Di it ll E bl d M k t R hDigitally-Enabled Market Research TechniquesqA HawkPartners Assessment

September 2011

Brooke HempellBrooke.hempell@hawkpartners.com

Scott WilkersonScott.wilkerson@hawkpartners.com

For further information contact:

Emerging digital channels and technologies are having a significant impact on our industryg p y

Just as the Internet revolutionized market research 15Just as the Internet revolutionized market research 15 years ago, social media, mobile devices, and other

digital technologies will have a growing impact on how, when, and where market research is conducted

The purpose of this document is to assess the pros and cons of th di it l t l d h th b t ff ti l l dthese digital tools, and how they can be most effectively leveraged

to capture marketing insights

2

Social networking usage continues to explode, and is now widespread among all but seniors

Nearly half of those over age 35 use at least one SNS – nearly double the percentage in 2008

p g

90%

100%

% of Internet Users Who Use Social Networking Sites – By Age

86%

61%60%

70%

80%

90%

47%

26%30%

40%

50%

26%

0%

10%

20%

September 2005 May 2008 November 2008 April 2009 December 2009 May 2010

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September 2005 May 2008 November 2008 April 2009 December 2009 May 2010

18‐29 30‐49 50‐64 65+

SOURCE: Pew Research Center

Meanwhile, smartphones are now mainstream, and are a key source of internet access

Over one-third of American adults now own smartphones– Ownership is highest among those in their mid-twenties through mid-thirties

y

– Smartphones are used for internet, social networking, and mobile apps

Smartphone Ownership by Age(July 2011)

% of smartphone users who…(July 2011)

46% 35%45%

5% 7% 11% 14% 19%

44%

87%

68%

49% 58%44%

58%59%

45%25%

%28% 22%

11%

18-24 25-34 35-44 45-54 55-64 65+

No cell phone Other cell phone SmartphoneUse the Internet

or e-mail on Use smartphone to go online on a

Go online mostly using smartphone

4

SOURCE: Pew Research Center, July 2011

p p psmartphone

gtypical day

g p

As a result of these trends, market researchers are adopting a growing number of new technologiesg g g

% of Market Researchers That Have Ever Used…n=673

22%22%

28%34%

M bil SText Analytics

Social Media AnalyticsOnline Communities

10%11%

17%18%

22%

P di ti M k tApps based research

Eye TrackingWebcam-Based Interviews

Mobile Surveys

8%9%9%

10%10%

M bil Q lit tiMobile Ethnography

Virtual EnvironmentsVisualization Analytics

Predictive Markets

Focus of this assessment

2%5%

6%7%

8%

S i GBiometric Response

NeuroMarketingCrowdsourcing

Mobile Qualitative

5SOURCE: Green Book Industry Research Trends Report, Spring 2011

2%Serious Games

Digitally-enabled methods offer new ways to gather data -choosing the “right” methodology will be more complexc oos g e g e odo ogy be o e co p e

Factors Influencing Methodology ChoiceType of Information

Depth of Information

Required

Desired Amount of

Information to be Tested

Type of R d t

Amount of Time to “Set-Up”

Need for Verbal or Non-Verbal Cues

Confidence in

MethodologyChoiceTime to Field

Respondents Needed – are they

online or not?

Confidence in Methodology to

Yield Desired Output

Digital technology enables research to be fielded faster, and often cheaper.

ChoiceResearch / Get

resultsBudget

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g gy pIt is not expected to completely replace traditional methodologies – but will

certainly provide more ways to gather information

The leading techniques focus around leveraging communities, mobile usage, and computer based applications

Online Communities

ob e usage, a d co pu e based app ca o s

Leverages an online community for research such as online focus groups, omnibus surveys, product reactions

DescriptionMethodology

Communities Research

online focus groups, omnibus surveys, product reactions and online bulletin boards

Social Media Analytics

Uses social media sites or tools to mine and monitor organic conversations about relevant topics, gaining

did l ld i iy

Mobile Research

candid, real world opinions

Information is gathered and shared through a mobile device platform (e.g., Blackberry, iPhone) which delivers surveys wherever respondents are

Text Analytics

Gathers unstructured text content (e.g., customer emails, comments and forum responses) and analyzes customer sentiment and identifies trends

Web-Enabled Interviews

Leverages web-conference platform (and potentially webcams) to conduct IDIs and focus groups quickly and cost-effectively

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Eye Tracking Captures the location, length of time, and movement of the user’s point of gaze when exposed to visual stimuli

The leading techniques can be used for a variety of market research applications

Technology Potential Uses

Online Communities Similar to how a “panel” may be used today To get a quick reaction to materials

esea c app ca o s

Research To get a quick reaction to materials To monitor buzz among loyalists / category enthusiasts

Social Media Monitoring

Observe market / WOM in natural form Uncovers emotions or language about sensitive topics Cost effective as an opinion pulseg Cost-effective as an opinion pulse

Mobile Research

Quick / real-time feedback for “pulse” questions or omnibus questions Highly targeted recruiting (e.g., purchasers or participants) Ethnographies (via camera phone photos) Location based research (e g surveys distributed according to GPS) Location based research (e.g., surveys distributed according to GPS) Experience feedback / satisfaction (post-purchase, at events, etc.)

Text Analytics To understand trends in written, spoken or online materials Quickly analyze a large volume of material to identify “hot topics”

T d t lit ti i t i i b b d h i li ti

Web-EnabledInterviews

To conduct qualitative interviews using web based sharing applications or web-cams (cost effective due to low travel / no facility rental costs)

Similar to when a TDI may be used To garner reactions to materials To follow up on quant interviews in lieu of open-end questions

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p q p q

Eye Tracking To understand what is most “eye-catching” in materials, messages or creative concepts

Each technology has its own strengths and weaknesses

HawkPartners Assessment of Digitally-Enabled Technologies

Technology Advantages Disadvantagesgy g g

Online Communities R h

Panel of people ready to participate who fit the criteria identified (or are more likely to fit the criteria)

Dialogue can provide a real-time pulse

Can over-represent more tech-oriented respondents

May be expensive or difficult to maintain

Researchg

into consumer mindset Easy “disaster check” among loyalists

Does not offer opportunities to recruit category naïve respondents

Observe market / WOM in natural form Not every brand’s customers are

talking about them online

Social Media Monitoring

Uncovers emotions or language about sensitive topics

Can recruit hard-to-find respondents Cost-effective as an opinion pulse

Tends to capture early adopters or dissenters / complainers

Context may be missing/unclear Not appropriate for quantitative

analysis or projectionsanalysis or projections

Mobile Research

Quick and real-time feedback Enables recruit via GPS or creative

channels (e.g., on receipts, event/location signs)

Can over-represent more tech-oriented respondents

IT issues can occur Brief interactions make obtaining

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Research event/location signs) Can collect both quant and qual data

gdetailed respondent info difficult

Additional data charges

Each technology has its own strengths and weaknesses

HawkPartners Assessment of Digitally-Enabled Technologies

Technology Advantages Disadvantagesgy g g

Text Analytics

Brings structure to unstructured text Provides quick and massive content

identification and pattern recognition Can quickly synthesize multiple

Can be expensive and time-consuming May misinterpret nuances of language Often disregards context Some variations may simply consist of Can quickly synthesize multiple

sources Some variations may simply consist of

word count

Can recruit hard-to-find respondents without central location / in office

Less able to see body language/non

Web-EnabledInterviews

Faster to recruit and arrange than in-person groups

National representation Can be cost effective - no travel or

facility costs

Less able to see body language/non verbal cues

Can skew toward tech-savvy respondents

Potential for technical issuesfacility costs Can capture reactions via web-cam

Eye Tracking

Avoids respondent bias by giving insight into subconscious behavior

Helpful for material evaluation /

Equipment/staff can be expensive Does not provide insights on why

l f t i thi

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Eye Tracking Helpful for material evaluation / usability studies to understand user interaction

people focus on certain things Subject to technical problems

What is on the horizon? Research will become increasingly personalized and interactiveg y p

• Neuromarketing and biometrics will become moreEmotions and Trend Examples

Neuromarketing and biometrics will become more accessible and cost–effective to execute

• Eyetracking, pulse, heart rate, facial analysis body temperature will be common measures used

subconscious motives become increasingly

important

• Games will become an effective way to both understand customer behavior and sell products

• The concept of “fun” will become increasingly Fun and games will

become p g yimportant (avatars, incentives, virtual worlds, social media / mobile games) commonplace

• “DiViduals” are digital characters programmed to reflect a member of a target demographic. DigiVduals interact with real on-line consumers to understand how consumers of a target group are feeling and talking online

Digital characters interact with real people on social

di

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are feeling and talking onlinemedia