2009 Q3 Using Online Consumer Research Panels – Case Study
Often, we are engaged by clients to explore the market feasibility of a new product or service. In order to gauge interest in the idea, primary research is required, usually by surveying prospective customers. The surveys are most commonly completed by telephone or online. When using online surveys we frequently partner with companies that have developed consumer research panels used exclusively for research purposes. Panelists that want to participate in online surveys must complete a profile about themselves consisting of over 300 demographic or psychographic descriptors.
Collaborating with the client, SPG will start by establishing a profile of the likely target audience for the product or service. Some of the more frequently used consumer panel segmentations include:
-geographic location, e.g. local, regional, national or international
-gender
-age group(s)
-income levels
-education attainment
-interest categories
-purchasing information
Once the profile is established, the next step is to send out an email invitation to the target audience based on the specific requirements that have been selected. Depending on the level of precision required, we typically survey from 200 to 400 respondents. A questionnaire based on client objectives and information requirements is designed by SPG with client input.
Once the questionnaire is designed, we are ready to launch the survey and research panelists meeting our criteria are invited to participate. A recent example of an online survey we completed will provide some insight into the process and outcomes. Since we usually sign confidentiality agreements with our clients we cannot divulge the specifics of the particular case. The client was seeking to gauge interest in a novel service that they were considering introducing in a large metropolitan area of Texas. They were interested in learning from females whether this new customized service would be of interest to them, and more importantly, the likelihood of purchase at specific price points. We targeted females, ages 25 to 54, with household incomes above $75,000 that had an interest in clothing fashion.
We received responses from 350 panelists meeting our selection criteria. Respondents completed the survey consisting of 24 questions of which a few were open-ended. Questions about buying habits, level of interest in the new service ranging from definitely would buy to definitely would not buy, and pricing considerations were an integral part of the survey. Open ended questions such as reasons that would prevent them from purchasing were also probed along with their suggestions on how the proposed service could be further improved.
After analyzing the data obtained from the online market survey, SPG prepared a report of key findings and recommended that the client move forward with the business venture. Using an online survey to assess the market feasibility of the proposed service permitted our client to make decisions based on hard data. Furthermore, spending a few thousand dollars before committing several hundred thousand dollars gave the client the confidence they needed to move forward with the venture. Once the service is introduced in the designated metro area they plan to rollout the service into other larger metropolitan areas throughout the U.S.