Traditional new product tests focus more on consumers' responses to the new product than on their commitment to existing brands. This is one reason why many traditional methods have had to contend with varying degrees of over-claim. This paper has two purposes: first, to show how the inclusion of a measure of commitment in new product testing helps to deal with the problem of over-claim. Second and more importantly, this paper shows how an understanding of how commitment works should help with the development of strategy for new product launches.
This paper concentrates on two main areas - the positioning of a furniture retail store using the added value of a two year guarantee on all products and a suggested typology of shoppers. In 1975 it was decided to position the Morkels furniture retail chain on a service platform. However, intensive research was not carried out and gut feel was relied on. The positioning chosen was that of a "two year guarantee store". For the next eight years this positioning was adhered to, but, in the absence of market research, the problems in communicating this positioning, as well as its credibility, were not fully realized. Morkels market share remained static. In 1984 it was realized that there had been a failure of the service focus. An intensive research program was embarked upon to establish the reasons for the failure of the positioning, and to help revitalize the program. Since then, the success of the positioning has been impressive. The research studies that contributed to this were ones designed to improve understanding of the lifestyle of consumers, in terms of the way they relate to their homes and their furniture, as well as studies designed to improve understanding of "serviceâ in consumer terms. An ongoing customer satisfaction study was also commissioned. Changing needs and perceptions were tracked at regular intervals. A service task force was created, focusing on the issues highlighted by the research. In addition, an operational restructuring took place in order to assist the organization to focus more fully on service and sales. It was found that demographics were inadequate in terms of target market definitions, and it was decided to investigate a typology of smart shoppers versus traditional shoppers. Simply put, the smart shopper is not store loyal, shops around for the best buy and puts little importance on customer service. The traditional shopper is one who is more store loyal, makes extensive use of credit and attaches more value to customer care. It is shown that this typology does have application in the furniture retail environment, but the typology differs according to the type of merchandise being bought.
This paper discusses the measurement of perception and motivation, concentrating on two techniques used for this measurement task. Factor analysis has traditionally been used for the measurement of perception and motivation, while correspondence analysis has become increasingly popular in recent years. This paper contrasts the implications of using these techniques, using case studies to illustrate their strengths and weaknesses. In addition to the discussion on the measurement of perception and motivation, the paper addresses the problem of identification of submarkets within markets. The identification of these sub-markets and the analytical implications thereof are fully discussed, again using correspondence analysis and factor analysis to support the discussion.
This paper describes the use of mapping as a strategic research technique. Case histories are described in which the use of mapping lead to major changes being made in long-term plans. The specific mapping technique used uses nominally scaled data as input. The question of assessing the viability of market segments is also addressed. A methodology is proposed which uses a manual form of cluster analysis. Data generated by the clustering technique are then mapped so as to identify the composition of segments in the market as perceived by consumers. The value of market segments can then be determined by an analysis of the brands lying close to the centres of gravity of the segments. The topic of attribute selection in order to define attitude is discussed, using a case study on the liquor industry as an example. The overall objective of the paper is to put forward a step-wise methodology of attribute definition, measurement of consumer perception, and measurement of business viability, as an integrated approach to using marketing research as an aid to understanding consumers needs, and hence formulating long-term plans.
This paper describes the results of a study designed to measure the effects of different promotional activities in stores. Regression analysis, using dummy variables, was used to analyse data obtained from an experimental design incorporating twelve stores over an eight week period. The experimental design consisted of embedding a "cross-over" design, with various combinations of promotional activities being randomly assigned to the remaining cells.