Market Research and Customer Development

Question 1

What is the purpose of Market Research?

Answer 1

Finds out the What and Why through?

• Observing the 5Cs
• To adjust the Strategy Plan or STP
• And the 4Ps

Question 2

Goals of Market Research is

Answer 2

1. Find a great customer by understanding customer preferences
   - Psychological -Sociological -Economic
2. Predicting -Marketing Science and Analytics
3. Understand the three external Cs
   - Competition -Climate -Collaborator

Question 3

Formal Research Consist of?

Answer 3

Observation (purchase/search behavior)
-Analysis of purchase data
-lends to sophisticated analysis
-Cannot generate casual or why
Experimental
-Artificial, controllable
-Can generate casual insights

Question 4

Formal Research Con’d

Answer 4

Survey
-wide range of issues
-cheap
-no causal insights
-not sound for data quality
Focus Group
-Rich descriptive data that helps flesh out details
-cannot generate casual insight
Long Interviews
-deep insights into why
-small samples
-costly

Question 5

Two Popular Formal Methods of Research are?

Answer 5

Concept testing
-offer various concepts and ask purchase
-tells the viability of an idea
Conjoint Analysis
-Offer product bundles
-The tradeoff pattern reveals what they truly value
-Difficult to do for very complex products

Question 6

What is Market Research about?

Answer 6

5C’s (consumer, competitor, collaboration, company, climate)

Question 7

Are all customers equal

Answer 7

No, customers vary on many things that bear on their WTP and Cost

Question 8

Profitability from Customers

Answer 8

• Profit Margin on each transaction
• Repeatability of transaction
• Cost of acquiring
• Customers WTP overtime

Question 9

What is Customer Life-Time Value

Answer 9

Customer Life Time Value = Present value of sum of all possible firms share of value surplus in the transactions with the customer.

Question 10

About retention

Answer 10

Retention is generally superior to acquisition

Question 11

Two ways of increasing customer life time value is?

Answer 11

1. Increase retention
2. Increase engagement
   - Varity of transaction in a given time.
   ex. a cable company starts providing phone, internet, security and other services.