netrashetty
Netra Shetty
Florence Nightingale Graham (December 31, 1884 – October 18, 1966), who went by the business name Elizabeth Arden, was a Canadian-American businesswoman who built a cosmetics empire in the United States. At the peak of her career, she was one of the wealthiest women in the world
Knowledge about a market is no cinch to acquire, of course. And though information may have been painstakingly collected, analyzed, and presented by market researchers, it faces an even greater hurdle when the researchers attempt to hand it over to their client company. That is, will it really be used?
According to HBS professors Gerald Zaltman and Rohit Deshpandé, the "people factor" behind market knowledge and its transfer is at least as important as the straightforward information the research conveys about a product or service.
In a highly detailed study of perspectives from both sides of the coin—brand managers and market researchers—Zaltman and Deshpandé began to identify critical points of friction in the manager-researcher relationship. Most importantly, the study helped them identify several reasons why market research either fails to be used or fails to make the impact that it should. The professors offer suggestions for both groups, so that both sides can better understand the other's point of view and use research more effectively.
Even favorable surprises imply a change in the status quo, which in turn may create problems.
—Gerald Zaltman and Rohit Deshpandé
The organizational environment, according to Zaltman and Deshpandé, is a "critical factor" in the transfer of knowledge. A company's organizational structure, for instance, along with the political acceptability of market research results, weighs heavily on whether and to what extent the results will actually be used.
This study is described in Zaltman and Deshpandé's essay "The Use of Market Research: An Exploratory Study of Manager and Researcher Perspectives," which appears in the recently published book, Using Market Knowledge (Sage 2001). Edited by Deshpandé, Using Market Knowledge brings together groundbreaking work by a variety of top-notch scholars on vital issues facing the transfer and implementation of market knowledge now and in the future.
Under the microscope
To study the points where managers and researchers see eye to eye and where they diverge, Zaltman and Deshpandé started by conducting 16 separate interviews with managers and "research suppliers" from Fortune 500 companies and prominent research firms. The two then honed their inquiry further, mailing 800 questionnaires to a cross section of both managers and researchers. The overall response rate was a respectable 44 percent.
Each step led Zaltman and Deshpandé closer to several factors that they've determined can have a decisive effect on the use of market research. These factors include the purpose of the research project, as well as organizational structure of the managers' firms, the degree of interaction between managers and researchers, and the stage of the product's life cycle.
But one of the most crucial determinants of how market research is used, they discovered, is the element of surprise. As a group, the managers in their study tended to be risk-averse; the managers were not likely to embrace research results that caught them off-guard. "If the purpose of research information is to reduce uncertainty (and thereby the risk associated with making a hitherto unsupported decision)," note Zaltman and Deshpandé, "then surprise may not be considered in the same light by managers and researchers."
"The former are charged with making decisions and implementing them, the latter with simply providing previously contracted-for information."
"Even favorable surprises imply a change in the status quo, which in turn may create problems," Zaltman and Deshpandé explain elsewhere in the study. "These are not considerations that managers weigh lightly."
Consumer Confidence drops to lowest level for 12 months
The GfK NOP Consumer Confidence Index has dropped eight points this month to -29.
January saw decreases across all five measures; the most notable decrease was in the “major purchase index” which dropped twenty one points.
Nick Moon, MD of GfK NOP Social Research, comments:
“January?s eight point drop represents an astonishing collapse in consumer confidence. In the 35 years since the Index began, confidence has only slumped this much on six occasions, the last being in the midst of the 1992 recession.
"The VAT increase is the first of the government?s austerity measures that has had a widespread impact on consumers, and it seems to have hit people's economic confidence hard, especially as the biggest drop was in consumers' appetite for major purchases. With inflation on the up and the full force of the cuts yet to hit, these figures could be the beginning of a very painful period.
"There is a chance that these figures represent a post-Christmas blip, but even if there is a rally in February it is extremely unlikely that it will reverse this massive drop. Today's figures, when combined with the bleak economic forecast, will make talk of a double dip recession unavoidable."
UK Consumer Confidence Measures – January 2011
The overall index score this month has dropped eight points to -29, twelve points lower than this time last year. All five measures decreased this month, the most notable decrease in the “major purchase index”.
The annual moving average drops one point to -19.
Personal Financial Situation
The index measuring changes in personal finances during the last twelve months has decreased two points this month, at -18; this is four points lower than this time last year.
The forecast for personal finances over the next twelve months decreased four points to -12; this is sixteen points lower than January „10.
General Economic Situation
The measure for the general economic situation of the country during the last twelve months has decreased by three points to –54; three points higher than this time last year.
An expectation for the general economic situation over the next twelve months has decreased by seven points to -30, twenty eight points lower than January „10.
Climate for Major Purchases
The major purchases measure has decreased by twenty two points to -29; thirteen points lower than this time last year.
Savings Index
The „now is a good time to save? Index, has increased five points to -5, which is three points lower than January „10.
About the survey
The UK Consumer Confidence Survey from GfK NOP was conducted amongst a sample of 2000 individuals aged 16+ on behalf of the European Commission.
Quotas are imposed on age, sex, region and social class to ensure the final sample is representative of the UK population.
Interviewing was carried out during 7th – 16th January 2011.
The figures contained within the Consumer Confidence Barometer have an estimated margin of error of +/-2%
Results for the Consumer Confidence Barometer are normally available on the last working day of each month at 00.01am; the release date for February is Friday 25th February 2011.
Any published material requires a reference to both GfK NOP and the European Commission e.g. ‘Research carried out by GfK NOP on behalf of the European Commission’.
This study has been running since 1974. Back data is available from 1996.
Knowledge about a market is no cinch to acquire, of course. And though information may have been painstakingly collected, analyzed, and presented by market researchers, it faces an even greater hurdle when the researchers attempt to hand it over to their client company. That is, will it really be used?
According to HBS professors Gerald Zaltman and Rohit Deshpandé, the "people factor" behind market knowledge and its transfer is at least as important as the straightforward information the research conveys about a product or service.
In a highly detailed study of perspectives from both sides of the coin—brand managers and market researchers—Zaltman and Deshpandé began to identify critical points of friction in the manager-researcher relationship. Most importantly, the study helped them identify several reasons why market research either fails to be used or fails to make the impact that it should. The professors offer suggestions for both groups, so that both sides can better understand the other's point of view and use research more effectively.
Even favorable surprises imply a change in the status quo, which in turn may create problems.
—Gerald Zaltman and Rohit Deshpandé
The organizational environment, according to Zaltman and Deshpandé, is a "critical factor" in the transfer of knowledge. A company's organizational structure, for instance, along with the political acceptability of market research results, weighs heavily on whether and to what extent the results will actually be used.
This study is described in Zaltman and Deshpandé's essay "The Use of Market Research: An Exploratory Study of Manager and Researcher Perspectives," which appears in the recently published book, Using Market Knowledge (Sage 2001). Edited by Deshpandé, Using Market Knowledge brings together groundbreaking work by a variety of top-notch scholars on vital issues facing the transfer and implementation of market knowledge now and in the future.
Under the microscope
To study the points where managers and researchers see eye to eye and where they diverge, Zaltman and Deshpandé started by conducting 16 separate interviews with managers and "research suppliers" from Fortune 500 companies and prominent research firms. The two then honed their inquiry further, mailing 800 questionnaires to a cross section of both managers and researchers. The overall response rate was a respectable 44 percent.
Each step led Zaltman and Deshpandé closer to several factors that they've determined can have a decisive effect on the use of market research. These factors include the purpose of the research project, as well as organizational structure of the managers' firms, the degree of interaction between managers and researchers, and the stage of the product's life cycle.
But one of the most crucial determinants of how market research is used, they discovered, is the element of surprise. As a group, the managers in their study tended to be risk-averse; the managers were not likely to embrace research results that caught them off-guard. "If the purpose of research information is to reduce uncertainty (and thereby the risk associated with making a hitherto unsupported decision)," note Zaltman and Deshpandé, "then surprise may not be considered in the same light by managers and researchers."
"The former are charged with making decisions and implementing them, the latter with simply providing previously contracted-for information."
"Even favorable surprises imply a change in the status quo, which in turn may create problems," Zaltman and Deshpandé explain elsewhere in the study. "These are not considerations that managers weigh lightly."
Consumer Confidence drops to lowest level for 12 months
The GfK NOP Consumer Confidence Index has dropped eight points this month to -29.
January saw decreases across all five measures; the most notable decrease was in the “major purchase index” which dropped twenty one points.
Nick Moon, MD of GfK NOP Social Research, comments:
“January?s eight point drop represents an astonishing collapse in consumer confidence. In the 35 years since the Index began, confidence has only slumped this much on six occasions, the last being in the midst of the 1992 recession.
"The VAT increase is the first of the government?s austerity measures that has had a widespread impact on consumers, and it seems to have hit people's economic confidence hard, especially as the biggest drop was in consumers' appetite for major purchases. With inflation on the up and the full force of the cuts yet to hit, these figures could be the beginning of a very painful period.
"There is a chance that these figures represent a post-Christmas blip, but even if there is a rally in February it is extremely unlikely that it will reverse this massive drop. Today's figures, when combined with the bleak economic forecast, will make talk of a double dip recession unavoidable."
UK Consumer Confidence Measures – January 2011
The overall index score this month has dropped eight points to -29, twelve points lower than this time last year. All five measures decreased this month, the most notable decrease in the “major purchase index”.
The annual moving average drops one point to -19.
Personal Financial Situation
The index measuring changes in personal finances during the last twelve months has decreased two points this month, at -18; this is four points lower than this time last year.
The forecast for personal finances over the next twelve months decreased four points to -12; this is sixteen points lower than January „10.
General Economic Situation
The measure for the general economic situation of the country during the last twelve months has decreased by three points to –54; three points higher than this time last year.
An expectation for the general economic situation over the next twelve months has decreased by seven points to -30, twenty eight points lower than January „10.
Climate for Major Purchases
The major purchases measure has decreased by twenty two points to -29; thirteen points lower than this time last year.
Savings Index
The „now is a good time to save? Index, has increased five points to -5, which is three points lower than January „10.
About the survey
The UK Consumer Confidence Survey from GfK NOP was conducted amongst a sample of 2000 individuals aged 16+ on behalf of the European Commission.
Quotas are imposed on age, sex, region and social class to ensure the final sample is representative of the UK population.
Interviewing was carried out during 7th – 16th January 2011.
The figures contained within the Consumer Confidence Barometer have an estimated margin of error of +/-2%
Results for the Consumer Confidence Barometer are normally available on the last working day of each month at 00.01am; the release date for February is Friday 25th February 2011.
Any published material requires a reference to both GfK NOP and the European Commission e.g. ‘Research carried out by GfK NOP on behalf of the European Commission’.
This study has been running since 1974. Back data is available from 1996.
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