Download Part 6 Sample chapter Manage customer value with

ch
ap
te
r
Part 6
Sa
m
pl
e
M anag e c ust om er
value with
marke t ing
re se arc h
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 557
2011-06-11 3:58:19 PM
558
Chapter 18
ch
ap
te
r
Information-driven
technology and the
research process
Learning objectives
1. Describe how changing technology influences the marketing research process.
2. Discuss how portals help in the problem definition process.
4. Explain the influence of technology on methods of primary data collection.
5. Know the differences between data warehouses and data marts.
Sa
m
6. Distinguish between pull and push portals for research presentations.
pl
e
3. Explain how technology influences research designs and data sources.
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 558
2011-06-11 3:58:22 PM
Google for knowledge
© Sebastian Czapnik | Dreamstime.com
Setting the scene
TBC
ch
ap
te
r
Google recently reported a 200 per cent increase in sales of its new Enterprise Search
Appliance tool. Companies are using the tool in their information portal to search corporate
data to answer customer questions, fill sales orders, analyse customer comments, and explore
reasons for product failures. Xerox, Hitachi, Nextel, Procter and Gamble, and Boeing are just a
few of Google’s hundreds of customers. These companies recognise that the ability to search,
analyse, and comprehend customer data is vital to success. The incredible 200 per cent growth
in sales for Google’s new Search Appliance tool is one strong indicator among many that
companies are adopting new technologies that will help them increase the efficiency of their
marketing research efforts.1
Sa
m
pl
e
Perspectives
Technology will kill us
or cure us, hopefully
the latter.
Anonymous
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 559
2011-06-11 3:58:22 PM
560
Par t 6
Manage customer value with marketing research
Introduction
Information is everywhere in an organisation. Employees must be able to access and analyse this
information to make the best business decisions. Collecting, compiling, sorting and analysing customer data from multiple sources provides tremendous insights into how a business is performing.
Examining customer data yields exciting and even unexpected results, including knowledge about
emerging market segments, new methods of reaching customers and recognition of major flaws in
business strategies.
Technology is affecting all businesses. Some of the most notable changes are occurring in traditionally low-technology areas. One example is marketing research, which encompasses many
activities that new technology can improve. Using technology as a research mechanism and data
management tool, companies are expediting the marketing research process and reducing the
cost of marketing research.
As illustrated in Chapter 2, the marketing research process has several phases and steps and technology can provide benefits at each stage of the research process. This chapter explores how
technology is creating change across the marketing research industry in general as well as within the
marketing research process specifically.
Technology and the marketing research process
r
ch
ap
te
dashboard
An interactive
computer terminal or
screen that organises
and presents
information in a
way that is easy for
the user to read and
understand.
Using new technology, Samsung Electronics examined 10 000 detailed reports from vendors,
resellers and customers to determine where they were ‘losing deals or orders’ to the competition.
Examination of the reports showed that 80 per cent of lost sales took place within a single strategic business unit—health care. Furthermore, Samsung identified that 40 per cent of lost sales
in this business unit were to one competitor. After analysing its current selling approach and
customer relationship building techniques, Samsung realised its current strategy was not working and needed to be retooled. The research problem was redefined as a lack of information and
problem solving directed at hardware vendors. Research objectives were adopted to obtain the
needed data and define the activities to better serve this critical supply chain partner. Samsung’s
new strategy was made possible through an Enterprise Informational Portal (see below).2
Portals as problem detectors and opportunity assessors
pl
e
enterprise
information
portal (EIP)
An internet site
owned and operated
by an organisation
to support its total
business operation.
Research problems, objectives and technological approaches
A portal is a website that offers a broad array of resources and services, such as email, online
­discussion groups, search engines and online shopping. Some major general portals include
Yahoo! and Excite. Specialised portals include mygarden.net.au for gardeners and bicycles.net.au
for cyclists. An enterprise information portal (EIP) is an internet site owned and operated by
an organisation to support its total business operation. Often referred to as a dashboard, the EIP
is a single point of connection between a business, its supply chain partners and customers. Like
popular consumer portals, the EIP organises information using indexes and visual presentation.
Sa
m
portal
A website that
offers a broad
array of resources
and services, such
as email, online
discussion groups,
search engines and
online shopping.
New technology is affecting the marketing research process in four basic areas. First, technology is
changing the way companies define the research problem and specify research objectives. Second,
innovations in technology are determining the most effective research designs and the best data
sources to use in achieving research objectives. Third, technology is dramatically changing sampling of participants, scale measurement designs and questionnaires, and is expediting the data
collection process. Finally, the processes of compiling, storing and analysing data, and the dissemination of research results have become more precise and user-friendly.
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 560
2011-06-11 3:58:24 PM
CHAPTER 18
561
I n f o r m a t i o n - d r i v e n t e c h n o l o gy a n d t h e r e s e a r c h p r o c e ss
While most organisations use EIPs or dashboards for enterprise-wide data integration
purposes, many organisations are finding them useful for detecting problems in business operations and for marketing research purposes.3 Google Dashboard is a service that allows a person
with a Google account to see all the information held by Google about themselves across all
Google products. Intenet Dashboard is a company that builds intranets for such companies as
Audi, Shell, Harvey World Travel and Katmandu. The dashboard allows outstanding communications across the enterprise as well with dealers, outlets, customers or resellers on a broad range
of corporate, production, reselling and inventory matters.
EIPs are designed to track flows of information in the total business process. Users can
graphically view information as pie charts, bullet graphs, sparklines and gauges. Portals also
can ‘drill down‘ into lower-level data to identify both negative and positive business trends.
Using its portal known as ‘Talon’, Harley-Davidson found its $500 million aftermarket sales
were declining rapidly even though average length of ownership of motorcycles was increasing.
Drilling further into dealer inventory and automatic parts replenishment systems revealed no
answers. Harley then decided to examine aftermarket dynamics with further marketing research
on motorcycle owners. After collecting and analysing data, they learned from motorcycle owners
that dealers were difficult to locate, not conveniently located, and aftermarket parts prices were
perceived as high. The company decided to add an e-commerce option selling aftermarket parts
and accessories online. Thus, Harley’s dashboard helped define the research problem and suggest research actions to solve the business problem.4
Dashboards enable decision-makers to gauge how well an organisation is performing overall
and to capture and report specific performance data in a ‘snapshot‘ format. The benefits of
using dashboards in marketing research are:
1. visual presentation of marketing and customer performance data
2. improved problem definition and identification of negative and positive trends
3. more detailed reports on markets, products and segments
4. better informed decisions on marketing research plans.
ch
ap
te
transactional
customer data
the information
contained in a
strategic business
unit.
analytical
customer data
Data used in
performing analyses
as the basis for
managerial decisionmaking.
Sa
m
pl
e
Technology is impacting how marketing researchers define and categorise customer data. While
the data itself remains relatively unchanged (purchase behaviour, demographic characteristics,
lifestyle dimensions), the methods used to obtain the data are dramatically changing how customer data is being interpreted. In a marketing research context two broad forms of customer
data exist: transactional and analytical. Transactional customer data includes all the information contained in a strategic business unit, whose purpose is to support the daily operations of
that unit.5 Examples of transactional customer data include cash withdrawals from an ATM, hotel
or airline reservations, and sporting goods purchases from an online store. Some of the primary
uses of transactional customer data are to generate sales reports, facilitate inventory control
­procedures, and enable tracking of product and service sales.
Analytical customer data is customer data used in performing analyses as the basis for
managerial decision-making. Analytical data includes market and industry trends, competitor information, and macroenvironmental changes, as well as transactional customer data.6
Analytical data is primarily used in making marketing strategy or planning decisions. Typical
decisions made with analytical customer data include expanding product lines, moving into
new market segments, evaluating new distribution methods or repositioning a current brand.
Telstra is a telecommunications and information services company that offers fixed line, mobile
phone, internet and internet TV with more than 8 million fixed lines and 10 million mobile services.
r
Influence of technology on research designs
and data sources
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 561
2011-06-11 3:58:24 PM
562
Par t 6
Manage customer value with marketing research
Telstra‘s Teradata enterprise data warehouse is a database for customer interactions. The database
is utilised for modelling, segmentation and for developing propensity scores for making marketing
decisions. Telstra uses business analytics and predictive modelling to improve customer service,
7
provide value-added products to its clients, and help secure and grow its market share.
Kate McKenzie, Chief Marketing Officer at Telstra, states: ‘Knowing what customer predilections are—like understanding when customers prefer to be called, what language they prefer to use
and what services they’re interested in—is extremely valuable and important to Telstra.’ As a result,
Telstra can provide its front-line employees with information that helps them reduce customer
churn and defection, cross-sell and up-sell products, as well as guiding customer acquisition programs. ‘We help the call centre. We can help our shops. We can help the whole organisation make
better, informed decisions. We can get information about what customers are looking for to the
front-line customer service staff so much more quickly. We do it in such a way that is simple and
8
makes sense to them; it clearly makes a big difference in our service delivery.’
ch
ap
te
click-stream data
Reflects the exact
pattern of a
customer’s navigation
through a particular
website and reveals
a number of basic
data points on how
customers interact
with the website.
1. the number of pages viewed by a visitor
2. the pattern of websites visited
3. length of stay on the website
4. dates and times of visits
5. number of registrations filled out per 100 visitors
pl
e
web traffic
analysis
Measures the traffic
generated by a
company’s website.
Sa
m
real time
Data that is
immediate, up to
date and maintained
on a 24-hour/365day reporting period.
Understanding transactional and analytical customer data can significantly improve marketing
decisions and increase the effectiveness of marketing programs. At online sports betting agency
Centrebet, software tracks who is betting, how much they’re winning and what the odds should be
for the next game. Established in 1992 in the Northern Territory, Centrebet began offering online
sports betting services to punters worldwide in 1996. Each day Centrebet handles about 50 000
bets on anything from cricket and tennis to soccer and polo. Its 260 000 clients generate annual
revenue of about $1 billion. The software keeps track of a vast array of all transactions and keeps
track of every punter. Choosing the wrong odds or losing too many customers to a competitor
could spell financial disaster. Each day, the software analyses every sport, competition and result
together with the types of bets that have been placed. These tools are used by the marketing
department to develop campaigns to encourage clients to join and use the online service. Each day
the system automatically sends a summary of the day’s financial performance to senior executives.
The software also analyses the performance of the website and reports on how punters arrived at
the website, if they used a search engine and the search terms used.9
The success of any marketing program depends on leveraging high-quality data that is also
timely. Timeliness is a critical aspect of any data, but particularly of transactional and analytical
customer data. The factor that makes these data forms unique is the real-time nature of the
data. Real time means the data is immediate, up to date and maintained on a 24-hour/365-day
reporting period.
A major trend in marketing research is movement away from traditional customer ­behavioural
intention measures (the probability of purchase-related behaviour) to more robust real-time
­measures of transaction-related behaviour (the actual outcome of the purchase-related ­behaviour).
Actual outcome data is obtained from web traffic analysis, which measures the traffic generated by a company’s website. The primary objective of web traffic analysis is to record customer
visits, purchases, revenue, service calls generated, traffic reduction and so forth. The type of data
analysed is typically called click-stream data. Click-stream data reflects the exact pattern of a
customer’s navigation through a particular website and reveals a number of basic data points on
how customers interact with the website. These data points are known as behavioural metrics
and commonly include:
r
Benefits of transactional and analytical customer data
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 562
2011-06-11 3:58:25 PM
CHAPTER 18
563
I n f o r m a t i o n - d r i v e n t e c h n o l o gy a n d t h e r e s e a r c h p r o c e ss
6. number of abandoned registrations
7. demographics of registered visitors
8. number of customers with shopping carts
9. number of abandoned shopping carts.
Click-stream data captures real-time behavioural metrics that can be tracked over any given period
of time. Click-stream data will soon be available from communication devices such as mobile
phones, personal digital assistants (PDAs) and tablet computers.
Technology and data enhancement: biometrics
and smart cards
Technology and primary data collection
r
smart card
Any pocket-sized
card with embedded
integrated circuits
that can process
information about
people; also known
as a ‘chip card’ or
‘integrated circuit
card’ (ICC).
Sa
m
pl
e
Technology has brought greater speed and productivity to marketing research through online interviewing methods and more efficient data processing. The result is richer insights through more
sophisticated analytic techniques. Use of new marketing research technology and methods creates
many positive benefits for marketing research providers—principally, more efficiently collected and
reported data and easier integration of primary and secondary data into the research process.
Technology-based tools such as the internet are primarily used for survey and focus
group design, recruitment of subjects, data collection and data analysis. Use of the internet as a preferred data collection tool, both qualitative and quantitative, has dramatically
changed marketing research methodologies as well as client/user expectations. The greatest
biometrics
Automatic
identification of a
person based on his/
her physiological
or behavioural
characteristics.
ch
ap
te
Biometrics refers to the automatic identification of a person based on his/her physiological or
behavioural characteristics. Biometrics is a pattern recognition system that determines authenticity
by two types of traits: physiological (fingerprint, face recognition, hand geometry, iris recognition)
and behavioural (signature, keystroke dynamics, voice).10 Biometrics are now used by the Australian
government in processing visa applications.11 Disney World recently installed ­biometric hand
­scanners to identify patrons upon admission to its theme parks in Orlando, Florida.12
Using biometrics to gather data is not new in the field of marketing research. There is a large
body of published work in advertising research that correlates a subject’s physiological responses
to advertisements by measuring skin conductance, heart rate and eye movement. More modern
biometrics technology uses state-of-the-art headsets to monitor multiple physiological responses
that measure moment-by-moment metrics among subjects. Most measures focus on how engaged
or excited individuals become when exposed to specific events in commercials, humour appeals
or comparative advertising claims. The data collected is then used to build models describing how
physiological signals change in response to specific advertising events. Many of these physiological
signals describe the specific emotional or attitudinal feeling the subjects experience when viewing
commercials or advertisements. As an example, brain scans recently showed that ­individuals react
more favourably to the taste of wine when they believe it is more expensive.
Closely associated with biometric technology are smart cards. A smart card, chip card or
integrated circuit card (ICC) is defined as any pocket-sized card with embedded integrated
circuits that can process information about people. Smart card and biometric technologies
have a substantial advantage over past information gathering systems because they provide a
macro view of what has taken place within a shopping mall, retail store, themepark or casino.
The frequent flyer card of Qantas Airways now has an embedded intelligent chip. This allows
Frequent Flyers to obtain automated flight check-in and baggage drop-off using only their frequent flyer card. The technology behind the smart card ensures that the full range of security
checks remain in place.13
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 563
2011-06-11 3:58:25 PM
564
Par t 6
Manage customer value with marketing research
impact on client/user expectations has been that many methodologies are now considered
­internet-appropriate without compromising results and the potential decrease in fieldwork
equates to reduced analytic time. For many client/users of marketing research, the need for
speed has superseded the need for comprehensive data analysis and interpretation and, in
some cases, analytic precision.
Technology-based tools, such as the internet, provide benefits at each stage of the marketing
research process. For example, 24/7 accessibility to the internet facilitates effective communication
between the marketing research firm and consumer panels or focus groups, facilitating maximum
participation and reducing the time required to complete the research. Increasing accessibility
brings greater efficiency to both primary and secondary research. Exhibit 18.1 compares traditional
marketing research approaches with internet approaches for data collection and analysis.
The advantage of using the internet to collect research data is greater control of the survey.
For example, respondents to internet surveys are allowed to select only from the given responses
to each question. Participants cannot write in another answer or select more than one answer.
Also, respondents are not able to skip ahead, as is possible with traditional surveys. Internet
approaches yield surveys that are more complete and reduce the bias that can develop if participants are able to look ahead at question topics.
Exhibit 18.1
Comparing traditional and internet data collection and analysis
Survey design
Traditional approach
Questionnaire is developed by professionals. When completed, questionnaire is printed and sent to the participants by mail or fax,
or a survey is given over the phone by a staff person. Mailed surveys include postage costs; faxed surveys include phone charges.
Internet approach
Questionnaire is developed by professionals. When completed, questions are converted into a form that can be accessed online by
participants.
Recruitment
Traditional approach
Participants are contacted by mail, phone or fax, and asked to complete the survey. Multiple contacts may be required to speak
directly to a participant or get a fax to the desk of the participant.
ch
ap
te
r
Internet approach
Cooperative participant panels are assembled and alerted by email when studies are available online. Only eligible participants
are contacted for any particular study.
Data collection
Traditional approach
When surveys are completed, they must be returned by mail or fax. Phone survey results are available immediately. All results
must be entered into a database, which can be used for analysis.
Sa
m
Analysis
Traditional approach
Customer receives tabulated results that have been analysed by consultants to make recommendations.
pl
e
Internet approach
When participants complete a survey, the data are automatically entered into a database that can be used for analysis.
Internet approach
The database automatically generates aggregate data (bar graphs, pie charts, crosstabs) in addition to a raw data set that can be
used for other forms of analysis.
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 564
2011-06-11 3:58:26 PM
CHAPTER 18
565
I n f o r m a t i o n - d r i v e n t e c h n o l o gy a n d t h e r e s e a r c h p r o c e ss
Getting participation from respondents is critical to the success of any marketing research
project. Participants generally respond favourably to internet surveys. The ability to take part
in surveys at any time of the day or night is a convenience that most individuals enjoy. Also, an
international sample can be obtained much more easily via the internet. Exhibit 18.2 illustrates
that a majority of people, at least in Australia, have internet capabilities and engage in online
activities quite often. However, the internet after all is a relatively new technology. Sampling and
sample bias has been an issue with internet-based surveys. A caution is that in any internet-based
survey the question arises whether the sample obtained is representative of the population you
wanted to target. If not, your results could be misleading.
The use of online methods for data collection is not new in marketing research, but recent technological advances in software are changing the way online surveys are executed. New software
will do everything from generating and creating the online survey to analysing the data and even
preparing research reports. This software also develops online surveys in multilingual formats
to reach international respondents, modifies surveys for different methods of delivery (phone,
media rich, mobile), and even enables information from outside databases to be merged with the
collected data for analysis purposes.
IBM SPSS Dimensions 6 is an excellent example of how software is changing the execution of
14
online surveys. IBM SPSS Dimensions isn’t so much an individual software package as a platform of several independent software packages working together in a seamless fashion. Using its
interactive software, IBM SPSS Dimensions performs the following tasks:
dialling for phone surveys
˜˜automated
and execution of online, phone and paper surveys
˜˜creation
scanning of paper surveys
˜˜managing and manipulating data
˜˜creation of tables from local data
˜˜
Exhibit 18.2
Characteristics of Australian internet users
ch
ap
te
r
population of Australia is more then 22 million.
˜˜The
There are 9.6 million active internet subscribers in Australia.
˜˜There are 6.4 million households with a computer; 5.9 million of these have internet access.
˜˜Seventy-two per cent of Australian households (5 million households) have home internet access.
˜˜Seventy-eight per cent of households had access to a computer.
˜˜Seventy-one per cent of access connections offering a download speed of 1.5 Mbps or greater.
˜˜Nineteen per cent of Australians are aged 14 or younger.
˜˜Households are less likely to be connected to a computer, the internet and/or broadband if they have no children
˜˜under 15 years, are located in ex-metropolitan areas of Australia or have lower household incomes.
pl
e
2.7 million children aged 5 to 14 years, 79 per cent used the internet.
˜˜OfOf the
the 2 million children accessing the internet at home in 2009, educational activities (85%) and playing online
˜˜games
(69%) were the most common activities.
Sa
m
2009 an estimated 841 000 children (31%) aged 5 to 14 years had access to their own mobile phone.
˜˜InForty-six
of Australians who are 14 years or older (around 8 million people) are heavy internet users
˜˜(i.e. accessperthecentinternet
eight or more times per week).
Source: Australian Bureau of Statistics (ABS) website: www.abs.gov.au; ABS, Household Use of Information Technology,
Australia, 2008-09, cat. no. 8146.0, ABS, Canberra; ABS, 2009 Children’s Participation in Cultural and Leisure Activities,
Australia, Apr 2009, cat. no. 1901.0, ABS, Canberra; Roy Morgan Research 2009.
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 565
2011-06-11 3:58:26 PM
566
Par t 6
Manage customer value with marketing research
with tables on the desktop
˜˜interaction
translation of surveys and reports
˜˜collection of data via handheld devices
˜˜data analysis, including data mining
˜˜preparation of reports and presentations.
˜˜
The most unique characteristic of IBM SPSS Dimensions is its multimodal deployment capability,
enabling potential respondents to answer surveys via paper, web, phone or other channels such as
instant messaging or mobile phones.
ch
ap
te
pl
e
Social networking as a marketing research tool
A social network is a service that uses software to build online social networks for communities
of people who share mutual interests and activities or who are interested in exploring the interests
and activities of others. Most of these services are primarily web based and provide a collection of
ways for users to interact, such as chat, messaging, email, video, voice chat, file sharing, blogging
and discussion groups. Social networking has revolutionised the way many people communicate
and share information with one another. Various social networking websites are regularly used by
millions of people every day and are rapidly becoming a part of everyday life for many individuals.
Sa
m
social network
A service that
uses software
to build online
social networks for
communities of
people who share
mutual interests and
activities or who
are interested in
exploring the interests
and activities of
others.
Software advances like IBM SPSS Dimensions 6.0 provide innovative approaches for survey deployment and data collection. Research firms now have new options available for survey deployment,
specifically mobile phones and PDAs. The obvious benefit of this technology is the immediacy
of results so researchers can get an instant reflection of respondent opinions. Moreover, many
mobile-based surveys are quick and easy to complete, and the respondent has options as to
the device used in completing the survey. Finally, there are no restrictions on when and where
the survey is completed, the cost is lower when large numbers of respondents are needed, and
respondents who may normally be difficult to contact (e.g. the youth market) are much more
easily contacted.
Lightspeed Research delivers consumer surveys via mobile devices in Great Britain and
Australia. Zoomerang (www.zoomerang.com) also offers mobile phone survey technology. Pilot
project findings suggest the mobile phone research approach is best suited for short surveys
with younger consumers.15 A similar approach for obtaining customer data involves using
mobile phones and PDAs to collect data for consumer panels. Opinionmeter Australia (www.
opinionmeter.com.au) has a range of touch-screen devices, kiosk-style, desktop and handheld,
which can be used to present respondents or customers with questions at locations that make
sense in the context.
Nielsen Australia has launched the NeuroFocus service in Australia. NeuroFocus is a
US-based company that specialises in neuromarketing research. In order to obtain insights
into customers’ levels of attention, emotional engagement and memory retention with regard
to specific brands, NeuroFocus measures ‘brain whispers’, signals sent from the brain at 2000
times per second. Dr A.K. Pradeep, founder and CEO of NeuroFocus, states: ‘These micro-volts
are really, really small. It’s only been more recently that complex computing has enabled us to
produce algorithms to understand these micro-volts.’ The process involves research participants
wearing a headset with 64 sensors (which resembles a baseball cap) while supermarket shopping.
Pradeep and his team then examine the customers’ micro-volts to determine which products are
particularly evocative and an overall effectiveness score is derived. NeuroFocus also attempts
to measure purchase intent, novelty and awareness. In-store testing via this process can also be
done with using portable electroencephalography (EEG) and eye-tracking equipment. 16
r
Nontraditional technology—driven data collection methods
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 566
2011-06-11 3:58:27 PM
CHAPTER 18
567
I n f o r m a t i o n - d r i v e n t e c h n o l o gy a n d t h e r e s e a r c h p r o c e ss
Social networks connect people at a low cost, and many businesses are using social networks
for advertising and customer relationship management. Two of the most popular social network sites are MySpace and Facebook. Tourism Australia, as an example, has a Facebook page
to promote Australia as a tourist destination and it now has over one million fans. Linkedin is
a business-oriented social networking site used for professional networking. Increasingly, social
networking is used in marketing research, particularly for online focus groups and intelligence
gathering techniques.
ch
ap
te
blog
A website where
individuals can
communicate with
each other and
comments are
displayed in a reverse
chronological order.
Sa
m
pl
e
For several years online focus groups have been used in the marketing research industry. Advances
in software technology have given marketing researchers more options in the way they design and
implement online focus groups. Indeed, individuals increasingly make friends and share comments and information through social networks such as MySpace, Facebook and Second Life.
Operating under a similar concept of social networking, new software for the design and setting
of focus group research has emerged known as nqual Rich Focus Research Platform. Rich Focus is
a web-based online focus group technique that operates in real time and in virtual space. In many
ways it resembles web conferencing, traditionally used for business meetings but without the cumbersome nature of telephone conversations. Rich Focus assumes all conversations are completed
using instant messaging or chat and can be completed through a research-literate dialogue.
The process starts where the researcher develops a topical guide centred around the issues
to be addressed in the focus group. Then, the information is uploaded and stored on the Rich
Focus platform. Next, the researcher recruits participants either in a conventional offline
approach or through some previously developed consumer panel. Once respondents have agreed
to participate in the research, they are sent an initial email with a Rich Focus software download.
The software is compatible with Internet Explorer, but also can be used with its own dedicated
nqual plug-in and browser which avoids problems with participants’ browser settings.
Invitations are then sent to participants with an embedded link and the time the group
research will begin. Participants use the embedded link to log on to the system and begin
the focus group process. Once logged on, all participants are identified by a name and colour
(e.g. Sandra, colour ‘red’). The participant’s screen is then generated in three sections: (1) in one
section participants see their name and those of other group members; (2) in another section
the questions, answers and discussion take place; and (3) the third area is where stimulus material such as a package design, advertisement or new product can be presented and viewed by all
participants.17 When the focus group session is over, a full transcript of the group discussion is
available in a Word or Excel file. The Excel file is organised with comments in one column and
the respondent’s name in another. If any data analysis is required the files can be imported into
the SPSS or SAS statistical software.
Another nontraditional approach for gathering customer data is through blogs. A blog or web
log is a website where individuals can communicate with each other and comments are displayed
in a reverse chronological order. Many blogs provide commentary or news on a particular subject,
or even video games. Others function as more personal online diaries. A typical blog combines
text, images and links to other blogs, web pages and other media related to its topic. The ability
for readers to leave comments in an interactive format is the unique dimension of blogs. Microblogging is another type of blog that consists of blogs with very short information posts. As of
2008, blog search engine Technorati reported tracking more than 112 million blogs.18
Marketing researchers use blogs as a way of capturing customer data and opinions. This
method of data collection has become so popular in marketing research that AC Nielsen Research
has developed a tracking system designed primarily for blogs, referred to as Buzzmetrics.19
The software measures consumer-generated media and online word of mouth, and enables
companies to track consumer ‘buzz’ including opinions, preferences and trends for a variety of
r
Social networks and focus group interviews
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 567
2011-06-11 3:58:27 PM
A closer look
568
Par t 6
Manage customer value with marketing research
Research: Globa l tou r i sm a nd t r avel
d i st r ibut ion : O ppor t u n it ie s for
Au st r a l i a n tou r i sm
In a study funded by the Sustainable Tourism Cooperative Research Centre, Ken Miller, Suresh Sood and Ping
(Uraiporn) Kattiyapornpong examined global tourism distribution using a range methods and approaches.
The future form of distribution is likely to be based on a customer-centric business model that relies on yet
transcends technology. Indeed technology, especially a new generation or generations of smart handheld
mobile devices, can be expected to be so pervasive as to be effectively transparent to users. The research
sought to understand the changing trends and buying patterns of consumers generally and particular
impacts for travel purchasing, as well to identify the changes that are taking place with consumer-driven
mechanisms for gathering and sharing information. The findings were used to illustrate how travel operators
can utilise these sources to enhance product development and distribution.
The study used secondary data from the Roy Morgan Research Centre to show that from 2001 to 2010
the internet was a very important source of travel information—a quantum shift in travel booking methods
and sources. Online travel agents also gained a share.
Three methods of primary data collection were used:
Sa
m
pl
e
ch
ap
te
In the United States and the United Kingdom, it is clear that internet information search and travel booking
and social networking are pervasive factors for travellers in seeking information and booking of outbound
travel. Direct booking with suppliers is as important as online travel agents. For example, in the United
Kingdom, the internet was the primary mode (81.2%) of booking transport to the destination, and 58.4 per
cent of respondents chose the internet to book accommodation. The internet, previous experience and the
airline are all important sources on information in purchasing transportation to the destination.
In terms of purchasing accommodation, the most important sources of information are the internet and
previous experience. Friends and relatives and travel agents also have some impact. Internet usage is heavy,
with 88.4 per cent of these travellers indicating that they use the internet at least daily and 80.7 per cent of
travellers used the internet in planning this overseas trip. Facebook was used by 14.2 per cent of respondents
in planning the trip. Those using the web and social media to share experiences of the trip comprise 23.4
per cent of travellers. Online travel agents are very popular with 45.4 per cent of respondents using Expedia,
11.1 per cent using Travelocity and 39.2 per cent using Lastminute.com. A sizable percentage of respondents
(30.7%) use mobile phones to obtain travel information or book travel.
The study found that there is a relentless drive of technology and a growing impact of social media, and
concluded that the creation of a social media marketing approach for all destination assets is mandatory and no
longer a ‘nice to have’. Social content mechanisms (e.g. wikis, video) are an essential building block for exhibiting
destination assets to the younger generation, ‘no where’ gamers and the users of social networking sites, such as
Facebook. Listening to conversations systematically among social media helps pinpoint current tensions among
travellers and understand first-hand requirements in the voice and therefore the vocabulary of the traveller.
r
1. In February 2010, 354 transit passengers were interviewed at Bangkok Airport; they were interviewed
face-to-face in the departure lounge while transiting to Australia. These transit passengers were either en
route from Europe to Australia, or were Thai travellers to Australia.
2. In May 2010, 514 recent international travellers from the United States were surveyed using online
research methods. The sample was identified by Harris Interactive, an experienced online research
­supplier, and the Harris Interactive Online Panel was utilised. Data weights were provided to enable a
nationally representative sample.
3. In June 2010, 585 recent international travellers from the United Kingdom were surveyed using online
research methods. The sample was also identified by Harris Interactive and the Harris Interactive Online
Panel utilised. Data weights were provided to enable a nationally representative sample.
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 568
2011-06-11 3:58:29 PM
CHAPTER 18
569
I n f o r m a t i o n - d r i v e n t e c h n o l o gy a n d t h e r e s e a r c h p r o c e ss
The study recommends that a more intense engagement with travellers on social networks and sharing
knowledge about the destination, independent of sales activity, will contribute to the growth of future inbound
international tourism and considerably greater development of internet marketing and social network marketing
strategies by participants in the Australian tourism network. A key assumption underlying the recommendations
is travellers always connect anytime and anywhere by mobile or desktop computers to social media.
Source: K.E. Miller, S. Sood & U. Kattiyapornpong et al., Global Tourism and Travel Distribution: Changes, Impacts and Opportunity for Australian
Tourism, CRC for Sustainable Tourism, Griffith University, Queensland, 2010.
products and services. Buzzmetrics is a tracking tool that manages consumer-driven discussions
from online content, discussion boards, blogs, forums, review sites and Usenet newsgroups. The
software tracks and reports customer information across a variety of industries including,
­consumer electronics, automotive, health, nutrition and entertainment. 20
Technology-driven data analysis in marketing
research
ch
ap
te
data mart
Contains all the types
of data included in a
data warehouse but
in a format relating
to only one product
of a company.
r
data warehouse
A logical aggregation
of information stored
in a single data
location.
Sa
m
pl
e
Most customer data is recorded and stored in a data warehouse. A data warehouse is a ­logical
aggregation of information stored in a single data location. The primary purpose of the data warehouse is to aggregate information from all sources of the business into a single data storage area
in such a way that managers can use the data for further analysis and decision-making. For example, data relating to customer satisfaction, product sales, sales by store type and sales by differing
price levels may exist in different areas of a company. A data warehouse aggregates all the data
in a single area and converts the data to a format more suited for supporting decision-making.
The data warehouse then sends subsets of customer information to data marts. To distinguish
between data warehouses and data marts, think of data warehouses as having a broad marketing
focus and containing secondary data, competitive information, sales data, environmental information and primary data on customers. Data marts have a more focused approach and contain
all the types of data just described but in a format relating to only one product a company may
have. Apple has a data warehouse that contains customer data for all the products produced and
marketed by Apple. This data is then sent to data marts that contain data relevant to a single
Apple product, such as iPods, iPhones, laptops or desktops.
The unique characteristic of both the data warehouse and the data mart is that the customer
information stored in them is multidimensional. A dimension is a particular attribute of a customer,
product, brand or store. Customer attributes could be demographic information such as age,
gender and education. Product attributes could be factors such as style, features and quality levels.
Brand attributes are colour, price, package size and taste, and store attributes typically represent
the type of store selling the product (discount, department store, convenience store), its geographical location and product inventory levels. When the information is aggregated and sent to the data
mart, for example, for Apple iPhones, the data represents the multidimensional description of all
information relevant to the Apple iPhones. This multidimensional description is unique to the
data mart for Apple iPhones and differs from the multidimensional description of data in the data
mart for Apple iPods. The benefit of multidimensional data is that it enables researchers to develop
customer profiles and buying behaviours across products or brands. For example, if a researcher
wishes to compare the iPod buyer with the iPhone buyer, she would simply access the data mart for
each product and compare the attributes among buyers for each product line.
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 569
2011-06-11 3:58:30 PM
570
Par t 6
Manage customer value with marketing research
data mining
The process of
analysing data to
extract patterns and
relationships not
easily visible from
simply looking at the
data.
The ability to generate customer profiles or buyer behaviour characteristics is typically
a­ ccomplished through data mining. Data mining is the process of analysing data to extract
patterns and relationships not easily visible from simply looking at the data. Data mining tools
operate to simultaneously analyse significant relationships among several customer ­d imensions
within vast data warehouses. Researchers conduct this procedure when they have vague or
limited knowledge pertaining to a particular subject. For example, management in a casino
business may ask the question: ‘What attributes characterise the gaming customers who had
the largest gambling budget in our casino last year?’ Researchers would employ data mining
techniques to search the data warehouse, capture the relevant data, categorise the significant
attributes and form a profile of the high-budget gambler.
To perform data mining, researchers need data mining tools. Data mining tools use a ­variety
of techniques to find patterns and relationships in large volumes of data and infer rules from
them that predict future behaviour and guide decision-making. Data mining tools for data
warehouses and data marts typically include multidimensional analysis as well as a variety of
statistical tools. Sega of America, one of the largest publishers of video games, uses statistical
tools to allocate its promotional budget of more than US$50 million a year. Sega marketing
researchers and product managers ‘drill’ into its data marts to find trends in each retail store
chain. Their goal is to find buying trends that determine which promotional campaigns are
working best and how to reallocate promotional resources by media, territory and store type. 21
Sa
m
pl
e
pull portal
One used by the
client to search for
and extract only the
information the client
believes is necessary.
ch
ap
te
push portal
One used by the
research firm to push
marketing research
information to the
client.
Technology has greatly enhanced the way marketing research results and reports are disseminated
to clients. A portal is a website that offers a broad array of resources and services provided by marketing research firms for their clients. We discussed portals earlier in this chapter. Many research
firms are implementing portals to provide clients with information on research projects, to view
data that has been collected for the client, and for reporting results and recommendations from
the research study. Marketing research portals, often referred to as reportals, exist in either a push
environment or a pull environment. A push portal is one in which the research firm pushes marketing research information to the client. The classic push approach is email; the research firm
sends the marketing research results, or a link to the results, to the client with the anticipation
that the client will read and utilise the information for decision purposes.
Via a pull portal the client can search for and extract only the information that the client
deems necessary. Examples of pull portals include file transfer protocols (FTPs) and the online
reporting built into many internet-based data collection systems. These systems enable the
client to search and trawl the information, collecting only the information the client may need.
Pull portals are considered very client-friendly. They provide the most benefit when clients want
only bits and pieces of marketing research information and not the data streams in the full
scope of the total study that may not be relevant to their current problem.
A major disadvantage of pull portals is that many clients do not have the time to visit a
number of different provider sites to access the various elements of research information they
may need. Also, clients are often unsure of exactly which pieces of information or data they
may need to answer an urgent question about their business. In fact, several marketing research
firms have reported that when they provide information or reports in a pull portal environment,
some clients never access it, making it of poor value.
Pull portals appear to be most effective when they deliver access to certain types of data rather
than recommendations or conclusions, or when the information is necessary for the client as
opposed to just being desirable. Pull portals also work effectively when the amount of information
is so large the client might be overwhelmed if all the information were sent to them. The most
­well-known example of an effective pull portal is the AC Nielsen marketing research audit data.
r
Disseminating marketing research results through
research portals
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 570
2011-06-11 3:58:31 PM
CHAPTER 18
571
I n f o r m a t i o n - d r i v e n t e c h n o l o gy a n d t h e r e s e a r c h p r o c e ss
Push portals, such as emailing the results to clients, are based on marketing research firms’
wanting clients to access the information. The research firm knows the most important information and has a financial obligation to ensure the client is aware of and reads the important
information generated by the research. Push portals appear to have a distinct advantage over
pull portals when the material delivered is more conclusion or recommendation oriented rather
than data driven or analysis based. Many marketing research firms are now beginning to
develop a hybrid pull-push portal. Information is sent to the client in a pull portal mode, but key
findings and recommendations are emailed to the client in the form of dashboard results.
Su m m a r y of le a r n i ng obje c t ive s
1. Describe how changing technology influences the marketing research process.
First, technology is changing the manner in which companies are able to define the research problem
and establish research objectives. Second, innovations in technology are determining the most effective
research designs to employ and efficiently developing the best type of data sources to procure for
achieving the research objectives. Third, technology is becoming most pronounced in the sampling of
participants, designing scales and questionnaires, and expediting the data collection process. Finally, how
data are compiled, stored and analysed, along with the dissemination of research results, have become
more defined and user-friendly due to technological advances.
2. Discuss how portals help in the problem definition process.
Enterprise information portals (EIPs), or dashboards, allow decision-makers to gauge exactly how well
an organisation is performing overall, and allow the decision maker to capture and report specific
performance data in a ‘snapshot’ format. The benefits of using EIPs or dashboards in a marketing research
capacity are:
1. visual presentation of marketing and customer performance data
2. ability to define problems and correct negative trends
3. ability to generate detailed reports on markets, products and segments
4. ability to make better informed decisions regarding marketing research plans.
3. Explain how technology influences research designs and data sources.
4. Explain the influence of technology on methods of primary data collection.
pl
e
ch
ap
te
r
Technology is having a great impact on how marketing researchers define and categorise customer data.
While the data remains relatively unchanged (purchase behaviour, demographic characteristics, lifestyle
dimensions), the methods used to obtain the data are dramatically changing how customer data are being
interpreted. In a marketing research context two broad forms of customer data exist, transactional and
analytical. Transactional customer data encompasses all the information contained within a strategic
business unit, and its purpose is to support the daily operations of that unit. Analytical customer
data encompasses customer data that is used in performing analysis for managerial decision-making.
Analytical data includes transactional customer data along with other information such as market and
industry trends, competitor information or macroenvironmental changes.
Sa
m
Use of the internet as a preferred data collection tool, both qualitatively and quantitatively, has had
the greatest impact on changing marketing research methodologies and client/user expectations. The
greatest impact has been on client/user expectations that all methodologies are internet-appropriate
without compromising results and that the potential decrease in fieldwork equates to reduced required
analytic time. For many clients/users of marketing research, the need for speed has superseded the need
for comprehensive data analysis and interpretation and, in some cases, analytic precision.
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 571
2011-06-11 3:58:31 PM
Par t 6
S u m m a r y of
lea r n ing
object ives
c o n t i nu e d
572
Manage customer value with marketing research
5. Know the differences between data warehouses and data marts.
Most customer data, collected by various methods as described earlier, is recorded and stored in a data
warehouse, which is a logical aggregation of information housed in a single data repository. The primary
purpose of the data warehouse is to aggregate information from all sources of the business into a single
data storage area in such a way that managers can use the data for further analysis and decision-making.
The data warehouse then sends subsets of customer information to data marts. A data mart contains
subsets of customer information.
6. Distinguish between pull and push portals for research presentations.
Many research firms are implementing portals to provide clients with information on research projects,
view data collected for the client, and report results and recommendations from the research study.
Marketing research portals, often referred to as ‘reportals’, exist either in a pull environment or a push
environment. A push portal environment is one where the research firm pushes marketing research
information to the client. The classic push approach is email, where the research firm sends the marketing
research results, or a link to the results, to the client with the anticipation that the client will read and
utilise the information for decision purposes.
K e y t er m s a nd conce pt s
data warehouse . . . . . . . . . . . . . . 569
smart card . . . . . . . . . . . . . . . . . . .563
biometrics . . . . . . . . . . . . . . . . . . . 563
social network . . . . . . . . . . . . . . . 566
blog . . . . . . . . . . . . . . . . . . . . . . . . . 567
enterprise information
portal (EIP) . . . . . . . . . . . . . . . . 560
click-stream data . . . . . . . . . . . . 562
portal . . . . . . . . . . . . . . . . . . . . . . . 560
transactional
customer data . . . . . . . . . . . . . 561
dashboard . . . . . . . . . . . . . . . . . . . 560
pull portal . . . . . . . . . . . . . . . . . . . 560
web traffic analysis . . . . . . . . . . 562
data mart . . . . . . . . . . . . . . . . . . . . 569
push portal . . . . . . . . . . . . . . . . . . 560
data mining . . . . . . . . . . . . . . . . . . 570
real time . . . . . . . . . . . . . . . . . . . . 562
ch
ap
te
r
analytical customer data . . . . . . 561
R e v iew qu e st ion s
Sa
m
pl
e
1. Identify three ways in which new technology is changing the way in which businesses conduct marketing research.
2. Explain what an enterprise information portal (EIP) is, and how they are used in marketing research.
3. What is the difference between transactional customer data and analytical customer data? Provide an example of how
each type of data is used.
4. Illustrate how biometrics and smart cards can be used to provide businesses with information about their customers.
5. Discuss four of the unique features associated with IBM SPSS Dimensions 6.0.
6. Explain how the concepts of data warehousing and data marts operate in providing customer information to businesses.
7. Explain the differences between a push and pull portal environment as they relate to the communication of marketing
research results.
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 572
2011-06-11 3:58:32 PM
CHAPTER 18
I n f o r m a t i o n - d r i v e n t e c h n o l o gy a n d t h e r e s e a r c h p r o c e ss
573
D i sc u s sion qu e st ion s
1. Red Bull, the energy drink manufacturer, has asked you to prepare a brief outline on data they could
use to better serve their customers. They have specifically asked you to identify what transactional
data you would recommend they use, as well as what analytical data they should collect. Identify
these data sets for Red Bull and provide them with your reasoning for making your data selection.
2. Provide a brief description on how a social network like Facebook could be used as a method of
data collection for a cosmetics company such as Cover Girl. What type of customer information
could Cover Girl collect from users of Facebook?
3. It has been noted in the media that some employers review the Facebook pages and Twitter to
screen applications of potential employees. Is this ethical? What precautions should users of
Facebook take?
E xerc i s e s
1. Go to the Technorati website (http://technorati.com) and identify five blogs that could be used for
marketing research purposes. In your discussion illustrate why you chose the particular blogs and
what information you could possibly obtain from them. Conduct a key word search to see what
people are saying about the cities of Perth and Paris.
2. Go to Facebook.com and view some of the profiles that are available. After viewing these profiles,
develop a brief discussion on how Facebook could operate as a platform for a focus group discussion.
3. Tourism Australia’s fan page on Facebook, which was launched in 2008, now has more one million
fans who are sharing their love of Australia with the world. Go to the Facebook page of Tourism
Australia. Do you think that it is a good page? What is the role of Facebook for a destination such
as Australia?
CASE STUDY 18.1
WHAT CONSUMERS (WILL) WANT
pl
e
ch
ap
te
r
through an open call. So, instead of hiring futurists to
speculate on the coming needs of consumers, GfK allowed
a sample of consumers to let their imaginations run free
and talk about the kinds of innovations they wanted to see
within the coming five years. GfK organised a web portal
that enabled a selected panel of consumers from diverse
backgrounds to express the most sought after innovations
in communications technology. At the top of the list
was an all-in-one device that integrates payment, keys
and other gadgets into typical smartphone functionality.
Second came slim devices, where the interface would be a
clear, thin screen that could be disposable. A translation
application that could run simultaneous interpretation
on the go via speaking into a microphone came third.
Another popular suggestion was a music-sharing device
that would allow users to share what they’re listening to
with other users near to them, by streaming their music
Sa
m
Anticipating wants and needs is one of the hallmarks
of new product development (NDP) and one of the key
tasks of market research. Understanding your consumers
and developing products that they are likely to purchase
remains one of the greatest challenges of market research
agencies, which are constantly on the search for new ways
to capture the imagination and fantasies of shoppers.
GfK Research is one the world’s leading market
research agencies, with distinct competencies in how
to develop and utilise technologically savvy research
methods. Headquartered in Germany, and with operations
in over 100 countries, GfK understands the importance of
tapping into the minds of consumers in order to help
companies develop new products that will succeed in
the marketplace. To gain such insights, GfK has been at
the forefront of ‘crowd-sourcing’, which is the process of
outsourcing tasks to a large group of people or community
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
continued
Hair_Chapter 18.indd 573
2011-06-11 3:58:32 PM
574
PART 6
M arketing R esearch S tep 6 : M anage customer value w ith marketing research
CASE STUDY 18.1 continued
wirelessly. Finally, a hologram mechanism that could
produce a projection of the handset display, or virtual
video, completed the list.
The research team at GfK took the innovations and
ran them through the GfK TechTest, which gauges
the likelihood of a new technical concept to function
with available technology as well as its potential in the
marketplace. The TechTest uses panels of consumers to
evaluate the new product concept. The all-in-one mobile
device turned out to be the most viable out of all the
products, based both on willingness to adopt among
consumers and the availability of required technology.
Early adopters were most inclined to purchase such a
product if available on the market. The test also revealed
that men were specifically enthusiastic, having to carry
around less in their pockets being the key motivator.
The benefits of using crowd-sourcing as a form
of ‘co-creation’ in NPD is often underestimated by
companies, which may be at risk of having a myopic view
of product innovation, focusing too much on existing
product lines. Laura Stockwell, a market researcher
at GfK, points out that crowd-sourcing is particularly
beneficial as it allows companies to invite consumers
to assist in identifying which products are believable,
actionable and desirable.
Questions
1. How does crowd-sourcing differ from conventional
forms of qualitative research, such as focus groups
or interviews?
2. What are some important issues to consider when
using crowd-sourcing, so as to avoid information
overload and completely unrealistic suggestions by
consumers?
3. It’s easy to see how crowd-sourcing could be used
when it comes to technical products, but how
about more creative products that involve less
tangible attributes, such as services?
4. Is crowd-sourcing something that all industries
should be using?
References
L. Stockwell, ‘Co-creation and crowd-sourcing: a powerful tool
for NPD’, GfK TechTalk, 22 February 2011, available at www.
gfktechtalk.com/2011/02/22/co-creation-and-crowd-sourcinga-powerful-tool-for-npd, accessed 14 March 2011.
CASE STUDY 18.2
pl
e
ch
ap
te
and digital diary solutions to Fortune 500 firms, global
market research organisations, and government and
academic institutions all over the world.
With the recent launch of their new product SODA,
which stands for ‘Survey On Demand Application’,
Techneos is taking the lead in redefining the way
consumers take part in market research. SODA
enables consumers to complete surveys directly on
their mobile devices, whether an iPhone or an Android.
Using an on-device application, SODA is able to deliver
sophisticated data collection technology without forcing
the user to go online through a web browser or via SMS.
The application can be downloaded from sites such as
Apple’s AppStore directly onto your phone. It also allows
market research firms to take advantage of GPS services,
which are becoming standard on all smartphones today.
A browse through Apple’s AppStore reveals a growing
Sa
m
With the smartphone revolution, online marketing is
becoming mobile, making its way into our pockets and
purses on the go through our iPhones, Androids, Nokia
Symbians and so on. According to AC Nielsen, a provider
of market information, 43 per cent of Australians now
own a smartphone, and with the advent of new media
tablets such as the iPad and the Samsung Galaxy Tab,
which enable a more on-the-go friendly experience, PC
sales may start to drop, according to a recent story in the
Sydney Morning Herald.
The next step in online market research may be
the integration of market research technologies with
mobile technologies, like smartphones and media tablets.
Techneos is a technology-based market research company
that specialises in online applications for mobile use.
Founded in 1995, it provides mobile survey tools as
well as customer and enterprise feedback, ethnography
r
MARKET RESEARCH APPS IN YOUR POCKET
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 574
2011-06-11 3:58:33 PM
CHAPTER 18
Information-driven technolog y and the research process
number of market research applications, ready to be
downloaded and used on the go.
Before the ‘Internet Revolution’, conducting market
research required time and patience, as surveys had to be
sent out physically, often resulting in poor response rates.
With the mobile revolution, the collection of information
has been taken to the next step, with more and more
consumers in developed countries having access to
mobile technology. The penetration of market research
tools into the pockets of consumers has some great
research potentials. As an example, by downloading a
SODA-powered market research app, a consumer can use
his or her smartphone to scan the barcodes of purchased
products. This information can then be immediately sent
to the commissioning market research agency, which can
then further analyse the consumer’s location using GPS,
the time of day and other relevant purchasing patterns.
In the past, similar research required the lending of
scanning devices and was more time consuming, as
consumers rarely carried the device with them.
The SODA application has been received with great
enthusiasm in the broader market research community. In
March 2011, Techneos announced the launch of the latest
version of SODA, which enables audio and video capture
thereby facilitating interviews and other types of qualitative
market research. Dave King, CEO at Techneos, emphasises
the importance of mobile apps in market research:
‘Delivered effectively, mobile apps are an appealing way
575
to capture qualitative and quantitative research data at
the point of experience, rather than to use another means
which relies on a person’s memory.’ As consumers become
more technologically savvy, innovative market research
agencies are beginning to reap the benefits.
Questions
1. What are the benefits of mobile application
technology in relation to market research?
2. Give examples of the kinds of research that could be
retrieved using GPS on mobile devices such as the
iPhone or Android phones.
3. When online presence is effortless through GPS
technology, are there any privacy concerns that may
be raised from a consumer perspective?
References
‘Australia getting more social online as Facebook leads and
Twitter grows’, Nielsen Wire, 23 March 2010, available at
http://blog.nielsen.com/nielsenwire/global/australia-gettingmore-social-online-as-facebook-leads-and-twitter-grows,
accessed 14 January 2011.
J. Cross, ‘Techneos adds barcode scanning & video capture
on android & tablets’, 1 March 2011, techneos, available at
www techneos.com/newsandreviews/techneos-adds-barcodescanning-video-capture-android-tablets, accessed 13 March 2011.
‘Tablets taking bite out of PC sales’, Sydney Morning Herald,
30 November 2010, available at www.smh.com.au/digital-life/
computers/tablets-taking-bite-out-of-pc-sales-2010120118fqs.html, accessed 13 March 2011.
Back Yard BBQ and technology
Hands-on exercise
pl
e
1. Which new technology developments are likely to
impact the restaurant industry the most?
2. In your opinion, which two technological developments are most likely to help the owners of Back yard
BBQ research ways to improve their business? Explain
your choice.
Sa
m
The owners of the Back Yard BBQ have met with
their marketing research consultants. The consultants
reviewed with them the ways new technology is impacting marketing research and particularly how restaurant
industry operations and marketing are changing as a
result of this new technology. The ideas and information the consultants shared with the owners very much
reflected the chapter discussion you have just read. Since
you have studied this material, the owners would like
your input on how to use new technology in marketing
research to improve their restaurant.
ch
ap
te
r
Marketing Research in Business
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 575
2011-06-11 3:58:34 PM
576
Par t 6
Manage customer value with marketing research
Not e s
Sa
m
pl
e
ch
ap
te
r
1. ‘The Net’s Good Fortunes’, Wired, March 2004, p. 57.
2. Gabriel Kahn & Cris Prystay, ‘Charge It, Your Cell Phone Tells Your Bank’, The Wall Street Journal, 13 August
2003, p. B1.
3. Anne Chen, ‘Harrah’s Places Its CRM Bet’, www.e-week.com, accessed 13 April 2003.
4. ‘Harley-Davidson on the Path to Success’, www.peoplesoft.com, accessed 13 April 2003.
5. Ulric J. Gelinas, Steve Sutton & Jane Fedorowicz, Business Processes and Information Technology, Thomson learning, Cincinnati, OH, 2004, pp. 69–71.
6. ibid.
7. ‘Telstra digs down under data with SAS® to improve customer experiences’, SAS Institute Inc., www.sas.com/
success/Telstra2010.html, accessed 4 February 2011.
8. ibid.
9. Ian Grayson, ‘Business intelligence software keeps Centrebet on top of its game’, The Australian, 26 July 2005,
reproduced on www.sas.com/success/centrebet.html, accessed 4 February 2011.
10. K. Jain, P. Flynn & A. Ross (eds), Handbook of Biometrics, Springer, New York, 2007.
11. Australian Immigration News: ‘Biometrics to strengthen Visa and Immigration security, 9 December 2010’,
www.migrationexpert.com/australia/visa/australian_immigration_news/2010/dec/0/396/biometrics­_to_
strengthen_visa_and_immigration_security, accessed 4 February 2010.
12. David Utter, ‘Biometrics comes to disney World’, 1 September 2006, www.securitypronews.com, accessed 3
April 2008.
13. ‘Qantas—The next-generation premium airline’, 11 November 2009, http://www.qantas.com.au/travel/­airlines/
next-generation-airline/global/en, accessed 4 February 2011.
14. ‘Web surveys target too few, leading software firm says’, SPSS Press Release, 24 July 2007, www.spss.com,
accessed 10 April 2008.
15. Gillian Ramsay, ‘How the hell did we get here?’, Research News, September 2007.
16. Kerry Sunderland, ‘The brain whispers’, Research News, February 2010.
17. www.netfluential.com/qual, accessed 17 April 2008.
18. www.technorati.com, accessed 17 April 2008.
19. ‘VNU Unites BuzzMetrics, Intelliseek’, 18 January 2006, www.cymfony.com/news, accessed 17 April 2008.
20. ‘Emerging mobile pursuits: the future of mobile media consumption’, March 2008, www.neilsen.com/­
consumer_insights, accessed 3 April 2008.
21. ‘Surfing with Sega’, Forbes, 4 November 2002, p. 58.
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 576
2011-06-11 3:58:35 PM
r
ch
ap
te
pl
e
Sa
m
The material is for promotional purposes only. No authorised printing or duplication is permitted. (c) McGraw-Hill Australia
Hair_Chapter 18.indd 577
2011-06-11 3:58:35 PM