Traditional Market Research Methods Research Articles

Beyond traditional consumer research - current adoption and next steps for neuromarketing

<b>Purpose</b>. Neuroscience used for conducting market research is called Neuromarketing. Though the effectiveness of Neuromarketing over traditional research has been proven, its adoption is very limited. The automotive sector is one of the biggest industries worldwide and due to lack of detailed research on the adoption of Neuromarketing in the Automotive space, authors have tried to bridge this gap. They have identified the current adoption of Neuromarketing and have suggested solutions to overcome barriers. This research will help Automotive brands, market research companies and Neuro experts to come up with relevant solutions to increase the usage of Neuromarketing <b>Design.</b> The authors first reviewed any available literature related to the Automotive landscape. Then, in-depth discussions with Automotive players were conducted in order to clarify the Neuromarketing adoption in the current scenario. Finally, Neuro experts, viz. neuroscientists and research companies, were consulted for possible future solutions <b>Findings</b>. Literature reviews and discussions with Automotive companies revealed that Neuromarketing adoption is limited as compared to traditional market research methods. Though the majority are aware of Neuromarketing, limited companies have used it. It is mostly undertaken in advertisement and product testing, primarily using EEG and Eye tracking. Neuromarketing is perceived as being expensive and difficult to understand and having ethical concerns. It is also believed that Neuromarketing does not answer the ‘why’ behind the participants’ responses. The paper also validated Simon’s Bounded Rationality Theory where automotive organizations used conformity instead of maximum value in adoption of neuromarketing. Expert discussions clarified that most of the Neuromarketing limitations like ethics, cost, lower sample, lab setup, etc. mentioned by Automotive players can be overcome. Hence the next step is to take this science to maximum automotive players and make them aware of the development, conduct pilot studies, remove their inhibitions about Neuromarketing and complement it with traditional research methods.

Using machine learning to develop customer insights from user-generated content

Uncovering customer insights (CI) is indispensable for contemporary marketing strategies. The widespread availability of user-generated content (UGC) presents a unique opportunity for firms to gain a nuanced understanding of their customers. However, the size and complexity of UGC datasets pose significant challenges for traditional market research methods, limiting their effectiveness in this context. To address this challenge, this study leverages natural language processing (NLP) and machine learning (ML) techniques to extract nuanced insights from UGC. By integrating sentiment analysis and topic modeling algorithms, we analyzed a dataset of approximately four million X posts (formerly tweets) encompassing 20 global brands across industries. The findings reveal primary brand-related emotions and identify the top 10 keywords indicative of brand-related sentiment. Using FedEx as a case study, we identify five prominent areas of customer concern: parcel tracking, small business services, the firm's comparative performance, package delivery dynamics, and customer service. Overall, this study offers a roadmap for academics to navigate the complex landscape of generating CI from UGC datasets. It thus raises pertinent practical implications, including boosting customer service, refining marketing strategies, and better understanding customer needs and preferences, thereby contributing to more effective, more responsive business strategies.

Unlocking hidden market segments: A data-driven approach exemplified by the electric vehicle market

Market segmentation is crucial for companies to recognise the distribution of products in the market and to identify ‘unexploited’ segments that hold the potential for new products not yet available in the market. However, recognising market segments that are not yet occupied by any product requires extensive research and data analysis. To address this challenge, we present a new systematic, data-driven approach to market segmentation based on product attributes data. This approach combines three data mining methods (singular value decomposition, principal component analysis, and clustering) with a newly developed inverse clustering algorithm. Inverse clustering introduces interpretable variables (i.e., principal components) and quantitatively identifies unexploited market segments distinct from existing ones. We apply this approach to a use case of battery electric vehicles to demonstrate its effectiveness in supporting product positioning and analysing market data. Leveraging the developed techniques and algorithms could bridge the gap between product development and market potential by identifying opportunities for new products. The approach offers better explainability and applicability of market segments, effectively identifying unexploited market segments that traditional market research methods may have overlooked.

Neuromarketing: a Tool to Understand Consumer Behaviour

This paper studies the concept of neuromarketing in consumer behaviour, emphasising the fact that consumers are not entirely rational in their decision-making process, because emotions influence their behaviour. Consequently, the neuromarketing field emerged as a way to understand the subconscious motivations of consumers. The scientific problem of this paper is to analyse how neuromarketing techniques can be effectively integrated with traditional marketing research methods to provide a comprehensive understanding of consumer behaviour. It emphasises the fact that traditional marketing research tools may not reveal all essential insights into consumer behaviour research. Therefore, market research practices should employ neuromarketing tools such as eye tracking, facial expression analysis, biometrics and neuronal activity measurements. First, six principal neuromarketing research areas are identified: branding, product design and innovation, advertising effectiveness, shopper decision-making, online experiences, and entertainment effectiveness. Next, a simplified human behaviour model, consisting of three phases, unconscious, conscious and observable, is discussed. Finally, the paper focuses on criticisms of neuromarketing and ethical issues.

Strategy of Ethical Approach in Neuromarketing in Terms of Marketing Research

Traditional demand-based marketing research methods fail - because they depend on respondents' willingness to describe their feelings. Neuromarketing focuses on directly examining how respondents feel and what they think about a product or advertisement. This paper discusses the evolving and potential field of neuromarketing. Respondents, participants in the research are human beings and have the right to their privacy and protection of their own identity. The ambition of the contribution is to point out the possibilities of applying the strategy with regard to ethical principles in neuromarketing in the conditions of the Slovak republic.

How Neuroscience-Based Research Methodologies Can Deliver New Insights to Marketers

While traditional market research methods are focused on surveys and group discussions, consumers’ attitudes, the choices they make, and the behaviour they display are all driven by a complex set of factors, and much of what is happening takes place in the subconscious mind. Learning that a stimulus engages in a positive way and that memory formation is taking place does not tell the marketer anything about the quality and impact of these memories or the engagement. With the technological advances, the emergence of neuroscience-based methodologies offers a higher degree of reliability. In the recent years, a noticeable increase in the use of eye-tracking and EEG frontal asymmetry technique was observed to measure cognitive processes of consumers among which are attention and perception to gain insights into their decision-making processes, consumer preferences and/or motivations. Using a real-world use case, this study highlights the importance of using neuroscience-based methodologies to evaluate packaging design to identify how well the brand is positioning itself on the subconscious level. While results from our study suggest that subjects displayed avoidance behaviour according to the lower frontal alpha asymmetry score, the statistical analysis failed to show significant difference between left and right hemisphere. Regardless of the statistically insignificant EEG findings, relatively longer times to first fixation among the areas on the visual suggest that the visual is not optimally designed and that for obtaining insightful data in product packaging field, relying on eye-tracking techniques is sufficient for reliable insights.

Marketing in social innovations targeted at healthcare

The paper deals with the implementation of marketing in social innovations, types of marketing, and the effects they can bring in the sphere of social innovations. The principalaim of the paper is to explain the possibilities of marketing approach implementation in social innovations and point out some specific areas of marketing which can contribute to more efficient applicability of social innovations and reaching a desirable change with social added value. The authors focused on the sphere of health and the population attitudes to its protection, emphasizing breast carcinoma prevention. The research was implemented on a sample of Slovak women to identify the level of women’s awareness of this issue, whether they are familiar with the methods of protecting their health and whether they use them. This study involved the methods of cluster analysis and binary logistic regression. The research uncovered the facts that are truly alarming from the perspective of societal benefit and women’s health protection. The respondents’ insufficient awareness and low activity in the field of their health protection result in the low level of prevention in this area on the side of women and on the side of medical doctors – specialists, particularly gynecologists. Such a situation includes the women’s insufficient awareness of prevention, low motivation, insufficient accessibility and validity of the needed data and precision, and doctor specialists’ lack of awareness of the possibilities and tools available to improve this area. That is exactly the space allowing for the use of marketing in a whole spectrum of its tools and processes and specific solutions capable of delivering the desired societal change and influencing women’s behavior in the preferred direction. Besides, it is especially effective to implement social marketing and social marketing programs that would mediate necessary information to the receivers and stimulate their motivation towards the desired approach to their health protection. The use of neuromarketing would be beneficial. It would be reflected in the better accuracy of the survey and thus the higher quality of the answers obtained. Based on them, it is subsequently possible to create better-targeted campaigns and strategies of social marketing that would approach the target audience more effectively than in acquiring the information via traditional marketing research methods. The findings would benefit marketing agencies, medical doctors (gynecologists, mammologists), and non-profit organizations actively working in this field.

ФОРМИРОВАНИЕ ПОТРЕБИТЕЛЬСКИХ ПРЕДПОЧТЕНИЙ С ИСПОЛЬЗОВАНИЕМ ИНСТРУМЕНТОВ НЕЙРОМАРКЕТИНГА

In this article, we say that marketing and advertising professionals have been aware of the limitations in traditional market research methods for decades, but only in recent years has science allowed the development of a more effective mechanism by which consumers’ thoughts can be deciphered and this is neuromarketing. Building an effective and successful communication policy through the use of a variety of technologies and promotion methods is one of the primary tasks of the effective functioning and development of the company in the market, as well as increasing its competitiveness. For this, in parallel with measurements of electroencephalography, magnetic resonance imaging, brain scanners, galvanic skin response, an eye-tracking device is used, which allows one to accurately identify a stimulus that provides information about the consumer’s response to various commercial messages. Eye-tracking technology is that the respondent is shown a visual stimulus (static or dynamic), while a special device records the trajectory and metrics of the pupil movement. The respondent’s pupil is illuminated with infrared rays, while the trajectory of its movement is continuously recorded by several high-precision infrared cameras. The coordinates of the movement of the pupil are recorded in the database, subsequently the data is analyzed and qualitative and quantitative reports are drawn up. This tool is used to analyze and understand the reaction of people to products and promotions, which allows you to increase the effectiveness of product promotion to make them more effective. The purpose of this article is to show the role that eye-tracking plays in the correct understanding of consumer needs, words and emotions. The main advantage of eye-tracking is the impartiality of the tested respondents, since the equipment used in this technology records the natural reactions of a person (by studying the movement and reaction of the pupil), which cannot be imitated. The main tool for applying the technology is the eye-tracker device, which recognizes and records pupil positions and eye movements.

An Approach to Integrating Market Research with Customer Insights through the Development of IoT Products

Technology development is routinely seen as the solution to stay relevant, however, many organizations are unsure of exactly how to capitalize on such technology. This paper builds on current traditional market research (TMR) with deep customer insights (DCI) theory to understand how the development of a new technological solution can be supported by TMR and DCI methods. An empirical case study of an international firm developing a new product to utilize the internet of things (IoT) is investigated. This research reports on a 13 stage method, including industry and company business model analysis, mobile application analysis, cross-national company and customer interviews, co-design, and testing of prototypes methods. The results demonstrate how DCI methods enable an understanding of the opportunity a technological intervention provides, not just simply implementing it as a solution to a problem. In addition, it contributes to the emerging field of DCI methodologies by providing a practical examination of their use in the field. The paper illustrates the successful implementation of DCI methods as data collection to provide a novel approach to connect with customers to develop IoT products and services applicable to all cross-national organizations.

Social creation networks for designing low income interfaces in programmable thermostats

The user interface serves as a critical contact point between electronic devices and end-users. They aim to increase usability and optimize communicative relations between humans and machines. In this regard, theories related to human-computer interaction (HCI) stress the importance of interface design methods that consider needs, expectations, and requirements of end-users. In this paper, we propose a design methodology of a programmable interface for low-income household thermostats based on product social creation through “personas,” scenarios, and usability heuristics. As traditional market research methods used to design interfaces are inherently expensive and time-consuming, we propose a web-based design model based on the extraction and analysis of Facebook public profiles. We consider that by using Facebook profiles, the most essential interface-related needs, such as simplicity and interactivity, can be addressed in a more efficient, complete, and realistic manner comparing with the traditional product design methods. Finally, we present a mock interface and a 3D model as a way to validate the proposed design methodology based on the usability analysis.

Neuromarketing for a better understanding of consumer needs and emotions

In this paper we are talking about the fact that marketing and publicity specialists have become aware of the limitations of traditional market research methods for decades, but only in recent years science has allowed the development of a more effective mechanism by which consumers' thoughts can be deciphered: neuromarketing. This term refers to the use of techniques developed by cognitive neuroscience and psychology specialists to analyze and understand people's reactions to products and promotions, which allows refining marketing efforts to make them more effective. In the article we are talking about the tools used for this purpose, which include magnetic resonance imaging (MRI), brain scanners that identify brain parts that react to different stimuli, and electroencephalography (EEG), devices that measure electrical activity in the brain. By tracking brain reactions to different stimuli, researchers can discover the marketing mechanisms that are most likely to lead to the desired outcome: selling the product. For this, in parallel with the EEG measurements, an eye-tracking device is used, which allows the exact identification of the stimulus that produces the reaction from that moment. Also, some neuromarketing companies also use GSR (galvanic skin response) sensors to measure the electrical conductivity of the skin, which is another element that provides information about the consumer's response to various commercial messages. The purpose of our article is to show the role played by neuromarketing in the correct understanding of consumer needs, words and emotions.

Making market research reliable

Making market research reliable

Navigating market opportunity: traditional market research and deep customer insight methods

PurposeThis paper aims to explore the use of a design process of inquiry that incorporates both deep customer insight (DCI) and traditional market research (TMR) in an ill-defined, complex current market opportunity to generate new business opportunities for firm-based innovation.Design/methodology/approachThe paper reports on an empirical research case study conducted within a multi-national insurance agency looking at the shift in mobility in Australia. Data were collected across seven distinct research phases, all of which used TMR and DCI techniques for joint comparison.FindingsThe findings revealed that TMR and DCI methodologies developed both contradictory and complementary research outcomes. These outcomes saw rise to newly generated novel business model concepts for market entry opportunity from the case study firm.Research limitations/implicationsThe theoretical outcome of this study is the design thinking DCI framework providing guidance on appropriate implementation of research methods to respond to complex market opportunity.Practical implicationsDCI methods used in conjunction with TMR can provide early stage market opportunity assessment for firms seeking to innovate from a customer perspective.Originality/valueThis is the first paper to apply a design approach, combining TMR and DCI methods to a complex market opportunity rather than a tangible problem. In addition, it also contributes to the emerging field of DCI methodologies by providing a practical examination of their use in the field.

Consumer Neuroscience and Digital/Social Media Health/Social Cause Advertisement Effectiveness.

This research investigated the use of consumer neuroscience to improve and determine the effectiveness of action/emotion-based public health and social cause (HSC) advertisements. Action-based advertisements ask individuals to ‘do something’ such as ‘act’, ‘share’, make a ‘pledge’ or complete a ‘challenge’ on behalf of a brand, such as doing ‘something good, somewhere, for someone else’. Public health messages as noncommercial advertisements attempt to positively change behavioural intent or increase awareness. Australian health expenditure was $180.7 billion AUD (Australian dollars) in 2016/17 with $17 million AUD spent on government health campaigns. However, evaluation of health advertisement effectiveness has been difficult to determine. Few studies use neuroscience techniques with traditional market research methods. A 2-part study with an exploratory design was conducted using (1) electroencephalography (EEG) using a 64 channel EEG wet cap (n = 47); and (2) a Qualtrics online psychometric survey (n = 256). Participants were asked to make a donation before and after viewing 7 HSC digital/social media advertisements and logos (6 action/emotion-based; 1 control) to measure changes in behavioural intent. Attention is considered a key factor in determining advertising effectiveness. EEG results showed theta synchronisation (increase)/alpha desynchronisation (decrease) indicating attention with episodic memory encoding. sLORETA results displayed approach responses to action/emotion-based advertisements with left prefrontal and right parietal cortex activation. EEG and survey results showed the greatest liking for the ManUp action/emotion-based advertisement which used male facial expressions of raw emotion and vulnerability. ManUp also had the highest increased amount donated after viewing. Lower theta amplitude results for the International Fund for Animal Welfare (IFAW) action/emotion-based advertisement indicated that novel (possessing distinct features) rather than attractive/conventional faces were more appealing, while the rapid presentation of faces was less effective. None of the highest peak amplitudes for each ad occurred when viewing brand logos within the advertisement. This research contributes to the academic consumer neuroscience, advertising effectiveness, and social media literature with the use of action/challenge/emotion-based marketing strategies, which remains limited, while demonstrating the value in combining EEG and neuroscientific techniques with traditional market research methods. The research provides a greater understanding of advertising effectiveness and changes in behavioural intent with managerial implications regarding the effective use of action/challenge/emotion-based HSC communications to potentially help save a life and reduce expenditure on ineffectual HSC marketing campaigns.

Attitude toward smoking: the effect of negative smoking-related pictures

Research background: Endeavouring to develop healthy societies is a primary goal in many countries. As smoking is a major problem of public health, lowering the extent of smoking is one of the conditions for developing a healthy society. Based on the research revealing that the pairing of the product with negative stimuli enhances the possibility of negative reaction to the product as negative stimulus transfers it?s meaning to the product, tobacco packaging was labelled with negative smoking-related pictures illustrating the danger of smoking. Nevertheless, the extent of smoking is still large in many countries. Hence, the effect of negative smoking-related pictures has been the subject of intense debate within the scientific community.Purpose of the article: The aim of this research is to determine the effect of negative smok-ing-related pictures on the both implicit and explicit attitude toward smoking.Methods: For the purpose of determining the effect of negative smoking-related pictures on the both implicit and explicit attitude toward smoking, Implicit Association Test and ques-tionnaire survey were provided. The questionnaire was elaborated based on the analysis and synthesis of scientific literature.Findings & Value added: The theoretical analysis substantiated the influence of attitude toward the product on consumer purchase decisions. Nevertheless, people do not always want to reveal their opinion, hence traditional marketing research methods for measuring explicit attitude are not sufficient as they are often not objective. Therefore, neuromarketing research methods complement traditional marketing research methods by providing more objectivity. Consequently, the Implicit Association Test and traditional questionnaire research are applied for the empirical research, revealing the effect of negative smoking-related pictures on the both implicit and explicit attitude toward smoking. The recommendations for the usage of negative smoking-related pictures on purpose to influence attitude toward smoking and consumer purchase behaviour are substantiated.

What’s in a crowd? Exploring crowdsourced versus traditional customer participation in the innovation process

ABSTRACTThis study explores the emerging crowdsourcing phenomenon, that is, the outsourcing of idea generation to the product users (‘the crowd’), typically via online platforms to interact with many and diverse customers and glean valuable market insights. The study focuses on this phenomenon and the factors that determine the value of crowdsourced customer participation over more traditional market research methods. The authors present the results of an extensive, in-depth qualitative case-study analysis pertaining to the media industry. The authors find that crowdsourced customer participation is not consistently superior in enabling firms to discover how to serve their customers better. Instead, the results unearth a catalogue of seven interrelated value determinants that show where the boundaries of both crowdsourcing and traditional customer participation in innovation lie. These value determinants fall into three main categories: (1) innovation-specific value determinants, (2) firm-specific value determinants, and (3) managerial value determinants.

Effects of colour towards underwear choice based on electroencephalography (EEG)

The purpose of this paper is to investigate whether colours as stimuli can affect underwear choice based on consumers' EEG recording as biological response to elicit preferences towards underwear products. The study employs applications of neuroscience methods to analyse the physiological choice process. Twenty underwear buyers were asked to evaluate several underwear colours (red, white, blue, brown, grey and black) by using wireless EEG headset with 6 channels to collect EEG signals from participants' frontal, temporal and occipital brain areas that can give us a measure to estimate consumers' choice. The result indicated there was a clear and significant change (p < 0.05) of EEG brain waves activities of right and left hemisphere in the frontal (F3 and F4), temporal (T7 and T8), and occipital (O1 and O2) brain areas when participants indicated their preferred colour. Additionally, based on the results female consumer prefers underwear which has red colour while male consumer prefers white colour. This research would essentially contribute in enriching marketing research method by using more advanced experimental designs rather than traditional marketing research methods.

Emotional or Rational? The Determination of the Influence of Advertising Appeal on Advertising Effectiveness

Abstract In prevailing competition-based market economy, organizations have to search factors influencing advertising effectiveness. This research aims at developing the model of the influence of advertising appeal on advertising effectiveness. While achieving the aim of the article, the analysis and synthesis of scientific literature is provided. Furthermore, traditional marketing research methods as well as neuromarketing research methods are applied in order to determine the influences of different advertising appeals on advertising effectiveness. As a research result, the model of the influence of advertising appeal on advertising effectiveness is elaborated. Accordingly, this research fills the gap in scientific literature by determining the influences of emotional and rational appeals on print / outdoor advertising effectiveness in the context of convenience product category. Moreover, by answering the research question, the contribution to the field emerges in integrating both marketing theory and neuroscience in order to analyze and evaluate consumer behavior.

Consumer neuroscience: A method for optimising marketing communication

Today’s research in cognitive neuroscience suggests that decision making is less deliberate than once thought and instead relies heavily on early emotional responses. Traditional market research methods, such as focus groups and surveys, have been unable to clearly demonstrate consumers’ initial, preconscious reactions. Now, consumer neuroscience methods are revealing insights into the early emotional responses that are crucial to understanding decision making and, therefore, are capturing a more complete view of multicultural consumers. While many methods can be applied to reveal the hidden insights, drivers and motivations of consumers, electroencephalography (EEG) uniquely provides fine temporal resolution of cortical activity in a scalable fashion, making it an ideal resource for the analysis of marketing material. Using EEG, researchers are able to evaluate the attentional effort, emotional engagement and memory activations in response to stimuli on a secondby- second basis, enabling optimisation of marketing communications at a highly granular level. These metrics have been tested for reproducibility and validated with in-market performance, ensuring applicability to consumer behaviour and providing unique insights about consumer groups that have historically been difficult to capture.

Neinvazinių galvos smegenų elektrinio aktyvumo tyrimų metodų ir žvilgsnio sekimo sistemos taikymo galimybės reklamos efektyvumo vertinimui

The application of the non-invasive brain electrical activity and eye-tracking research methods for the assessment of advertising effectiveness are being analyzed in the article. Traditional marketing research methods are not always sufficient for the complete assessment of advertising effectiveness, thus neuromarketing research methods are often applied to clarify it. Nevertheless, due to the absence of the methodologies of neuromarketing research methods application for evaluating marketing activities, it is important to reveal the possibilities of applying the specific methods for the assessment of advertising effectiveness. The aim of this article is to determine the possibilities of applying non-invasive brain electrical activity and eye-tracking research methods for the evaluation of advertising effectiveness. While achieving the aim of the article, the logical analysis and synthesis of the scientific literature is applied. As a research result, the guidelines for the selection of non-invasive brain electrical activity and eye-tracking research methods for the assessment of advertising effectiveness are formed. Latter guidelines are relevant for the organizations performing neuromarketing researches in both academic and business levels.