India is a diverse country having 29 States and seven Union Territories covering more than 600 districts, roughly 8,000 towns, and more than 0.6 million villages. The villages are spread over 3.2 million square kilometres supporting 65% of India’s total population. There is vast heterogeneity in population characteristics due to socio-cultural factors, caste-based divisions, and religious and linguistic diversity.
Specifically, in the Indian context, ensuring data capturing, and research methodologies are amenable to different languages, literacy levels, and differentiated access/familiarity with the internet is critical.
For the above reasons, research and data collection become a challenging task and calls for a robust and representative methodology to mirror India’s diversity.
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Key Challenges in Research & Data Collection
Given India’s cultural and geographical diversity, some of the critical challenges for marketers and researchers in designing a survey for rural India are listed below:
1. Reach: As per Census 2011, nearly 58 percent of India’s rural population resides in 115,080 villages having a population of 2000+. This effectively means that roughly 80% of the total villages in India are small or very small in size, inhabiting less than 2000 people. Looking at tapping rural markets, last mile connectivity with end consumers is a big challenge for FMCG players. Similarly, reaching the vast network of 33 million retail outlets in rural India is a challenge for companies, given the high distribution cost. Therefore, focused, and targeted reach is a priority in accessing rural markets. The survey design needs to factor in this critical consideration when designing the scope of research and sampling methodology.
2. Commercial Viability: It is estimated that 85,000 large villages in India account for 40% of the total population and 60 percent of the total consumption of FMCG categories. The skewness in demographic profile and purchasing power further limits the scope to cover the whole of Rural India for reasons of commercial viability.
3. High degree of heterogeneity: “A one size fits all approach” does not work well when designing a survey or methodology for rural India. For example, poor and backward States like Bihar, Uttar Pradesh, West Bengal, and Madhya Pradesh have more than 75-80% of their total population living in rural areas, whereas urbanized States like Tamil Nadu, Maharashtra, and Telangana and more equitable in terms of distribution. Therefore, each State has its unique demographic and socio-cultural profile, which must be kept in mind while designing the sampling methodology in any primary research survey.
4. Gender Inclusivity: Females are vital consumers and influencers of product categories in Rural India, but men are likely to be key purchasers. Therefore, “whom to interview” becomes a pivotal question to answer while designing a survey.
5. Linguistic Diversity: India has 22 official languages besides numerous local languages, dialects, and colloquial words. Therefore, linguistic compatibility becomes essential for survey administration in Rural India.
Methodologies for Rural Research
Some factors merit consideration while designing a methodology representative of the diversity of Rural India and are listed below:
Regional Representation
Adequacy of Sample Size
Defining “Rural” and therefore a selection of villages
Other Imperatives
1. Regional Representation
In a vast and diverse country like India, robustly researching rural consumers requires reflecting heterogeneity and ensuring representativeness. For example, people in the North have attitudes and behaviours that are distinctly different from the population in the South. Similarly, other regions also have socio-cultural nuances that often colour their opinions and attitudes, especially on sensitive issues.
Therefore, selecting Socio-Cultural Regions or SCR-s is often the starting point to decoding rural consumer behaviour. The regions make it easier to contextualize people and their behaviour for prevalent agrarian practices, social and cultural nuances, and crop-season-driven income and consumption patterns.
2. Adequacy of Sample
The population spread for different States in India varies a lot. For example, the most populous State, Uttar Pradesh, accounts for almost 15% of India’s population. On the other hand, the tiny State of Goa accounts for less than 0.5% of India’s population. Therefore, in a pan-India or multi-State survey, stratification of a sample by State becomes essential. Generally, States are categorized into different population bands such as high population states, medium population states, and low population states. The sample is then fixed for each band in terms of their population size to ensure adequate representativeness.
The sample size would also depend on other factors such as the granularity of data required within a State, and heterogeneity of population characteristics within a State et al.
3. Defining Rural
The Census of India defines a rural village as a settlement that has the following three characteristics:
A population of fewer than 5,000 people
<75 percent of the male population employed in non-agricultural activities and
Population density of fewer than 400 people per square kilometre
However, for commercial purposes, this vast and huge area coverage is logistically challenging to cover for any marketing company. Therefore, for practicality and feasibility, different definitions of rural are followed. For most companies, the “hub and spoke model” defines rural coverage as mapped to their distribution channels. They consider villages in the immediate vicinity or within a defined radius of the feeder towns. Last mile connectivity is a challenge for most companies in Rural India. Covering interior or remote parts of rural is not considered to be a viable option. Villages at the periphery of small towns/feeder towns that can be accessed easily become the “immediate” potential for targeting Rural India. This is also called the “Ringing Method” of village selection.
The above has a profound implication for researchers in terms of designing a suitable methodology and, more importantly, for deciding on an appropriate sampling methodology for the research.
4. Other Imperatives: There are a few other imperatives that one must be cognizant of while designing rural research methodologies:
o Permissions: Before any fieldwork in villages starts, it is crucial to approach the village head called the“Sarpanch”to apprise them of the survey and its objectives and take approval to conduct fieldwork. This is a formal authorization from the village head that they have been informed about the study and grant their formal permission.
o Village Map: You are required to draw a rough map of the village before the start of fieldwork to understand the village’s layout and the critical physical structures —like the hospital, school, panchayat office, temple, or any other place of worship. The team supervisor generally does this exercise with the help of a local person from the village, such as the sarpanch/ schoolteacher or any other elderly person. As the rural dwellings/ households in a village are not structured or follow a pattern (unlike the urban dwellings), the maps also help sample and select clusters/households in that village.
o Use of colloquial terms: Given the linguistic diversity of Indian States, specific phrases or words have colloquial interpretations. Therefore, for ease of understanding and comprehension of questions by the respondents, it is generally recommended that local phraseology is inserted into the instrument basis inputs from an informed local person such as the schoolteacher.
With the focus of multinational companies and marketers now shifting to rural consumers, rural market research in India will likely increase spending in the near future. It augurs well for market research companies to actualize this opportunity to sharpen their research methodologies with rural consumers in mind. At the same time, researchers should be mindful of some of the challenges of rural research, such as low literacy levels, low tech savviness, poor connectivity, and a heterogeneous population, while designing research methodologies for this group.
Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.
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The pace at which consumers are adopting EVs varies in different countries. This time, our local team members from across our Southeast Asia offices(Thailand, Indonesia, Philippines, and Vietnam) introduced the latest situation. Let’s catch up by watching the recordings below!
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Doing good doesn’t have to be at odds with profit. Organisations focused on their triple line in today’s marketplace will outperform their less socially conscious competitors.
So what is the triple line? And what does Corporate Social Responsibility (CSR) entail?
In economics, the triple bottom line (TBL) explains how organisations should commit to focusing on social and environmental welfare as much as they do on profits.
The triple bottom line theory asserts there should be three bottom lines: profit, people, and the planet. A TBL measures a corporation’s commitment to Corporate Social Responsibility (CSR), a self-regulating business model aimed at helping a brand become socially accountable to itself, its stakeholders, the public, and its environmental impact over time.
Reducing carbon footprints to avert the climate crisis, improving labour policies, adding employee welfare programs, embracing fair trade, and incorporating charitable giving are examples of ways brands can support CSR initiatives.
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Why is CSR important in your brand strategy?
The idea behind social responsibility is based on the concept of businesses doing good and balancing their profit goals with initiatives that benefit society and the environment.
Social responsibility is also good for business. Many brands focus on local, national, and even global philanthropic initiatives to attract consumers, making social responsibility a means of growing the brand.
Customers like to do business with socially responsible organisations and enhance brand equity by boosting their sales, profits, and goodwill. CSR activities allow companies to improve their reputation, positively impacting brand equity and value.
CSR also helps an organisation internally. Research led by Verizon and the Campbell Soup Company quantified the advantages of being socially responsible. The study showed how CSR lowers turnover by up to 50 percent, boosts team productivity by up to 13 percent, and enhances employee satisfaction by up to 7.5 percent.
Millennials and Gen Zers demand social responsibility from the brands they interact with
A survey of 30,000 consumers in 60 countries found that 66 percent of consumers were willing to pay more for brands with CSR initiatives that resonated with them or aligned with their values and beliefs.
Another study revealed that 87 percent of Americans would purchase a product based on the advocacy of an issue that resonates with them.
This is especially true of the younger generations, including millennials and Gen Z. In our recent report on Gen Z —the definitive guide, there are several examples of brands demonstrating social responsibility to attract this cohort of consumers who demand social and environmental responsibility from brands.
Why does this matter?
In 2020, there were 1.8 billion millennials worldwide, making them the largest generation cohort in recent times. Furthermore, with most of them employed, their spending power has dramatically increased over the past few years.
In 2021, overall spending by Millenials had also considerably increased because most wanted to make up for the time lost during the pandemic. This cohort is a self-indulgent group that also cares deeply about society and the environment.
According to a Deloitte survey in 2020, 60 percent of Millennials said they would be willing to support a business that takes care of its employees and positively impacts society.
It’s not just societal impact but also an organisation’s impact on the environment that matters to the younger Millennial and Gen Z cohorts.
Another critical factor is how brands lead diversity and inclusion. As detailed in our exhaustive Gen Z report on emerging beauty trends, today’s consumers, especially younger generations, demand brands to be diverse and inclusive.
It is worth noting that brands cannot mislead consumers and send out a social message that is not executed because these discerning consumers also expect authenticity.
Greenwashing, for instance, is a term that has gained prominence in recent times. The term refers to brands and organisations that say they are environmentally friendly, but in practice, they do nothing to protect the environment or actually harm the environment.
Marrying profits with purpose
Gone are the days when profit and doing good were mutually exclusive. Today, corporations are increasingly incorporating purpose into their brand strategy. Having a cause attached to an organisation is not just nice to have but a necessity. Governments worldwide have established mandates to ensure that big corporations are socially responsible.
In Asia, CSR-related investment is conspicuous in the major economies. While we see a global trend with businesses taking a more significant share of responsibility for social and environmental good, different nations approach CSR with varying levels of vigour and pace.
Let’s look at the American, European, and Asia Pacific countries where we have a presence to see how they approach CSR and corporate citizenship.
CSR initiatives are part of company law in China
A worldwide survey on millennials revealed that 83 percent wanted businesses to address social issues. In China, this percentage was higher at 92 percent.
Typically, CSR is considered a voluntary initiative; yet in the past few decades, we have seen the rise of CSR mandates worldwide that explicitly target corporations to include CSR programs.
One such country is China, where CSR initiatives are in Article 5 of the 2006 Chinese Company Law and explicitly require all Chinese companies to be socially responsible.
The Chinese government incentivises companies to incorporate social responsibility into their business practices.
In 2014, Coca-Cola launched a socially conscious bottled water brand called Ice Dew “Chun Yue,” or Pure Joy in China. This was the company’s first socially conscious brand. Although priced slightly higher than competing brands, this bottled water targeted Millennials who care about social issues and are more likely to pay more for an environmentally conscious brand.
With the fitting tagline, “Drink Good, Do Good, Feel Good,” the brand claimed it would set aside funds to develop safe drinking water sources for schoolchildren in rural provinces such as Yunnan and Sichuan.
Japanese brands face pressure to get involved in CSR activities.
Japanese culture is all about relationships, and giving money to unknown people or charity has never been common practice. Until recent years, the Japanese considered social responsibility mainly the government’s job.
However, this has changed recently as issues such as the climate crisis, human rights, women’s equality, and poverty have come into the forefront of mass consciousness.
The Japanese understand the adverse impact of poverty, social injustice, well-being, and the environment on society and realise the extent to which individual companies and people can help promote a better community.
As a result, Japanese corporations face pressure to do more “good” and be responsible for their actions.
CSR in a net zero U.K.
One of the world’s largest automotive companies, Japanese automaker Toyota now faces increased international scrutiny as its growth continues.
In 1989, the company set up its Corporate Citizenship Activity Committee, and in 1995 it established the Basic Principles of Social Contribution Activities. In 2006, the company launched the Corporate Citizenship Division to consolidate all its social responsibility functions globally and become more strategic. In 2009, it opened the Toyomori Institute of Sustainable Living.
Balancing the amount of greenhouse gases we put into the atmosphere with the amount we remove to tackle the climate crisis is called ‘net zero.’
The U.K. government has urged more businesses to pledge to this net zero target by 2050. In an industrialised world, reaching this goal is challenging and requires massive efforts from governments, corporations, and societies worldwide.
Various countries and organisations have now adopted the target of ‘net-zero emissions by 2050,’ and about one-third of the largest U.K. businesses, representing a £650 billion market capital, have pledged to eliminate their carbon emissions by 2050.
One such brand is luxury automaker Rolls-Royce, which is committed to net zero greenhouse gas emissions associated with its operations and facilities by 2030.
U.K. pharmaceutical brand AstraZeneca has also committed to achieving zero carbon emissions by 2025 and becoming carbon negative across its value chain by 2030.
Not mandatory in The U.S., but consumers expect brands to incorporate CSR.
From how we grow our food and how we deal with the climate crisis to how we treat our labour force, consumers in the U.S. are increasingly demanding accountability from corporations and organisations.
While CSR is not required by U.S. statute or regulations, it is somewhat soft law as consumers demand social responsibility from the brands they use.
In recent years, there has been a growth in CSR initiatives in the U.S., and major corporations have made massive strides in improving their environmental disclosure through annual sustainability reports.
Driven by its mission, Tom shoes is top-of-the-mind for social responsibility in the U.S.
Toms shoes are likely the first brand that comes to mind when discussing corporate social responsibility. And for good reason —the brand’s CSR initiative is intertwined with its mission statement.
In 2006, TOMS launched with the mission “to match every pair of shoes purchased with a pair of new shoes for a child in need.” During its first year, TOMS sold 10,000 pairs of shoes, and today, it has partnered with social organisations in more than 50 countries worldwide.
The company’s social efforts focus on improving environmental and social issues and are seen globally in every aspect of its operations. The brand is an excellent example of authentic social responsibility.
CSR focuses on labour welfare and environmental consciousness in Indonesia.
Indonesian company law states that “companies with an impact on natural resources must implement CSR, and the same must be budgeted as a cost.”
Recently, issues concerning worker abuse, severe climate, and environmental concerns have heightened interest in CSR.
For example, Indonesia Eximbank’s Corporate Social Responsibility (CSR) encompasses four areas: environmental responsibility, responsibility towards social and community development, labour and workplace health and safety responsibilities, and responsibility to their customers.
CSR is a complementary approach to doing business in Singapore
Singapore is among the world’s fastest-growing economies and is in tune with the sustainability trend.
The climate crisis and societal issues have propelled social responsibility and sustainable business practices to the forefront. A growing population demanding brand corporate responsibility has turned “doing good” into a winning business strategy.
In Singapore, most CSR initiatives are handled by the state in partnership with employers and labour unions, making the government a key driver of CSR in the island state.
The Singaporean code of governance urges domestic companies to follow high standards, and while the code is not mandatory, listed companies are required to disclose their corporate governance practices and explain any deviations from the code in their annual reports.
In Singapore, Yakult, a probiotic beverage brand, stopped using plastic straws in its efforts to be environmentally conscious.
Additionally, Yakult has partnered with many non-profit organisations in the health arena, sponsoring public projects and health-related events in Singapore.
CSR is part and parcel of doing business in Thailand
The fundamental concepts of the Thai way of life and religious beliefs are centred around doing good deeds for others without any selfish motives. This thought process has seeped into business life, and Thai businesses accept their social responsibility.
During the 1997-1998 financial crisis in Thailand, His Majesty King Bhumiphol Adulyadej recommended the “Sufficiency Economy” philosophy to guide the Thai people towards a balanced way of life.
Wonderland products, a manufacturer of wooden toys in Thailand, enforces CSR initiatives internally by ensuring the quality of life and humane labour practices and externally by supporting environmental protection. Its plants reuse and recycle waste for environmental reasons.
What the world can learn from India about CSR implementation
Corporate social responsibility is a practice in which businesses voluntarily contribute positively to social and environmental projects. However, in the Indian context, the phrase takes on a different meaning.
While organisations voluntarily participate in CSR in the rest of the world, it is not the case in India. As the world’s fastest-growing economy, India requires companies to have a CSR policy.
In 2014, with the implementation of the new company law on April 1, India became the only country in the world with legislated corporate social responsibility (CSR) and a spending threshold of up to INR 15,000 crore (USD 2.5 billion).
The new law mandates that “all companies, including foreign firms, with a minimum net worth of Rs 500 crore, turnover of Rs. 1,000 crores, and net profit of at least Rs 5 crore, spend at least two percent of their profit on CSR.”
In India, CSR is approached with a stringency not found anywhere else in the world.
The law requires three Board directors to form a CSR committee to enforce the organisation’s CSR policy. The law also dictates that the CSR policy be elaborate and the money spent audited. Organisations must also detail their CSR policy in their annual reports and websites.
For example, Coca-Cola’s 2015 “Support My School” campaign was one of India’s most extensive CSR campaigns ever undertaken. The viral campaign earned Coca-Cola media exposure to an extent even the most planned marketing campaigns cannot replicate.
It is well established worldwide that businesses cannot progress at the cost of society or the environment. Most nations are on board with Corporate Social Responsibility initiatives that are good for the employees, consumers, businesses, and society. Brands are integrating societal and environmental goals into their operations to help reduce waste, enhance reputation and identity, attract top talent, and increase their bottom line.
For international brands entering new markets, CSR provides a remarkable branding opportunity and helps them build their reputation locally as socially responsible brands.
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Journaling or writing in a diary is an age-old process researchers use in qualitative research to become familiar with the participants before a focus group. While this methodology helps capture deep insights from people’s daily lives, it is a time-consuming and laborious process.
So how do you get rich data and insights without going through reams of paper?
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What are mobile diaries?
As the name suggests, a mobile diary is an online qualitative research tool that enables researchers to gather data from respondents via a mobile-friendly format like an app, email, or text over an extended period.
In most cases, researchers ask users to complete a pre and post-survey to gauge changes in perspectives before and after the mobile diary surveys.
How do mobile diaries work?
Mobile diaries ideally work in small groups of preselected participants, and typically, here’s what the process looks like:
The market researcher selects a smaller group of participants from the online survey panel and sends them instructions.
Participants use a mobile diary tool to upload photos and videos about their perceptions, attitudes, feelings, behaviours, and daily lives.
Researchers review and interpret the data for insights.
Mobile diaries are a time-saver for market researchers
Mobile diaries allow market researchers to collect and process more responses than traditional methods like paper journaling.
But this is not all; there are many other advantages of mobile diaries in market research over traditional methods. This tool allows market researchers to collect highly personalised, reliable, and accurate data. Additionally, participants can effortlessly share photos, videos, audio, and text, so researchers capture the emotions behind behaviours and attitudes.
This information is not easy to capture through traditional diaries or journaling as people won’t always have a pen and paper to jot things down but (almost) always have their mobile phone on hand.
Three reasons mobile diaries are a better alternative than traditional methods and tools:
Record “in-the-moment” responses
Mobile diaries provide qualitative data that allows researchers to peel through the layers and record the respondents’ experiences when interacting with or using a product. For instance, when researching a particular meal kit service, the researcher can frame the questions to gain valuable information and insights into who they are, what they do, who they are with, and how they feel, so there is a context to the story. Mobile diaries, therefore, bring researchers closer to their users’ daily lives.
Reduce the time, money, and effort
Mobile diaries improve efficiency by reducing the cost of printing and distributing surveys. They save researchers time as they don’t have to work through reams of paper.
Enhance productivity
They provide the researcher with the tools to review the results in real-time and enhance productivity and efficiency.
The difference between a Mobile Ethnography and a Mobile Diary
A Mobile Ethnography is a qualitative research method that allows users to respond to research questions and share information using an app on their phones.
Therefore, a mobile ethnography enables “in-the-moment” responses and real-time tracking, reviewing, and moderating like a mobile diary. It also captures emotions and has the shareability factor. Mobile ethnographies can be used to evaluate user behaviour and response to advertising messages.
However, unlike a mobile diary, it lacks desktop capabilities, which limits the use of mobile ethnographies. In addition to responding to online surveys, mobile diaries enable users to log in to a desktop and participate in surveys, discussion forums, and focus groups.
These additional engagements can be invaluable for market research and provide rich nuggets of information to market researchers.
When should you utilise mobile diaries?
Mobile diaries are invaluable when collecting contextual and qualitative insights for market research.
For instance, a mobile diary would be a good tool for researching the buying behaviour of working moms aged 30-45 years.
Mobile diaries can present broad or targeted information depending on the nature and scope of the market research study.
Mobile diaries are widely used for:
Demystifying user behaviour such as online shopping habits.
Understanding user experience and interpreting user interactions with a website, product, device, or app.
Understanding how people search for and share information online or on specific topics like adopting a rescue animal.
Four examples of the use of Mobile Diaries in Market Research:
Use case 1
A grocery store brand wants to collect meaningful data on consumer experience. The researcher recruits a select group, and they have to enter their experience in a mobile diary every time they visit the store.
Use case 2
A juice brand wants to learn more about its customers’ habits. They use mobile diaries to collect insights on when their customers drink juice, their favorite flavors, and other ways they use juice, such as in cocktails.
Use Case 3
A high-end shampoo brand is rebranding and has new packaging. A select group is asked to answer questions regarding the packaging, dispenser, look, and feel of the packaging and the product.
Use case 4
A meal delivery service has launched an app and wants to test the user experience. A select group of people uses a mobile diary to answer questions on how easy it is to navigate and the overall experience.
Challenges presented by mobile diaries in market research
Like all good things, mobile diaries also present some challenges, like:
It can become an annoyance for the respondents with too many notifications or alerts.
Data privacy issues
Long surveys
Not enough incentives for users
Market researchers can overcome these challenges by setting up surveys to make things easy for the respondents. They should also take the steps needed to protect user privacy. It is also essential to recruit the appropriate group for any study and incentivise them to complete the surveys.
In a world of smartphones and connectivity, mobile diaries are a great alternative to traditional methods.
Smartphones are commonly used, and most people always have their phones on hand. Therefore, mobile diaries are a great way to gain valuable and qualitative insights from consumers as they are always within reach. They provide in-the-moment information regarding behaviours, attitudes, perceptions, and changes over an extended time.
Market researchers can provide rich insights that facilitate better decision-making with real-time qualitative feedback. A mobile diary is easy for respondents to share more authentic and reliable information through images, videos, audio clips, and texts.
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Emerging technological advancements are transforming market research forever. As many consumers move online, the way brands identify and understand consumer needs is being reimagined.
Many technology trends disrupt the market research industry —from data collection and new product launches to tracking brand performance. This blog post will focus on the breakthroughs in technology impacting brand tracking and product performance tracking.
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Brand and performance tracking refers to the process of continually measuring brand health over a period within the target audience. It allows brands to measure the performance of a product in relation to its competition. After a new product is launched, market research helps brands gauge performance to stay competitive.
With consumers increasingly moving online, brands can tap into new, vast, and reliable consumer behaviour data in real-time. This has also made Direct to Consumer marketing much more common. Brands like Happy Human (Singapore), Dime Beauty (U.S.A.), Joi (Malaysia), Sleepy Owl (India), Recess (Philipines), Adopt a Cow (China), and Knot (Japan) have eliminated the middleman to create, develop, sell, and distribute their products directly to the end-user. The absence of middlemen and brick-and-mortar stores allows them to maintain quality and reduce prices. But this is not all. These brands also have the added advantage of measuring performance directly without employing market research across several retail outlets. They can discover brand sentiment directly, making them more agile, nimble, and competitive.
While there is still a place for traditional research methodologies, technologies like machine learning, Artificial Intelligence, Virtual Reality, and chatbots continue to reinvent the market research industry.
Let’s look at the primary technologies in brand tracking and competition analysis that are changing the face of market research.
In the fiercely competitive E-commerce world, the key to outperforming the competition is tracking and monitoring the price competing brands charge for similar products and services. Brands need to keep a keen eye on their competitor’s pricing strategy and price changes over several products to stay competitive, and that’s not an easy task even for larger companies.
This is where e-commerce price monitoring technology comes into play.
Ecommerce price monitoring software allows brands to track their competitor’s price changes and dynamically adjust their pricing.
By employing this type of software, brands can stay abreast with competitor pricing and adjust pricing based on demand, competition, and inventory levels.
Many such tools are available in the market, including Minderest, Price2Spy, and Prisync, with sophisticated matching technology and high levels of accuracy.
Market research utilises machine learning and A.I. for brand and performance tracking to revamp advertising and messaging.
While some grey areas are associated with A.I. in other fields, the market research industry has embraced this technology.
One of the things brands need to track constantly is how their messaging is resonating with the target audience and how the market perceives their brand. This is because a brand is not just the logo and tagline. It is a sum of all parts and is an overall feeling that tells a narrative and evokes sentiment and emotion in the audience.
Technology helps brands better understand brand performance and perception to inform better decision-making. It allows brands to measure and bridge the gaps between their intent and how the audiences interpret and perceive their message.
The use of A.I. in brand tracking has allowed market researchers to analyze qualitative surveys at a fraction of the time taken by manual data collection methods. Furthermore, this enables them to ask more open-ended and follow-up questions, find the right panellists faster, eliminate bias, write reports quickly, and significantly improve the quality of their surveys and reports.
In today’s dynamic digital marketplaces, A.I. is powering brand tracking to gauge the changing consumer perceptions.
Sentiment analysis is a sub-category of A.I. and N.L.P., which automatically uncovers feelings, emotions, and sentiments behind plain blocks of text. It is extensively used in brand tracking because it is efficient, reliable, and accurate.
Over 45 percent of the world is on social media. There are about 500 million tweets per day, and about 1.96 billion people worldwide use Facebook every day. Consumers constantly call out brands on these social media platforms and review sites. It would be overwhelming and near impossible to collect data manually. Brands can effectively gauge overall brand sentiment across platforms and channels online using automated tools.
For instance, when the popular ride-sharing service, UBER, launched a new version of its app, it used social media monitoring and text analytics to measure user sentiment about the new version of the app. Eye-tracking technology works similarly and can track users’ engagement scores and emotions on a website.
There are several brand tracking tools available for brands. Candymaker Mars used one such tool that combines the standard digital video metrics, like view-through rates and skip rates, with facial expression tracking of the viewers while watching the ad using an A.I. algorithm.
While the tool measures digital behaviours, it puts enormous weight on gauging emotion and sentiment. This technology is essential to track brand performance in a world plagued with minuscule attention spans. It allows brands to obtain a complete picture of consumer perception.
Many technologies use participants’ webcams to track their facial and emotional responses while viewing ads, providing invaluable data used to inform sales forecasts.
Chatbots are aggregating vast amounts of consumer data.
The usage of chatbots as a communication channel between brands and consumers has increased by 92 percent since 2019.
As many consumers shop online, they engage with chatbots, making them the fastest-growing brand communication channel.
A survey found that up to 80 percent of users answered questions, three times higher than responses from email surveys.
Brands like IKEA are using chatbots to gather valuable consumer feedback. Companies use Whatsapp and Facebook messenger to measure consumer sentiment and feedback efficiently.
The use of brand tracking cannot be overemphasised. It allows brands to understand how their current audience perceives the brand. It can also lead brands to uncover until now undiscovered target audiences.
With brand tracking software, brands can see the true impact of their campaigns. Brand tracking holds the key to insights any brand needs to thrive. Using the right tools and technology, brands can obtain actionable information about the brand perception among the target audience and how it scores against the competition.
A brand is one of the most valuable assets of an organization. It is, therefore, critical to continually measure satisfaction, awareness, and perception. Incorporating brand tracking into their marketing strategy can help brands understand their target audiences and consumer needs and make more profitable marketing decisions. Technology has made it easier to uncover massive data sets to monitor a brand effectively and accurately. By combining this technology with digital metrics, brands can increase their competitive advantage.
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World economists are starting to speculate or predict a pending recession, which often leads to a flow-on effect on company forecasts and budgets.
In economics, a recession is a contraction in an economy for two consecutive quarters when there is a decline in economic activity.
During a recession, consumers generally spend less. Recession-challenged consumers become more discerning in where they spend – looking for deals or switching brands. Some buyers even change long-held behaviours and attitudes toward consumption.
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At the same time, brands, like their consumers, seek to conserve cash and reduce spending, including their market research budgets, during economic downturns.
One of the many benefits of market research is that it helps mitigate uncertainty and can often reveal opportunities in price, competitor intelligence gathering, new markets, customer satisfaction, product development, target groups, and overall demand.
Price
In market research, understanding consumer price preferences are often revealing no matter the economic condition. Knowing what price a consumer will deter a purchase is essential during a market downturn.
The Price Sensitivity Meter or PSM is a technique in market research to determine the optimal price for goods and services. PSM asks four price-related questions. These standard questions can vary but generally take the following form:
At what price point would you consider the product to be so expensive that you would not consider buying it? (Too expensive)
At what price point would you consider the product to be priced so low that you would feel there must be a compromise in quality? (Too cheap)
At what price point would you consider the product is starting to get expensive, so that it is not out of the question, but you would have to give some thought to buying it? (Expensive/High Side)
At what price point would you consider the product to be a bargain— a great buy for the money? (Cheap/Good Value)
The image is taken from a Forbes article, titled “How To Price Your Product: A Guide To The Van Westendorp Pricing Model” by Rebecca Sadwick.
The results are then plotted, and an optimal price range is determined. Depending on the brand strategy, an additional or phase two research study can determine demand by asking:
At the <expensive price> how likely are you to purchase the product in the next six months? Scale 1 (unlikely) to 5 (very likely).
At the <cheap price> how likely are you to purchase the product in the next six months? Scale 1 (unlikely) to 5 (very likely).
In many categories, price is the most crucial determinant that affects buying decisions. Understanding an upper and lower price point is essential as it can help Product Marketing Managers determine where to price their product based on current economic conditions.
Competitor Intelligence Gathering
When consumers feel the pinch from economic pressures like inflation, high unemployment, or a recession, they start to shop more discriminately.
Understanding why a customer buys from you is important for any brand to know and understand. Having a deep understanding of why your target audience chooses a competitor brand over yours is equally as important.
Competitive Intelligence or CI research gathers information about your competitors so that brands can improve and make smarter strategic decisions.
When demand is affected by economic conditions outside of your control, having a strategic advantage over your competitors could mean the difference between product success or failure.
The goals of CI research include knowing who your direct and indirect competitors are and discovering where your competitors are doing well (and not so well). It can also gather insights into market share, brand or product recall, and price points.
Brands may have hundreds or even thousands of competitors during a burgeoning economy. When the economy shrinks, so does demand, making the market smaller. Brands that understand how to differentiate themselves from their competitors will be able to withstand economic ups and downs.
New Markets
The Global Financial Crisis (GFC) in 2007 saw many countries emerging quicker from the impact of this recession than others. As a result, some currencies bounced back faster and stronger.
One way to offset the impact of a contraction in the economy is to develop additional revenue streams and customers in new markets.
When your product or service is available in multiple markets, it can sometimes lessen risk as some countries and currencies emerge quicker or are not affected as your local market.
Knowing when and where is the first question when commissioning a new market entry study. Learn more from our Ultimate Guide to Market Entry here.
Customer Satisfaction
When money is tight, any marketer knows customers become more selective and demanding. There are many measurements available in market research to measure customer satisfaction. This article explores our top five.
Benchmarking your current customer satisfaction levels, and measuring them each year, especially during times of uncertainty, allows brands to see if sentiment is changing and address those reasons for dissatisfaction. Finding new customers always costs more than keeping existing ones, so an in-depth understanding of customer satisfaction is important regardless of economic factors.
Product Development
Even during a recession, new products have an essential place. With their undiminished appetite for goods and experiences, live-for-today customers often appreciate the novelty.
Other audience segments will embrace new products that offer clear value compared with alternatives. While new product development slows in recessions overall, new product launches during economic downturns can gain greater visibility. Procter & Gamble’s successful introduction of the Swiffer WetJet in 2001 during the Y2K recession established a new product category that eased the chore of mopping floors and weaned consumers away from cheaper alternatives.
Target Groups
Understanding different buyer personas in your target audience can help marketers use their budgets wisely. New audiences may emerge, such as Gen Z, or an existing persona that is more fickle than others during uncertain times or inflation.
When company CFOs ask their marketing and product development teams to do more with lower budgets, research can help you prioritise target audiences and allow your marketing dollars to go further and have a greater return on investment.
Demand
Lower demand is the visible result of a recession or periods of high inflation. According to the Harvard Business Review, “In frothy periods of national prosperity, marketers may forget that rising sales aren’t caused by clever advertising and appealing products alone. Purchases depend on consumers’ having disposable income, feeling confident about their future, trusting in business and the economy, and embracing lifestyles and values that encourage consumption”.
Whether changing your advertising campaign to reflect consumer sentiment or offering new and relevant product features, knowing what will sway a customer to buy is important to understand.
Market research is about making strategic decisions with confidence backed by data and insight. Whether or not a recession is in our immediate future, having a crystal clear view of the future is essential no matter the economic conditions.
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As organisations chart their growth and enter new markets, market research can assist them with these goals through data-driven insights. Market research plays a pivotal role in identifying market trends, uncovering competitive advantages, and discovering consumer intent and behaviours. This helps brands make better decisions based on data.
Therefore, market researchers are increasingly turning to technology to improve data collection methods, research processes, and consumer insights presentations. Technology allows researchers to reduce costs, boost productivity and increase efficiencies in all primary functions.
Machine learning and artificial intelligence are at the forefront of technological breakthroughs transforming the market research industry. These and other technologies allow more efficient and meaningful data collection and analysis.
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Let’s take a closer look at the most important technological trends in market research.
Artificial Intelligence (A.I.)
Artificial intelligence (A.I.) is the ability of a computer or a computer-controlled robot to perform tasks usually done by humans and associated with intelligent beings. In market research, A.I. provides large amounts of unstructured data at scale.
A.I. is often used in conjunction with traditional methods with excellent outcomes in influencing marketing strategies, delivering service solutions, and uncovering consumer behaviour. It assists people in market research by automating tasks and increasing efficiencies, obtaining deep insights from a large amount of data, and enabling them to use natural language processing (N.L.P.) for better understanding.
Most people understand that traditional market research is about online surveys. A.I. allows surveys to be conducted via voice. For instance, brands are using voice survey tools to collect data that sounds more human. This is an incredible new development that allows users to provide feedback hands-free. For researchers, this is a qualitative approach that speaks volumes regarding the emotions behind the words. It captures the true sentiment of the participants.
2. Eye-tracking
Eye-tracking is a research methodology for measuring where a person looks, providing insight into their thinking.
It is now possible to record everything about how the eye interacts with everything in front of it. Using infrared light and high-resolution cameras, market researchers can track how eyes move in response to stimuli. They can, therefore, unlock real-time emotions and consumer reactions, obtaining insightful and quantifiable data behind consumer reactions and behaviour.
3. Real-time feedback
Real-time feedback is a type of qualitative market research methodology in which you receive live feedback from users or visitors on your website or app.
Mobile diaries allow brands to obtain “in-the-moment” real-time responses. They don’t have to recall their experiences from a few days or weeks ago; they can provide real-time feedback, for instance, while interacting with your app or product.
Most people always have their phones with them, not necessarily a traditional journal or diary.
4. Microdata
We hear and read about “big data,” but microdata is becoming increasingly crucial. Microdata is data about individual consumer activity.
Microdata is data on the characteristics of units of a population, like individuals, establishments, or households, collected by a census or survey.
A good understanding of individual consumer behaviour supports more targeted business decisions. So while big data is essential, certain decisions cannot be made using macro data methodologies.
5. Augmented Reality (A.R.)
According to Investopedia, “Augmented Reality (A.R.) is an enhanced version of the real physical world that is achieved through digital visual elements, sound, or other sensory stimuli delivered via technology.”
We partnered with Asahi on a pilot designed to explore the applications of augmented reality in package testing. The pilot was focused on one of Asahi’s flagship brands: Fuller’s London Pride. London Pride is already the capital’s number one ale. Still, as part of a strategic drive to bring the brand to more ale lovers nationally, Asahi wanted to test a new concept for the packaging against the existing bottle design.
Read the complete case study on how we ran an industry-leading pilot test on A.R. in market research to discover its applications to pack testing.
Virtual environments have provided brands and market researchers with a more accessible and less expensive way of product concept testing, feasibility analysis, and interpreting consumer behaviour regarding a new and developing product.
Brands use A.R. to help consumers view a product, like a piece of furniture in their surroundings. It provides the brand with feedback on how a product can work for customers. It is also far less expensive than a focus group or shipping the product to the consumer.
6. Internet of Things (IoT) and Wearables
Internet of Things (IoT) refers to a network of connected objects or devices that can collect and exchange data in real-time using embedded sensors. Cars, thermostats, lights, and window blinds, can all be connected to collect and exchange information over a network using sensors.
Internet of Things (IoT) devices are a goldmine of data with many facets of consumers’ everyday lives. Let’s say a company wanted to measure the activity levels of consumers in the new year. They will get rich data from a wearable device like a Fitbit or Apple watch (with the user’s permission).
7. Social targeting
Social media targeting is the ability to post or advertise certain content to specific audiences. These can be chosen by the person posting or the advertiser to include niche audiences based on demographics, interests, etc.
There are over 4.55 billion social media users worldwide, and that’s where most people congregate nowadays. Advertisers have leveraged the precise targeting of niche audiences to drive leads and sales.
Brands can target a specific section of the population based on age, gender, interests, behaviours, languages, and even the brands and products they currently use.
Market researchers can use social sampling to effectively target participants according to what they are looking for based on personal interests, location, and interests.
Surveying consumers virtually allows them to target specific niches of participants. Researchers can select participants who care about the product or service with precise targeting, resulting in higher response rates.
There are plenty of opportunities to adopt new technologies in market research so brands can get better insights faster. This enables brands to make better decisions based on rich data.
Technology makes it possible for market researchers to collect data quicker and more accurately and analyse it more effectively. However, they also need to sharpen their skills when using technology. In some cases, it is essential to complement traditional methods with technology. In either case, technology adoption will allow market researchers to spend less time on data collection and analysis and more time on the big picture problem-solving. This will bring more value to the brands and markets they serve.
Technology to enhance, not replace, the human component
While technology provides real-time, rich, and robust data and an efficient way to sift through vast amounts of data, it does not replace experience in interpretation. Technology should complement, accelerate, and enhance the market research methodologies, not replace them.
For instance, automation should be used to reduce the time between putting the survey in the field and retrieving the feedback and responses. But the automation should not replace the interpretation made by an experienced market researcher.
Market researchers know how to design surveys, ask the right questions, and interpret data. With the advances in technology, they can move from data collection to more big-picture thinking. In a world of automation and data, human beings remain unique in their ability to create and understand people.
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Consumer interest in Connected Technology is rising due to the accelerated digital shift to “at-home” trends during the pandemic. With an increasing number of people working, learning, shopping, exercising, and even monitoring their health from the comfort of their homes, the connected technology market is rife with opportunities for brands in a multitude of sectors.
From AI-enabled voice assistants that can be summoned on command to watches that have gone beyond telling time and have converted our wrists into smartphone holders and health monitoring devices, connected technologies are transforming the way we live, work, and play.
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Market research and product testing are paramount for the successful launch of connected technology products.
With an increasing number of consumers and households jumping on the connected technology bandwagon, we are collecting more information and data than ever before, which has positive and negative implications for the market research industry.
Market research companies provide product testing services in various industries as they conduct research studies for a range of products before they are launched and help guide new product development. These companies put the products in the hands of the consumers who will be using the technology.
Product testing is a research methodology that allows brands to gather quantitative and qualitative information about a user’s potential behaviour, reactions, and preferences, like the taste, feel, and smell. For connected technology, often, a prototype is tested in the market before it goes into development.
What is connected technology?
Connected technology is products with built-in or embedded technology comprising sensors and processors to connect with their environment and other products.
Connected technology is tied with the Internet of Things (IoT). Watches are no longer used only to tell time; their function has extended to enable text messaging, phone calls, and fitness monitoring. Our homes are getting smarter; our cars go the extra mile to deliver convenience; our offices thrive remotely using real-life collaboration and project management tools.
Let’s look at some of the main areas where connected technology is unfurling, what the future has in store for consumers, and how brands can match this rapid growth.
How are people currently using connected technology?
Connected technology has seamlessly integrated into our daily lives and shows no signs of slowing down, and for good reason. The demand for connected technology that provides convenience, comfort, accessibility, and automation is at a historic high.
To understand the benefits and use of connected tech, let’s look at the main areas we use connected technology in our daily lives.
There’s no place like a smart home.
Smart homes are redefining our living spaces and becoming more innovative. According to Statista, the global smart home market is worth more than US$126 billion.
Consumers increasingly demand home automation when they purchase a home —and for a good reason. Home automation provides convenience, functionality, security, entertainment, and energy savings. The possibilities are endless.
For instance, lighting control network systems allow you to control the whole home or building remotely by your smartphone. Sensors turn lights on and off as we enter and exit rooms. Automated window treatments allow you to control a room’s ambient lighting and other aspects remotely. Smart homes also allow for remote access.
Smart appliances are making life easier for households. Smart Appliances as a segment includes all kinds of connected household appliances. Surveillance cameras and home security systems are getting more advanced. Baby and pet monitors allow people to monitor their babies and pets.
Consumers in Asia adopt devices more quickly than in North America and Europe, and South Korea leads the way with a 27 percent household penetration rate in 2022.
Smart homes are not just nice to have anymore. Homeowners are increasingly expecting smart home features, and builders and technology companies are taking note.
Smart homes are getting smarter and now go beyond just thermostats and light dimmers. Technology is becoming much more affordable and accessible, and some smart homes will make your jaw drop.
Consumers are much savvier and increasingly demand technology built into their homes. Even the lower to mid-range new home buyers expect certain smart home features to be part of the build. Therefore, every construction company needs to include these home features or risk falling behind their competitors.
How does the demand for Smart Homes impact brands in the market?
This new trend has many implications for the market. Builders will need to consider privacy and cybersecurity, adjust agreements, make sure devices can “talk” to each other, and have the ability to offer flexibility as new technologies are added in the future.
With the average household using 25 connected devices, there is considerable pressure to provide a connectivity network far beyond what a regular service provider can deliver.
The pandemic has also created a new generation of germophobes, and KB Homes, a home builder in the U.S., has launched MERV-13-rated air filters in their communities. Compared to lower-rated air filters, these high-grade residential air filters eliminate dust, pollen, mould, and certain bacteria and viruses for improved air quality.
Home appliance brands are not only thinking of innovations but also a way to upgrade features into existing smart products. The CES 2022 show in Las Vegas saw AI-powered laundry machines, hands-free faucets, healthier microwaves, next-level smart blinds, and smart bathing technology.
Connected technology is driving the automobile industry.
Connected technology is designed to connect to a smartphone to do more than play music or route phone calls through the car’s speaker. For instance, you can turn a connected vehicle on or off using a smartphone. It can allow the owner to use an app to control the car or share diagnostic data to remind you when an oil change is due, and so on.
Connected vehicles on the road connect to a network so all types and sizes of cars can “talk” to each other as they share vital information on safety, road conditions, traffic, and mobility.
These are just a few instances that barely scratch the surface of what connected vehicles can do.
A Statista report estimates the size of the global connected car fleet to increase more than threefold in the coming years. In 2021, there were about 84 million connected cars in the United States, and it is projected to exceed 305 million in 2035, making the United States the biggest market for connected vehicles.
Europe currently accounts for around 30 percent of the global connected car fleet. The E.U. is one of the regions with significant potential for connected services.
As of 2019, about half of the motorists in Europe said they were willing to switch car brands to access new connectivity features and services.
According to 1Mordor’s 2020 report: “The connected medical device market is expected to register a CAGR of 18.92% over the forecast period from 2022 to 2027.” The same report showed the Asia Pacific as the fastest growing market and North America as the largest market.
Connected tech in healthcare is also referred to as Connected Care. It may be defined as the real-time, electronic communication between a patient and a medical provider, using digital tools such as remote patient monitors, telehealth, wearable technology, secure messaging, and mobile apps, to name a few.
It is estimated that remote monitoring for healthcare could be worth USD 1.1 trillion by 2025.
Wearable technologies hold a significant share of this market, providing real-time data so health care providers can help patients remotely. They provide convenience and cost-effectiveness by reducing multiple visits to the doctor’s office. With cardiac-related devices expected to be worth USD 800 billion by 2030, there is a massive opportunity for healthcare brands in the cardiac segment for wearables.
These medical devices can be vulnerable to security breaches, impacting their safety and effectiveness because they are computer systems.
While there are data security risks involved, wearables can detect cardiac arrhythmia conditions causing stroke and allow neurologists to diagnose seizures remotely; the benefits of these products far outweigh any risks.
Connected tech encompasses your fur babies.
The pet humanization trend and growing concern amongst pet owners about the health and safety of their pets continues to drive the pet industry’s growth at a CAGR of 6.1 percent. You can now dress your pet in a Banana Republic sweater, insure them with MetLife, and get CBD supplements to calm them down.
This trend is now dovetailing into the pet wearable devices market. According to a recent global market research study, the global market for pet wearables is expected to reach USD 2,5 billion by 2024. Pets can wear these devices to help identify, track, control, and even for medical diagnosis and treatment. Furbo is one such pet wearable in the market that aids anxiety in dogs. A remote pet camera that alerts you when your dog is barking can take dog selfies, and owners can toss treats, all from their smartphones.
Connected technology is reshaping the fitness industry.
One of the first industries impacted adversely by the pandemic was gyms and fitness centres when they were forced to close their doors due to fears of spreading COVID-19. Stuck at home and with more time on hand than ever before, consumers made a beeline for at-home gym equipment. Peloton was at the forefront of this revolution and later bought Lululemon’s Mirror.
Peloton’s stock has reached highs and has plummeted in what seems like a roller coaster ride. When gyms closed during the pandemic, Peloton’s stock price and product sales were at an all-time high, increasing more than eightfold from March to December 2020.
An Atlantic article revealed the company had 2.3 million users paying about $40 a month to take classes on its “connected fitness” products by August 2021.
Google trends show a similar picture.
At-home Fitness Trends during the Pandemic
The global home-fitness equipment market will grow to $15.13 billion in 2022 at a compound annual growth rate (CAGR) of 9.6%. The at-home fitness market is expected to reach $21.84 billion by 2026.
What does this mean for fitness brands —both in-person gyms and online fitness platforms?
Brands providing fitness solutions inside and outside the home will need to commit to the new normal and an approach that fits consumers’ lifestyles.
Brands that want to become a part of their consumer’s fitness regimen will have to consider a hybrid approach. On-site fitness studios and solutions should utilize a more hybrid approach to keep consumers physically and digitally engaged and connected. They can do this by complimenting their in-person services with a mobile application. At the same time, brands with at-home gym equipment and tools should make data security a priority.
The intersection of retail and technology elevates the shopping experience —both in-store and online.
Not all businesses survived the pandemic and the recent, rapid shifts in consumer habits, but the ones that did are thriving. These retailers have been able to master the in-store shopping experience.
Retail technology provides an exciting opportunity to both consumers and retail brands. Connected technology is taking the shopping experience up several notches. While people still shop in these stores, a brand’s physical location is considered one of the many channels. Consumers interact with these stores digitally and will come to expect this from every brand.
From using virtual mirrors to try on clothes to pointing a piece of furniture on your cell phone and placing it in your home, Augmented Reality (A.R.) is changing how we shop and try products. Car shoppers can go into dealerships and customize cars with different colours or styles using their tablets or phones. They can use A.R. to try sunglasses from the comfort of their home.
Grocery stores may look the same as many years ago, but the experience has completely transformed. The distinction between online and offline has little relevance today in the grocery space. This is because today’s consumers do not want their shopping experience to be held back by the limitations of a single touchpoint. Today’s connected consumers expect an omnichannel shopping experience, including online ordering, curbside pickup, delivery, self-checkout, scan-and-go, and contactless payment options.
Supermarket brands need to have an omnichannel approach to meet customer expectations, including convenience, speed, and efficiency. For instance, while a customer is exploring store aisles physically, they should have the option to interact with the store digitally and even complete the transaction using the store’s mobile app.
Consumers’ data is recorded and stored to provide a personalized experience with product recommendations and deals. When consumers create an online account, their purchasing habits are used to tailor relevant deals, ads, and offers. In the absence of an online account, consumer data is tied to a loyalty card.
Technology also allows retailers to alert customers when stocks of the items they regularly purchase are low or when an item is back in stock. Alexa, Amazon’s voice assistant, will notify you based on your ordering history if you are running low on a particular product, tell you how much it is, and ask you if you would like it added to your cart.
Grocery delivery services became popular during the pandemic. Now that we can go back to a physical store, many consumers have become accustomed to using delivery apps like Instacart for their convenience, speed, and seamless service. You can also watch your groceries transported to your doorstep with the app’s live map view.
Sustainability is also coming into the picture with an increasing number of younger generations that prefer buying from eco-friendly companies. Zero, a Los Angeles-based startup, is an example of an eco-friendly brand that delivers groceries in sustainable packaging.
The future of retail is hybrid with an Omni-channel approach and connected experiences across touch-points.
As customers jump across several channels when they shop, retailers need to engage with where their customers are via digital channels.
Leveraging shopping behaviours, personalisation, user experience (UX), and integration will be critical for retail success. This will help retailers engage with their customers at various touchpoints —physical stores, sites, apps, and significantly improve the shopping experience.
Retailers also need to factor in social media networks, messaging apps, voice assistants, mobile devices, and other new channels to capture their customers’ attention and engage with them. Consumers expect incredibly personalized and relevant content.
Challenges in the connected technology space and how brands can use these as opportunities to grow
During the pandemic, the older, less tech-savvy generations also adapted to connected technology and enjoyed the benefits of staying connected with friends and family. Brands should no longer ignore this segment’s needs and may need to provide more in-depth onboarding help and tech support.
Now that people are back to in-person, they will continue using these devices and technologies in and out of the home, in the new normal. There will be a need for interconnectivity across the house, car, and mobile devices will be critical moving forward.
The industry faces many challenges, including data security, privacy concerns, continuous innovation and iteration, a massive load on the network and wifi issues, theft, loss, and damage.
Here are ways in which brands can overcome such challenges:
Provide extended warranty
Put customers first
Provide multiple customer-service options
Insurance against theft, loss, and damage
Provide on-demand tech support
Help with digital identity protection
Allow trade-in offers to swap your old device for a new one at a discount
Continuously upgrade technology
What does the future hold for connected technology?
In a digital-first world, physical fitness studios and stores are still appealing. Physical stores that embraced this reality are thriving. They have gone above and beyond to offer a hybrid approach and have elevated the in-store experience. There is also a preference for in-store shopping in older generations versus younger ones.
The pandemic played a massive role in speeding up the adoption of digital-first behaviors. Now that we know consumers expect a hybrid world where digital meets offline, brands can play a role in pushing innovation and further improving customer experiences across touchpoints and channels. With a goldmine of integrated customer data, they can offer a personalized and relevant experience in a hyper-connected consumer world.
How market research can aid brands in the connected technology space
For brands aiming to disrupt the market with the next “new” thing in connected technology, it is vital to know how consumers will respond to it before going to market. Market research can provide the valuable data, and insights brands need to take action.
Brands have several critical decisions regarding target markets and audiences, price, distribution channels, promotion, and product features. How can brands bring new product lines to market without proper knowledge? The good news is market research provides unique methodologies tailor-made to capture purposeful information to inform those decisions.
Market research allows brands to collect relevant information about market needs and customer preferences, impacting every aspect of the business, product, and brand. Backed by this information, brands understand the choices and behaviors of their potential customers. Therefore, their products can meet their customers’ needs and reduce the risk of an experience gap between the company and its products or services. The experience gap is essentially the gap between what the customers expect/ want and what the companies give them.
Market research is used for product testing and development. Effective market research uses a diverse population to test a given product and ensures it works for everyone in the target market. Brands also use market research for brand name testing, concept testing, messaging and campaign testing, branding, and logo testing, and pricing testing, to name a few.
For brands in the connected technology space that are often under high pressure to quickly produce and iterate high-quality products with an enhanced customer experience in a competitive market, the importance of market research cannot be overstated.
Brands in connected technology need to utilize a comprehensive testing strategy beyond traditional product and messaging testing. Market research can study the preferences and User Experience (UX) throughout all touchpoints within the customer journey.
For instance, connected technology brands can use market research to ensure customers are surveyed on current technologies and UX and online shopping cart abandonment. Likewise, the data from connected tech can (with permission) provide a goldmine of information about specific market segments, which can inform better decisions based on hard facts rather than gut feelings or assumptions.
For smart product companies, it is also essential to make sure all their products connect seamlessly to make their customers’ lives easier and more comfortable. Therefore, market research is utilized to make sure the product works and connects with other smart products to enhance the customer’s life.
Connected technology became popular before the pandemic. The pandemic only accelerated its adoption. The rise of connected consumers across the globe has led to connected technology trends across industries. As brands navigate the challenges of wifi capabilities and data privacy, they are continually innovating and iterating smart, connected products that are relevant and user-friendly.
We don’t need a crystal ball to make this prediction: the future belongs to a connected world.
Learn more about how Kadence International’s Marketing Research is driving growth for leading technology companies here.
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The significant strides in Artificial Intelligence (AI) are reinventing the market research industry by addressing cost and time issues. As for the process and application, AI makes market research less labourious, faster, and more accurate. Machine Learning reduces the time to complete projects from weeks and months to hours and days. Algorithms make the job less cumbersome and more cost-effective.
What is Text Analytics, and what are its uses?
One of the newest trends and developments in market research is Text Analytics. Text analytics is a qualitative research method used to uncover the whole story behind the data so organisations can make better, more informed decisions. It refers to the automated process of extracting and translating information, insights, patterns, and trends from large volumes of unstructured text and data. This is done through text analytics software that uses Machine Learning and Natural Language Processing (NLP) algorithms to pull valuable information and meaning from unstructured text.
This text and data consist of open-ended feedback in text form, like emails, survey responses, product reviews, call center notes, and social media posts.
Can you imagine how tedious and time-consuming it would be to pull information and deep insights from such voluminous, unstructured text at scale?
Text analytics helps market researchers examine large amounts of information and data in real-time to track consumers’ sentiments and detect potential brand reputation issues before they become serious.
Text analytics also helps diagnose product issues and provide more profound insights like identifying patterns or trends. It aids in comprehending a negative spike in the customer experience, assists in collating and interpreting customer conversations from various online sources, and helps monitor an advertising campaign’s messaging and how it is being received.
Brands increasingly use text analytics to offer actionable insights that inform sound decision-making. It also enables organisations to examine vast amounts of data at scale, increase efficiencies and reduce time, labour, and costs.
According to Mordor, “The global text analytics market was valued at USD 5.46 billion in 2020 and is expected to reach USD 14.84 billion by 2026 at a CAGR of 17.35 percent.”
Companies use text analysis to help improve their customer, employee, product, user, and brand experience. Many cloud-based applications use text analysis for predictive studies, cybercrime, business intelligence (BI), and fraud management, to name a few.
The Difference Between Text Mining and Text Analysis
It is essential not to confuse text mining with text analysis as they are similar in process and methodologies but have very different applications.
Text mining uses statistical methodologies to extract quantifiable information from unstructured text, used for applications like fraud detection and screening of job applicants.
Text analysis has a more business and experience management focus that uses similar methodologies as text mining but uses the information to uncover trends, patterns, and sentiment to sweeten customer, product, brand, or employee experience.
So how does text analysis measure sentiment in the absence of language and tone?
Market research companies use Natural Language Processing (NLP) to analyze sentiment from the text so they can decode the emotion, feeling, or context behind blocks of plain text. NLP uses language processing algorithms to evaluate sentiment without any bias.
Brand and Market Research applications of Text Analytics
Text analytics is used in the field of Experience Management (XM), and it is widely used in the following four main areas:
Customer Experience
Customer experience uses technology like Machine Learning to provide intelligence around the customer or user experience across all touchpoints. This allows brands to enhance the customer experience by making informed decisions based on the findings.
Product Experience
Text analysis provides feedback on the features that need improvement and those that need to be added in future updates. Product usage data and warranty information enable brands to invest in their customers’ most used and valued elements and features, reducing costs and boosting profits.
Brand Experience
Text analytics collates data from multiple online sources to identify conversations around the brand. It is also used to analyze how effective marketing campaigns are and how the brand messaging resonates with the target audience—other data points like campaign reach, spending, and customer acquisition impact Return On Investment (ROI). It helps measure the overall brand experience.
Employee Experience
Employee wellbeing and work-life balance issues have recently come to the forefront, and text analytics helps provide real-time reports and data around topics that concern employees. Employee attrition has always been a challenge for most organisations, and text analytics combines data around engagement scores to tackle employee attrition and boost employee retention and satisfaction.
Armed with good text analytics software and research methodology, brands can arm themselves with the ability to identify and monitor patterns and trends over time. Text analytics helps deliver insights to build a deeper understanding to win over target audiences.
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The Internet changed our lives forever. And now, the Internet of Things is transforming our lives yet again.
In recent years, we have seen several significant developments in technology. While these developments were already at play, the pandemic gave a big push and further accelerated the pace of adoption.
In today’s connected consumer world, the physical world meets the digital world, and these two worlds cooperatively interact. Big data, analytics, and mobile technologies allow objects and devices to share and collect data over an interconnected network and with little human intervention.
The benefits of using IoT are reduced costs, augmented productivity and efficiencies, and increased convenience. Ultimately, IoT is beneficial for brands and market researchers as it provides them with a wealth of information on consumer habits that they can utilise to increase their profitability.
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Definition of the Internet of Things (IoT)
According to Oracle, “the Internet of Things (IoT) describes the network of physical objects—“things”—that are embedded with sensors, software, and other technologies to connect and exchange data with other devices and systems over the Internet.”
Simply, IoT is when the products we use every day connect to the Internet and each other.
Internet of Things (IoT) goes beyond consumer products and permeates many other industries.
In recent years, one of the most significant developments in the Industrial Revolution is Industry 4.0, and it all began in the manufacturing sector.
What is Industry 4.0?
Industry 4.0 focuses on interconnectivity, automation, machine learning, and real-time data in the manufacturing industry.
It allows manufacturers to maximise productionand improve distribution, transportation, and product development.
Industry 4.0 is the convergence of state-of-the-art manufacturing processes with the Internet of Things, which results in innovative, interconnected techniques that can communicate, analyze, and employ data to improve decision-making. This ultimately leads to optimizing, connecting, and automating operations.
Industry 4.0 was mostly restricted to the manufacturing industry in its early days but has expanded to benefit other sectors, like warehousing, logistics, and distribution.
Let’s delve into the opportunities for connected tech in other industries:
Healthcare
According to 1Mordor, “the connected medical device market is expected to register a CAGR of 18.92% over the forecast period from 2022 to 2027.” The same report showed the Asia Pacific region as the fastest growing market and North America as the largest market.
Connected tech in healthcare is known as Connected Care. It is defined as the real-time, electronic communication between a patient and a medical provider, using digital tools such as remote patient monitors, telehealth, wearable technology, secure messaging, and mobile apps, to name a few.
It is estimated remote monitoring for healthcare could be worth USD 1.1 trillion by 2025.
Wearable technologies hold a significant share of this market as they provide real-time data so health care providers can help patients in remote locations. They provide convenience and cost-effectiveness by reducing multiple visits to the doctor’s office. With cardiac-related devices expected to be worth USD 800 billion by 2030, there is a massive opportunity for healthcare brands in the cardiac segment for wearables.
COVID-19 has impacted and accelerated the growth of this market. The pandemic brought about new ways of interacting with doctors remotely due to the nature of the pandemic and pressure on health systems and infrastructure.
While there are data security risks involved, wearables can detect cardiac arrhythmia conditions causing stroke and allow neurologists to diagnose seizures from remote locations; the benefits of these products far outweigh any risks.
Agriculture
According to Statista, the global market size of smart agriculture is expected to grow to USD 34.1 billion by 2026.
Connected tech in farming utilises sensors installed in plots or livestock farms. They help collect data, such as soil moisture and plant vigor, which is used to monitor the health of the crop or herd.
With environmental factors in play, the growing demand for food, constraints on the supply side, and changing consumption patterns, agriculture faces enormous challenges. While we have seen massive improvements in equipment and technology in the past five decades, a digital transformation using connected tech will lead us closer to sustainable solutions.
However, digitization in agriculture faces obstacles. In many regions of the world, connectivity is an issue. In areas where connectivity exists, the adoption of digital tools has been relatively slow.
Therefore, we need to develop infrastructure to enable the use of connectivity. In areas where connectivity already exists, we must take the necessary steps to promote and encourage adoption.
In addition to offering more effective production methods, higher quality food, and more transparency for consumers, smart agriculture can create sustainable production methods that save water, which lessens the impact on the environment and reduces production costs.
Inventory & Supply Chain Management
IoT devices help companies provide enhanced inventory monitoring capabilities and location tracking, leading to increased storage and distribution efficiencies. Companies can figure out where goods are delayed during transportation.
With IoT data analytics at their fingertips, supply chain managers can plan better routes based on potential weather hazards, accidents, and road conditions.
Finance
IoT is the coolest kid on the finance block. It provides a network of internet-connected devices that collect and transmit data.
As banking goes digital, consumers enjoy more convenience in the usual banking processes. Banks can leverage technology to know the needs of their customers in real-time. IoT financial technology software can increasingly collect more data about transactions using built-in Artificial Intelligence (A.I.), enhancing efficiencies, security, and fraud protection.
Retail
IoT technologies help brands track products throughout their supply chain by utilizing GPS and Radio Frequency Identification (RFID). This allows brands to monitor and track where their products are at any given time and predict a more accurate delivery time.
In a world of connected consumers, where they expect brands to be intuitive and relevant, IoT helps brands make deeper connections with their consumers by identifying unique behaviours and having the ability to offer what consumers want —when they want it.
How the IoT is Impacting Market Research
As discussed above, IoT is important to both consumers and businesses in almost every industry.
So what does this goldmine of data mean for market research?
Big Data has daily implications for consumers, businesses, and market researchers. The application of data plays a massive role in market research surveys, and so do data processing and analysis. With market research becoming more digital in data collection and analysis, traditional methods are not enough anymore. Therefore, IoT helps market researchers stay abreast of consumer habits and behaviour.
Furthermore, IoT data is more accurate, reliable, and valuable to market researchers.
It is estimated that, by 2030, roughly 125 billion devices will be connected to the Internet and used daily. Moreover, 5G connections enable the usage of connected devices more than ever before. Since there is a growing market for IoT, wearables, and smart technology, consumer feedback is a critical resource to help brands adopt the most compelling business, sales, and marketing strategies to maximise their return on investment.
Ultimately, the winning brands will not be the ones with the best, most innovative technology but the ones that have the perfect combination of innovation and ongoing customer behaviour analysis. This is where the role of market research cannot be ignored.
Four Ways IoT Impacts Market ResearchTracking consumer behaviour
Tracking consumer behaviour IoT is a network of smart, connected devices that work through the Internet. The data is no longer just available on smartphones and computers but encompasses smart appliances, wearable technology, automobiles, and smart, interconnected devices. In a hyperconnected, digital-first world, the data provides a wealth of sights into consumer habits and behaviours.
Analyzing consumer behaviour The business world is changing at warp speed, with older forms of consumer engagement becoming obsolete. Companies need to move with digitally empowered consumers and adopt digital data collection and analysis. IoT is an invaluable and more accurate tool for monitoring a product’s performance and consumer behaviour, preference, and attitude toward a product. IoT can inform brands on how and where they can improve their product and message.
Predicting behaviour analysis to sell when consumers are ready IoT enables brands to know when consumers need something, benefiting brands and researchers. For instance, a smart car can predict when the oil change is due on a vehicle, carrying essential consumer data and information. This can be used to advertise locations that offer the service. Therefore, it boosts sales.
Offering tailored experiences By integrating data analytics into their operations, brands can offer more tailored experiences and obtain information on consumer behaviour. Market research is beneficial here. For instance, in 2013, Disney World introduced the MagicBand. These wearable devices collect a wealth of data from hotel bookings, restaurants, and popular rides. Disney World can enable tailored offers using this data on behaviour by utilizing predictive analytics.
Technology and consumer behaviour have drastically transformed in the last two decades. IoT provides data that can help market researchers understand consumers and their habits better than ever before, thereby enabling them to provide reports and analyses to brands that contain accurate, unbiased, action-oriented information free from human error.
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Senior Marketing Executive
Sales & Marketing
General Manager PR -Internal Communications & Government Affairs
Vital Strategies
Customer Intelligence Director