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Market Research Seminar
February, 2013
Tower Marketing, 494 Shedden Road, Grand Cayman
345-623-6700 www.tower.com.ky
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Introduction On February 21st, 2013 Tower Marketing led a session on market
research for CIMPA.
The objective of this 2-hour workshop was to provide CIMPA members with an overview of market research, including frameworks for selecting the appropriate methodology and advice to help avoid common mistakes.
The full presentation included confidential information that cannot be made public; however, the following slides summarize the majority of the session, including all of the interactive tasks and videos.
For additional questions or follow-ups, please contact Lynne Byles at Tower Marketing: (345) 623 6700 [email protected]
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Warm-Up Exercise To kick off the session and get the juices flowing, we conducted
a creativity exercise.
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Step 1: Give people one minute to circle as many numbers (in sequential order) as they can.
Step 2: Repeat the task with the image below. Tell people that each sequential number can be found by moving clockwise from quadrant to quadrant.
Lesson: With a simple framework, complicated problems become much more straightforward.
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The Wisdom of Crowds To demonstrate how multiple opinions are often better than
one, we introduced the concept of “wisdom of crowds”.
Participants were asked to answer three questions: How many M&Ms were in a glass that was passed around?
How many miles it is from Georgetown to Miami?
How many days a year does it rain in Grand Cayman?
Average guess 76 500 158
Actual 73 450 120
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The Wisdom of Crowds Please see this video for a light-hearted explanation of the
“wisdom of crowds”. http://youtu.be/r-FonWBEb0o
Not all crowds are wise
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What’s needed for a “wise” crowd Everyone in the crowd should have their own private
information.
People's opinions aren't determined by other people around them.
Everyone is able to specialize and draw on local knowledge.
There is a mechanism for combining all of the individual opinions.
Essential types of research
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Primary
Secondary
Quantitative Qualitative
Narrowing down Going broader
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Primary
Secondary
Qualitative Quantitative
Customer data
Secondary Research
Jeff Howe, Contributing editor at Wired
Magazine, June 2006
"Simply defined, crowdsourcing represents the act of a company or
institution taking a function once performed by employees and outsourcing it
to an undefined (and generally large) network of people in the form of an
open call. This can take the form of peer-production (when the job is
performed collaboratively), but is also often undertaken by sole individuals.
The crucial prerequisite is the use of the open call format and the large
network of potential laborers.“
Crowdsourcing
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Examples of Crowdsourcing
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Don’t believe everything you read…
From Wikipedia!!
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A practical example of using secondary data
TripAdvisor has reviews for ten hotels on 7 Mile Beach.
We tabulated the most-recent 100 reviews from four of those hotels.
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A practical example of using secondary data
We showed the “overall ratings” for those four hotels and asked people to guess which were hotels A, B and C.
Caribbean Club
Ritz-Carlton
Sunshine Suites
The Westin Grand Cayman
Britannia Villas
7 Mile Beach Resort & Club
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A practical example of using secondary data We then showed the hotel ratings for six other attributes and asked if
people wanted to change their guess.
This exercise demonstrated the importance of trying not to make decisions based on partial information.
Service Rooms Cleanliness
Sleep Quality Value Locations
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Hotel A
Ritz-Carlton
Hotel B
Sunshine Suites
Hotel C One of the other four
Hotel D Not one of the other four
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Cayman Census
We discussed the value of using census data, either on its own or as a complement to primary research.
http://www.eso.ky
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Social Media Brand mentions
− What are people saying about you?
Buying language − What lexicon do your customers use?
Surveys − Conduct survey with your customers
Post engagement − Which posts are seen and shared the most
Direct interaction − Customers will often ask candid questions
or concerns
Keys to Good & Bad Research
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Common Causes of Bad Research Project lacks clear objectives
Lack of buy-in from the client
The research is unnecessary
The required resources are not available
The wrong methodology is selected
The wrong supplier is used
Incorrect sample
The researcher is biased
Poor questionnaire design
Poor analysis
Expecting research to provide all the answers
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Keys to good research Project has clear objectives
There is buy-in from the client
The research is necessary
The resources are not available
The right methodology is selected
The right supplier is used
Good sample
Unbiased researcher
Good questionnaire design
Good analysis
Not expecting research to provide all the answers
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Qualitative Quantitative Going broader • Exploratory and investigative –
goes deeper. • Methodology can evolve in mid-
study. • Explores underlying motivations
and attitudes. • Generates ideas and hypotheses. • Uncovers emerging trends. • Not statistical; do not make
generalizations about the broader population.
• Tempting to lose objectivity.
Narrowing down • Researcher knows in advance
what they are looking for. • The methodology is designed
before data collection. • Measures the incidence of
attitudes and behaviours, which can be projected to a larger population.
• Easy to remain objective and impartial.
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Examples of bad questions Double-barreled When was the last time you upgraded your computer and printer?
Leading Now that you've seen how you can save time, would you buy our product? Do you approve of the President’s oppressive immigration policy?
Response options are not exhaustive What is your favourite fast-food restaurant?
− Popeye’s − KFC − Chicken! Chicken!
Questions that condition the respondent
Questions that the respondent cannot reasonably answer
Questions that are too personal
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Examples of bad questions From an Oct 2012 direct-mail survey distributed by the
National Republican Senatorial Committee (NRSC).
Their mandate:
The National Republican Senatorial Committee (NRSC) is the only political committee solely dedicated to electing Republicans to the U.S. Senate.
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Examples of bad questions
There is no way for anybody to express that they disagree with a party platform.
Instead… The Senate should stop passage of amnesty for illegal immigrants.
Strongly Agree Somewhat Agree Neither Agree Nor Disagree Somewhat Disagree Strongly Disagree
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Examples of bad questions
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Calculating sample size What is the smallest sub-group you want
to examine? The total may have n=400, but what if you want to look at women aged 18-35 or people earning a certain minimum income?
http://www.surveysystem.com/sscalc.htm
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9.8
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4.9 4.3 3.9 3.6 3.4 3.2 3.0 2.4 2.1 1.7 1.4
50 100 200 300 400 500 600 700 800 900 1,000 1,500 2,000 3,000 4,000
Margin of Error (+/- %)
Sample Size
Bad Research Case Studies
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Dewey Defeats Truman They rushed: The Chicago
Daily Tribune called the election based on incomplete data (not all polls had closed).
They were biased: the newspaper was a strong supporter of Dewey.
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New Coke
http://youtu.be/yJoocpy7UBc http://youtu.be/W6t7deaplgY
In 1995, Coca-Cola launched New Coke.
The new formulation was a response to Coca-Cola’s own research that indicated that a small majority of cola drinkers, in a blind taste test, preferred the taste of Pepsi to Coke.
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New Coke Coca-Cola’s original research did not replicate how people
consume the product; they do not take one sip, rather they drink a full can or bottle.
But more importantly, it did not take into account the strong emotional attachment that people have to brands.
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Tropicana re-packaging In 2009, Pepsico famously updated the
packaging of its Tropicana orange juice.
The videos below show the thinking behind the re-branding and the resulting consumer outcry.
Millions of dollars and just a few weeks after the re-design, Pepsi returned to the original packaging.
http://youtu.be/WJ4yF4F74vc http://youtu.be/k_6orS6SNyk
Original New
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Tropicana re-packaging What Pepsico failed to realize is
that Tropicana shoppers could not easily find the new package in the grocery store, often mistaking the new Tropicana for lower quality private label juice.
Research, using a virtual shelf like this one for women’s deodorant, would have quickly revealed the shortcomings of the new design.
The future of research
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Conducting research on mobile devices
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Biometrics Heart Rate
Respiration
Galvanic Skin Response
Muscle Activity
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Biometrics: Brain Activity Use electroencephalography (EEG) or fMRI technology to
determine which parts of the brain are activated while a participant is viewing a specific advertisement
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Biometrics: Oculometric Data
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Biometrics: Oculometric Data
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Online Eye-tracking
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Big Data
Data Visualization
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Bring the data to life A chart is better than a table…
But see how the New York Times uses data visualization to make data “jump” off the screen.
Long Jump: www.nytimes.com/interactive/2012/08/04/sports/olympics/bob-beamons-long-olympic-shadow.html
100 M Freestyle: www.nytimes.com/interactive/2012/08/01/sports/olympics/racing-against-history.html
100 M Sprint: www.nytimes.com/interactive/2012/08/05/sports/olympics/the-100-meter-dash-one-race-every-medalist-ever.html
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Making data more impactful Use salient points…
Instead of calories, talk about miles run
Instead of dollars, refer to months of food
Instead of gigabytes, use number of songs
Addressing Some of Your Questions
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Familiarity with research (sample of CIMPA audience)
# of people (from 22 respondents) You have used this research
before
Have NOT used before, but you are
familiar with this
Not familiar with this research
Internet surveys 19 3 0
Qualitative discussions (focus groups or one-on-one interviews) 13 9 0
Pencil and paper / mail-in surveys 13 9 0
Mystery shopping 12 10 0
Telephone surveys 12 10 0
Customer intercepts 8 6 8
Internet bulletin boards / chat rooms 8 14 0
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Question #1
“What is it about your current insurance provider that made you choose them?”
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One of the easiest ones to mess up, because it seems so easy…
Conduct a survey and ask…
What is it about your current insurance provider that made you choose them?
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Most people don’t know why they do what they do.
If you ask them, they will give “intellectual alibis”, telling you the things they think you want to hear or that they should say.
You end up with answers that are superficial at best and possibly wrong.
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Ask familiarity with insurance companies on a continuum: I have never heard of it I have heard of it, but know nothing about it I know about it, but have never considered using it I used it in the past, but not now I use it now
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Then ask them to rate all the insurance companies they have heard of on a battery of statements that could be decision factors: Overpriced Honest Great customer service My friends recommend it
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Conduct analysis such as regression or correlation to determine which factors actually drive choice. The answers might surprise you.
To do this well: You need to ensure that you have a great list of statements. Make sure the list includes drivers and barriers (all of the reasons why a
person might not choose a company).
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N A W
ever
sk
hy
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Question #2
“How are our competitors pricing their services? Competitive market data is really difficult to acquire in Cayman.”
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Secondary information is sometimes available through industry or government resources.
If information is not available in Cayman, is there information in other similar markets that can be used to extrapolate estimates?
When that does not work, the best thing to do is to go undercover…as a mystery shopper.
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Covers off an representative array of possible offerings, as their services might be more competitively priced on some areas than others.
Be rigorous…create a grid that includes all factors that could affect price and ensure that you are including them all.
Looks at factors beyond price, which could also be decision criteria: How good was the customer service? How easy is their website to use? How fast and easy is the process of getting a price? Is the physical location appealing (if relevant)?
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Question #3
“How do individuals use media across the Caribbean?”
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Sometimes there are media organizations that collect this information and sell it. For example, in the US, there are organizations that represent each of the major forms of media.
In markets where there are no major media organizations, most of the answers to this should be available in omnibus research that can be bought inexpensively.
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Tower Omnibus Tower Marketing conducts an annual omnibus study among a
representative sample of n=500 Caymanian adults. This survey captures information about media consumption: Internet usage Cayman website visitation Television viewership Newspaper readership Magazine readership Social media usage
All of this behaviour can be married with demographic data. Omnibus clients can add their own custom proprietary
questions to the survey.
Wrapping it up
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Research Request Form Download this document from the Tower website to help clarify your
research objectives and select the optimal methodology.
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Key Takeaways
Set your objectives before doing any research
Don’t rush
Know the implications of your methodology
Be rigorous about questions
Try to put research into relevant context
Make the research actionable
Research doesn’t have to be expensive or complicated
