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MKT 100 Study Guide - Focus Group, Trade Secret, Survey Data Collection

5 pages78 viewsSummer 2011

Course Code
MKT 100
Paul Finlayson

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Module 4: Understanding Buyer Behaviour
Researching Customers
private information - firm profits f/ unique info and insights it has about production
techniques and trade secrets
trade secret - insight a business has about the behaviour of customers not common
knowledge (Internet) = driver of competitive success and profitability
imp consumer research activity is track customer saftisf survey, research studies
learning about demand = market efficiency
The Typical Market Research Process
o Problem Definition/ Question to be Answered
o Research Design
Exploratory research
wants additional information (internal records, customer
complaints, financial analysis trends and discussion with
distributors and suppliers) before undertaking further
The entrepreneur who launched the OXO Good Grips line
of kitchen tools presented in Module 6 undertook
exploratory research. He talked to retail buyers about
their satisfaction with existing kitchen tools.
Descriptive Research
used to describe customers, either small numbers of
customers in-depth (qualitative research), or large
numbers by survey research (quantitative research).
This research gathers descriptive profiles of customers
and measures customer satisfaction, studies product use,
and segments customers.
Repeated study of the same customers over time is called
longitudinal research. This is best for measuring
changing demand (changing customer preferences as
discussed in Module 1).
Cause and Effect Research
Used to explore the question Does X cause Y?
For example: the effects of price decreases on sales
o the effect of a customer relationship campaign on
o increasing customer profitability, or
o the effect of TV advertising campaign spending on
sales (such as presented in Module 9
Advertising.xls and next slide)
Qualitative Research designer research faster and better
Customer Visits
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Module 4: Understanding Buyer Behaviour
oIn B2B the customer visit needs to be arranged by
the sales representative so they lead the initiative.
No going behind the back of sales. Their
commissions depend on customer trust and
o10 to 20 random chosen customers should be visited
including those who are leaders in adopting new
technology. 10-20 reduces an extreme atypical
customer opinion having too much influence in
later decisions.
oListen to how the customer talks about the product
or service. It tells you how they think about the
benefits, what problems they have, and how to
improve product features and design. You should
adopt the customers words and metaphors.
oDo not treat the visit as a sales call. Do not engage
in disparaging the competition. Instead, be open to
their innovations that can be quickly imitated.
oObserve the product in use in every situation.
Photograph innovative customer adaptation of your
product, package, or service to improve its
performance in a particular usage situation. This
may suggest a new design feature.
oTwo or three team members should make the visit
together. In the car or on the plane back, time
spent talking while the memory is fresh is
invaluable. Shared expectations, perceptions, and
insights are best when made soon after the
customer visit. Team members will discover what
they did not notice and thus learn from each other
to become better listeners and observers.
Focus groups
most common consumer research method used today. It
consists of a group of six to 12 people who focus on a
particular question or issue in a free-wheeling discussion
for about two hours.
It is used to test products, product concepts and ad
Bank of America got the Keep the Change name for its
new product from a focus group (see M6).
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