52% — of Americans say they have permanently changed their attitudes regarding the importance of saving money

42% — of Americans are looking forward to being able to spend freely again

59% — of Americans who said they are going to do their best to not go back to the way they spent before

For more information, visit www.synovate.com/insights

And research-based projections from another company, Decitica:

There will be four distinct consumer segments “after the smoke clears” from the recession:

• Involuntary Penny-Pinchers (29%) have been severely affected by the recession.  They are mainly made up of households with less than $50,000 in income.  Their behaviors now reflect those of the Steadfast Frugalists – but they don’t revel in it like that group.  Only 17% find buying store or generic brands satisfying as opposed to 59% of the Frugalists.  They are, however, the group that admits to being most scared by the recession.  They are 87% more worried about the future than the other groups.

• Steadfast Frugalists (20%) are committed to self-restraint, engaging in prudence with enthusiasm.  80% of these folks say the behaviors they have adopted will likely stay with them for a long time.  29% consider themselves “tightwads”.  They are least brand-loyal and most likely to discount marketing messages.

• Pragmatic Spenders (29%) are consumers whose income has blunted the effects of the recession.  Only 28% of them feel the recession has changed what and how they will buy in the future.  They are more likely to be over 60 and from the Northeast or West.

• Apathetic Materialists (22%) seem least changed by the recession.  They have not embraced the new frugality to the same extent as the other groups and get minimal satisfaction from frugal behavior. The group has more men and younger consumers than the other groups.

There have been quite a few economic downturns over the past 20 years.  Not as bad as the current one, maybe, but they shook us up, too.

Each time as the economy recovered, some companies bounced back better than others.  When they were asked how they navigated the economic storm so well, the companies inevitably said they used the time during the downturn for two things:

• Training their staff  

• Getting to know their customers better

 When the economy began to recover, they were ready on all fronts.

Getting To Know Them

Do you need to know your customers better?  Do you know what your customers think of your company, what they think you are doing well and what could use some attention?  Do you know whether/how often they turn to competitors rather than your company? 

Is it time to review your Customer Satisfaction research? 

– We don’t do Customer Satisfaction research.  There’s never been a better time to start.  It can be one of the least expensive types of research – and you can often use results immediately to make positive changes!

– We do a study every few years and it’s not time.  Changes in the past year may be a good reason to consider varying from your schedule.  A lot has changed in the world. Do you know if your customers’ attitudes toward your industry/your company are among those changes?

– We do customer comment cards, but we don’t get many back.  Either your organization is “perfect in every way” or the program has gone stale.  Maybe it is time to take a look at the program and how it is being implemented to see if it can be made more vibrant and actionable.

– We only have a few customers.  Some B2B clients have told me this.  If you already feel you know your immediate customers well, perhaps offering to partner with them on a Customer Satisfaction study of their customers might be useful for both of you right now.

Everyone has customers.  It never hurts to think about what you can do to keep them or improve your relationship with them.

Let’s discuss your customer satisfaction research needs and affordable options that you may want to consider.  I will be glad go over your current program with you without cost.

Jacquelyn Nerren

Marketing & Research Counsel

1960 N. Parkway, Suite 1206

Memphis, TN  38112

 901-725-1728             

 nerrenj@bellsouth.net        

 www.jackienerrenresearch.com

Now everyone is thinking more about personal spending — and companies are in full “recession” mode.

When this kind of economic trouble strikes, the instinct of most companies is to cut costs. Traditionally a substantial percentage of the cuts come from the marketing budget, including the research budget.

There’s no way to say this without sounding self-serving – I’m in the research business, after all. But it still needs to be said. Stopping research during a major economic change is one of the biggest mistakes that companies make.

Every economic change in recent history has resulted in a change in consumer attitudes toward spending. It is during tough times that consumers are forced to make decisions about what really matters to them. When they can afford to do less, to buy less, to consume less – it is especially important that companies stay on top of not just what they choose, but WHY they choose it.

A few of the notable changes in consumer attitudes that happened during downturns and affected the marketplace permanently:

• “I deserve it” – the substitution of little luxuries for big ones. Certain candy companies, for example, were poised for this one. The others had to play catch up.
  
  
• Experiences vs. more “stuff” – it was economic downturns that fostered the desire for “you can’t take that away from me” experiences (like adventure travel, family cruises, eco travel). This mindset has been particularly prevalent in the baby boomers, who have lived through repeated economic cycles.
  
  
• Yearning for safety. This product of economic hard times spawned “cocooning” – and the market for home renovations and additions as well as certain types of furnishings for the home.
  
  

What new consumer attitudes will this economic downturn bring? Will your organization be ready to act on newly developed needs and feelings? Customer intelligence is key to customer loyalty now and after the economy improves.

Let’s discuss your research needs and affordable options that you may want to consider.

A. A little post-college review may help:

Qualitative research is done to reveal feelings and emotions connected with certain stimuli (using a particular product or service, seeing a particular ad or concept, etc.). Focus Group Discussions of various types, One on One Interviews (in person and telephone), Situational Interviews and Ideation Sessions are the most-used qualitative techniques.

Quantitative research is done to reveal behavior and/or descriptive information. Its purpose is to get some type of count — for example, size of target audience, average age of customers, etc. Surveys by telephone, mail and on the Internet are the most used quantitative methods.

Something you probably did not learn in college — there are many hybrid research projects, combining elements of both qualitative and quantitative research. They are usually done to get both feelings/emotions and counts. Done carefully, they can work well in certain circumstances. Examples would include Advertising Copy Testing, having respondents complete written surveys before or during Focus Group Discussions or asking for in-depth, open-end reactions (why do you say that?) on a mostly quantitative study.

Do you have a comment or a research-related question? Forward it to me for future FAQs!

A. I divide Focus Group Discussions into two types, although there is often some crossover:

Traditional Focus Groups – These are the more straightforward, question-oriented groups. Usually there is a “warm-up,” then the concept, idea, situation or product is presented to the group for their reaction. A neutral moderator who probes for issues of interest and follows up on interesting or relevant comments made by the participants guides all of this. The key factors to successful traditional groups are:

• Clearly defined research issues
• Experienced moderator who understands the issues at hand/decisions to be made
• Diligent recruiting

Projective Focus Groups – Projective Groups bear a resemblance to traditional Focus Group Discussions in that they are informal, subtly structured conversations on a specific subject lead by a neutral moderator. They differ in the methods used to explore thoughts and feelings about the subject, and in the emotional depth that can be reached using these methods. Projective Groups rely more on indirect questioning and strongly emphasize the interpretation of group input.

Some of the techniques that may be used in Projective Focus Groups include:

• Collage-building
• Brand personification
• Guided Journey
• Pictorial symbols

Projective Focus Groups are used extensively in exploring brand image and development of creative concepts for products/services and advertising. A few of the questions addressed in Projective Focus Groups have included:

• Is this the right name for the product?
• What feelings are evoked by our brand? By the competitor?
• What mood should our advertising and collateral material invoke?

Do you have a comment or research-related question? Send it to me for future FAQs!

A. One-on-One Interviews (often called “IDIs” or Individual Depth Interviews) can be more effective than Focus Groups in several situations:

• When you don’t want one or two group members to bias others — This is the reason IDIs are often used in advertising testing. In the “real world” people usually react to advertising individually, not in groups.
• When the subject is intimate — I have used IDIs to explore ideas about and emotional issues related to such subjects as cosmetic surgery and feminine hygiene products.
• When the subject is controversial or extremely provocative — When the subject is political, sexual or both, IDIs are the answer.
• When it would be difficult or impossible to gather together a qualified group of respondents — Sometimes clients, particularly in business-to business applications, would love the give-and-take of Focus Group Discussions with their customers. But the people who would be qualified for such a group are scattered all over the country. In this situation, the interviewer goes to them one-on- one. These can sometimes be done by telephone.

There are a few cautionary notes in doing IDIs. These will be outlined in the next FAQ (#4).

Do you have a comment or research-related question? Send it to me for future FAQs!

A. The majority of calls I get from prospective clients start out with “Let’s do some groups.” At least one-third of them wind up doing a different type of research after we spend some time talking about what they need to find out.

Why are Focus Groups and IDI’s so popular? They are a very visible, hands-on technique. Clients can be right there, see their customers and hear them react in person, tweak the questions (or the new product, ad, etc. being tested) between groups. For most marketers, this is much more exciting than reading a research printout.

But although Focus Groups and IDI’s can provide high-quality input for many marketing applications and decisions, there are situations in which they are not the “right thing” to do.

The most important is when numbers are needed. Focus Groups and IDI’s don’t provide any projectable numbers. So, if there are questions of demographics (what is the average age/income/education level/etc. of our customers?) or segment behavior (how many of our customers use liquid hand soap?), a different type of research needs to be explored.

Do you have a comment or research-related question? Send it to me for future FAQs!

A.There are several ways to do this, depending mostly on how finished your ad concepts are.

I recently used Focus Group Discussions to test three possible campaigns for an existing product. Each of the campaigns had two executions, all fairly finished marker drawings. The purpose of the research was not to pick one of the three, but to generate as much learning as possible about what the three campaigns were communicating to the target audience — and how the target audience felt about what each of the ads said to them.

The six executions were shown to them one at a time, with respondents receiving a color copy of each one. Before saying anything aloud, they were asked to mark those elements that they liked and disliked on the ad itself (their own copy of it) and to answer a few written questions about the execution. After they had done this, the executions were discussed by the group.

The written exercise was included in order to allow each respondent to experience the ads on his/her own before there was “crowd comment” about them. If this isn’t done, those people who particularly like or dislike an execution can strongly affect the others whose opinions aren’t as quickly formed or strongly held. When each has committed their own thoughts and opinions to writing individually, the respondents are more likely to make their own individual opinions heard.

Do you have a comment or research-related question? Send it to me for future FAQs!

A. I have conducted groups all over — including at a kitchen table in a farmhouse outside of Chattanooga, school libraries in several Minnesota towns, a hospital doctors’ lounge and a barbecue restaurant in North Carolina.

But all of these were necessities. Given the opportunity to use a professional facility, I will go with it every time. Some of the reasons:

• Keeps the client confidential and respondents less biased — You can’t do this if it is in your conference room. And even if we were going to tell them in the group who the client is, the fact that they are actually on client premises may affect response.
• Provides less intrusive viewing opportunity — Unless your conference room has a two-way mirrored wall, it is hard to match this.
• Is less distracting to respondents — Focus Group facilities are designed to be neutral (wall colors, furniture, lighting, etc.). Your office probably is not.
• They do this every day — Professional Focus Group facilities are prepared for groups. They know how to greet them, keep them separate from clients and others, discreetly dismiss unqualified (”my wife couldn’t come so I came for her”) and non-sober (it happens more than you would think) respondents. They have audio and video equipment already set up and tested. They have those great mirrored walls…

Focus Groups done correctly look easy. Not until you decide to set them up on your own do you learn to appreciate what really goes into them at all levels.

Do you have a comment or research-related question? Send it to me for future FAQs!

A. Since I have been writing mostly about Focus Group Discussions and qualitative research, my answer may surprise you. But in this situation, the first thing I would do is set up some type of quantitative Tracking Research.

I define Tracking Research as research that is conducted in a regular pattern (interviews every day, week, month or even several times a year at pre-planned times) with most of the questions remaining consistent and space reserved for a few “changing” questions.

The possible methodologies for Tracking Research are endless (you can do it by telephone, on the Internet, by mail, at random, with customers only, with customers and prospects, etc.) and depend on your information needs and just how limited your budget is.

Advantages of Tracking Research are clear:

• You can spot changes or trends early on because you are always monitoring your marketplace.
• You always have research in the field, so you will have information quickly about changes in the marketplace (if two competitors announce a merger, you are likely to have market reaction to it before they do).
• You are already in the field, so to add a few questions checking out a new product or strategy (your own or competitors’) is simple.
• You can budget for the whole year in advance and usually spread out payments throughout your budget year.

Do you have a comment or research-related question? Send it to me for future FAQs!