introduction to primary market research

Introduction to Primary Market Research

Elaine Chen

Why do primary market research?

Some quantitative examples –

via the story of a showerhead

Showerhead landscape – circa 1996

Price$2 $200+

Experience

Premium

Showerhead landscape – circa 1996

Price$2 $200+

Experience

Premium

How do we go about defining a

“great shower experience”?

Showerhead project summary

• Broad and non-specific problem statement: • “Define a great shower experience”

• Highly specific and technical outcome required: • “Build us a showerhead that delivers this experience, and

gets us back into the lead”

• How we bridged the gap: 1. Define the question to ask / hypothesis to test2. Choose the best PMR methodology to answer those

questions / validate those hypotheses

Picking the right methodologies

Question posed Research methodology chosen Qualitative or quantitative?

Who buys showerheads?

Detailed interviews Qualitative

What makes a great shower experience?

Detailed interviewsImmersion

Qualitative

What is the detailed use case?

ImmersionObservation

Qualitative

What are the technical specs?

Usability studies in the instrumented shower Qualitative +Quantitative

Question posed Research methodology chosen Qualitative or quantitative?

Qualitative

What are the technical specs?

We are in discovery mode for this project…

Question to pose Research methodology chosen Qualitative or quantitative?

Qualitative

QualitativeWhat are the technical specs?

…and the best techniques to use are qualitative methodologies

Common methodologiesQualitative (<30 samples)• Detailed interview• Observation / shadowing• Immersion• Longitudinal diary study• Photo essay• Usability benchmark• Focus groups• … etc

Quantitative (>1000 samples)• Surveys

• On line surveys• Conjoint analysis• Pricing studies

• Monadic

• Multiple monadic

• Van Westendorp

• … etc

• Customer satisfaction: NPS, P/M fit

• Web testing• A/B split, Multivariate• Web analytics• … etc

Here is an overview of common research methodologies

Shower projectQualitative (<30 samples)• Detailed interview• Observation / shadowing• Immersion• Longitudinal diary study• Photo essay• Usability benchmark• Focus groups• … etc

Quantitative (>1000 samples)• Surveys

• On line surveys• Conjoint analysis• Pricing studies

• Monadic

• Multiple monadic

• Van Westendorp

• … etc

• Customer satisfaction: NPS, P/M fit

• Web testing• A/B split, Multivariate• Web analytics• … etc

For the shower project, qualititative is the way to go

Qualitative, then quantitative

A qualitative pass can help you design a great quantitative program

“This is a fine piece of research--thoughtfully designed, deeply instrumented, and genuinely interesting in asking and answering important questions. And it is especially gratifying to note the result: this is the highest priced showerhead at Lowe's now, but still their best seller. It is a solid example of what breakthrough design should do: create premium value for enterprises, while giving customers something they love and think is worth the money.”

Larry Keeley, IDSA, President, Doblin, Inc.

Image credit: continuuminnovation.com

End result: the new showerhead took back the #1 position

Some quantitative examples

Image credit: netpromotersystem.com

Net Promoter Score and similar surveys can quantify customer satisfaction

Photo credit: 5circles.com

Pricing studies like the Van Westendorp method quantify price elasticity

PMR recap

• There are many techniques you can use in primary market research – you have a choice. Pick the tool that best suits your needs.

• Before you begin, clearly state your hypotheses. What questions are you trying to ask? Depending on the question, you can choose the right methodology.

• PMR combined with traditional engineering R&D bridges the gap between market needs and engineering specification. It helps you build the right thing for the right people.

How to run a great research project

What, How, Who

• Define the WHAT:• Clearly articulate hypotheses to be tested – these form the

core of your goals and objectives

• Define the HOW:• Pick a methodology• Develop content for the methodology (e.g. discussion guide;

survey design; etc)• Develop a project plan (including who-does-what-when)

• Define the WHO:• Define the profile of the subject• Develop a subject recruitment questionnaire

Customer / Problem Related Hypotheses

Product / Solution related hypotheses

Business Model Hypotheses

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Example recruitment questionnaire

• What is your age, gender and profession? (terminate once age/gender quota has been filled for the matching segment)

• What is your household income? (terminate if <$xxk)

• Are you interested in learning more about your sleep? (terminate if not)

• Are you currently encountering sleep problems? (terminate if not)

• Are you currently under the care of a doctor for your sleep issues? (terminate if true)

• How many nights in an average week are you encountering sleep issues? (select between 2-5)

• Please describe the sleep issues you are currently encountering (check all that apply). (cannot fall asleep; multiple awakenings; cannot go back to sleep after awakening; snoring spouse; etc)

• Do you currently share your bed? (partner, child, pet) If so: how many nights in an average week is your sleep affected by your bed partner(s)?

Example discussion guide• Welcome / ice breakers

• Introductions / purpose of visit

• Sleep - description• Tell me the story of sleep in this house.

Who all sleeps here? Where do they sleep?

• Tell me what happens in each 24h cycle for you as it applies to sleep.

• Sleep locations: where are all the places you personally sleep in the course of a year? Travel? Second home? Etc

• What does the word “Sleep” mean to you?

• What is the gold standard for sleep?

• House tour: can you show me all the places that you and your family members / housemates sleep in this house?

• Sleep – problems, attitudes, perceptions– Tell me about your sleep problems (what,

where, when, how long ago did it start)

– What have you done so far to address your sleep problems?

– What does the phrase “a good night’s sleep” mean to you?

– What comes to mind if I mention “A bathroom scale for sleep”?

• Technology profile– What cell phone do you use? What about

laptops? Other electronics products?

• Action attitude– When you need to learn about something,

where do you go for information?

To record or not to record?(I do – pros outweigh cons)

On technique

Technique cheat sheet for detailed interviews

• Clearly state hypotheses to test• Establish rapport before you begin• Ask short, open ended questions. “Tell me the story

of…”, “say more…”, “Why?” “Why not?”• Let the subject lead the conversation• Use active listening techniques: “I think I heard you

say xxx. Is that right?”• Talk very little. Success = they talk 95% of the time,

you talk 5% of the time (most of which is during set up and wrap up)

Technique cheat sheet for on-line surveys

• Clearly define goals and objectives• Ask effective questions to meet research goals• Decide on length of survey (how many minutes?)• Use skip logic judiciously to shorten completion time• Be smart about answer formats• Closed ended: radio buttons, checkboxes, • Open ended: text boxes

• Carefully consider which q’s should be required• Demographics and contact info at the end, please• Carrots!

Getting started with primary market research

• Articulate 3-5 hypotheses to be tested• Define characteristics of research subjects• Make a list of 30 people to call• Ask for 10-15 minutes of their time• Talk to them face to face if possible, via video Skype

if not• Interpret results, adjust hypotheses• Rinse and repeat

Summary

• Primary market research is a science and an art • Primary market research is learnable• Primary market research saves you time & $ - do it!• Plan your research before talking to anybody• Talk to humans face to face if possible

Thank you

introduction to primary market research

conceptspring interviews

conceptspring immersion

conceptspring observation

qualitative orquantitative

agreat shower experience

greatshower experience

research methodology

usability studies

Business

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