BA170 Market Research II

8/22/2019 BA170 Market Research II

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MARKETRESEARCHPROCESSES II

Prof. Dave CentenoJuly 8, 2013


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Todays Topics

>> UAI

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


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UAI


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UAI

A broad look at the

current market for a

specific brand relative tocompetition. Information

is from the perspective of

the consumers.


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UAI Measuring Brands Health

A. AWARENESS DATA: BRAND & ADVERTISING

1. Brand Awareness: 1st mention, Other mention, Aidedmention

2. Sources of first-mentioned brand awareness

3. Advertising awareness: 1st mention, Other mention, andAided mention

4. Advertising recall: quality of awareness measure


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B. PRODUCT USAGE DATA

5. Product Category Use or Non-Use6. Category form, variant, and pack used7. How long the pack size lasts8. When used and for what purposes9. Who else in the household use the product category10. Where used and with what11. Brands ever used12. Brand last used13. Brand used previous to last14. Brand used most often15. Brands on hand (pantry check by observation)


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C. PURCHASE DATA

16. Where the last category purchase was made17. Where category purchases are often/usually made18. Frequency of category buying19. Category pack size last bought20. Quantity of category purchase21. Price paid for last purchase22. Brand had in mind during the last buying trip23. If found brand in the store where last shop24. If not found, what did: bought any brand, looked for brandin another store, postponed buying till brand had in mindbecame available, or other (specify)25. What else bought with the product category in lastpurchase


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D. ATTITUDE DATA

26. What looked for , what expected in product category27. What not liked in brand last bought28. What liked in brand last bought

E. PRODUCT AND BRAND IMAGE DATA

29. Importance rating of product category attributes, productvalues30. Rating of selected brands on each product attribute


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UAI Applications

1. To search for market and competitive opportunities that an existingor a new product can advantageously explore and maximize.

2. To determine the brands marketing health relative to competition,and to identify its correct marketing problems and solutions to these.

3. To segment or to partition a total market for a product category,and then to describe and profile the different identified marketsegments by each segments brand awareness, category usageand purchase practices, category and brand attitudes, and

category and brand images, as well as by its socio-demographicsand psychographics.

4. To find out the brands most distinctive product benefit positioningin the market and relative to competition.


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UAI Brand Loyalty & Switching

BrandsPreviously Using Brand

(Base %)Currently UsingBrand (Base %)

Enervon 20 20

Revicon 22 24

Clusivol 6 14

Rogin E 4 2

Centrum 2 5

Myra 330E 10 2

Potencee 8 3

Others (8 otherbrands)

28 30

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


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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 naturalcourse, 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)


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UAI Share of Mind versus Share of Market

Share Indicators Hapee Colgate Close-Up Pepsodent

% share of mind 4 38 46 12

% share ofmarket

6 42 37 15

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


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UAI Brand Positioning

Consumer brand positioning behavior model

how it satisfiestheir priority

product values

how it satisfies theirpriority values better

than, just as good as,or not as good as itscompetitor brands.


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UAI Brand Positioning

Product Attributes(in descending order of

importance)

Brands Average Rating on Attribute (5-point)

Hapee Colgate Close-Up Pepsodent

Prevents cavity (4.84) 4.5 4.7 4.0 4.4

Toothpaste &mouthwash too

(4.51)3.3 3.7 4.8 3.5

Gives day-longprotection (4.22)

2.2 2.7 2.7 2.5

A few spread isenough (4.10)

2.8 2.9 3.0 3.0

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


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FGD

& Other QLResearch forConsumerInsighting


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FGD

An exploratory, non-

quantitative study oftwo or moreconsumer groups.


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FGD

1.In an attribute-basedpositioning research, a

successfully conductedFGD can increase the set of

product attributesrepresenting consumer

benefits to include somenew surprising additions

Thincondoms fitvery well,almost like

second skin

Condomsdont have

sideeffects

Its verycomfortab

le

Theyreeasy tocarry

around,inconspicuous in your

wallet

Pills

affectyourwhole

system

Theyrecheaper

than pills


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FGD

Para sa akin,yung maasimat matamis

sya pero yung

nakakalamang sa tamis

Ako anggusto ko

yungmatamis at

sariwa

Yung totoo

sya atnatural

2.FGDs can do something

else to product attributes,

something that gives themstrategic significance. They

can uncover if and howconsumers have changed

their product attributeunderstanding because

they have radicallydimensionalized the

attribute.


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FGD

3.FGD can also identify whatconsumers regard as thephysical sensory feature/s

they regard as theproof/s of the products

intangible benefit

I know its adurable pair of

jeans. Just look athow strongly itssewn along the

seam and how the

zipper wont giveway when you pullit apart..

Its because of itsquality packaging.Its an expensive

package if; in thefisrt place, what

theyll put inside is

not qualitytobacco


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FGD

4.FGD can identify criticalconsumers needs at thelevel of actual product

usage. These are typicallyneeds that escape themarketing executives

immediate attention.


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FGD

Genericmedicinesare inferior

in quality

Instantpowderorange

drinks arenot fresh

Prunes arefor elderlyconstipated

buyers

5.FGD can also tell

marketing executives iftheir brand belongs to a

product class thatconsumers have

disadvantageously

positioned.


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FGD

6.Through FGSs, marketingstrategists interested in

positioning by product useexperience can identifyspecific leads for such

positioning.

Adult Males: Its like being in the UnitedStates. There are lots of Caucasians. Even the

smell of the place is very Western. And thestaff is very efficient. But the hamburger

doesnt have any taste, I just dont know whyI keep coming back here.

Teenage Females: I am eager to eat there. Ifeel at home because everybody seems to

enjoy doing the same thing. The food is niceand the place, clean. And there are a lot of La

Salle students, very upbeat...


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FGD

7.Through FGDs, markets

can correctly identify theirbrands true competitor.

Hindisiya masarap. Ayaw ng mga bata.Nagsilbi nga ako ng pangalawa pero iniba koang pagluto para pasarapin ayaw talaga. Ang

lasa hindi talaga nila gusto.

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


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FGD PLANNING

1. FGD Respondents

Objectives = Respondents

Ready and Willing (thus, non-prob)

Previous participation, degrees of consanguinity


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FGD PLANNING

2. FGD Sample Size and Sampling

No standard, known optimal number

Product Focus, rich and trending pattern

However, theres marginal rule


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FGD PLANNING

2. FGD Sample Size and Sampling


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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


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FGD PLANNING

3. Discussion Guide

Agenda of topics

Basic contract between client and facilitator

Semi-structured, Unstructured


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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


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FGD Variants

1. Mini FGD

2. Extended FGD

3. Reconvened FGD


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Other QL Techniques

1. Projective Techniques

a. The Psycho-Drawing Technique

b. Sentence-Completion Technique

c. Cartoon-Completion Technique


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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)


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BrandNameTestingTo ResolveBrand EquityIssues


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BRAND EQUITYRESEARCH

A quantitative

monitoring researchto measure brandvalue that translatesto an asset


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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)


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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 byinvesting in product quality and advertising.


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BRAND EQUITY DIMENSIONS

BRAND EQUITY DIMENSIONS PROPOSED MEASURES AND SOURCES

1. Brand recall(customers ability toretrieve the brand from memory whengiven the product category, the needsfulfilled by the category, or some othertype of probe as cue.

Total unaided awareness from the UAI:

When thinking about (productcategory) what brands come to yourmind?

2. Brand recognition (consumers abilityto confirm prior exposure to the brandwhen given the brand as cue)

Aided awareness from the UAI

[Forbrands not mentioned] What aboutthis brand? Do you know this brand?

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

Brand ratings on attributes and benefitsfrom the UAI

Will you please rate each of thesebrands on each of the following productattributes and benefits?


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4. Strength of brand association (howmuch a person thinks about (product)information and on the manner in whicha person thinks about the information)

>> Involvement measures:

1. Information Search

2. Information Evaluation

1. Information Search

To what extent would you say youwould look for information or consultothers to verify that this brand really hasthis benefit? Would you say you woulddo this:a whole lot (4), pretty much (3),somewhat (2), or not at all (1)?

2. Information Evaluation

To what extent would you say youevaluate those information or opinion

from others about this brand as havingthis benefit? Would you say youevaluate: a whole lot (4), pretty much(3), somewhat (2), or not at all (1)?


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5. Uniqueness of brand associations

(provides insight into the extent to whichbrand association are not shared withother brands)

Will you please tell me for each of thisbrands benefits, do you believe that:

3= there is no other brand now availablewhich has specifically attended to givingthis benefit

2= all or almost all brands availablealready give this benefit

1= there is one particular brand whichspecifically gives this benefit


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6. Parent brands product quality inbrand extension (the more highly theperceived quality of the parent brand is,the more positive is the brand extensionand the brand equaity value of theparent brand.)

Product quality question:

Overall, how would you rate theproduct quality of this brand? Would yourate it: very highly (5), generally highly(4), neither highly nor poorly (3),generally poorly (2), or very poorly (1)?

7. Wider brand name of parent brandin brand extension (the wider a brandname is to consumers as against being a

narrower brand, the more extendableit is, and the more it raises the brandequity value.)

Q on number of parent brands productcategory associations.

When you think of this brand name, do

you associate it:with more than one or with only one kindof brand?


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8. Equity dilution of parent brand inbrand extension (the more consumersperceive that a planned brandextension will not dilute the parentbrands equity, the higher the parentsequity value becomes.)

Q on perceived adverse effect of use ofparent brand name on a planned newproduct:

If this brand name is also going to beused 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)?


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ExperimentalResearch


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EXPERIMENTALRESEARCH

the creation of a contrivedsituation in order that the

researcher can manipulateone or more variables whilstcontrolling all of the othersand measuring the resultanteffects.


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Sample Experiment Qs

ADVERTISING EXPERIMENT

Will replacing commercial A with commercial B lead

to a marked increase in consumer preference for acompanys brand?


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PRICING EXPERIMENT

Can a company improve the profitability of its fashion

clothing line by increasing its price by 10 percent?


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SALES PRODUCTIVITY EXPERIMENT

Will an increase in the average number of sales calls

per customer from six to eight per year significantlyimprove sales?


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SHELF SPACE EXPERIMENT

Will decreasing the shelf space allocated to brand X

detergent by 25 percent significantly lower its sales?


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CONDITIONS

Manipulates the independent variable or variablesbefore measuring the effect on the dependentvariable

The effect of price changes on sales volume of a particular

product can be examined by actually varying the price ofthe product

The very basis of experimental research lies in the

manipulation of independent variables


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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


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LAB VS FIELD

A laboratory experiment is a research studyconducted in a contrived setting in which theeffect of all, or nearly all, influential but irrelevantindependent variables is kept to a minimum


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LAB VS FIELD

A field experiment is a research study conducted ina natural setting in which the experimentermanipulates one or more independent variables

under conditions controlled as carefully as thesituation will permit


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VALIDITY

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

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


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EXPERIMENTAL DESIGNS

PRACTICAL CONSIDERATIONS

1. Time

2. Cost3. Exposure to competition

4. Nature of the manipulation


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EXPERIMENTAL DESIGNS

1. Test Marketing

2. Virtual Test Marketing

3. Web-based Experiments

4. True Experiments


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CONCLUSION- Triangulation Technique

BA170 Market Research II

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