot. The real tragedy for Kodak was that the company was on both, the front foot and then the back. How could a company with over 100 years experience in essentially capitalising on disruptive technologies get is so wrong in this case?
Market Research: Denial is not a river in Egypt
One of the most challenging moments for market researchers and consultants can be when a client says “I don’t believe the research finding, our company is not that bad.” After taking in a few deep breaths to calm yourself, how do you deal with this type of reaction from a client? Much of the current literature on Market Research and Research Consulting offers little assistance in this area. Practitioners rather learn through experience that a balanced approach is needed where consideration needs to be given to whether such denial is derived from issues with the consultant or issues with the client and their interpretation of the findings. Make no mistake, this is not a negative moment but more an opportunity for you as a consultant and to enrich your relationship with your client.
Horses for Courses: What is the right measure?
With the Melbourne Spring Racing Carnival in full flight, the question many are now asking is which is the best racehorse of all time – Black Caviar or Phar Lap? Many media outlets have given their opinions, and the most common conclusions say something along the lines of the old adage “ask a silly question, get a silly answer”. The issue of asking the right questions to get the right answers is highly relevant to the field of market research, where the objectives required by clients need to be constantly referred to throughout the project to ensure the end outcomes of the research answer what was the client was initially asking for.
Is the Qantas brand still well-liked?
Well, does it matter? Do we have a real choice? After all, the latest IBISWorld report indicates that Qantas (along with its subsidiary Jetstar) is the clear leader with a 74% market share of domestic passenger travel. Virgin Blue’s shift away from the ‘No-Frills’ image and business model is still in transition: its point of differentiation does not command the price premium that Qantas does, while its price (and cost structure) is similar to that of Jetstar, a rising star to whom it has lost market share over the last five years. Having outlasted its competitors (remember Ansett and Australian Airlines), the brand is quite endearing and the history or legacy appears to associate it as Australia’s airline.
Data or Analysis: What gives the greater edge? The debate continues…
In part two of this debate, the question of what truly gives a competitive edge is explored through looking at the types of data captured, and poses a further conundrum of what is the better type of data, quantitative or qualitative?
In the previous blog (posted 12th August, 2011), the position was taken that it is the uniqueness of data that can provide quality insights that help establish a sustainable competitive advantage; but in saying this, the unique data needs to be matched by quality analysis. However this raises the question of how data can be “unique”? Should you look for the hard, quantifiable and crunchable analytics or the more “soft touch” that is afforded with qualitative data?
Consumer-celebrity attachment: The key to brand endorsement success?
A common feature of marketing strategy is celebrity endorsement, with brands leveraging a celebrities’ popularity to boost their own. The influence of such endorsements is undeniable, with a plethora of market research supporting the notion that sales, stock returns, company image and awareness, amongst other things, are boosted by having a celebrity on board. An obvious indication of the sheer power these endorsements have in the marketplace is the speed at which brands seek to distance themselves from celebrities who ‘behave badly’. Tiger Woods, Kate Moss and Kobe Bryant are just some of the celebrities that were quickly dumped by brands they represented after personal indiscretions became public. Perceptions of brands are inextricably associated to those of their celebrity backers, both good and bad.
Data or Analysis: What gives the greater edge?
Perhaps it is an age old debate or a “chicken and the egg” kind of stalemate, but what truly leads better decision-making, the kinds of data captured or the talented and creative analyst crunching the numbers? Moreover, could it be the situation that better decision-making cannot occur without both; that quality data and analysis need to act in unison to truly maximise effectiveness.
The relationship between data and analysis can be a tenuous one. Having high quality data and a lack to talent to analyse it means insights and potential opportunities contained in the data will be missed or overlooked; meaning the data’s potential is underutilised. Conversely, data that lacks in depth and breadth results in a talented and creative analysts being limited in what insights they can provide; potentially creating more questions than answers and leading to poorer decision-making outcomes.
Guidelines for Mining the New Research Goldmine: Online Social Media
The explosion in popularity of online social media as a means for people to communicate with one another has resulted in a new, valuable source of information for market researchers. Facebook, Twitter and blogs generate new opportunities to observe, interact and gather information. As such, social media are becoming widely used by both public and private enterprise for research purposes. However, given the relatively new nature of these social mediums, developing guidelines for their appropriate use in a research context has lagged. As a result, there has been ambiguity in terms of the market research industry’s responsibilities, requirements and standards for using social media as a research tool.
Online social lives – Fair game for market research?
For the past decade, conducting qualitative market research through social media has become increasingly popular. A particular attraction is that it can be more straightforward in terms of logistics: participants are invited to participate in an online discussion forum; the participant contributes in their own time and they can give direct consent for their information to be used for research. In terms of the ethics, this approach is similar to more traditional means of collecting data.