New Concepts on Market Research

In this article Jim Heskett is answering to the question “how much can you ask of your customers?” He starts by explaining the procedure of consumer involvement in companies.

As my interest is market research, and especially consumer behavior, I was wondering how companies can “use” their consumers in order to be more profitable. I searched the net with keywords as “Consumer in the companies” and found this interesting article I would like to share with you. In the first place I will give you a short summary, and at the end I will give my opinion. Feel free to comment if you do not have the same opinion or if you like to give new ideas.

Summary

Through the internet and related technologies consumers can express their feelings as well as exchange their ideas and information. Now companies can benefit from this. Some businesses are even restructuring their business models. On the one hand, consumers can now actively contribute to the development of products. On the other hand, companies get to know their consumers better.

He states that it is important to take the consumer into consideration, because a satisfied, well informed consumer will tell its friends. In the contrary a not satisfied consumer will tell even more friends. The author declares that by letting the consumer “in the company”: the company will be supported with new ideas, with proposition of changes, with resources, behavioral data…This is called by him “ownership behavior” or the whole new concept as “ownership quotient”.

But giving the consumer the chance to be involved in the decision making process, the company occurs risks, risks only a few are willing to take.

The author concludes by asking several questions at the end of the article as for example: Which risks do occur? Can they be minimized? Is the involvement a comparative advantage?

Opinion: “Consumers have the power, but companies can make them participate”

In my opinion consumers have gained in the last years more power over companies. If something bothers them or they do not like a product, they do not buy it. And even worse, through word-of-mouth potential consumers are frightened off. Consumers decide what is appearing on the market and what stays there. As for example, when I stayed a year in France, I made good but also bad experiences with French companies. I did a lot bad ones with BNP Paribas, a French bank. It is a bank, I think, which is concentrating more on company’s wishes and needs. The “normal” customer stays behind. I told this many people. Just a few I told to take as cell phone supplier SFR, because they have a good after sales service. So BNP Paribas has lost at least 10 potential consumers because of me!!

That’s why it is so crucial to know the consumers. It is even better to involve them actively in the processes. This involvement can be supported and alleviated by the internet.

In the internet, you can find many platforms (also blogs) which deals with this issue. TRND is such a platform for the German area. Companies use this platform as pretest for their products: so called test-persons can adhere to this platform and try the products out, which are sent to them. After the trial the test-person has to fill out a questionnaire about the product, consequently gives feedback to the company.

Consumers do know what they want and their ideas can flow in the company.