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  CASE STUDY:
New Product Testing—Best
Attributes, Marketing Messages and Price
 
  BEST PRACTICE:
Conjoint Analysis
 
  RESEARCH TECHNOLOGY: What are Internet Panels and When Should They Be Used?  
  RESEARCH QUESTIONS:
What do you want to know
about market research?
 
  OUR MISSION :
Setting the Standard for Market Research Delivering Maximum Effectiveness for Our Clients
 

October 2004
We are pleased to announce two new additions to the
Vernon Research Group team.

Maude P. Dornfeld – Director of Research

Maude Dornfeld joined Vernon Research Group in 2004 as Director of Research, bringing with her 15 years of experience as a market research practitioner. Her responsibilities at Vernon Research Group include design and writing of survey instruments, determination of sampling strategies, data analysis including exploratory techniques, graphing, bivariate and multivariate statistics, the development of research reports, synthesis of findings into conclusions and the formation of recommendations. Read more >>
 
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F. Robert (Bob) Woodward – Manager of Business Development

Bob Woodward joined Vernon Research Group in 2004 as a Manager of Business Development. His responsibilities include the development and design of market research programs and new business acquisition. Bob has extensive business experience with both for-profit and non-profit entities and has managed several multi-million dollar businesses, divisions and departments. He also has a background in market research, marketing, sales and technology. Read more >>

CASE STUDY: New Product Testing—Best Attributes, Marketing Messages and Price

Goal: A large nationally known firm wanted to test a brand new product concept and gain practical information in order to build the product, brand it, market it and put the best possible price on it.

VRG Action: Vernon Research Group designed a program of research that identified potential avid users of the product. The study involved in-depth interviews with a quantifiable number of potential end users of the product. The study utilized conjoint analysis to ensure that the best attributes of the product and the best price were discovered.

Outcomes: The study yielded information that helped the firm understand how best to introduce the product, the misunderstandings that might arise as it launched, the most important attributes to include in the product, the best marketing messages and the best price in order to gain the most sales at the margin the company required. Today the company is confidently proceeding toward market with the new product.

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BEST PRACTICE – Short Takes on Big Questions


How to Marry People, Prototypes, and Adaptive Conjoint People.

Market research would be considerably easier if people were not required to make it work—particularly when testing prototypes with dozens of new characteristics and clients waiting to make critical design and pricing decisions based on the results of consumer testing.

Faced with the problem of designing a study to gather quantitative data from a large sample of respondents for such a test, we mulled over a variety of methods for gathering such data.

One of the most difficult issues we faced, and often face when designing studies for manufacturers of durable goods is in finding a method that allows us to show the actual item to respondents before asking them to express their opinions about the items they have seen. Traditional focus groups of eight to ten people are fine for gathering ideas, but their inherently eclectic and unscientific nature cannot yield the utility and pricing data manufacturers crave. No one wants to base business decisions about entire model lines on focus group outcomes.

Another method under consideration was to use the Internet to graphically display the object at hand and then use sophisticated interviewing techniques allowed by Sawtooth Software’s SSI Web ACA Module that are only possible using a computer. The problem, of course, with conventional Internet interviewing is that respondents cannot see the actual item being tested.

For this recent project, which called for the nuanced understanding only possible using computer-assisted interviewing while exposing participants to the actual prototypes, we hit on a design that incorporated broadly-recruited Voice of the Consumer panels of 30 participants each in a number of cities across the country and combined that design with computer assisted interviewing CAI on the Internet.

Only the largest market research firms may own sufficient computer resources to maintain a squadron of laptop computers for CAI. Even for those that do own laptops in those numbers, the cost of maintaining each with the software necessary to conduct 30 simultaneous interviews may be prohibitive. Since we needed to conduct a computer-dependent survey design (using Sawtooth’s ACA), our solution was to rent laptop computers and arrange for high-speed Internet access at each of our interviewing facilities—because the prototypes we needed to demonstrate were so large, our interviews ended up being conducted in hotel ballrooms and conventions centers. The interviews were conducted in a single room and the interviews were conducted via the Internet, at the moderator’s direction.

The outcome of this project was extraordinary. Not only were we able to gather the information you can only get through ACA, we were also able to capture responses to "normal" survey questions using the same SSI Web interview, all without having to fiddle with a single interview computer beyond setting the browsers’ homepage to the study URL. The data were ready for download when we returned to the office the next day without having to enter a single response manually. We had our data, and analysis could begin immediately.

The results? Using Peter Williams’ suggestions for including holdout tasks in the study* to ensure pricing data were correctly estimated (and weighting the data accordingly), we were able to duplicate quite precisely the current market and build a series of models that showed what consumers wanted and how much they were willing to pay for those options. The non-ACA data we also captured using SSI Web integrated well, allowing us to look at market segments very closely and determine the attributes that appealed most to different populations.

Sawtooth’s SSI Web and ACA module and a little creative logistics management allowed us to build a research model that got the people, the products, and the computers in the same place at the same time without major headaches. We were left with a high degree of confidence in the answers we gave to our clients, who in turn walked away secure in the knowledge that we had gotten things right.

Williams, Peter. Calibrating Price in ACA: The ACA Price Effect and How to Manage It.


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RESEARCH TECHNOLOGY - New approaches

What are Internet Panels and when should they be used:

Internet panels are comprised of people who are interested in participating in online research. Legitimate panels can deliver much higher response rates than those obtained through other data collection methods because they offer the ability to select panelists based on demographics.

Typically, panelists come from many sources, including banner ads, online recruitment methods, and telephone recruitment. They belong to a community of respondents who are eager to share their opinions on a wide range of issues. You can target respondents by age and gender of family members or age, educational attainment, ethnic group, gender, income, occupation, and ethnicity of individual panelists. Panel demographics are not based on predictive techniques. They are created from self-reported, respondent-specific information.

Internet panels are ideal for research projects with tight timelines or low incidence respondent profiles. They offer the advantage of giving researchers greater assurance of reaching the exact targets they seek within a narrow timeframe. The end result: a cost-effective data collection methodology that delivers on time research results.




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OUR MISSION – Setting the Standard for Market Research Delivering Maximum Effectiveness for our Clients

When we design and execute market research programs we combine a high level of market research experience with a strong desire to serve our clients. We employ best practices in all of our research projects. We strive to learn everything we can about each organization’s research needs so that we can design a project for maximum effectiveness.

Our goal is always to deliver research outcomes that provide insights, direction and answers. Our conclusions are clear and concise and our recommendations are designed to be extremely relevant and actionable to the needs of our clients. We work with our clients to ensure that the findings and recommendations of our research programs are understood by all who need to take action as a result of the study.

 

 
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