hkpost research book eng · frequent advertising and promotional information than they do at...

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02 What makes this research important?

03 A Summary of the Findings

05 Research Objectives

06-07 Research Methodology

08-11 How do Hong Kong consumers prefer toreceive business communications?

12-48 How do Hong Kong consumers preferorganizations to communicate with them?

12-26 –27-37 –38-48 –

49-52 Getting responses from consumers

53-56 Summary & Recommendations

57-64 Appendix

65-68 Email VS Mail

Contents

Hkpost_Research Book_ENG 3/10/06, 6:16 PM1

In today’s information age with itsproliferation of new technology, marketershave access to a wide array of new mediaand multiple marketing channels forcommunicating with consumers.

As a result, consumer trends are becomingincreasingly difficult to predict, andallocating media spend for effective reachand frequency is not easy.

While media such as TV, Print and Outdoorremain important, Direct Mailing isincreasingly being seen as one of the mosteffective methods for achieving immediatesales and for developing and maintaininglucrative, one-on-one customerrelationships.

What makes this researchimportant?

To help marketers select the mostappropriate media channel, Hongkong Postcommissioned TNS — one of the world’sleading market research companies toconduct a market research study amongHong Kong consumers. TNS askedconsumers about which channels theypreferred for receiving information of variouskinds.

This research was designed to look beyondmedia consumption patterns and delve moredeeply into consumer preferences. The aimwas to gain insights for marketers keen tomaximize returns on their media investment.

The research utilized both qualitative andquantitative techniques, and covered all thecommonly used communication media, i.e.TV, radio, press, outdoor advertising,telephone, direct mail, email, Internet andSMS.

2 Getting the Message Across: A Comparative Media Study by Hongkong Post


A Summary of the Findings

Consumers have clear preferences forreceiving particular kinds of information viaspecific media. These preferences dependon the type of information being sent, thesender of the information, and whether theconsumer is an existing customer or not.

Some findings will come as no surprise tomarketers. Consumers are used to receivingcertain kinds of information in particular ways.For instance, most respondents preferredreceiving essential communications such asbills or statements by addressed mail, and toreceive new product announcements throughTV and newspapers/magazines.

However, the study has also provided newinsights into the channel preferences ofconsumers, outlined below.

Essential Communications (Bills, Statements, Changesin Terms & Conditions)

• Where they were existing customers of anorganization, more than 80% of respondentspreferred to receive essential communications fromit by addressed mail

• This reflects their expectations and their currentpositive experience of receiving such information inthis way

• Addressed mail clearly plays a major role in thisarea of communications

Marketing and Promotions Communications

In this category, there were clear indications of the value ofan integrated marketing communications approach

• In particular, most respondents expressedpreferences for receiving new productannouncements and general advertising orpromotional information via all 3 major media, i.e.TV, newspapers/Magazines, and direct mail(addressed and unaddressed)

• As for invitation letters, membership newslettersand company updates, about 50% of respondentspreferred receiving these by addressed mail, butthere were growing preferences for unaddressedmail, TV and newspapers/magazines as well.

By Service Sector

When an existing customer…

• Close to 70% of respondents preferred receivingadvertising and promotional information frombanking & financial businesses and utilitycompanies by addressed mail

• A similar preference for addressed mail wasexpressed for other service sectors such as realestate & property, telecommunications, travel &holiday, and restaurants

When not an existing customer…

• Preferences for media channels were more evenlyspread across TV, newspapers/magazines anddirect mail

• Within the direct mail category, more respondentspreferred receiving unaddressed than addressedmail from the service industries

3Getting the Message Across: A Comparative Media Study by Hongkong Post


By Retail Sector


• More respondents preferred receiving advertisingand promotional information from department &retail stores, health & beauty providers and carmanufacturers, retailers & dealers by addressedmail

• Supermarkets & convenience stores were anexception: respondents had more or less equalpreferences for TV, newspapers/magazines andaddressed mail


• As with the service sector, preferences for mediachannels were evenly spread across TV,newspapers/magazines and direct mail

• Respondents also expressed a higher preferencefor unaddressed over addressed mail from the retailsector

By Non-Profit, Government & Clubs Sector


• More than 40% of respondents preferred to receiveadvertising and promotional information fromeducation, charities & voluntary organizations,government organizations and associations & clubsby addressed mail

• Preferences for other media were around 20% orless


• As with the service and retail sectors, there weremore or less equal preferences expressed for TV,newspapers/magazines and direct mail media, anda higher preference for unaddressed mail overaddressed mail

Attitudes towards the Sender

Direct mail plays an important role in establishing goodrelationships with existing customers

• About 40% of respondents reported that they feltvalued when they received mail from companies ofwhich they were existing customers

Purchase Intentions

Direct mail also makes existing customers more likely topurchase a company’s products/services

• 37% of respondents said they were more likely touse services of or purchase products from acompany of which they were existing customersafter receiving promotional mail from it

• 38% of respondents said they were more likely touse services of or purchase products from acompany that kept in frequent touch with them bymail

A Summary of the Findings (cont’)



Research Objectives

The research objectives of this study were:

1. To identify how consumers prefer toreceive marketing messages, so thatmarketers can select the mostappropriate channel

2. To identify preferences for differenttypes of communications and differentoriginating organizations, and comparethe channels used

3. To identify how preferences forcommunications vary according to theindustry or organization from which thecommunications originate

4. To understand consumer attitudestowards receiving advertising materialfrom companies and organizations, bothin cases where an existing relationshipexists and in cases where it does not

5. To understand consumer perceptionstowards addressed and unaddressedmail

6. To explore the role of media in buildingrelationships with customers forbusiness and other organizations

7. To understand consumer attitudes andbehaviour connected with the receiptand payment of accounts andstatements

8. To explore how communicationsreceived by consumers via differentmedia impact on their perceptions ofbrands and their responses to offers



ResearchMethodology


The QualitativeApproach

The qualitative component of the research consisted ofcollecting data from 2 focus groups differentiated byage (see table below)

• The group situation provided a suitable environmentin which participants could respond to stimulusmaterial, and a range of associative techniqueswere used to explore attitudes and responses todifferent channels of communication

• Each group contained eight people, and theiractivities lasted two hours.

Methodology:

• Methodology = CATI

Location:

• Hong Kong

Sample Size:

• n=500

Criteria for selection of eligible respondents:

• Age 18 to 64

• Sample selected to be representative of the HongKong population in terms of age, gender andgeographical distribution

Overall researchapproach

Quantitative Questionnaire Confirmation

Quantitative Fieldwork

Qualitative Insights incorporated intoQuantitative Phase

Qualitative Focus Group Exploration

Set-up, Planning and Clarification

Analysis and Presentation

Phase 1

Phase 2

Group 1 Group 2

Age 25 – 40 41 – 55

Gender Mix of Male and Female



How do Hong Kongconsumers prefer toreceive businesscommunications?


Media preferred by existing customersfor receiving business communicationsEssential CommunicationsMost respondents (more than 8 out of 10) preferred receiving bills, statements and companyupdates by addressed mail. The impact on the appeal of addressed mail from email, Internetand SMS services was minimal.

Base: All Respondents n=500

Note: Multiple Responses




Where an organization had an existing relationship with a customer, respondents preferredaddressed mail over other channels. The exception was for new product announcements andgeneral advertising or promotional information, where many also expressed preferences formedia such as TV and newspapers/magazines — an indication of the value of integratedmarketing.

Media preferred by existing customersfor receiving business communicationsMarketing and Promotions


Note: Multiple Responses * Net data of addressed and unaddressed mail


Preferred frequency of receivingbusiness communications –when an existing customerMost respondents were open to receiving frequent marketing and promotionalcommunications. Indeed, many respondents expressed a preference for receiving morefrequent advertising and promotional information than they do at present.


57%

55%

59%

63%



The Service Sector

How do Hong Kongconsumers preferorganisations tocommunicate withthem?

The Service Sector


Receiving advertising and promotionalinformation:media preferred by existing customersMost preferred addressed mail over other channels – particularly for mail from banking &financial and utility companies. For telecommunications services, there was a slightpreference for email and SMS.




* Net data of addressed and unaddressed mail


Receiving advertising and promotionalinformation:media preferred by non-customersAmongst non-customers, TV, newspapers/magazines and unaddressed mail were preferredchannels.

* Net data of addressed and unaddressed mail





Banking and financial businesses– for existing customers

Respondents expressed a clearpreference for addressed mail overother channels.





Banking and financial businesses– for non-customers

Most respondents preferred receivinginformation via different channels suchas TV, newspapers/magazines andunaddressed mail.




Real estate and property companies– for existing customers

Respondents preferred addressedmail over other channels.




Real estate and property companies– for non-customers

Respondents expressed preferences forTV, newspapers/magazines andunaddressed mail.




Telecommunications services– for existing customers

Addressed mail was the preferred mediachannel, with respondents in the 18–34age group and more educatedrespondents expressing a preferencetowards email.




Telecommunications services– for non-customers

Most respondents preferred TV,newspapers/magazines andunaddressed mail.




Utility companies– for existing customers

Respondents clearly preferredaddressed mail over otherchannels.




Utility companies– for non-customers





Travel and holiday businesses– for existing customers

Addressed mail was preferredover other channels.




Travel and holiday businesses– for non-customers

Most respondents preferred TVand newspapers/magazines.




Restaurants– for existing customers

Respondents preferred bothaddressed & unaddressed mailover other channels.




Restaurants– for non-customers





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