SBC Ethnographic Case Study

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

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Understand consumer behavior

understand consumer

behavior to guide the

creation and

implementation of

new packaging in the home

improvement retail segment

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Consumer insights

consumers were

observed, their behavior quantified,

and additional in-depth interviews

conducted

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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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to overcome this barrier and provide the necessary insights

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we developed a process too thoroughly understand the sub-conscience motivators driving consumer behavior in the retail aisle

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521 consumers

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521 consumers

intent to purchase

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521 consumers

observed

intent to purchase

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521 consumers

observed

noted behavior

intent to purchase

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521 consumers

quantified

observed

noted behavior

intent to purchase

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86 long interviews

short interviews 157

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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

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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

34

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

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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

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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

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compare price from a distance before physically engaging the product

finding

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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

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consumers had physical contact with the interactive displays in the aisle

observation

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high-end consumers say that the feel of the product is “extremely influential”

observation

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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

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the importance of feeling and touching the product is

exemplified by remarks suggesting that non-working

displays result in loss of sales

finding

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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

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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

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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

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observation

seconds

the low-price customer picks up the box and looks for pictures and writing illustrating the installation process or product function

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consumers follow basic messages of style, finish, security and

function bulleted on

the front

finding

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consumers moves quickly to the assurance of easy installation, among the most critical factors taken into consideration when purchasing door hardware

finding

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easy installation

3.71 rating

finding

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easy installation is extremely important in the selection process

finding

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the need for a package to project user friendliness is fundamental

implication

overt assurances of ease are essential

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given the involvement in the side of the package, the importance of clarity, simplicity and intuitive ease should be a priority

implication

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the dominant functional question the consumer asks a salesperson regards key compatibility

finding

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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

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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

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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

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product finish

finding

4.34 rating

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matching the

same style

finding

4.13 rating

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security features

finding

3.91 rating

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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

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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


104

finding

FR

IEN

DS

3.23 rating


105

finding

3.21 rating


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

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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

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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

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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

123

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


mid

-p

ric

e

127

finding

lo

w-

pr

ice

1.90 rating


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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


levers

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finding

deadbolts

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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

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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


price

45%

163

26%

finding


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


mid

-p

ric

e

finding

167

finding

1.90 rating


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

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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

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observation


Exact match

175

observation


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

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finish

finding


185

finding

feel


186

finding

security


187

they’re more likely to be purchasing

finding

handlesets

188

finding

knobs


189

finding

Combo packs


190

finding

levers


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finding

41%

levers

consumers doing major remodeling report purchasing

192

finding

21%

knobs


193

finding

18%

handlesets


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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

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research

Concluding remarks

gave insights on how Society Brass Collection should be presented both on shelf and off-shelf

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black & decker hhi

Concluding remarks

created a position both above and below Schlage, especially since this competitor had the perfect position in the aisle

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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

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as a result of the research, Black & Decker HHI developed new sub-brands

Concluding remarks

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kwikset became kwikset security

Concluding remarks

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kwikset plus became kwikset maximum security

Concluding remarks

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titan became kwikset ultramax

Concluding remarks

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titan society brass collection became society brass collection

Concluding remarks

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brand packaging article and speaking engagement

Concluding remarks

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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

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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

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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

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Concluding remarks

lowe’s

48%

pos increase

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15% society brass collection

took market share given the lock category at lowe’s

increased only

Concluding remarks

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kwikset reinvented their merchandising program with displays and off-shelf displays

Concluding remarks

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the strength of the insights is evidenced by what happened at home depot

Concluding remarks

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12%

home depot did not implement the entire program and the result was that the society brass collection experienced a lower increase

Concluding remarks

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Using Ethnography

To understand

Consumer Behavior in

The Retail Aisle

ESOMAR Presentation – Spain

Black & Decker HHI

Insights Worldwide Research

www.maxruckman.com

223

SBC Ethnographic Case Study

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