Post on 15-Jan-2015
description
Ethnography Case Study
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Ethnography Case Study
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In order to increase sales, it’s important to understand what happens within the mind of the consumer while in the retail aisle. This case study is based on research conducted during my years at Black & Decker, rebuilding the Society Brass Collection brand of door hardware. The study describes observations and interviews among consumers while shopping for door hardware. Consumers were observed, their behavior quantified, and additional in-depth interviews conducted. During the interviews, consumers shared insight into their shopping process and explained reasons for their observed behavior. Results present an in-depth understanding of how retail cues, product placement, brand loyalty and package design impact the purchase decision while in the retail aisle.
ESOMAR Presentation – Spain
Black & Decker HHI
Insights Worldwide Research
Using Ethnography
To understand
Consumer Behavior in
The Retail Aisle
www.maxruckman.com
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PROJECT focus on
consumers behavior
while shopping
for door hardware
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This paper describes a research project for Black & Decker HHI’s Society Brass Collection of door hardware
“It is important to understand what happens within the mind of the consumer while in the retail aisle”
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what do consumers really do?
Goal Understand consumer behavior
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Understand consumer behavior
develop an in-depth
understanding of how
retail cues, product placement, brand loyalty
and package design impact the
purchase decision
while in the retail aisle
7
Understand consumer behavior
understand consumer
behavior to guide the
creation and
implementation of
new packaging in the home
improvement retail segment
8
Consumer insights
consumers were
observed, their behavior quantified,
and additional in-depth interviews
conducted
9
during the interviews,
consumers shared
insight into their
shopping process
and explained reasons for
their observed behavior
10 Consumer insights
results present an in-depth understanding of how retail cues, product placement, brand
loyalty and package design impact the
purchase decision while in the
retail aisle
Consumer insights
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what influences their decisions?
FactorS APPROACH TO RESEARCH
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APPROACH TO RESEARCH
most consumers are unable to accurately report their behavior and actions
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APPROACH TO RESEARCH
to overcome this barrier and provide the necessary insights
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APPROACH TO RESEARCH
we developed a process too thoroughly understand the sub-conscience motivators driving consumer behavior in the retail aisle
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APPROACH TO RESEARCH
521 consumers
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APPROACH TO RESEARCH
521 consumers
intent to purchase
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APPROACH TO RESEARCH
521 consumers
observed
intent to purchase
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APPROACH TO RESEARCH
521 consumers
observed
noted behavior
intent to purchase
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APPROACH TO RESEARCH
521 consumers
quantified
observed
noted behavior
intent to purchase
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APPROACH TO RESEARCH
86 long interviews
short interviews 157
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APPROACH TO RESEARCH
shared insights into their shopping process
language
explained reasons for their observed behavior
claims media
perceptions
brand reactions
overall aisle dynamics
explore product perceptions
probed issues of
consumers
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Shopper observations
Los Angeles Orange County Dallas Atlanta
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what do they do when entering the aisle?
Behavior one View and observe brands
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consumers enter the aisle with
little category knowledge
observation
25
the customer’s primary source of knowledge was a previous trip to the store
observation
26
for most shoppers, door hardware was not the
only reason for visiting the store on this day
observation
27
consumers shopping process begins by viewing and observing the brand
observation
28
consumers began their shopping process by
viewing and observing products positioned in the center of the aisle
observation
29
consumers assess the relative price/value of all products from the center of the aisle
finding
30
Low-price
from this position, consumers determine where the high-end, mid or low-price product is located
finding
high-end
Mid- price
31
the
center
is viewed
as the
location
where
mid-priced
products
are
found
anything
To either
side is
perceived
As either
lesser or
superior
quality
finding
32
finding
although brand may not be the main reason consumers gravitate towards the center
once their, the brand is associated with mid-price due to it’s relative location to other brands
33
center positioning will promote the brand as the standard by which other products are compared
implication
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The fact that most consumers start their shopping
“front and center” suggests that no
other location is more effective in
capturing the consumer’s attention
implication
35
investing in the right aisle position may prove far more valuable than
gaining displays and space in other areas of the store
implication
36
how do they perceive pricing?
Behavior two Price from afar observation
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in sequence
observation
most observed activity
comparing price from afar
the 2nd
is
38
price shoppers move quickly to a product at this point having already determined lowest price
observation
39
because consumers enter the aisle with little category knowledge (the high-end is the exception) price is an important guide
finding
40
creates the perception of the best value for the consumers needs
finding
price is 3rd
41
compare price from a distance before physically engaging the product
finding
42
if price is a differentiating factor, it should be displayed in a manner that can be seen from across the aisle
implication
43
does the personal interaction with the product matter?
Behavior three Interacting with the mounted product
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the next most frequent activity is physical contact with the product
observation
45
consumers had physical contact with the interactive displays in the aisle
observation
46
high-end consumers say that the feel of the product is “extremely influential”
observation
47
mid-price customers give a similar response
observation
48
observation
low-price customers were least likely to touch and feel the displays
mainly because their purchase was quick and uninvolved
49
the importance of feeling and touching the product is
exemplified by remarks suggesting that non-working
displays result in loss of sales
finding
50
malfunctioning products can be
implication
51
a lock that’s easy to break signals poor performance
and lack of durability undermining feelings of
safety
implication
52
implication
makes all other features such as style and finish irrelevant
53
a brand that displays faulty merchandise sends a strong brand message regarding untrustworthiness and low commitment
implication
54
beyond assurance of durability, the high-end consumer needs to feel a sense of superior craftsmanship, in this case communicated by a “special experience”
implication
55
a malfunctioning product always
loses the sale
implication
a good feel can often make the sale
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what is packaging's role in the purchase decision?
Behavior four Holding and physically examining package
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upon picking up the box, mid and high-end consumers look at the front for
observation
10 seconds
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then turns the box to one side and reads for
observation
35 seconds
then sets it down and steps back to survey the aisle
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he pauses and then engages a different product performing a similar behavior
observation
seconds
60
observation
seconds
the low-price customer picks up the box and looks for pictures and writing illustrating the installation process or product function
61
consumers follow basic messages of style, finish, security and
function bulleted on
the front
finding
62
consumers moves quickly to the assurance of easy installation, among the most critical factors taken into consideration when purchasing door hardware
finding
63
easy installation
3.71 rating
finding
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easy installation is extremely important in the selection process
finding
65
the need for a package to project user friendliness is fundamental
implication
overt assurances of ease are essential
66
given the involvement in the side of the package, the importance of clarity, simplicity and intuitive ease should be a priority
implication
67
the dominant functional question the consumer asks a salesperson regards key compatibility
finding
68
at this point the consumer is looking for but cannot find such assurances on the package
finding
69
a message of one key for all major brands would be optimal
implication
the need to address ease of keying is
great
70
how do consumers comparing products?
Behavior five Comparing different brands and within brands
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there is a compelling need for consumers to compare brands
observation
72
consumers that compared within the same brand
observation
73
consumers that
compared between different
brands
observation
74
even consumers that stay within the same brand compare to other brands justifying superior value and a brand that fits their needs
observation
75
there is little brand loyalty
finding
76
willingness to trade their brand to get the features they want
finding
77
it’s not brand loyalty
driving the purchase so much as the product that meets their
specific needs
finding
78
product with the right look
finding
4.39 rating
79
product finish
finding
4.34 rating
80
matching the
same style
finding
4.13 rating
81
security features
finding
3.91 rating
82
to match or exceed competitor claims provides important clarity and ease to determine the best value
implication
va
lu
e
83
the consumers’ need to compare is better addressed by the uniform display and adherence to a seamless price-value spectrum
implication
84
what is the effect of others in the product choice?
Behavior six Consulting a customer or spouse
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the next most observed behavior,
particularly true of the mid to high-end consumer,
is consulting with another person in the party
observation
86
60% spouse
young child 17%
observation
87
purchasing door hardware often requires spouse approval
finding
this is especially true
at the high end
88
the purchase is mostly a joint decision
finding
89
husband’s
role
brand &
durability
finding
90
wife’s
role
style
and finish
finding
91
advertising should be tailored to appeal to the couple’s preference
implication
92
magazine read by males should emphasize quality and durability
magazines read by females should highlight look, style and feel
implication
93
there are significant regional differences in spouse involvement
finding
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data suggests major
differences with actionable
implications impacting
among other things an
optimal media and
communications plan
finding
95
dual needs of style and security, and the
gatekeeper role of the spouse
implication
emphasis on durability, toughness and security, dominantly male audience SOUTH
WEST
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what is the salespersons role in the product choice?
Behavior seven Seeking the advice of a sales person
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following “consultation” with another customer or spouse
observation
98
the consumer generally picks up a nearby brand for comparison, information, and clarification
observation
99
and then seeks a
salesperson to provide
similar information
observation
10
0
consumers at some point needed assistance from the salesperson
observation
101
respondents felt that the salesperson played an influential role in the process
finding
102
3.95 rating
consumers give higher influential ratings to others
sp
ou
se
finding
103
finding
CO
NT
RA
CT
OR
3.31 rating
consumers give higher influential ratings to others
104
finding
FR
IEN
DS
3.23 rating
consumers give higher influential ratings to others
105
finding
3.21 rating
consumers give higher influential ratings to others
SA
LE
SP
ER
SO
N
106
a low opinion of the floor salesperson toward a product places an additional burden on the impact of the display
implication
107
a strong focus of salespersons on the importance of security is best addressed with packaging claims, allowing for greatest clarity and ease of comparison
implication
108
what changes the consumers product choice?
Behavior eight Some purchase a different product than intended
109
when a particular brand is under consideration, it is likely to be purchased however, some consumers change their mind while in the retail aisle
finding
110
there is opportunity to educate the consumer and change their mind while in the retail aisle
implication
Step #1 educate yourself
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the retail aisle should be managed with as much effort and strategic planning as any other part of the marketing plan
implication
112
high-end consumers
113
high-end consumer’s purchase process is very involved
observation
114
influenced by contractors and advertisements
and driven by the look and
feel of the product
observation
115
high-end customers indicating that product finish influenced their decision
finding
116
high-end consumers are 2X as likely as mid-price consumers
and
3X as likely as low-price consumers to be influenced by the feel of the product
finding
117
consumers are willing to compare Society Brass to Schlage for the finish they want
finding
118
in that comparison, the superior value of Society Brass is easily lost
finding
119
to achieve conversion and grow the brand,
finding
Society Brass must address this issue
120
it’s important to understand the customer’s need for a
communication or assurance of superior
craftsmanship
implication
121
it’s important to provide cues that consumers can quickly understand
implication
messages are best communicated in an intuitive and “demonstrative” fashion
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greater involvement with the brand and display should result in significantly greater sales
implication
the greater the brand involvement, the greater the conversion
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high-end consumers come to the store armed with information
observation
124
high-end consumers are more likely to mention magazines, contractors and locksmiths as sources
observation
125
finding
3.00 rating
advertisements play an influential role in the purchase decision
hig
h-
en
d
126
finding
2.50 rating
advertisements play an influential role in the purchase decision
mid
-p
ric
e
127
finding
lo
w-
pr
ice
1.90 rating
advertisements play an influential role in the purchase decision
128
magazines are the third most commonly mentioned source of information
finding
aside from the aisle and personal trial and error experience
129
consumers learn about door hardware from magazines and television
finding
130
promotion of Society Brass in popular magazines, may prove most effective in reaching consumers and professionals that influence the purchase decision
implication
131
finding
high-end consumers are more likely than mid- price customers to be undertaking major remodeling of the home
132
target major remodeling contractors
implication
133
the incidence of major and minor remodeling explains the relatively high standing of television show “This Old House” among consumers in the market for door hardware
implication
134
Advertising this television could extend the reach of Society Brass to this important market
implication
135
a direct mail campaign to custom home builders would tap an important market
implication
136
salespeople tend to play a role of consultants rather than “pushing” one brand over others, mostly confirming what consumers already feel or know
observation
137
more often, high-end consumers enter the aisle looking for handle sets
finding
138
than mid and low-end consumers
finding
more likely to purchase handlesets
these consumers are
139
the most popular item purchased by high-end consumers
handlesets
finding
140
finding
the most popular item purchased by high-end consumers
levers
141
the most popular item purchased by high-end consumers
finding
deadbolts
142
show Society Brass handlesets on a variety of distinctive architectural exteriors
implication
143
place the product in context for the greatest number of potential customers
implication
144
leverage the use of Society Brass handlesets to increase sales of interior knobs and levers
implication
145
high-end consumers
mid-price consumer
146
unlike the low-price consumer, the shopping process for the mid-price consumer is very
involved where brand is important and security features, look and
finish are more seriously considered
observation
147
mid-price consumers
time in the
aisle
finding
minutes
148
amount of time spent in the aisle is a reflection of the importance attributed to the selection of the
product
finding
149
consumers in this segment want assurance that their selection is based on serious consideration of the features as well as price
finding
150
mid-price consumers spend a significant amount of time in the aisle comparing within the same brand
finding
151
this may be due to the perception that aside from Schlage no other comparable products exist
finding
152
the mid-price consumer takes the investment seriously
finding
153
the mid-price consumers visits the store before deciding to purchase, reflecting the seriousness of the product consideration
finding
visits
154
for Kwikset Maximum and Ultra-Max to be serious alternatives, messaging must match or eclipse competitor messaging on measures of durability and security
implication
155
this includes subliminal messages as well as overt
messaging
implication
156
this places considerable importance on mounted displays with functioning product and encourages prominent and intuitive messages of security, quality and durability
implication
important
157
displays must be crisp, uniform, well stocked and effectively
presented
implication
salespeople should be trained to respect the product and know the story
158
high-end consumers
low-end consumer
mid-price consumers
159
finding
low-price consumers’ shopping process is relatively uninvolved
Fast
ea
sy
160
consumers begin at the center of the aisle then quickly identify the location of the lower price product giving little thought to the brand
finding
161
most common reasons why a low-price customer selects a product
replace damaged hardware
finding
53%
162
finding
most common reasons why a low-price customer selects a product
price
45%
163
26%
finding
most common reasons why a low-price customer selects a product
replace existing product just like it
164
respondents who were accompanied by their wife, spouses are not likely to be involved in the shopping process
19%
finding
165
finding
hig
h-
en
d
2.92 rating
influence by magazines or TV advertisements
166
2.70 rating
influence by magazines or TV advertisements
mid
-p
ric
e
finding
167
finding
1.90 rating
influence by magazines or TV advertisements
lo
w-
pr
ice
168
selection of product for low-price consumers must be made easy, convenient and easily identifiable in the aisle
implication
169
using language to identify the product’s function such as bathroom knobs instead of interior door, or kitchen knobs instead of keyed entry may help simplify the process
implication
170
intuitive icons, friendly pictures, assurances of ease
are all recommended
implication
intuitive
171
a need to replace damaged hardware?
Purchase Need to replace damaged hardware
172
among the most common reasons why consumers in general are in the store is to replace damaged hardware
observation
173
consumers replacing damaged hardware select the brand that provides
observation
Right finish
174
observation
consumers replacing damaged hardware select the brand that provides
Exact match
175
observation
consumers replacing damaged hardware select the brand that provides
Right look
176
high-end consumers are
typically remodeling while
mid and low-price consumers are
replacing existing damaged hardware
observation
177
the main reason for visiting the store is to replace existing damaged hardware
finding
Keyed entry
178
the main reason for visiting the store is to replace existing damaged hardware
finding
handleset
179
consumers replacing an existing damaged keyed entry knob are mostly driven by security needs
finding
180
a security message or a call to upgrade security would be meaningful to locksmiths
implication
and to target in DIY publications
181
remodeling their home?
Purchase Remodeling their home
182
the 2nd most common event that puts consumers in the market is remodeling
observation
183
finding
look
consumers remodeling their home are more inclined to select the brand
184
finish
finding
consumers remodeling their home are more inclined to select the brand
185
finding
feel
consumers remodeling their home are more inclined to select the brand
186
finding
security
consumers remodeling their home are more inclined to select the brand
187
they’re more likely to be purchasing
finding
handlesets
188
finding
knobs
they’re more likely to be purchasing
189
finding
Combo packs
they’re more likely to be purchasing
190
finding
levers
they’re more likely to be purchasing
191
finding
41%
levers
consumers doing major remodeling report purchasing
192
finding
21%
knobs
consumers doing major remodeling report purchasing
193
finding
18%
handlesets
consumers doing major remodeling report purchasing
194
installing interior levers instead of knobs is perceived as the modern way to remodel
implication
195
promoting levers as the modern way to upgrade or improve home appearance may be an effective message
implication
196
the research proved valuable on several levels
conclusion Concluding remarks
197
the combination of quantitative, qualitative and ethnographic techniques
uncovered significant insights that would not have been achieved by a singular
method
Concluding remarks
1st
198
we uncovered key motivations experienced by retail customers that
were used to increase sales
Concluding remarks
2nd
199
Black & Decker embarked on a rebranding project for Society Brass, Kwikset, Kwikset Plus and Kwikset Titan products
Concluding remarks
200
research
Concluding remarks
gave insights on how Society Brass Collection should be presented both on shelf and off-shelf
201
black & decker hhi
Concluding remarks
created a position both above and below Schlage, especially since this competitor had the perfect position in the aisle
202
Society Brass Collection worked with a branding company to develop a new brand image, including new packaging, brand identity and new positioning
Concluding remarks
Brand identity
203
as a result of the research, Black & Decker HHI developed new sub-brands
Concluding remarks
204
kwikset became kwikset security
Concluding remarks
205
kwikset plus became kwikset maximum security
Concluding remarks
206
titan became kwikset ultramax
Concluding remarks
207
titan society brass collection became society brass collection
Concluding remarks
208
brand packaging article and speaking engagement
Concluding remarks
209
black & decker hhi
Concluding remarks
used kwikset maximum security to position just below schlage and kwikset ultra-max to position above schlage in price, performance and aisle position
210
based on insights kwikset changed the packaging to
red
Concluding remarks
based on insights society brass changed
the packaging to
green
211
ultra-max was given a foil printed finish and maximum security a non-foil finish
Concluding remarks
212
this made it easy to tell the
difference between the
brand positions
Concluding remarks
213
it was also easy to see that all sub-brands belonged to the
kwikset master brand with the exception of society brass
Concluding remarks
214
Concluding remarks
society brass was differentiated to remove the association of the mid and low priced kwikset products
215
by positioning the product on both sides of schlage, kwikset created a sea of red drawing the consumer away from the middle
of the aisle and to do a better product comparison
Concluding remarks
216
this allowed kwikset to communicate the product and brand story
Concluding remarks
217
Concluding remarks
lowe’s
48%
pos increase
218
15% society brass collection
took market share given the lock category at lowe’s
increased only
Concluding remarks
219
kwikset reinvented their merchandising program with displays and off-shelf displays
Concluding remarks
220
the strength of the insights is evidenced by what happened at home depot
Concluding remarks
221
12%
home depot did not implement the entire program and the result was that the society brass collection experienced a lower increase
Concluding remarks
222
Using Ethnography
To understand
Consumer Behavior in
The Retail Aisle
ESOMAR Presentation – Spain
Black & Decker HHI
Insights Worldwide Research
www.maxruckman.com
223