Beyond the Voice of the Customer
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
FEATURE ARTICLE
Beyond the Voice of the Customer
Ethnographic Market Research
Ethnographic market research can help companies to generate deep customer insights, beyond those offered by surveys and
focus groups.
Keith Goffin, Claus J. Varnes, Chris van der Hoven, and Ursula Koners
OVERVIEW: Although the importance of integrating the voice of the customer into new product development is almost
universally accepted, the techniques used by many organizations to identify customers’ needs have stagnated. The most
commonly used techniques, focus groups and surveys (including both interviews and questionnaires), have significant limi-
tations. Customers often struggle to articulate their needs in interviews, and focus groups often generate incremental ideas
rather than breakthroughs. Companies in the service sector face an additional challenge, as their customers need to discuss
services, which are by their nature intangible. One of the most promising approaches to generating a deeper customer un-
derstanding is ethnographic market research, which adopts ideas from ethnography, the set of tools social scientists use to
study tribal cultures. These techniques can provide deep customer insights, but their application to new product develop-
ment is not well studied. We explain the key elements of ethnographic market research, present four cases from the manu-
facturing and service sectors, and discuss the implications for managers.
KEYWORDS: New product development, Voice of the customer, Market research, Ethnographic market research
Integrating the voice of the customer into new product de- that make up the bulk of market research efforts are, when
velopment (NPD) is almost universally recognized by manag- used in isolation, ineffective for identifying customers’ prod-
ers as a crucial factor in the creation of successful products uct requirements, particularly where customers are not re-
(Griffin and Hauser 1993; Ulrich and Eppinger 2000). How- ally aware of their own needs—so-called hidden needs. In
ever, the techniques used by many organizations to gather this regard, the service sector is even more challenged be-
voice-of-the-customer data are significantly limited. The sur- cause of the intangible nature of service products, for which
veys (either interviews or questionnaires) and focus groups customers may find it difficult to articulate their needs. One
Keith Goffin is professor of innovation and new product development at Chris van der Hoven is a lecturer in the Centre for Innovative Products and
Cranfield School of Management, U.K. Prior to joining Cranfield, he worked Services (CIPS) at Cranfield School of Management. His executive educa-
for 14 years in marketing and new product development at Hewlett-Packard. tion, his MBA teaching, and his research focus on the impact of innovation
His research interests are new methods of market research, innovation, and in growth strategies. He spends two-thirds of his time working with execu-
knowledge management in R&D. He has published extensively; his latest tives on customized in-company workshops and has worked in more than
book, Identifying Hidden Needs: Creating Breakthrough Products, was 25 countries with managers of over 50 different nationalities. He has also
published by Palgrave in 2010. He teaches at a number of business schools, delivered innovation and project and portfolio management lectures at nine
including Bocconi University, Milan; Korea Tech; Mannheim Business School; other business schools around the world. Chris has a PhD in technology man-
Stockholm School of Economics; and WU Vienna. k.goffin@cranfield.ac.uk agement from Cambridge University, U.K. chris.vanderhoven@cranfield.ac.uk
Claus J. Varnes is an associate professor in the department of operations
Ursula Koners is manager of the Institute for Innovation and Family Entre-
management at Copenhagen Business School (CBS). Claus conducts re-
preneurship at Zeppelin University in Friedrichshafen, Germany, and a visit-
search in marketing, product development, and performance management.
ing research fellow at Cranfield School of Management. She has previous
He often uses ideas from sociology and organizational theory to illuminate
industrial experience in R&D management at DaimlerChrysler and as a senior
the effectiveness of management practice. His recent publications in Man-
manager at Ravensburger Spieleverlag and Siedle (both German Mittelstand
agement Decision and Journal of Product Innovation Management include
companies and market leaders in their sectors). She received her PhD from
analysis of attention-directing patterns in portfolio management, sense mak-
Cranfield for her research on knowledge management in R&D. Her publica-
ing of structured gate systems, and the generation of value in the product
tions focus on learning and tacit knowledge, as well as the creation of break-
lifecycle. cv.om@cbs.dk
through products by identifying hidden needs. She regularly teaches MBA
DOI: 10.5437/08956308X5504063 courses in innovation management. ursula.koners@zeppelin-university.de
Research-Technology Management • July—August 2012 | 45effective way to overcome the limitations of the commonly questionnaires, and focus groups allow the interaction be-
used methods is ethnographic market research, which is tween different customers to be observed. However, although
based on the methods originally developed by social scientists focus groups offer flexibility to vary the topics covered and
to study tribal cultures (Goffin, Lemke, and Koners 2010). the ability to consider customer-to-customer interaction,
Ethnographic market research comprises a range of tech- they take place outside the customer’s normal environment.
niques, but a key characteristic of all is the need to talk to This has two main implications: First, respondents behave
customers in their own environments, where they tend to be differently outside their normal environments; they may be
more open and honest in their answers, and to directly ob- less open, or they might say things about how they use prod-
serve them using products rather than relying on explana- ucts that do not match the way they actually use them. Sec-
tions of how they use products. Ethnographic market ond, because focus groups take place outside the customer’s
research uses open-ended questions to prompt customers to own environment, market researchers do not get to see a
describe how they use current products and reveal the issues host of potentially valuable contextual clues. For example,
they face. Video recordings of customers interacting with and visiting people’s homes gives broad insights into family life.
using products, when systematically analyzed, can help NPD Such visits allow researchers to see how products are stored
teams generate both incremental and radical ideas. Case and what the other products are used in conjunction with
studies in companies using these techniques demonstrate the target product. All these observations can give useful
how ethnographic market research can be used to under- ideas to product designers (Rosenthal and Capper 2006).
stand customer needs and garner insights that can shape “Focus groups have potentially enormous value, but not the
both product design and marketing. way most companies use them” (Sandberg 2002, 3); this is
because most companies use focus groups to discuss current
Traditional Market Research Tools product features, rather than using the discussion to identify
The main element in the typical market researcher’s tool the issues customers face. As a result, the insights from focus
set—the survey—has significant drawbacks. In responding to groups tend to lead to incremental improvements rather
questionnaires and in interviews, customers often struggle to than breakthrough products (Sorensen 1999; Ulwick 2002).
articulate their needs in answering direct questions because Companies that provide services, rather than tangible
they are not consciously aware of the limitations of current products, face an additional set of challenges in acquiring in-
products and cannot imagine the sort of products that will sight into customers’ needs. Services are considerably differ-
be feasible in the future (Deszca, Munro, and Noori 1999; ent from products because of their intangibility, inseparability
Mariampolski 1999). The skill required to write effective (the delivery and consumption of a service take place to-
questions is often underestimated, and as a result many gether), and heterogeneity (each service employee and each
questionnaires do not generate valid responses. Similarly, in customer is different, so that every service experience can be
interviews, companies often ask if particular features are im- different) (Johnston and Clark 2008). These characteristics
portant, prompting respondents to think about existing prod- make it difficult for customers to articulate their views on
uct features, rather than probing for their unresolved issues services, especially those involving complex technology
or unarticulated needs. Another issue with questionnaires is (Magnusson, Matthing, and Kristensson 2003). Given these
their low response rate. Superficially, the Internet seems to factors, market research for services can be a particularly dif-
have solved the problem of response rate, as Web question- ficult undertaking (Cooper and Edgett 1999); ethnography
naires can generate high numbers of responses, but whether can help because it looks for clues not only in what custom-
the replies are representative or valid is questionable. Due ers can articulate about the service and their needs but also in
to their limitations, surveys and interviews need to be how they act in relation to the service.
complemented by new techniques, if the aim is to develop “Developing a deep understanding of needs is an iterative,
breakthrough ideas. sometimes complex process requiring systematic, careful ob-
The second commonly used market research technique servation and thoughtful, open-minded analysis” (Euchner
is the focus group; approximately 200,000 focus groups and Henderson 2011, 51). Therefore, surveys and focus
are held each year in the United States (Emberger and groups need to be supplemented by other techniques; eth-
Kromer 1999). Typically, focus group attendees are invited to nography is a suitable candidate. Ethnography is excellent
meet at a neutral location and a moderator guides the discus- for conducting in-depth studies of small numbers of custom-
sion. Such discussions can be more flexible than structured ers (typically about 30), in order to discover customers’ hidden
needs. The insights from such a small group of customers al-
ways need to be checked with a more representative sample,
and that is the strength of traditional techniques.
Surveys and interviews need to be
Ethnographic Market Research
complemented by new techniques if the
Ethnography provides systematic methods that can help
aim is to develop breakthrough ideas. market researchers develop deep consumer insights. A num-
ber of leading companies have adopted the tools of ethnogra-
phy, including Ford (in designing a version of the Focus car
46 | Research-Technology Management Beyond the Voice of the Customeraimed at the “silver segment”—older consumers), Hewlett- example, Bosch talked to production operators in factories,
Packard (personal digital assistants), Whirlpool (washing and some of the questions asked were based on production
machines), and Iomega (data storage devices). However, eth- graphs displayed next to production lines. Discussions around
nography remains an underutilized tool: a survey of 160 these graphs led to insights about the problems with existing
mainstream U.S. companies found that only 12.9 percent of equipment. Similarly, a Danish newspaper seeking to learn
firms used the technique (Cooper and Edgett 2008). Al- more about the types of material that different readers pre-
though a number of RTM articles have stated that ethnogra- ferred found that discussions in people’s homes showed the
phy is a useful method (see, for instance, Cooper 2009; importance of offering a range of material to satisfy whole
Whitney 2007), the majority have not explained in detail families.
how to apply this approach to NPD. One recent paper did In contextual interviews, ethnographic market research-
explain some key aspects of observation (Euchner and ers also ask customers to show them how they use products,
Henderson 2011) but, overall, there appears to be a lack of with open-ended questions such as “Can you show me
understanding of the tools and techniques gathered under where you keep the product and describe how you use it?”
the umbrella of ethnographic market research. (Table 1). The questions are designed to produce information
Two of the most important methods from ethnography not only about how products are currently used but also
are contextual interviewing and systematic observation. about the unsolved problems customers face. For example,
Both of these tools focus on studying customers and users in the question “What has to be done before the product or ser-
their own environments, be it in their homes or, for B2B vice can be used?” can reveal when lengthy preparations
products, in work places. This practice recognizes the fact are necessary, which could be eliminated through a better
that people act and react differently depending on where product design.
they are—for example, they may be more open to discussing In analyzing the data collected during contextual inter-
personal issues at home than they are when interviewed in a viewing, it can be very useful to focus on the tasks that cus-
shopping mall. tomers aim to complete using a product or service. This
approach, which is very similar to “outcome-driven innova-
Contextual Interviewing tion” (Bettencourt and Ulwick 2008), generates an under-
Contextual interviews with individual customers or users are standing of the broader issues that users face, rather than
conducted in the customer’s own environment and use semi- simply focusing on product features. Outcome-driven inno-
structured interviewing. This type of interviewing works vation leads to a “job map,” a flow diagram of the stages and
from a set of predefined questions, but the interviewer must times required for customers to complete a specific task. Sim-
be alert and capable of spontaneously adding questions based ilarly, creating visual summaries of the information collected
on what they observe in the customer’s environment. For in contextual interviews can help NPD teams generate ideas
TABLE 1. Key questions for contextual interviews
Underlying Research Question Interview Questions
What is the purpose of the activity? • When do you use this product or service?
• Why do you use this product or service?
• How does this product or service help you do your work?
• How do you feel about the product or service?
• Who else benefits from this product or service?
What has to be done before the product or service can be used? • Can you tell me what you need to prepare in advance before you use
the product or service?
What procedures are used? • Can you explain to me how you use this product or service?
• What makes the activity easier (or harder) to complete?
• Are there different ways of doing this?
What are the time and space requirements for the activity? • How long does this typically take?
• Can you do this somewhere else?
• What is this/what are these for (other devices observed)?
What are the personnel requirements for the activity? • Who do you need to help you do this?
• What skills do they require?
What is the nature of the social organization around the activity? • Who else uses this product or service?
• What is the relationship between these people?
What are the occasions for performing the activity? • When do you need to do this?
• How often?
• Who else uses this product or service?
What happens after you have completed the activity? • What must happen?
• What needs to be verified?
• What concludes the activity?
Source: Adapted from Goffin, Lemke, and and Koners 2010, 92
Beyond the Voice of the Customer July—August 2012 | 47play in people’s lives and the emotions they generate. This
can give ideas for improving existing products and develop-
Systematic observation allows market ing radically new ones.
Video recordings make the systematic observation easier.
researchers to understand the role Market researchers need time, practice, and a clear coding
products or services play in people’s scheme—a set of categories into which observations can be
sorted to facilitate analysis (Table 2)—to spot clues and har-
lives and the emotions they generate. vest subtle insights from them. NPD teams should watch
video footage of customers, identifying incidents or informa-
tion that falls into one of the coded categories. For each
instance of a code, the team should consider what the obser-
vation tells them about customer needs.
for new products and services. Such maps or other visual Codes are divided into two levels: top-level codes and un-
representations can point to unarticulated needs and suggest derlying codes (Figure 1). The top-level codes allow observ-
ideas for new products to address chokepoints in a user’s pro- ers to identify and categorize directly observed customer
cesses. For example, in an ethnographic marketing project needs. By identifying and listing every use, misuse, work-
undertaken by Bosch, a job map helped identify the impor- around, and problem encountered, NPD teams can discover
tance of fast and efficient installation of pharmaceutical pro- how customers really use their products or services and gain
duction equipment. insight into the frustrations and satisfactions that come with
that use. Using the contextual interview data together with
Systematic Observation the videos can allow better understanding of the contexts in
Although contextual interviews can very useful, they are which products and services are used—thus creating a more
most effective when used in combination with systematic ob- complete job map and leading to the identification of hidden
servation. In a systematic observation, market researchers or unarticulated needs.
make video recordings of customers not only using products The top level of coding quickly identifies limitations of ex-
but also completing a range of typical tasks. For example, on isting products. Many of these are incremental improve-
a recent project, we filmed medical staff preparing operating ments, but this is where the systematic nature of coding
rooms, preparing the patient, conducting the operation, and enables us to go deeper. Ethnographic market research
moving the patient to the recovery room. Central to system- probes deeper than outcome-driven innovation by looking to
atic observation is looking not just at one product in use but identify underlying codes, which point to emotional factors
at the broader environment and aiming to record as much as driving product use. Humor is often an indicator that users
possible about customers—sometimes as much as a “day in are not telling us exactly what they are thinking, and frustra-
the life of the customer.” Systematic observation allows mar- tion can indicate that a user’s need is not being addressed.
ket researchers to understand the role products or services For example, Miele, the household products company,
TABLE 2. Sample codes for systematic observation
Top-Level Codes
1 USES All of the different uses to which product or service is put
2 MISUSES Uses of the product or service in a way other than that intended by the manufacturer or
provider
3 WORKAROUNDS Ways in which product/service limitations are overcome by the user through, for example,
modifications of the product
4 PROBLEMS Issues encountered in using the product or service
5 PROCESSES The process by which the product or service is used
6 ACQUISITION Reasons and methods for acquiring the product or service
7 TRIGGERS Reasons for using the product or service at a particular time
8 ENVIRONMENT Observations of the environment in which the product is used, including the physical space
and other equipment involved
Underlying Codes
9 EMOTIONS Emotions observed in using the product or service, including satisfaction, enthusiasm,
frustration, etc.
10 HUMOR Smiles and jokes often give clues that customers are thinking something different from
what they are saying
11 CONTRADICTIONS When customers do something different from what they have claimed in interviews, or
where they gloss over problems
12 CULTURE Aspects about the culture of the groups (e.g., customer segments) that use the product or
service. How are customers organized (formally or informally)? What language do they use
and what stories do they tell?
48 | Research-Technology Management Beyond the Voice of the CustomerKnowing how customers act and think
often generates ideas for radical
products and services.
Bosch Packaging—Fourth to Market
The Bosch packaging technology factory at Crailsheim,
Germany, northeast of Stuttgart, designs production line
equipment for the pharmaceutical sector. Packaging systems,
which typically cost €5 million, are significant investments
for pharmaceutical companies. Senior management at
FIGURE 1. Coding scheme for systematic observations
Crailsheim considered entering a relatively new market—
production equipment to fill pre-sterilized syringes with bio-
tech pharmaceuticals. Three companies already had strong
identified a need for products designed to help with allergies, products; an initial analysis of these products showed that
after recognizing through systematic observations that par- the Crailsheim engineering team could develop a product
ents felt guilty that they did not clean the rooms of children with slightly better specifications. However, management be-
with allergies more regularly. lieved that only a clearly differentiated product would suc-
Knowing how customers act and think often generates ceed and so encouraged marketing to look for a new approach
ideas for radical products and services. A fascinating aspect to market research.
of ethnographic analysis is looking for what are termed To gain insights into the problems that pharmaceutical
“contradictions”—ethnographers are careful not to believe manufacturing workers face, the market research team sup-
everything that they are told (Arnould and Wallendorf plemented interviews with ethnographic market research.
1994). Asked directly, the majority of us will present our-
selves in a positive light, putting what ethnographers term
“gloss” on our explanations. For example, the household ap-
pliances company Whirlpool found that, although customers
How Our Research is Being Conducted
in focus groups claimed certain things about how they did
Cranfield School of Management, U.K., and Copenhagen
the family laundry, observations found significantly different
Business School (CBS), Denmark, are conducting a joint
practices. Similarly, sport fishermen emphatically stated that study of how ethnographic market research techniques
the color of products was not important to them but ethno- can be applied to NPD. The research, which is ongoing,
graphic market researchers showed that most fishermen’s has three key elements.
equipment had been carefully chosen, with matching colors A review of the literature has been conducted to iden-
(Rosenthal and Capper 2006). Often, people have more tify the key elements of ethnography and how these ideas
problems than they admit to; using observations to identify can be applied in NPD. Over 100 books and papers were
the contradictions between what is said and what is actually analyzed and a number of anecdotal examples of success-
done can be a good source of radical ideas. ful products developed based on ethnographic market re-
search were found. However, much less was found on how
to apply the technique effectively to NPD.
Four Case Studies
This recognition led to two projects. Cranfield is con-
Our research (see “How our research is being conducted,”
ducting work on ethnography in new-product contexts; this
right) has brought us into contact with both manufacturing consists of companies identifying the markets they want
and service companies. Here we present four cases in which to investigate and using ethnographic market research to
ethnographic market research was used to gain market in- explore those markets in parallel with focus groups and
sights. In the two cases from manufacturing companies surveys. Currently, research is being conducted with com-
(Bosch and Miele), the market research was designed to de- panies in the software, household cleaning, healthcare,
velop ideas for new products. The service cases (a toll bridge and pharmaceutical sectors.
and a newspaper) are somewhat different in that the compa- In the second project, CBS is focusing on the use of
nies had existing service products that were not successful ethnography with service organizations. Both research
and they used ethnographic market research to identify how projects are helping to identify when, where, and how to
apply ethnographic techniques in new product (or service)
to most effectively reposition their service products. Interest-
development projects.
ingly, the results from the research gave insights that led not
only to marketing ideas but also to product redesigns.
Beyond the Voice of the Customer July—August 2012 | 49Working with a business school, they conducted interviews the Deutscher Allergie- und Asthmabund (German Allergy and
with 10 production managers and identified the product fea- Asthma Foundation), an association for people with allergies.
tures those managers felt to be important. The features that Home visits showed that these parents vacuumed more
production managers identified as important mapped very often than did parents whose children did not have allergies,
closely to those offered by competitors’ products. Next, 20 to ensure that they had done everything possible to care for
contextual interviews were conducted in factories where their children. Often, this included vacuuming a bed mattress
competitors’ equipment was used, accompanied by a series of several times, to “know that it is clean,” as parents explained.
systematic observations. These techniques showed that Interestingly, parents did not complain about the extra time
production-line staff faced issues that were not addressed by that this took, or the amount of cleaning that they felt was
existing products. As the research progressed, Klaus Schreiber, necessary, because they were so used to regular, intensive
Bosch’s head of product management, said, “we started to cleaning. This is an example of a hidden need—the custom-
think that we were on to something. It appeared that there ers themselves did not recognize the time they were wasting
were customer needs that the competitors had missed.” For by cleaning multiple times. Based on the recognition of this
example, observation of production lines and contextual in- hidden need, Miele developed a vacuum cleaner that indi-
terviews with operators identified awkward adjustments and cates when the item being cleaned is dust-free. A hygiene
difficult maintenance procedures. In addition, Bosch discov- sensor at the nozzle has a “traffic light” indicator, which
ered new requirements not addressed by the competition— turns from “red” through “amber” to “green” as cleaning
particularly the need for an efficient installation process. progresses. This sensor is a breakthrough feature for the in-
The result was the FXS 5100 machine for filling pre- creasing number of people who have allergies because it
sterilized syringes; the FXS 5100 offers a number of features allows them to know when a room is free of dust.
not available on other manufacturers’ machines, including Through its ethnographic market research, Miele not only
a compact design that allows for installation where other recognized the need for a hygiene sensor on vacuum clean-
machines will not fit and permits the machine to be serviced ers but also identified an important new market segment that
from one side. The speed with which the FXS 5100 can be in- can be targeted by other products, as well. For instance, peo-
stalled and accredited by the FDA (all pharmaceutical equip- ple with allergies also have to be careful with their laundry.
ment is strongly regulated) was also made significantly better Consequently, Miele has introduced a new washing machine
than competitive products, due to clever design features. Such that has a special program for washing pillows and a rinse
unique product attributes have made the system a resounding process that removes detergent residues. As Dietrich ex-
success even though it was only fourth to market. The FXS plains, “We are in regular contact with users and have a ‘lis-
5100 project was also important from an organizational per- ten and watch’ philosophy at Miele. By this we mean that we
spective: the company now always uses a combination of new realize that it is essential for not only marketing but also en-
and traditional market research techniques for new product gineers to actually see the issues first-hand. Only if you are
development. The Bosch case illustrates how contextual inter- present do you really understand the issues.”
views and systematic observation can be used to identify cus- As their name implies, Miele’s listen-and-watch teams are
tomer needs that competitors have overlooked. tasked with learning from customers, rather than asking
them directly what they want. The customer understanding
Miele—Listen and Watch Teams that Miele has developed has helped the company be very
Miele, the German household products manufacturer, has a successful with its allergy-related products, illustrating that
tradition of conducting market research in people’s homes, systematic observation can generate ideas for improving ex-
so it naturally turned to these techniques when it decided to isting products and for developing new market segments.
investigate the specific cleaning-related needs of the growing
number of people with allergies and whether this represented B.T.—Repositioning a Daily Newspaper
a viable market segment. To investigate the opportunities for When the Danish national daily newspaper B.T., which had
allergy-related products, Olaf Dietrich (new product devel- focused on sensationalism, suffered from seriously decreas-
opment manager for vacuum cleaners) chose systematic ob- ing circulation, the paper’s new editor-in-chief decided that
servation, sending “listen and watch” teams to observe the the paper needed to be repositioned and differentiated from
cleaning practices of parents whose children have allergies. both the “serious” morning papers and the “shallow” local
The market research was conducted in close cooperation with newspapers that are offered free of charge. However, what
started as a search for a more effective way of marketing B.T.
ended as a major product redesign.
To generate ideas for the repositioning, contextual inter-
Miele’s listen-and-watch teams are views were conducted with B.T. readers in 24 households.
This sample included a range of age groups (25–50 years),
tasked with learning from customers,
singles and married couples, various incomes, and a range of
rather than asking them what they want. jobs. A key finding was that in families, different family
members selected and read only the parts of the paper that
they found interesting. The decision to buy B.T., as opposed
50 | Research-Technology Management Beyond the Voice of the Customerto another paper, was found to be the result of a negotiation
within families, based on whether the paper was perceived
to offer interesting sections for everyone, because no one By developing a deeper understanding
wanted to buy more than one newspaper. Thus, if the paper
was to be popular with families, it had to cover a range of of its readers, BT has been able to stem
interests, satisfying all of the members of a household. In ad- its loss of circulation.
dition, the contextual interviews showed that newspapers
were a source of material for discussions about news and en-
tertainment within families with teenagers and adult chil-
dren. Here, there was an interest in the paper supplying
information on themes of interest to teenagers that could adjusted so that it contained elements that appealed to each
stimulate family discussions. reader type. Efforts were also made to remove content that
B.T. had used focus groups in the past to probe readers’ did not match the paper’s aim of becoming a family-oriented
preferences but visiting homes allowed B.T. to obtain a vivid newspaper. Consequently the paper became less sensational,
understanding of Danish families’ newspaper reading habits. including less reporting on sex and violence. Instead, more
Not only were individual preferences understood, but differ- local news content was added, along with more stories on
ent categories of family emerged, based on their primary in- popular culture, including TV, movies, and music. Moreover,
terests. These categories were given names based on what the editor of the sex column was replaced to shift the focus
was observed during the interviews (Figure 2). For instance, from advice on sexual positions and changing partners to ad-
the first reader group was identified as being interested in vice on solving problems within long-term relationships.
politics and society; this group wanted to see justice achieved By developing a much deeper understanding of its readers
and abuses of power revealed. Several of these readers were and allowing that understanding to drive a complete product
also observed to own large dogs, so this group was labelled design, B.T. has been able to stem its loss of circulation, some-
“Watchdogs.” Having such vivid reader types was an impor- thing that most newspapers have not succeeded at.
tant tool in communicating readers’ needs to staff at the
paper. The Øresund Bridge
Although the initial goal had been to reposition the news- The Øresund Bridge, which links Copenhagen, Denmark,
paper, the identification of the attitudes and interests of these and Malmö, Sweden, was designed and built by a Danish-
reader types led to a complete product redesign. The prefer- Swedish consortium and opened for traffic in 2000. Polit-
ences of the various reader types were reflected in a new ical support for the toll bridge was based on a wish to link
structure for the newspaper. New content was defined, and Copenhagen with the southern part of Sweden and the goal
journalists and the editorial staff were instructed to target that the government loans would be repaid by 2030. How-
their writing to particular reader types. The front page was ever, the volume of traffic on the bridge was lower than fore-
cast, and as a result the consortium defaulted on its loans. A
postal survey had shown that advertisements for the bridge
were positively perceived and people in both countries said
that they would use the bridge. As the usage did not match
the survey’s predictions, management at the consortium
decided that a deeper analysis was needed; the basis of that
analysis was interviews conducted in participant’s homes.
Exploratory contextual interviews were conducted in the
homes of 20 families: 10 in Denmark and 10 in Sweden. The
sample deliberately included a range of incomes and ages,
and the Øresund Bridge consortium was careful to interview
both regular users and nonusers of the bridge.
In Danish households, awareness and knowledge of south-
ern Sweden was found to be strong only among people with
interests that could be fulfilled in Sweden. The majority of par-
ticipants only knew of the larger cities and, generally, Danes’
interest in Sweden was low, an attitude exemplified by one
respondent: “You never feel like you just have to go to Swe-
den. . . We go south on holiday; you never think in terms of
east.” (Sweden is east of Denmark.) These results were very
different from those of the initial survey, where many Danes
had indicated an interest in traveling to Sweden. Based on the
FIGURE 2. Newspaper reader types identified in contextual interviews, five types of potential Danish users were identified:
interviews people with specific interests (such as golf), people interested
Beyond the Voice of the Customer July—August 2012 | 51in culture, outdoor enthusiasts, families with young children, effort paid off in very successful products and the develop-
and, importantly, people interested in short vacations. Simi- ment of important markets.
larly, the interviews with Swedes identified clear groups of po- In the two cases focused on service products, the initial
tential users to whom marketing could be targeted. drive was to improve the marketing of existing products. How-
Interviewing people in their own homes was important ever, contextual interviews generated a clearer picture of peo-
because it allowed observation of the interaction between ple’s views regarding the service products and their intentions
family members, as well as highlighting the interests and to buy those products or not, as well as their requirements for
hobbies of household members. Listening to families discuss those types of products. Visiting people in their own homes
their vacations allowed a deeper understanding of how deci- gave many insights into the characteristics of customers, which
sions are actually reached (in contrast to the responses in the formed the basis for new segmentations. For the newspaper
earlier survey, which identified espoused rather than actual B.T., this included the recognition of the importance of families
intentions), the influence of various family members in the rather than individual readers and the identification of the
decision process, and the processes by which compromises main reader-family types and the types of news they were in-
are reached. Visual clues included interviewees’ cars, books, terested in. A survey about the toll bridge between Denmark
sporting goods, maps, family photos, and mementos. All of and Sweden showed that both Swedes and Danes were posi-
these elements helped contribute to a better understanding tive about what they had heard in advertising and would use
of the potential users of the bridge and a clear segmentation. the bridge, but visiting people at home revealed disinterest.
The result was a new marketing program aimed specifically This is not unusual; in focus groups and surveys people will
at those groups judged most likely to use the bridge. The new often indicate an intention to purchase a product or a service
strategy included moving from advertising that concentrated but, when the real opportunity arises, they do not buy (Goffin,
on the novel architecture of the bridge to messages highlight- Lemke, and Koners 2010).
ing the access it offers to a stimulating environment. Although Although the contextual interviews used by the service
the main goal of the study had been to identify a more effec- companies mainly led to changes in the way service products
tive marketing strategy, insights from the home visits also led were marketed, they also led to significant product redesign in
to the creation of new products—service packages designed to the case of B.T. Similarly, the Øresund Bridge recognized the
meet the needs of particular user groups. For example, a new need to bundle its core offering—the bridge and the access it
package was developed in which the price of the bridge toll provided to the neighboring country—into a new product: a
was included as part of a complete vacation package for short short vacation package. Both companies generated increased
trips to Sweden. In addition, the management team prioritized revenues by redesigning and repositioning struggling service
the development of service packages aimed at nonusers. As a products. Further work will be needed to better understand
result of the new advertising aimed at clear target groups, how ethnographic market research can lead to radically new
more Swedes and Danes have become aware of the access that services; this may include systematic observation of customers
the bridge offers and the traffic targets are now being met. at the point of consumption of service products.
Lessons from the Case Studies Conclusions
Ethnographic market research reveals issues with existing The cases illustrate the insights that ethnographic market re-
products and services, but it also facilitates understanding of search can bring to NPD efforts, particularly in understanding
customer attitudes, perceptions, and needs, both rational and customer segments and identifying customers’ hidden needs.
emotional. Bosch identified the problems production-line Such insights are unlikely to emerge from traditional meth-
employees encountered with competitors’ products and dis- ods such as interviews and focus groups. However, managers
covered unmet needs it could fill with a more tailored prod- interested in adopting ethnographic market research need to
uct design. Based on systematic observation of families with be aware of the time and effort involved. In each of the case
children with allergies, Miele developed a whole new prod- studies, approximately 30 customers were interviewed and
uct line. Both companies invested significant time and effort often video-recorded. Gaining access and permission to re-
in taking a different approach to market research, and the cord is not always easy, and systematically analyzing over 30
hours of video data takes significant time.
In all of the cases, the organizations used outside help for
the analysis but recognized the importance of their own people
Ethnographic market research being directly involved with the research. Some companies
outsource all of their market research to agencies (many of
reveals issues with existing products
whom offer ethnography), but we found that involving staff
and services, but it also facilitates directly in some of the field visits and the analysis generates not
only insights but also deeper commitment on the part of NPD
understanding of customer attitudes,
teams. It also helps management make bold decisions—as
perceptions, and needs. Bosch concluded, “we wouldn’t have made the decision to en-
ter the market without the depth of findings from the market
study. It has changed the way we look at market research.”
52 | Research-Technology Management Beyond the Voice of the CustomerThe authors would like to thank to Dr. Christian Alsted for his Goffin, K., Lemke, F., and Koners, U. 2010. Identifying Hidden
help in gathering data on the service case studies. Needs: Creating Breakthrough Products. Basingstoke, U.K.:
Palgrave Macmillan.
References Griffin, A., and Hauser, J. R. 1993. The voice of the customer.
Arnould, E. J., and Wallendorf, M. 1994. Market-oriented eth- Marketing Science 12(1): 1–27.
nography: Interpretation building and marketing strategy Johnston, R., and Clark, G. 2008. Service Operations Manage-
formulation. Journal of Marketing Research 31: 484–504. ment: Improving Service Delivery. Harlow, U.K.: Pearson
Bettencourt, L. A., and Ulwick, A. 2008. The customer-centered Education.
innovation map. Harvard Business Review 86(5): 109–114. Magnusson, P. R., Matthing, J., and Kristensson, P. 2003. Man-
Cooper, R. G. 2009. How companies are reinventing their aging service involvement in service innovation: Experi-
idea-to-launch methodologies. Research-Technology Manage- ments with innovating end users. Journal of Service Research
ment 52(2): 47–57. 6(2): 111–124.
Cooper, R. G., and Edgett, S. J. 1999. Product Development for the Mariampolski, H. 1999. The power of ethnography. Journal of
Service Sector. New York, NY: Basic Books. the Market Research Society 41(1): 75–86.
Cooper, R. G., and Edgett, S. J. 2008. Ideation for product innova- Rosenthal, S. R., and Capper, M. 2006. Ethnographies in the
tion: What are the best methods? PDMA Visions Magazine 32(1): front end: Designing for enhanced customer experiences.
12–17. Journal of Product Innovation Management 23(3): 215–237.
Deszca, G., Munro, H., and Noori, H. 1999. Developing break- Sandberg, K. D. 2002. Focus on the benefits. Harvard Manage-
through products: Challenges and options for market assess- ment Communication Newsletter 5(4): 3–4.
ment. Journal of Operations Management 17(6): 613–630. Sorensen, J. 1999. The eye on the shelf: Point-of-purchase re-
Emberger, W., and Kromer, R. 1999. Treue Kunden wachsen nicht search. Marketing News 33(1): 4.
auf Bäumen—Strategien und Instrumente zur Kundenbindung. Ulrich, K. T., and Eppinger, S. D. 2000. Product Design and Devel-
[Loyal Customers Do Not Grow on Trees: Strategy and Tech- opment. 2nd ed. Boston, MA: McGraw-Hill.
niques for Customer Loyalty.] Vienna, Austria: WEKA Verlag. Ulwick, A. W. 2002. Turn customer input into innovation.
Euchner, J., and Henderson, A. 2011. The practice of innova- Harvard Business Review 80(1): 91–97.
tion: Innovation as the management of constraints. Research- Whitney, D. 2007. Assemble a technology development toolkit.
Technology Management 55(2): 47–54. Research-Technology Management 49(2): 52–58.
Reprints
MOTIVATING, APPRAISING, REWARDING, AND RETAINING ENGINEERS
AND SCIENTISTS
Fifty-two RESEARCH • TECHNOLOGY MANAGEMENT articles on this subject are now available in paperback.
To order, visit the IRI bookstore at http://www.iriweb.org/bookstore
Managing Human Resources Building Effective R&D Teams: The Senior Manager’s Role
People Solutions for R&D Transformational Leaders Make a Difference
What Matters to R&D Workers Turning Technical Groups into High-Performance Teams
Best HR Practices for Today’s Innovation Management Rewarding Technical Teamwork
Motivating Technical Professionals Today Leading Global Product Development Teams
Motivating Your R&D Staff The Seventh Rule: Create a Learning Culture
Personal Initiative Sparks Innovation Project Team Empowerment Aboard the Starship
How a Band of Technical Renegades Designed Enterprise
the Alpha Chip Battle for the Best
Keeping Innovation Alive How to Keep Me - Retaining Technical Professionals
Involve Everyone in the Innovation Process Holding Onto Your Top Talent
Keeping Innovation Alive After the Consultants Leave Why Should the Best Talent Work for You?
Leading Today’s Professional Turn Diversity to Your Advantage
Real Managers Don’t Boss! From Analyzer to Humanizer - Raising the Level of
Innovation Mentoring at Whirlpool Management Thinking
Product Champions: Truths, Myths and Management Building Trust is an Art
Leading Experts: One Manager’s Experience To Build Trust, Ethics are Not Enough
The Hidden Side of Leadership in Technical Team Understanding the Difference between Management and
Management Leadership
Helping R&D Professionals Build Successful Careers .... And more
Human Capital Measurement
Beyond the Voice of the Customer July—August 2012 | 53VISIT THE NEW IRI BOOKSTORE!
Access the best IRI has to offer in convenient electronic or
print-on-demand versions. Browse white papers, special
offerings, and special reprint collections from RTM,
selected and compiled to offer key perspectives on central
issues in the management of technological innovation.
All available now at http: //iriweb.org /bookstore
RTM REPRINT COLLECTIONS
THE ART OF TECHNOLOGY MANAGEMENT newly updated
Stimulating innovative thinking . . . building teams that work . . . tracking your
competition 79 ARTICLES
BUILDING AN INNOVATION CULTURE new
Identifying innovation enablers and inhibitors . . . integrating cultures . . . dealing with the
new diversity 47 ARTICLES
IMPROVING PRODUCT DEVELOPMENT PROCESSES
Benchmarking NPD best practices . . . anticipating disruptive innovation . . . optimizing
stage-gate processes . . . roadmapping 51 ARTICLES
MEASURING AND IMPROVING THE PERFORMANCE AND RETURN ON R&D
Evaluating the technical operation . . . assessing technical threats . . . is R&D a good
investment? 54 ARTICLES
MOTIVATING, APPRAISING, REWARDING, AND RETAINING ENGINEERS AND SCIENTISTS
Managing human resources . . . motivating technical people . . . managing career plateaus
53 ARTICLES
PROMOTING BREAKTHROUGH INNOVATION newly updated
Fostering creativity . . . managing discontinuous innovation . . . identifying new business
opportunities 54 ARTICLES
R&D FUNDING & VALUATION new
Accessing the value of your technology . . . applying options thinking . . . linking R&D
spending to revenue growth 43 ARTICLES
SUCCEEDING AS A NEW MANAGER/LEADER
.BOBHJOHDBSFFSUSBOTJUJPOTtIJSJOHQFPQMFXIPEPHPPESFTFBSDItIPXOPUUPTVDDFFE
60 ARTICLES
SUCCESSFUL PORTFOLIO MANAGEMENT new
"MJHOJOHUIF3%QPSUGPMJPXJUIDPSQPSBUFTUSBUFHZtWBMVJOHTNBMMQPSUGPMJPTtIBSOFTTJOH
external technology. 32 ARTICLES
WINNING CONCEPTS AND PRACTICES FOR MANAGING INDUSTRIAL R&D
Maurice Holland Award-winning papers cover the entire spectrum of management
challenges facing the R&D community 26 ARTICLES
ALL REPRINT BOOKS $75 IN HARDCOPY, $60 IN ELECTRONIC VERSION.
OTHER PUBLICATIONS
WHITE PAPER: “DATA COMPETITIONS”
Driving breakthrough innovations at breakneck speed . . . impact and limitations of
competitions . . . using competition to enhance R&D
FREE
THE GENDER DIVERSITY PLAYBOOK
Best practices for fostering gender diversity in R&D and innovation management, gleaned
from the work of IRI’s Research-on-Research group on gender diversity.
$20.00 ELECTRONIC ONLY
54 | Research-Technology ManagementYou can also read
