Thursday, July 19, 2012

Innovation- Academic- Beyond the Voice of the Customer


 

Purpose of Article
            Traditional approaches for customer involvement in new product development such as surveys, focus groups and interviews have proved they offer limited information at identifying the customer’s needs. With interviews, the customer may feel uncomfortable in this style of questioning causing them to not understand what their needs really are. Focus groups may offer improvements to existing ideas, but because of the seclusion of the group, breakthroughs are unlikely to happen. The article states that one of the most promising approaching to resolving the disadvantages of traditional approaches is the use of ethnographic market research, which uses the ideas of ethnography.  This article reviews four cases from the sectors of manufacturing and services, the key elements of ethnographic research, and the implications for managers.

Key Findings
            By conducting ethnographic research, reveals the consumers rational and emotional attitudes towards the existing products that the company currently offers. Problems were identified with production line employees and found that there needs to be a more custom-made product to fit unmet needs. Using systematic observation by observing families with allergy problems, the researchers for the company were able to develop a new product line. The two companies conducting the research study focused on service products and planned to improve their existing products. Interviews were conducted which gave a better understanding of how the consumer felt about the service and the strength of their intent to purchase was. By visiting potential consumers at their home, provides a clearer understanding of the individual characteristics of the people who use the products and services which will help generate new market segments. The survey interviews mainly led to the way the products and services were marketed, but also led to product redesign. The interviews were proven to pay off because both companies had generated more profits by repositioning and redesigning the services that were struggling. The article also stated that further ethnographic research, such as systematic observation, can be conducted to better understand the new products that can be developed. 

Implications for Managers
 Although the study conducted claimed that there are financial benefits for a company to use ethnographic research for new product development, I believe that the costs associated with this type of research would outweigh the benefits. Firstly, I agree that personal interviews can reveal the most information about the consumers’ view of the product or service, but I believe it is too time consuming. Time consumption has a value, and I think if it takes too much time then therefore it will be too expensive. A consumer can only give you so much information in a short period of time, so there really is a ceiling of ideas that a company can generate from these types of interviews. The article also mentioned how the company that would conduct the interviews could potentially be outsourced which creates another problem when connecting the actual brand to the consumer. I think that most breakthrough product ideas come from employees on the inside of a company. I think that if a company seeks new product ideas, it is best they seek information from individuals from the inside rather than the outside. 

Reference :  Beyond the Voice of the Customer :Ethnographic Market Research
by: Keith Goffin, Claus J. Varnes, Chris van der Hoven, and Ursula Koners

3 comments:

  1. I think that if the company is willing to go through so much to provide better quality to their customers and profit off of their findings, they need to continue doing what they are doing. They are providing better services to their customers and in turn will continue to benefit.

    I respect your opinion that if a company seeks new product ideas, it is best that they seek it from individuals from inside rather than the outside. However, if you're seeking to meet the needs of your consumers I think that you need to do all that you can to identify with them.

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  2. Thanks Michelle for your opinion. That is an interesting viewpoint, because it is true the customer is very important. But I feel that a company sometimes forgets there there are also great ideas generating at lower levels of the company that they fail to acknowledge. If they could find a cheap way to have a representative of the company interview several people in a public place, such as a mall, I think it would be more effective as they would not feel put on the spot. It also would be cheaper, because they would be able to interview several people at once.

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  3. It is very interesting how far can a company go to satisfy the needs of their consumers. Based on the article and what Michelle P. suggested that it would be expensive for a company to seek interview of each individual. However, consumers tends to be more honest about their opinions then an employee who have to watch his or her environment before really giving an honest opinion.

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