MARKET RESEARCH PROCESSES II

Prof. Dave Centeno July 8, 2013

Todays Topics

>> UAI >> FGD >> BRAND EQUITY RESEARCH >> EXPERIMENTAL RESEARCH

UAI

UAI
A broad look at the current market for a specific brand relative to competition. Information is from the perspective of the consumers.

UAI Measuring Brands Health

A. AWARENESS DATA: BRAND & ADVERTISING 1. Brand Awareness: 1st mention, Other mention, Aided mention 2. Sources of first-mentioned brand awareness 3. Advertising awareness: 1st mention, Other mention, and Aided mention 4. Advertising recall: quality of awareness measure

UAI Measuring Brands Health

B. PRODUCT USAGE DATA 5. Product Category Use or Non-Use 6. Category form, variant, and pack used 7. How long the pack size lasts 8. When used and for what purposes 9. Who else in the household use the product category 10. Where used and with what 11. Brands ever used 12. Brand last used 13. Brand used previous to last 14. Brand used most often 15. Brands on hand (pantry check by observation)

UAI Measuring Brands Health

C. PURCHASE DATA 16. Where the last category purchase was made 17. Where category purchases are often/usually made 18. Frequency of category buying 19. Category pack size last bought 20. Quantity of category purchase 21. Price paid for last purchase 22. Brand had in mind during the last buying trip 23. If found brand in the store where last shop 24. If not found, what did: bought any brand, looked for brand in another store, postponed buying till brand had in mind became available, or other (specify) 25. What else bought with the product category in last purchase

UAI Measuring Brands Health

D. ATTITUDE DATA 26. What looked for , what expected in product category 27. What not liked in brand last bought 28. What liked in brand last bought

E. PRODUCT AND BRAND IMAGE DATA

29. Importance rating of product category attributes, product values 30. Rating of selected brands on each product attribute

UAI Applications
1. To search for market and competitive opportunities that an existing or a new product can advantageously explore and maximize.
To determine the brands marketing health relative to competition, and to identify its correct marketing problems and solutions to these. To segment or to partition a total market for a product category, and then to describe and profile the different identified market segments by each segments brand awareness, category usage and purchase practices, category and brand attitudes, and category and brand images, as well as by its socio-demographics and psychographics. To find out the brands most distinctive product benefit positioning in the market and relative to competition.

2.

3.

4.

UAI Brand Loyalty & Switching

Brands Previously Used VS Brands Currently Used [Conventional Treatment of Sample Data (Base=200)]

Brands Enervon Revicon Clusivol

Previously Using Brand (Base %) 20 22 6

Currently Using Brand (Base %) 20 24 14

Rogin E
Centrum Myra 330E

4
2 10

2
5 2

Potencee
Others (8 other brands)

8
28

3
30

UAI Share of Mind versus Share of Market

1. Share of mind precedes share of market. Therefore, share of mind is a predictor of share of market.

2. Over time, if this relationship is allowed to take its natural course, a brands share of market will tend to gravitate toward the level of its share of mind.
3. Share of Mind = top-of-mind awareness for the brand.

(Al Ries & Jack Trout, 2001. Positioning: The Battle for Your Mind)

UAI Share of Mind versus Share of Market

Brand Share of Mind versus Brand Share of Market (Base=200)

Share Indicators % share of mind % share of market

Hapee 4 6

Colgate 38 42

Close-Up Pepsodent 46 37 12 15

UAI Brand Positioning

Consumer brand positioning behavior model

how it satisfies their priority product values

how it satisfies their priority values better than, just as good as, or not as good as its competitor brands.

UAI Brand Positioning

Brand Ratings of the Four Toothpaste Brands on the Four Top Priority Toothpaste Attributes (Base=200)

Product Attributes
(in descending order of importance)

Brands Average Rating on Attribute (5-point) Hapee 4.5 3.3 2.2 2.8 Colgate 4.7 3.7 2.7 2.9 Close-Up 4.0 4.8 2.7 3.0 Pepsodent 4.4 3.5 2.5 3.0

Prevents cavity (4.84) Toothpaste & mouthwash too (4.51)

Gives day-long protection (4.22)

A few spread is enough (4.10)

FGD

& Other QL Research for Consumer Insighting

FGD
An exploratory, nonquantitative study of two or more consumer groups.

FGD

In an attribute-based positioning research, a successfully conducted FGD can increase the set of product attributes representing consumer benefits to include some new surprising additions

1.

Condoms dont have side effects

Thin condoms fit very well, almost like second skin Theyre easy to carry around, inconspicuo us in your wallet Pills affect your whole system

Its very comfortab le

Theyre cheaper than pills

FGD

FGDs can do something else to product attributes, something that gives them strategic significance. They can uncover if and how consumers have changed their product attribute understanding because they have radically dimensionalized the attribute.

2.

Yung totoo sya at natural

Para sa akin, yung maasim at matamis sya pero yung nakakalaman g sa tamis

Ako ang gusto ko yung matamis at sariwa

FGD

FGD can also identify what consumers regard as the physical sensory feature/s they regard as the proof/s of the products intangible benefit

3.

I know its a durable pair of jeans. Just look at how strongly its sewn along the seam and how the zipper wont give way when you pull it apart.. Its because of its quality packaging. Its an expensive package if; in the fisrt place, what theyll put inside is not quality tobacco

FGD

FGD can identify critical consumers needs at the level of actual product usage. These are typically needs that escape the marketing executives immediate attention.

4.

FGD

FGD can also tell marketing executives if their brand belongs to a product class that consumers have disadvantageously positioned.

5.

Prunes are for elderly constipated buyers

Generic medicines are inferior in quality

Instant powder orange drinks are not fresh

FGD

Through FGSs, marketing strategists interested in positioning by product use experience can identify specific leads for such positioning.

6.

Adult Males: Its like being in the United States. There are lots of Caucasians. Even the smell of the place is very Western. And the staff is very efficient. But the hamburger doesnt have any taste, I just dont know why I keep coming back here.

Teenage Females: I am eager to eat there. I feel at home because everybody seems to enjoy doing the same thing. The food is nice and the place, clean. And there are a lot of La Salle students, very upbeat...

FGD

Through FGDs, markets can correctly identify their brands true competitor.

7.

Hindi siya masarap. Ayaw ng mga bata. Nagsilbi nga ako ng pangalawa pero iniba ko ang pagluto para pasarapin ayaw talaga. Ang lasa hindi talaga nila gusto.

Ganun din lahat kasama ng kapareho nito. Mas masarap yung luto ko.

FGD PLANNING
1. FGD Respondents
Objectives = Respondents Ready and Willing (thus, non-prob) Previous participation, degrees of consanguinity

FGD PLANNING

2. FGD Sample Size and Sampling

No standard, known optimal number Product Focus, rich and trending pattern However, theres marginal rule

FGD PLANNING
2. FGD Sample Size and Sampling

FGD PLANNING

3. FGD Venue
Overall atmosphere Seating arrangement Presence of a one-way mirror (in some professional FGD venue) FGD Participants choice of venue (5-star hotels, makeshift) Honest, direct responses Alternatives: teleconference, videoconferencing

FGD PLANNING

3. Discussion Guide
Agenda of topics Basic contract between client and facilitator Semi-structured, Unstructured

FGD PLANNING

4. FGD Facilitator
Directive vs. Non-directive (strategic use of silence) Client as FGD participant

5. FGD Analysis and Reporting

Qualitative, exploratory List of themes, statements Units of analysis: verbatim statements

FGD Variants
1. Mini FGD 2. Extended FGD 3. Reconvened FGD

Other QL Techniques
1. Projective Techniques a. The Psycho-Drawing Technique b. Sentence-Completion Technique c. Cartoon-Completion Technique

QL Alternatives
In-depth Interviews 1. Individual IDI 2. Paired IDI 3. Triangular IDI
Observation Study 1. Traditional Observation without Interview 2. Traditional Observation with Interview 3. Non-traditional Self-Observation Study (Diary method)

Brand Name Testing

To Resolve Brand Equity Issues

BRAND EQUITY RESEARCH

A quantitative monitoring research to measure brand value that translates to an asset

BRAND EQUITY
The goodwill adhering to a brand name (Bonner & Nelson, 1985)
The incremental cash flow resulting from the product with brand name versus that which would result without brand name (Shocker & Weitz, 1988) The added value that a brand endows a product (with the brand defined as) a name symbol, design, or mark that enhances the value of a product beyond its functional purpose (Farquhar, 1989)

BRAND EQUITY
the brands long-term customer franchise, and the financial value of that franchise. (Barwise, 1993)
3 ARTICLES OF FAITH: 1. Brands are financial assets, and should be recognized as such by top management and the financial markets. 2. The financial value of a brand depends on the strength of its customer franchise. 3. The brands customer franchise can be strengthened by investing in product quality and advertising.

BRAND EQUITY DIMENSIONS

BRAND EQUITY DIMENSIONS PROPOSED MEASURES AND SOURCES Total unaided awareness from the UAI: When thinking about (product category) what brands come to your mind? Aided awareness from the UAI [For brands not mentioned] What about this brand? Do you know this brand?

1. Brand recall (customers ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or some other type of probe as cue.
2. Brand recognition (consumers ability to confirm prior exposure to the brand when given the brand as cue)

3. Favorability of brand associations (consumers believe it is good that the brand has those attributes or benefits)

Brand ratings on attributes and benefits from the UAI Will you please rate each of these brands on each of the following product attributes and benefits? <Likert scale>

BRAND EQUITY DIMENSIONS

BRAND EQUITY DIMENSIONS PROPOSED MEASURES AND SOURCES 1. Information Search To what extent would you say you would look for information or consult others to verify that this brand really has this benefit? Would you say you would do this: a whole lot (4), pretty much (3), somewhat (2), or not at all (1)?

4. Strength of brand association (how much a person thinks about (product) information and on the manner in which a person thinks about the information)

>> Involvement measures:

1. Information Search 2. Information Evaluation

2. Information Evaluation To what extent would you say you evaluate those information or opinion from others about this brand as having this benefit? Would you say you evaluate: a whole lot (4), pretty much (3), somewhat (2), or not at all (1)?

BRAND EQUITY DIMENSIONS

BRAND EQUITY DIMENSIONS PROPOSED MEASURES AND SOURCES

Will you please tell me for each of this brands benefits, do you believe that: 3= there is no other brand now available which has specifically attended to giving this benefit
2= all or almost all brands available already give this benefit 1= there is one particular brand which specifically gives this benefit

5. Uniqueness of brand associations (provides insight into the extent to which brand association are not shared with other brands)

BRAND EQUITY DIMENSIONS

BRAND EQUITY DIMENSIONS PROPOSED MEASURES AND SOURCES Product quality question: Overall, how would you rate the product quality of this brand? Would you rate it: very highly (5), generally highly (4), neither highly nor poorly (3), generally poorly (2), or very poorly (1)?

6. Parent brands product quality in brand extension (the more highly the perceived quality of the parent brand is, the more positive is the brand extension and the brand equaity value of the parent brand.) 7. Wider brand name of parent brand in brand extension (the wider a brand name is to consumers as against being a narrower brand, the more extendable it is, and the more it raises the brand equity value.)

Q on number of parent brands product category associations. When you think of this brand name, do you associate it: with more than one or with only one kind of brand?

BRAND EQUITY DIMENSIONS

BRAND EQUITY DIMENSIONS PROPOSED MEASURES AND SOURCES Q on perceived adverse effect of use of parent brand name on a planned new product: If this brand name is also going to be used for a new (product category), would you personally find this: very bad (3), somewhat bad (2), or not bad at all (1) for (brand name)?

8. Equity dilution of parent brand in brand extension (the more consumers perceive that a planned brand extension will not dilute the parent brands equity, the higher the parents equity value becomes.)

Experimental Research

EXPERIMENTAL RESEARCH
the creation of a contrived situation in order that the researcher can manipulate one or more variables whilst controlling all of the others and measuring the resultant effects.

Sample Experiment Qs

ADVERTISING EXPERIMENT
Will replacing commercial A with commercial B lead to a marked increase in consumer preference for a companys brand?

Sample Experiment Qs

PRICING EXPERIMENT
Can a company improve the profitability of its fashion clothing line by increasing its price by 10 percent?

Sample Experiment Qs

SALES PRODUCTIVITY EXPERIMENT

Will an increase in the average number of sales calls per customer from six to eight per year significantly improve sales?

Sample Experiment Qs

SHELF SPACE EXPERIMENT

Will decreasing the shelf space allocated to brand X detergent by 25 percent significantly lower its sales?

CONDITIONS
Manipulates the independent variable or variables before measuring the effect on the dependent variable
The effect of price changes on sales volume of a particular product can be examined by actually varying the price of the product

The very basis of experimental research lies in the manipulation of independent variables

CONDITIONS
Temporal ordering of variables X Y not Y X
Evidence of association X and Y are related ; presence of X presence of Y; absence of X absence of Y

Control of other causal factors X Y, Z Y

LAB VS FIELD
A laboratory experiment is a research study conducted in a contrived setting in which the effect of all, or nearly all, influential but irrelevant independent variables is kept to a minimum

LAB VS FIELD

A field experiment is a research study conducted in a natural setting in which the experimenter manipulates one or more independent variables under conditions controlled as carefully as the situation will permit

VALIDITY

Internal validity is the extent to which observed results are solely due to the experimental manipulation

External validity is the extent to which observed results are likely to hold beyond the experimental setting

EXPERIMENTAL DESIGNS
PRACTICAL CONSIDERATIONS 1. 2. 3. 4. Time Cost Exposure to competition Nature of the manipulation

EXPERIMENTAL DESIGNS
1. 2. 3. 4. Test Marketing Virtual Test Marketing Web-based Experiments True Experiments

CONCLUSION- Triangulation Technique