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Primary Market Research

Market Data Model

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Overview:

• What do we communicate?– Expected, exciting, revealed information

• Kano 2-dimensional survey– Questions, scale, examples

• Applications– Product planning, focus groups, surveys

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What We Communicate• We expect that people who share common experiences and

history also share common information about those experiences. Common knowledge allows us to communicate clearly yet efficiently.

• At work, school and at home our discussions tend to be concrete, focused, practical, and real-world oriented; informing people of activities, objectives, status and plans. Only with the right people, in the right circumstance will we talk about issues that excites us – our hopes and dreams, wild and impractical plans.

• Dr. Kano’s research provides insight into the tools used to gather market data, the information obtained with these tools and our interpretation of this information.

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Expected Characteristics• Roughly:

– “Common sense,” “common knowledge,”– Too obvious to talk about unless asked– Basic features necessary for product acceptance

Example: Customer comment during a focus group, “I’d use it on my stove.” The customer expects (but may not say explicitly) that the device won’t burn or melt during use

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Revealed Characteristics• Roughly:

– “Practical,” “reasonable,” …– Everyday topic of discussion– Incremental refinements to a product design

• Example: an elderly chef reveals that a larger handle, shaped to their hand and constructed of yielding material would reduce fatigue and discomfort (e.g. OxoTM kitchen products)

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Exciting Characteristics• Roughly:

– “Radical,” “unknown concepts,”– Too outlandish to talk about unless asked– Radical innovation for new product concepts

Example: business people were asked if being able to point a small spot of light across the room would be useful. They were excited about using such a device for presentations (e.g. Laser pointer – new application for laser diodes)

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Practical Considerations• Do perceptions of whether a characteristic is expected,

revealed or exciting change over time?• Yes – power assist brakes, voice post-its and self-cleaning

ovens used to be exciting - now they’re expected

• Do perceptions of whether a characteristic is expected, exciting and revealed differ from person to person?

• Yes – knowledge, needs and experience shape each person’s perceptions. This question is closely related to the issue of market segmentation

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Practical Considerations• Is there a systematic, reliable way of to identify

characteristics as expected, exciting or revealed?• Yes – Dr. Kano developed a “two-dimensional survey”

that works very well.• What is learned from Dr. Kano’s research?

– Theoretical basis for the use and development of focus groups, surveys, interviews, etc.

– Improved primary market research, product planning, service delivery, etc.

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Kano Survey Questions• Kano’s 2-D survey uses question pairs of the form:

– “The product HAS feature X. How do you feel?– “The product LACKS feature X. How do you feel?

• Kano 2-D survey is constructed from two 1-D surveys • Kano survey scale is typically:

– “I like it”– “It should be that way”– “I don’t feel anything”– “There is no other choice”– “I don’t like it”

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Analysis Matrix    “Product” LACKS Feature. How Do You Feel?  

    Very Satisfied Satisfied Neutral Dis-

satisfiedVery Dis-satisfied

“Product” HAS

Feature. 

How Do You

Feel?

Very Satisfied N/A Exciting Exciting Exciting Revealed

 

Satisfied Minus N/A Little Interest

Little Interest Expected  

Neutral Minus Minus Little Interest

Little Interest Expected  

Dis-satisfied Minus Minus Minus N/A Expected

 

Very Dis-satisfied Minus Minus Minus Minus N/A  

            

Row Sum

Column Sum

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Examples

• “The Airline Hostess” (Revealed)• “The Voice Output Thermostat” (Exciting)• “Quick-Release Wheels” (Expected)

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Customer Centered Design• Product planning tools (e.g. Quality Function Deployment)

systematically integrate marketing, engineering, design, … information and perspectives

• Driven by product requirements and the importance of these requirements to customers

• “Product requirements” - features, performance, appearance, operation are obtained through customer focus groups and interviews

• “Requirement importance” is obtained through customer surveys

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Product Requirements• Expected Requirement

– Basic and necessary, features and capabilities– Product fails in the market if an expected requirement

missed

• Revealed Requirement– Incremental/evolutionary product refinement– Maintain or grow market share

• Exciting Requirement– Revolutionary product innovation– Great business opportunity, rapid market growth

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Focus Groups• Expected and exciting issues are often

unspoken during a focus group unless a specific question is asked. Revealed issues can still be overlooked on chance

Implication:1. Market and technical research should be conducted to identify

candidate (expected, exciting, revealed) issues2. Focus group scripts should be prepared based upon this

research3. Focus group moderator should refer to this script in order to

ensure that “all” exciting and expected issues are probed

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SurveysMarket research and product planning typically employ 1-dimensional surveys that are inherently misleadingImplications:

1. 2-dimensional surveys should be considered when establishing the importance of product requirements

2. 2-dimensional surveys should be considered when establishing market interest or preferences

Not quite this simple - many other issues beyond the current discussion…

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Related Issues

Questions, Comments, Suggestions