netrashetty
Netra Shetty
CNA Financial Corporation (NYSE: CNA) is a financial corporation based in Chicago, Illinois, United States, and noted for its 600-foot (180 m) tall red headquarters building, CNA Center. Its principal subsidiary, Continental Casualty Company (CCC) was founded in 1897. CNA (the parent company) was incorporated in 1967. The primary business focus of CNA is to provide commercial property and casualty insurance to businesses and professionals. CNA markets its products and services primarily through independent agents and brokers.
CNA itself is 89% owned by a holding company, Loews. This holding company also has interests in offshore oil and gas drilling rigs, natural gas transmission pipelines, tobacco, and in hotel operations.
havior itself is governed by a multitude of factors, some of which are only measurable after the fact. This is a major reason why customer satisfaction research enjoys its current popularity. Marketers realize that although it might be impossible to predict behavior in the marketplace, they can determine the characteristics of products that succeed, and products that fail. If these characteristics are interpreted at the proper level of abstraction, they may be applied to future products with a degree of confidence heretofore not possible.
Some marketers use the argument that looking at "after the fact" measures such as customer satisfaction is like looking in the rearview mirror while driving a car (after Marshall McLuhan's comments). This is specious thinking, because we do not really have a front window in marketing research. Nor do we have the "crystal ball" that all marketers seem to covet. What we do have is the ability to learn from our mistakes, and to see products and services through the eyes of the consumer. Every projection is a gamble of sorts. Useful data allows us to hedge our bets. It does not provide a sure thing.
Another way to characterize customer satisfaction research is in terms of a feedback mechanism. In much the same way that the thermostat on a climate control system detects deviations from some acceptable range, a good customer satisfaction survey provides information about problems in the marketplace. It should also provide a feel for one's competitive position in the marketplace. This is the best way to use customer satisfaction data. The worst way to use it is as a yardstick to set "goals" for employee performance. This is because customer satisfaction has an intuitively asymptotic aspect to it.
In plain English, 1) you can only please people so much; 2) some people will never be completely satisfied; 3) the more you please people, the more they expect. So if your "goal" is to improve overall customer satisfaction by 5% each year, you are doomed to failure once the "performance curve" starts to level off (asymptote) over time.
Also, note well that simply because a survey is repeated over time (i.e., a tracking study) does not mean that it fulfills the requirements of a good customer satisfaction survey. What is monitored is as important as the monitoring itself. The acid test for any customer satisfaction program is how well it can detect the problems that detract from the quality of a product or service. If the program does that, it will make a difference to the bottom line as well.
Implications for theory and action
To obtain a complete perspective on the myriad of different activities that constitute the field of marketing research, we must "take a step backward to admire the work." What we then see is a lattice of interrelated activities leading toward a dual goal--to better understand the consumer, and to better compete in the marketplace.
As noted, marketing research is undertaken to support a wide variety of marketing decisions. The table below presents a small sampling of the research undertaken by marketing decision area. Many of the issues listed under Types of Research are discussed in greater detail in other parts of the Principles of Marketing Tutorials.
Marketing Decision Types of Research
Target Markets sales, market size; demand for product, customer characteristics, purchase behavior, customer satisfaction, website traffic
Product product development; package protection, packaging awareness; brand name selection; brand recognition, brand preference, product positioning
Distribution distributor interest; assessing shipping options; online shopping, retail store site selection
Promotion advertising recall; advertising copy testing, sales promotion response rates, sales force compensation, traffic studies (outdoor advertising), public relations media placement
Pricing price elasticity analysis, optimal price setting, discount options
External Factors competitive analysis, legal environment; social and cultural trends
Other company image, test marketing
he government does not implement strict quotas, tariffs and other restrictions on food products and beverages except alcohol, soft drinks and tobacco. This attribute makes Hong Kong an attractive destination for multi-national corporations and global exporters (1991). A study conducted by the Foreign Agricultural Service in 1999 found out that twenty-one percent of Hong Kong’s population becomes oriented with food products through advertising and seventy percent thinks that attractive packaging and brand are important for a foreign or local food product to sell (2001). One of the most successful strategies for gaining entry into the Hong Kong crisps and snack foods market is through aggressive promotional activities that highlight the brand and attractive physical appeal of the products. Potato chips, for instance, gained much popularity and acceptance because of active promotion by major suppliers coupled with solid distribution channels such as supermarkets and convenience stores which are typical locations of mothers and working professionals, and bars, nightclubs and Karaoke bars - locations that are frequented by young people (2003). Another important strategy is through trade shows. Companies aiming to penetrate the snacks and crisps market of Hong Kong should conceptualize trade shows that would showcase a diverse range of snack products in appealing packages in order to entice Hong Kong consumers. Trade show is also a potent venue to develop business affiliations with Hong Kong trading partners (1991).
RESEARCH APPROACH
Accordingly, snacking behavior provides fertile ground for examining situational influence in another culture to determine whether situational analysis is useful beyond the HK market. The study method utilizes regression procedure to characterize each snack product in terms of its suitability for every situational factor. Then, research on HK snacking from a consumer behavior perspective is relatively scarce. Researchers have focused on consumer demand or descriptive analyses of consumer spending patterns. Several studies show that consumers spend more on packaged snack foods and less on fresh food (1994). Promotions contributing to the shift in consumption tout confectionary snack food products and salty snacks as healthy, nutritious and high-energy alternatives to other healthy types of snack food.
CNA itself is 89% owned by a holding company, Loews. This holding company also has interests in offshore oil and gas drilling rigs, natural gas transmission pipelines, tobacco, and in hotel operations.
havior itself is governed by a multitude of factors, some of which are only measurable after the fact. This is a major reason why customer satisfaction research enjoys its current popularity. Marketers realize that although it might be impossible to predict behavior in the marketplace, they can determine the characteristics of products that succeed, and products that fail. If these characteristics are interpreted at the proper level of abstraction, they may be applied to future products with a degree of confidence heretofore not possible.
Some marketers use the argument that looking at "after the fact" measures such as customer satisfaction is like looking in the rearview mirror while driving a car (after Marshall McLuhan's comments). This is specious thinking, because we do not really have a front window in marketing research. Nor do we have the "crystal ball" that all marketers seem to covet. What we do have is the ability to learn from our mistakes, and to see products and services through the eyes of the consumer. Every projection is a gamble of sorts. Useful data allows us to hedge our bets. It does not provide a sure thing.
Another way to characterize customer satisfaction research is in terms of a feedback mechanism. In much the same way that the thermostat on a climate control system detects deviations from some acceptable range, a good customer satisfaction survey provides information about problems in the marketplace. It should also provide a feel for one's competitive position in the marketplace. This is the best way to use customer satisfaction data. The worst way to use it is as a yardstick to set "goals" for employee performance. This is because customer satisfaction has an intuitively asymptotic aspect to it.
In plain English, 1) you can only please people so much; 2) some people will never be completely satisfied; 3) the more you please people, the more they expect. So if your "goal" is to improve overall customer satisfaction by 5% each year, you are doomed to failure once the "performance curve" starts to level off (asymptote) over time.
Also, note well that simply because a survey is repeated over time (i.e., a tracking study) does not mean that it fulfills the requirements of a good customer satisfaction survey. What is monitored is as important as the monitoring itself. The acid test for any customer satisfaction program is how well it can detect the problems that detract from the quality of a product or service. If the program does that, it will make a difference to the bottom line as well.
Implications for theory and action
To obtain a complete perspective on the myriad of different activities that constitute the field of marketing research, we must "take a step backward to admire the work." What we then see is a lattice of interrelated activities leading toward a dual goal--to better understand the consumer, and to better compete in the marketplace.
As noted, marketing research is undertaken to support a wide variety of marketing decisions. The table below presents a small sampling of the research undertaken by marketing decision area. Many of the issues listed under Types of Research are discussed in greater detail in other parts of the Principles of Marketing Tutorials.
Marketing Decision Types of Research
Target Markets sales, market size; demand for product, customer characteristics, purchase behavior, customer satisfaction, website traffic
Product product development; package protection, packaging awareness; brand name selection; brand recognition, brand preference, product positioning
Distribution distributor interest; assessing shipping options; online shopping, retail store site selection
Promotion advertising recall; advertising copy testing, sales promotion response rates, sales force compensation, traffic studies (outdoor advertising), public relations media placement
Pricing price elasticity analysis, optimal price setting, discount options
External Factors competitive analysis, legal environment; social and cultural trends
Other company image, test marketing
he government does not implement strict quotas, tariffs and other restrictions on food products and beverages except alcohol, soft drinks and tobacco. This attribute makes Hong Kong an attractive destination for multi-national corporations and global exporters (1991). A study conducted by the Foreign Agricultural Service in 1999 found out that twenty-one percent of Hong Kong’s population becomes oriented with food products through advertising and seventy percent thinks that attractive packaging and brand are important for a foreign or local food product to sell (2001). One of the most successful strategies for gaining entry into the Hong Kong crisps and snack foods market is through aggressive promotional activities that highlight the brand and attractive physical appeal of the products. Potato chips, for instance, gained much popularity and acceptance because of active promotion by major suppliers coupled with solid distribution channels such as supermarkets and convenience stores which are typical locations of mothers and working professionals, and bars, nightclubs and Karaoke bars - locations that are frequented by young people (2003). Another important strategy is through trade shows. Companies aiming to penetrate the snacks and crisps market of Hong Kong should conceptualize trade shows that would showcase a diverse range of snack products in appealing packages in order to entice Hong Kong consumers. Trade show is also a potent venue to develop business affiliations with Hong Kong trading partners (1991).
RESEARCH APPROACH
Accordingly, snacking behavior provides fertile ground for examining situational influence in another culture to determine whether situational analysis is useful beyond the HK market. The study method utilizes regression procedure to characterize each snack product in terms of its suitability for every situational factor. Then, research on HK snacking from a consumer behavior perspective is relatively scarce. Researchers have focused on consumer demand or descriptive analyses of consumer spending patterns. Several studies show that consumers spend more on packaged snack foods and less on fresh food (1994). Promotions contributing to the shift in consumption tout confectionary snack food products and salty snacks as healthy, nutritious and high-energy alternatives to other healthy types of snack food.