Inspired by Boston Consulting Group's 2016 report on 'Rewiring Customer Insight to Generate Growth', the Philip Morris International team in The Philippines took a journey to amplify the value of the insights function. In this paper we would like to share our journey towards that goal, the steps we undertook and its impact. We would first talk about what broad organizational level changes we underwent to enable the journey and then we will also demonstrate its impact by discussing a specific business issue in broad strokes.
This paper sheds light on how emotion, anxiety, reward, and hedonic forecast are involved in consumer behavior. The presenters seek to relate how changes in reward and hedonic forecast mechanisms in chronic tobacco use can help understand the way emotion and anxiety intervene in the decision making process. Physiological and behavioral measures were used to evaluate responses to anti-tobacco advertising. A model relating sensory processing, uncertainty, reward systems and anxiety with decision making is presented.
In June/July 1990 a sample survey using a single questionnaire was conducted simultaneously In all 12 Member States of the European Community to assess the attitudes and behaviour of the younger generation with regard to tobacco. The survey formed part of the "Europe against Cancer" Programme launched by the Community In 1987. The survey was conducted orally by professional Interviewers at the respondents' homes, parents not being present at the Interviews but having first given their consent. A total of 9 312 young people were questioned (4 778 boys and 4 534 girls), or about 800 per country (250 In the case of Luxembourg). -1 From the age of 15 onwards, approximately 15% of these young people are "regular smokers" (l.e. they smoke at least once a week). The principal aim of the survey was to Investigate the factors which had taken them from the Initiation stage to that of acquiring the smoking habit. Analysis shows that the peer group environment plays a more Important role than the family or school: having a best friend who smokes, frequenting discotheques and according Importance to the social function of smoking all contribute towards the personality make-up of the young smoker. The cigarette represents the Instrument and the symbol of a rite of passage, a means of self-affirmation and of friendly and Informal communication. These are precisely the "arguments" put forward, directly or Indirectly, by the majority of advertIsements for cigarettes. The conclusion Is that health promotion campaigns, of which the fight against smoking constitutes a major element, should fight at the same level as the advertisers by emphasising the quality of life of the non- smoker rather than the dangers of tobacco and by seeking to alter the stereotype Image of the role of smoking In personality development and In social Interaction among friends.
In June/July 1990 a sample survey using a single questionnaire was conducted simultaneously In all 12 Member States of the European Community to assess the attitudes and behaviour of the younger generation with regard to tobacco. The survey formed part of the "Europe against Cancer" Programme launched by the Community In 1987. The survey was conducted orally by professional Interviewers at the respondents' homes, parents not being present at the Interviews but having first given their consent. A total of 9 312 young people were questioned (4 778 boys and 4 534 girls), or about 800 per country (250 In the case of Luxembourg). -1 From the age of 15 onwards, approximately 15% of these young people are "regular smokers" (l.e. they smoke at least once a week). The principal aim of the survey was to Investigate the factors which had taken them from the Initiation stage to that of acquiring the smoking habit. Analysis shows that the peer group environment plays a more Important role than the family or school: having a best friend who smokes, frequenting discotheques and according Importance to the social function of smoking all contribute towards the personality make-up of the young smoker. The cigarette represents the Instrument and the symbol of a rite of passage, a means of self-affirmation and of friendly and Informal communication. These are precisely the "arguments" put forward, directly or Indirectly, by the majority of advertIsements for cigarettes. The conclusion Is that health promotion campaigns, of which the fight against smoking constitutes a major element, should fight at the same level as the advertisers by emphasising the quality of life of the non- smoker rather than the dangers of tobacco and by seeking to alter the stereotype Image of the role of smoking In personality development and In social Interaction among friends.
After more than two years of marketing research and brainstorming a new pipe-smoking concept was introduced in Amsterdam: TATTOO, a precious individual characteristic. It features a colourful modem pipe and a tobacco case in a small, handy box. A life-style advertising campaign was presented in print and movie to position and promote the new product. What made this new product interesting enough to present a paper on the subject? In the first place we have to realise that the pipe tobacco market has been declining considerably over recent years. Secondly, pipe smoking has a very old-fashioned image. Notwithstanding this development, a team of specialists in the fields of tobacco marketing, sales, advertising, design, and marketing research was formed. With close teamwork and financial and emotional investments the product launch was extremely successful.
In a computer model simulating the development of the cigarette market in dependance of demographic structures a life cycle approach to smoking behaviour pattern was used. The essential parameters of this model are the rate of habit formation up to 20 years of age, level of daily cigarette consumption of regular smokers, keep-up of smoking after age 40. These essential parameters, however, are influenced by pro smoking communication (marketing) and a set of interrelated macro-sociological variables: achievement orientation, work and life stress, post materialistic "green" values and anti- smoking pressure. The interrelations make for cyclical developments (log waves). The result on the cigarette market depends to a significant degree on the initial states, economic growth and political development. Pro-smoking communication can substantively moderate the trends. A simplified computer model in BASIC is available for further experimentation with these phenomena. Warning: It needs data input for parametrizing specific markets which are not sufficiently covered in most market research Publications.
In a computer model simulating the development of the cigarette market in dependance of demographic structures a life cycle approach to smoking behaviour pattern was used. The essential parameters of this model are the rate of habit formation up to 20 years of age, level of daily cigarette consumption of regular smokers, keep-up of smoking after age 40. These essential parameters, however, are influenced by pro smoking communication (marketing) and a set of interrelated macro-sociological variables: achievement orientation, work and life stress, post materialistic "green" values and anti- smoking pressure. The interrelations make for cyclical developments (log waves). The result on the cigarette market depends to a significant degree on the initial states, economic growth and political development. Pro-smoking communication can substantively moderate the trends. A simplified computer model in BASIC is available for further experimentation with these phenomena. Warning: It needs data input for parametrizing specific markets which are not sufficiently covered in most market research Publications.
At Philip Morris we are convinced that market research is an important strategic management tool. But, as with any tool, its effectiveness is largely dependent upon the skill of the user.
Consumption patterns and motivations are constantly changing with the complex developments in society as a whole. In the present study recent trends in the consumption of tobacco and alcohol are analysed. Data from surveys measuring use and non- use of tobacco and alcohol in Norway in 1979 and 1981 are used for describing changes in the patterns of consumption. Through bi- and multivariate analyses relationships between a set of demographic variables and use of the stimulants are assessed. An evaluation of the changes in the demographic structure of users and non-users is used for analysing possible future trends in the consumption.
By order of the "Stichting Volksgezondheid en Roken" (Foundation Health and Smoking, an organization sponsored by the Dutch Ministry of Health) NIPO interviewed in the period 5- 22nd march 1979 a sample of 2.474 youngsters between 10 and 15 years. The main objective of the survey was getting more data available about attitudes of youth towards smoking and about their smoking habits. Also questions were asked to learn more about the influence of the family and/or friends on smoking habits, about the knowledge of parents about the smoking habits of their children and about the moments when and where smoking takes place. Some results of the study can be compared with data from a survey about smoking habits of adults (sample size 21.058 persons) conducted in the first quarter of 1979.
The highly important but complicated channel of distribution - the vending machine, has not yet been covered by a market research institute as to the flow of products through it. Of course, we do have distribution data, but no information about turnover or other important and interesting aspects are available. Based on this, the A. C. Nielsen Company has worked on this subject and has developed an instrument with the aid of which it is possible to offer exact and multiple data for this special market. An innovation can be presented in the auditing technique as well as to exactly measure the effect of promotional activities. The first approach in covering this market was made in the field of cigarettes.