Industrial-strength Knowledge Development

for the Sensory Description of Food Products

Howard R. Moskowitz, Ph.D.Linda Ettinger Lieberman, M.Ed.

© 2013 Moskowitz Jacobs Inc.

What Consumers Want From Industry Regarding Cooking Sauces

In 21st century post-depression America, industry must meet stronger consumer demands for cooking sauces.

A lot of focus will be on price and value of product features.

What resonates with consumers?

What will command higher prices?

Topics

Psychological foundations …• Empathy ... the mine of ideas• Experiment ... the acid test

Running the experiment • What do consumers want and prize?• Different mind-sets, major opportunities

Empathy and Experiment™ : Psychology of empathy and the science of experiment

Where do we begin?

• For more than 100 years, researchers recognized a need for a deeper psychological understanding of consumers.

• Most marketing/communication efforts remain peripheral/superficial.

. Focusing on what, not on the person

• 5 KEYS™ EMPATHY … holistic qualitative research paradigm emerging from business

• Attempts to explore the psychic apparatus of consumers in various dimensions.

• The researcher uses one/ a hybrid mix of qualitative techniques

•These methods engage consumers, elicit responses, generate insights.

• One of many disciplined, qualitative processes used by consumer researchers

Empathy provides ideas … the raw material for our experiment

RUNNING THE EXPERIMENT

• Extracted ideas are the basis of the stimuli to be tested.

• Both objective (topical) and subjective (experiential) insights used to create elements to be used in vignettes.

• Run structured tests which mix /match elements (ideas).

• Discover messages about products/services, what floats to the top.

• Create a typing tool.

RULE DEVELOPING EXPERIMENTATION® (RDE)

• RDE: o Foundation for Mind Genomics® IdeaMap®.net o Modeled on the science of genomics and

technology of informatics.  •The three roots of RDE: o Experimental psychologyo Driving power of business o The world-view of social science

DEVELOPING SURVEY STIMULI AND QUESTIONS

What Consumer

sDemand and WillPay For

ANALYZING SURVEY RESULTS→ Mind Genomics® IdeaMap®.net

INTERNET invitation Mind Genomics® IdeaMap®.net

SURVEY

IDENTIFYING OUR TARGET MARKET

Total Sample

Seg 1 Self Driven Online

Banking Seekers

Seg 2 Technology/

High Security Seekers

Seg 3 Collaborative

Online Seekers

Seg 4 Personal Touch with Technology

Base Size: (267) (105) (50) (59) (53) Constant: 31 34 28 31 26

OC1 Connect online in 'real time' with a customer rep via instant messaging, voice over IP or video conferencing via your computer 0 2 2 5 -13

OC3 Faster loan application process…work in real time online with a loan officer 0 0 -8 12 -8

OC4 Our bank's customer service reps will help you browse and use our online banking services -1 0 -6 10 -10

OC2 Use our online tool to find and schedule at your convenience an online working session with an expert such as investment broker, insurance agent, and/or loan officer -3 1 -11 6 -12

ON3 We will answer all your requests in 'real time' by email, instant or text messaging 1 7 -11 3 -1

ON4 We offer 'On demand' status reports for services requests (e.g., loan application) delivered to you via e-mail, text or instant messaging

1 6 -4 -3 0ON2 No more paper mail... We will send you statements and images of

transactions securely by email -2 5 -17 -5 2ON1 We allow you to pay bills securely using your mobile devices (cell

phone, PDA, Blackberry, etc.) -4 2 -13 -9 -2

BR3 We offer a bank-issued smart card so we can recognize you entering the branch and process your needs faster 4 2 6 -3 13

BR4 Choose a secure eye or finger security scan to identify you immediately in-branch and at ATM 4 3 10 -1 3

BR2 We have the most secure biometric system that identifies you as you enter the branch so we can process your needs faster 2 -1 8 -5 6

BR1 We will recognize our customer's mobile phone signal when entering a branch so we can recommend appropriate bank products, promotions and special services -4 -3 -6 -11 2

Online Collaborative

Online Other

In-Branch Recognition

No more paper mail – we will send you copies of statements by secure e-mail

Securely manage your account by PDA, Internet of automated telephone

Our banks customer services reps will help browse & use our on-line services

Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it

No more paper mail – we will send you copies of statements by secure e-mail

Securely manage your account by PDA, Internet of automated telephone

Our banks customer services reps will help browse & use our on-line services

Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it

MARKET SEGMENTATION SEGMENTATION WIZARDMARKETING PHRASES

The steps of the process

Raw materials: Elements – 1 of 2

Raw materials: Elements – 2 of 2

Elements combined into vignettes3-4 elements treated as one messageRated on ‘pleasing the reader’

Elements combined into vignettes3-4 elements treated as one messageRated on ‘how much willing to pay’

The instruction pageWeb-based survey interview

Broad range of peopleBase of 304 respondents

Gender: 44% Male; 56% FemaleAge: 38% 18-29; 30% 30-44; 24% 45-64; 8% 65+ yrs.Nationality: AmericanFamily Status: 34% Single; 5% Married; 61% OtherChildren < 18 yrs.: 29% No Children < 18 yrs.; 71% Children < 18 yrs.Annual Income: 35% < $30K 59% > $30K but <$100K 6% > %100KEducation: 0% Elementary/Middle School 12% High School 68% Some or Completed College 16% Graduate or Professional School 4% Miltary

Ethnicity: 49% Caucasian; 16% Black; 17% Asian; 17% Hispanic; .5% American Indian;.5% Middle Eastern

Neighborhood: 49% Rural/Suburban; 51% Urban

•Each respondent rated 48 vignettes

•Vignette first rated on ‘pleased’ – 9 point scale

•Vignette then rated on ‘dollars extra would pay’ – $ select

•Let’s look at the slope of the simple equation:

Pay-Extra$ = a + b (Pleased)

Will people pay more for vignetteswhich ‘please’ them?

What about the elements?

• Which elements please?

• Which elements command more money?

Reading the Numbers

• Pleased = probability that a person will be pleased (rating 7-9) when the industry announces a specific policy

• Constant = baseline of % being pleased without any elements in the vignette

• Each element contributes its own percentage of people being pleased

• Dollar value = incremental dollars a person would pay, over and above the specified $ 3.50 purchase when the element is introduced into the vignette

Relation between the impact or part-worth value of a sauce element and the dollars that the element would command

What pleases people most…And how much extra money will they pay?

Segmentation Typing Wizard

The Typing Wizard for the Cooking Sauce Study and What to Say versus What to Avoid for Each Segment

Consumer Type 1: Variety/Flavor Lovers

Things to say:• Available in creamy textures: cheese, ranch, alfredo, etc.• Available in tomato-based varieties: Italian marinara, basil, garlic, pizza, etc.• Available in regional flavors: Southwest, Cajun, New England, Barbecue, etc.• Available in spicy/hot varieties: Mexican chili/salsa, Indian chutney/curry/ cardamom, etc.

Things to avoid saying:• Foil-lined paper pouch is notched for easy opening• Comes in a recyclable metal can• Bag in a box is easy to use• Aseptic (sterile) envelope keeps ingredients fresh

The Typing Wizard for the Cooking Sauce Study and What to Say versus What to Avoid for Each Segment

Consumer Type 2: Packaging/Storage Convenience

Things to say:• Aseptic (sterile) envelope keeps ingredients fresh• Comes in a biodegradable pouch … Nothing left behind to harm the environment• Pour-over sauce … adds a finishing touch to create an attractive dish• Foil-lined paper pouch is notched for easy opening

Things to avoid saying:• Available in sweet/savory varieties: Oriental/Chinese, Japanese, ginger, wasabi, soy, miso, etc.• Available in tomato-based varieties: Italian marinara, basil, garlic, pizza, etc.• Available in spicy/hot varieties: Mexican chili/salsa, Indian chutney/curry/ cardamom, etc. • Available in fish-based varieties: Vietnamese, Thai, Indonesian, etc.

The Typing Wizard for the Cooking Sauce Study and What to Say versus What to Avoid for Each Segment

Consumer Type 3: Eco-friendly, Vegetarian, Organic

Things to say:• Comes in a biodegradable pouch … Nothing left behind to harm the environment• Vegetarian• Aseptic (sterile) envelope keeps ingredients fresh• 100% Organic

Things to avoid saying:• Shelf stable until opened• Refrigerate left-over preparation• Fresh-chilled in store … refrigerate immediately• Non-refrigerated … single – serve packets

Prospects for the Future

Creation of a normative database for dozens of different classes of products in a supermarket with two potentials:

1. Knowledge of the product - What to create for each segment

- Segmentation shows developer what each segment wants, in a conceptual way

2. Knowledge of the person - In-depth knowledge from responses to large

sets of questions for many different products in the supermarket

- Sequencing the mind of one person to the minds of millions of current and prospectiveconsumers

For further information on Empathy & Experiment™

Contact Moskowitz Jacobs Inc. • call 914-421-7400

• e-mail mjihrm@sprynet.com• Visit our website: www.mji-designlab.com

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