Brand Amplitude Overview of Online Focus Groups June 2009 BrandAmplitude, LLC All Rights Reserved

Who We Are Independent research & consulting firm Serve consumer, B2B and non-profit organizations and their agencies Founded 2002. Innovators Online qualitative and quantitative research techniques Customer decision-mapping

Independent research & consulting firm

Serve consumer, B2B and non-profit organizations and their agencies

Founded 2002.

Innovators

Online qualitative and quantitative research techniques

Customer decision-mapping

Our Clients Blockbuster, Dallas, TX Bolthouse Farms, Carhartt, Dearborn, MI Carstar, Kansas City, MO CPFilms, Martinsville, VA Croscill, New York, NY Del Taco, Irvine, CA Crown Imports, Chicago, IL Partnership for Food Safety Education, Washington, DC General Mills, Minneapolis, MN Hanover College, Hanover, IN Harmoney Financial Advisers, Los Angeles, CA Harlem Globetrotters, AZ JCPenney, Plano, TX Janssen, New Brunswick, NJ Luxco Brands, St. Louis, MO Maple Leaf Farms, Milford, IN Musco Olive Co., Tracey, CA Orbitz, Chicago, IL Ortho-McNeil Neurologics, New Brunswick, NJ Partnership for Food Safety Education, Washington, DC Purdue University North Central, Westville, IN Rosa Mexicano Restaurants, New York, NY SideStep, Santa Clara, CA Simply Safe, Mequon, WI Trilegiant, Norwalk, CT True Fitness, St. Louis, MO University of Notre Dame, South Bend, IN Westlake Ace Hardware, Lenexa, KS Whirlpool Corp., Benton Harbor, MI Wildlife Conservation Society, Bronx, NY Agency Clients and Research Firms Allen Gerritson, Watertown, MA Arnold, Boston, MA Artafact Research, Fremont, CA Beehive Branding BIGresearch, Columbus, OH Brand Imperatives, Seattle, WA Bozell, Kansas City, MO Element 79, Chicago, IL Euro RSCG, New York, NY MarketTools, San Francisco, CA Mars Advertising, Southfield, MI McGowan Crain, St. Louis, MO Mozaic, Ltd., St. Louis, MO Smith Dahmer Associates, St. Joseph, MI Spark/Starcom Media Group, Chicago, IL Team Noesis, Los Angeles, CA Walz Tetrick, Orlando, FL Wirestone, Chicago, IL Wong Doody, Seattle, WA

Tools for Insights Online focus groups Decision mapping research Quantitative survey research Secondary source analysis Experimenting with ‘passive listening’

Online focus groups

Decision mapping research

Quantitative survey research

Secondary source analysis

Experimenting with ‘passive listening’

Online Focus Groups When you need to Uncover the ‘whys’ of attitude or behavior Understand a specific sub group Online because… It’s quicker Covers more markets Delivers real-time interaction and feedback Allows for client observation online Provides transcripts immediately Cuts down on cost…no travel, facility, M&M’s - Online growing! 51% of QRCA members conducted online qualitative research and 48% conducted online quantitative research.

When you need to

Uncover the ‘whys’ of attitude or behavior

Understand a specific sub group

Online because…

It’s quicker

Covers more markets

Delivers real-time interaction and feedback

Allows for client observation online

Provides transcripts immediately

Cuts down on cost…no travel, facility, M&M’s

-

Online growing!

51% of QRCA members conducted online qualitative research and 48% conducted online quantitative research.

MarketTools, Inc. In person groups geographically limited Artificial environment Take time, travel cost DENVER CHICAGO DALLAS Traditional Focus Groups

In person groups geographically limited

Artificial environment

Take time, travel cost

Online Focus Groups: Applying Innovative Technology MarketTools, Inc. Geographically diverse groups Hard-to-reach populations Internet users in natural environment Remote observers Online Focus Groups

Geographically diverse groups

Hard-to-reach populations

Internet users in natural environment

Remote observers

Online Advantages MarketTools, Inc. Gather qualitative feedback from low-incidence populations Reach representative participants anywhere in the US and beyond Observe groups in real-time, no travel cost, more can participate Fast turnaround Less social bias, everyone participates Transcripts

Gather qualitative feedback from low-incidence populations

Reach representative participants anywhere in the US and beyond

Observe groups in real-time, no travel cost, more can participate

Fast turnaround

Less social bias, everyone participates

Transcripts

Who uses online focus groups MarketTools, Inc. Pharma. CPG Branding/ Advertising Technology Who Uses Online Focus Groups

MarketTools, Inc. How it works Client Observers Host sends invitations and log in instructions Trained Moderator 8-12 Participants per group Screened & recruited via online survey, paid $50-$75 for participating

Standard web conferencing software (i.e. gotomeeting) We serve as host and moderator Up to 16 participants/observers Free Qual Talk Qual Talk hosts $550 per group 8 participants, unlimited observers Software Options Moderator/host Questions Chat responses

Standard web conferencing software (i.e. gotomeeting)

We serve as host and moderator

Up to 16 participants/observers

Free

Qual Talk

Qual Talk hosts

$550 per group

8 participants, unlimited observers

60-90 minutes Introduction and Warm up Prepared questions/exercises Probing opportunities Follow up bulletin board optional Group Logistics

60-90 minutes

Introduction and Warm up

Prepared questions/exercises

Probing opportunities

Follow up bulletin board optional

Sample Transcript Group Leader Marty : The rest of you...try to imagine a time in the future when you might consider just trying ONE. What would the situation be like? Alyssa B : im not sure Lindsey D : ive never tried it but i felt like it would be good to just know what it felt like to try one Group Leader Marty : are there certain times when you think kids are more likely to try it than others? Jeffrey P : I was turning real Emo so i wanted to get thoughts out of my head so i might try it Alyssa B : yes when they are depressed or something Jeffrey P : (If i was turning EMO) Group Leader Marty : I see, Jeffrey Jeffrey P : ok Group Leader Marty : So it's somethign they try when they are upset or depressed. Any other times? HannahS : bored Lindsey D : ya Jeffrey P : ummmmmm......when they being really stupid or their socialy retarded? Alyssa B : when trying to get people to like them Brody G : i've considered it. i was at a friends house. and he asked me if i wanted one. annae : if they are angry Charlene L (to All - Entire Audience) : I would be tied down and they would be cramming it in my face Group Leader Marty (to All - Entire Audience) : Why angry, Anna? Why is that a time to try a cigarette? annae (to All - Entire Audience) : idont know, are they 'calming'

Group Leader Marty : The rest of you...try to imagine a time in the future when you might consider just trying ONE. What would the situation be like?

Alyssa B : im not sure

Lindsey D : ive never tried it but i felt like it would be good to just know what it felt like to try one

Group Leader Marty : are there certain times when you think kids are more likely to try it than others?

Jeffrey P : I was turning real Emo so i wanted to get thoughts out of my head so i might try it

Alyssa B : yes when they are depressed or something

Jeffrey P : (If i was turning EMO)

Group Leader Marty : I see, Jeffrey

Jeffrey P : ok

Group Leader Marty : So it's somethign they try when they are upset or depressed. Any other times?

HannahS : bored

Lindsey D : ya

Jeffrey P : ummmmmm......when they being really stupid or their socialy retarded?

Alyssa B : when trying to get people to like them

Brody G : i've considered it. i was at a friends house. and he asked me if i wanted one.

annae : if they are angry

Charlene L (to All - Entire Audience) : I would be tied down and they would be cramming it in my face

Group Leader Marty (to All - Entire Audience) : Why angry, Anna? Why is that a time to try a cigarette?

annae (to All - Entire Audience) : idont know, are they 'calming'

‘ It makes you look cool’ is the default answer given when respondents are asked why they think kids smoke. Younger respondents (12-13 year olds) struggle to provide more detail, as most have limited (if any) direct experience with tobacco. Older respondents (14-15 year-olds) are more likely to have first hand experience; many say that peer pressure to try cigarettes is very real. When pressed, most think that kids try cigarettes initially out of a mixture of curiosity and boredom and keep using them because they provide a ‘cheap buzz’ that they associate with relaxation, stress relief and an enhanced ability to live in the moment. Moderator: Why do you think kids smoke cigarettes? “ Think they will look cool or something.” “ It’s something new exciting that they haven’t tried” “ There’s a lot of peer pressure to smoke.” “ Makes them think less about their problems.” “ Helps them relax.” “ Their stressed” “ Because it calms them down.” Sample Report

‘ It makes you look cool’ is the default answer given when respondents are asked why they think kids smoke.

Younger respondents (12-13 year olds) struggle to provide more detail, as most have limited (if any) direct experience with tobacco.

Older respondents (14-15 year-olds) are more likely to have first hand experience; many say that peer pressure to try cigarettes is very real.

When pressed, most think that kids try cigarettes initially out of a mixture of curiosity and boredom and keep using them because they provide a ‘cheap buzz’ that they associate with relaxation, stress relief and an enhanced ability to live in the moment.

At least 2 groups per ‘segment’ Behavior/usage Demographics Geography Concept acceptors Typical project is 4-8 groups $3,000 per group plus expenses (respondent recruitment and incentive) Target Selection is Key

At least 2 groups per ‘segment’

Behavior/usage

Demographics

Geography

Concept acceptors

Typical project is 4-8 groups

$3,000 per group plus expenses (respondent recruitment and incentive)

Case Study: JC Penney MarketTools, Inc. Wanted to understand cross channel shoppers’ behavior and expectations in order to better integrate store and online shopping experiences. Capture larger share of wallet Reduce customer frustration

Wanted to understand cross channel shoppers’ behavior and expectations in order to better integrate store and online shopping experiences.

Capture larger share of wallet

Reduce customer frustration

Mixed Qual & Quant, Online and Offline Methods MarketTools, Inc. In Person Focus Groups (3) Online Survey n=485 Cross section Online Focus Groups (4) General Population Zoomerang Sample Online Survey n=968 Heavy cross channel Online Focus Groups (4) Heavy Cross Channel Shopper Zoomerang Sample

Screened with Quantitative Data MarketTools, Inc. Nearly 2/3 of the target make at least one Internet purchase a month and 1/3 make two or more Internet purchases a month Shoppers move fluidly between channels, with online and offline providing different advantages. Online is thought to offer more depth of merchandise and prices are generally considered to be cheaper (although shipping charges must be considered).

Cross-channel shopping was more prevalent & complex than expected. Heavy cross channel shoppers are different only in that they LOVE to shop MarketTools, Inc. Use Qualitative to Explore for Insights AD/CATALOG “ I look (at Sunday paper), then go online to check prices.” RETURN “ Yes, you should be able to return at the store. This is why I won’t shop online at some places.” WEB ORDER STORE “ I know what I want and where I can find it start there…usually stores first net second.” “ Yes, I will compare prices online, AND then go to the store with the best price.”

Cross-channel shopping was more prevalent & complex than expected.

Heavy cross channel shoppers are different only in that they LOVE to shop

Actionable Insights MarketTools, Inc. Online research gives us another tool in our toolbox. It allowed us to involve our internal clients more in the research process. Dr. Donna Romeo, Manager Customer Trends, Strategy and Insights Group “ ”