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Designing an innovative Marketing Research on Samsung 3D TV

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Solving a hypothetical management problem of Samsung 3D TV through a quantitative research method of an online lexical semantic analysis.

Solving a hypothetical management problem of Samsung 3D TV through a quantitative research method of an online lexical semantic analysis.

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  • 1. MARKETINGRESEARCH DESIGN Group 4: Barbara Dewulf Marion Lallemand Antoine Marquand Duke Assam Axel Van Hulle Andreas Withaeckx
  • 2. Content      Introduction  ...........................................................................................................  3  1.  Why  did  we  choose  Samsung  3D  TVs?  .................................................................................................  3  2.  Managerial  Problem  .....................................................................................................................................  5    I.  The  research  method  ..........................................................................................  6  1.  Step  1:  Attribute  selection  .........................................................................................................................  6  2.  Step  2:  Data  collection  format  .................................................................................................................  6  3.  Step  3:  Scale-­‐check  .......................................................................................................................................  7  4.  Step  4:  Comparison  between  LG  and  Samsung  ................................................................................  8  5.  About  the  data  collection  method  ..........................................................................................................  9  II.  Our  results  .......................................................................................................  10  A  short  conclusion  ...........................................................................................................................................  12  III.  Advantages  and  disadvantages  of  the  research  method  ..................................  13  1.  Advantages  .....................................................................................................................................................  13  2.  Disadvantages  ...............................................................................................................................................  13  3.  General  remarks  ..........................................................................................................................................  14  IV.  Value  of  the  research  method  .........................................................................  15  Why  is  our  method  useful  to  tackle  our  management  problem?  ................................................  15  V.  Method  upgraded  ............................................................................................  17  1.  Step  1:  Attribute  Selection  ......................................................................................................................  17  2.  Step  2:  Data  collection  format  ...............................................................................................................  18  3.  Step  3:  Scale  re-­‐check  ................................................................................................................................  18  4.  Step  4:  Comparison  between  LG  and  Samsung  ..............................................................................  18  5.  Usefulness  of  the  method  ........................................................................................................................  19    Conclusion  ...........................................................................................................  20    References  ...........................................................................................................  21   2
  • 3. Introduction    First of all, we will discuss the choice of our topic, and why we decided to investigatethe sector of the 3D TVs. Then we will detail our managerial problem. 1.  Why  did  we  choose  Samsung  3D  TVs?  To begin with, the sector of 3D TVs is an innovative and growing market; the mainbrands are investing a lot of money in order to capitalize on this opportunity. Markettracker Display Search said that global TV sales shrank 8 percent in the first quarterof 2012, while the market for 3D TVs grew by a whopping 245 percent. Thistranslates in more than 7 million 3D TVs sold around the world between January andMarch 2012. However, looking at the data more carefully, we immediately noticed thedifficult situation of Samsung in this market. Indeed, as Tristan Van Overbroek(Marketing Manager Consumer Electronics) explained during the Samsung Forum inPrague the 2nd of December 2011, Samsung will stop the marketing spending on 3DTV in Europe. He also said that the consumer was not interested in 3D TV. Hespecified that they would continue to offer the functionality on high-end devices, butas a ‘commodity’. This statement reflects the troubles faced by Samsung on the 3DTV market, and that is why we decided to investigate the reasons of this disillusion.Secondly, we were interested in the direct worldwide confrontation on the advertisingfield between Samsung and LG. Indeed, both brands decided to use the results ofsurvey as an advertisement tool, comparing the opinion of consumers.This war between the main brands focuses most of the time on one aspect of the 3DTV. This element is the glasses. From the beginning, Samsung bets on theexpensive active 3D glasses, whereas LG is using the passive 3D glasses. As anillustration, you can see on the next page one of the comparative advertisingcampaign realized in the US by LG “There is no other 3D like our 3D. Just ask Sonyand Samsung”. Considering this fierce competition between Samsung and LG, wedecided to take a closer look at the brand LG on the 3D TV market. 3
  • 4. Thirdly, we investigated the evolution of the sales on this market, focusing onSamsung and LG. We noticed quickly that the evolution of the sales was in favour ofLG. As we can see below, Samsung and LG held a combined 41% share of theglobal 3D market, but the market share of Samsung is decreasing, while LG doublesits market share1. Market  Share  on  the  3D  TV  market   LG  Electronics   Samsung  Electronics   34%   25%   16%   8%   2011   2012  In this confrontation between the brands Samsung and LG, the real questions are:What do the consumers prefer, and what are the reasons for the ‘failure’ of the 3DTV for Samsung? We tried to translate these interrogations into a concretemanagerial problem for Samsung.1 Market tracker Display Search – April 2012 4
  • 5. 2.  Managerial  Problem  Considering our findings, we decided to orientate our managerial problem on theperception of the product by the consumers. We wanted to know which features ofthe 3D TV the customers valorised. In the mean time, we needed to compare twobrands in order to have a perspective in our evaluation. Viewing the fiercecompetition between LG and Samsung, we decided to investigate both Samsung andLG for our research.Taking into consideration all this information, we came up with the followingmanagerial problem: Which perception do people have on the differentattributes of the Samsung 3D TV products?In order to answer to this general managerial problem, we divided our question intotwo sub questions:1. What are the relevant attributes for the customer considering buying a 3D TV?2. Why do they value LG 3D TV better than the Samsung ones?With this general managerial problem, we are conscious to operate a generalapproach of the situation, but it is necessary to have this global overview in order toperceive the main difficulties faced by the two brands in that market. 5
  • 6. I.  The  research  method     In this part, we will describe our research method in four different steps and then we will justify our data collection method. 1.  Step  1:  Attribute  selection   First of all, we decided to list the relevant attributes perceived by the consumers of 3D TVs. It consists in a first global analysis of the comments of consumers on forums, consumer reviewing websites and shopping websites. We needed to answer to this question: what are the main categories of attributes discussed on these websites? The goal is to have a range of relevant attributes sufficiently commented on by the consumers. Moreover, these attributes have to be relevant for the two brands discussed. After this initial Internet research, our group realized a pooling. We decided to keep the attributes that we had in common. We also limited the number of attributes, because too many attributes can be confusing for the data collection. Moreover, we had to select attributes that were not overlapping. As you can see below, we selected fourteen attributes for the next step of our research method. Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 6 Attribute 7Name of Video Image 3D TV Sound Design andthe Price Connectivity quality quality Glasses quality Appearanceattribute Attribute 8 Attribute 9 Attribute 10 Attribute 11 Attribute 12 Attribute 13 Attribute 14Name of Technical Remote Energy Viewing Menu,the Calibration 3D Quality support control consumption angles Featuresattribute 2.  Step  2:  Data  collection  format   After the selection of the attributes, we can start to the collection data. We gathered comments from forums, consumer reviewing websites and shopping websites. For the data to be collected correctly, we implemented different methods in order to avoid collecting the same comments twice and to lower the subjectivity. 6
  • 7. First of all, we decided to make a list of all the 3D TVs of Samsung and LG. Then, weassigned a specific model of 3D TV for Samsung and another specific model of 3DTV to each member of the group. As you can see below, this repartition erases allrisk of duplicate in the comments collected. Products Samsung & LGSamsung Names LG NamesE8000GSXZF Antoine LG LW5590 AntoineES7000SXZF Marion LG LW579S MarionUN46D8000 Andreas LG LW659S AndreasUN55D7000 Barbara LG LK950 BarbaraD8000YSXZF Duke LG LW5400 DukeD7000LSXZF Axel LG LW980S AxelAfter this repartition within the group, the collection of the data could start. Weamassed comments on different websites into a database; every comment collectedis linked to an attribute in our file. Then, we associated each comment describing anattribute to a point on that scale: Very positive – Positive – Neutral – Negative - Very NegativeThe advantage of a five-point rating scale is that it allows a deeper analysis. Theother benefit is that we can reduce it, from a 5-point rating scale to a 3-point ratingscale (merging of very positive with positive and very negative with negative). 3.  Step  3:  Scale-­‐‑check  In order to reduce the subjectivity in our marketing research, we designed this thirdstep. It consists of a double rating of the comments collected. The goal is to testthe reliability of our method. In this phase, another member of the group does thesecond rating. As you can see below, we distributed the rows carefully to each teammember, because this double rating has to be done by another person. 7
  • 8. This stage allows us to calculate the percentage of match between the positionon the scale attributed the first time and the position on the scale attributed thesecond time, for the same comment. As you can see below, we organized ourdatabase in order to have all the information in the same file. The columns gather thedifferent attributes, and the group of four rows ‘Scale, Scale-check, Quotation,Source’ is used for each comment. We can specify that one comment can describedifferent attributes, that is why you can see below different attributes discussed forone comment. Besides, each comment is directly readable in our database, just likethe source of the comment.As you will find in the file ‘Percentage Match LG’, we used formulas with Excel inorder to calculate the percentage of match between the first scale and the scale-check. As a result, we can say that our first analysis on the scale is confirmed by thescale-check for 77% (LG) and 82% (Samsung) of the comments. These results provethat the objectivity of our method is rather high, because in most of the cases theposition in the first scale is confirmed by the scale-check. 4.  Step  4:  Comparison  between  LG  and  Samsung  The last stage of our marketing research consists of the comparison between LGand Samsung according to the comments collected. This comparison can beorganized in two scopes.First, we can base a comparison on the number of reactions about each attribute.Thus, we can understand how the consumer value each attributes of the TVs. Theconsumers perceive the most commented features as being highly relevant; theseattributes are crucial for the shoppers. The manufacturers have to pay attention tothese aspects.Then, we can examine the attitude of the consumers toward the attributes, and theposition on the scale of each attributes. This stage allows us to acquire an 8
  • 9. understanding of the judgement of the consumers for each attribute. The position onthe scale for each characteristic can be compared between both brands. This firstglobal approach is interesting in order to determine which attributes are essential inthe mind of the consumers. These two dimensions will be developed in the next partof the paper.As you will find in the file ‘LG - Position on the scale per attributes’, we used formulaswith Excel in order to calculate the distribution on the scale for each attribute. 5.  About  the  data  collection  method  To summarize, we can say that the data was collected from consumer reviewingwebsites, forums and shopping websites regarding a set of attributes of various 3DTV products of LG Electronics and Samsung Electronics. Then, a five level-scorewas given to each attribute, based on the comments collected. A new team memberperformed the re-check in order to avoid bias. This marketing research allows us tofind out what attributes are relevant when buying a 3D TV and how well bothmanufacturers score on these domains. Last but not least, the descriptive analysisperformed is essential in order to identify problem areas as well as success areas. 9
  • 10. II.  Our  results   In this part of the paper, we’ll take a closer look at the results we found using our method. Firstly, we counted the number of comments on each attribute; the ones with the most comments are the most relevant to 3D TV users.49   Samsung  -­‐  Number  of  comments  per  attribute     47   LG  -­‐  Number  of  comments  per  attribute     27   26   21   20   19   19   17   14   11   11   11   11   12   12   10   7   8   Image quality is the first one that stands out. We see that both LG and Samsung record a positive score. On Image quality, LG received a total of 77 per cent positive comments, compared to the 92 per cent for Samsung. Samsung  -­‐  Image  quality   LG  -­‐  Image  quality   Negative   Negative   8%   Very   Very   15%   positive   positive   Neutral   28%   8%   31%   Positive   Positive   61%   49%   A second attribute important to the consumers is the price. The graphs show a very negative position for Samsung, 36 per cent of the Samsung TV owners would not spend their money again on a Samsung 3D TV. This could already be a first answer as to why LG TVs are doing better. Samsung  -­‐  Price   LG  -­‐  Price   Negative   Very   5%   positive   Neutral   Negative   15%   25%   36%   Positive   55%   Positive   Neutral   55%   9%   10
  • 11. The quality of the Samsung TV is remarkable, the comments on Sound Quality pointthis out. Again, regarding both pie charts, we see that LG had a low score of 26%positive comments and Samsung a total of 83% positive and very positivecomments. (Graphs are in attachment)Due to a lack of comments on 3D glasses and technical support, we could not makea statistically correct chart, but these two attributes are definitely important for ourmanagerial problem.Firstly, customers were not satisfied with the Samsung helpdesk at all. Theycomplained about the TV showing problems from the moment the warranty expired.Secondly, the 3D glasses that come with both TV’s are very different. Unfortunately,due to the lack of comments we could not make a statistically relevant chart, but welearned that the technology used for the glasses is very different from one another.This could also be a good explanation as to why some TV buyers prefer LG.The last attribute we found interesting is the 3D quality, which is probably the mostimportant feature on this TV. The graph of LG’s 3D evaluation shows us that theyonly got 5% negative comments, compared to a 50% negative rate of Samsung. CanSamsung improve on this? Samsung  -­‐  3D  Quality   LG  -­‐  3D  Quality   Negative   Very   5%   positive   Positive   25%   Negative   28%   50%   Very   Positive   25%   positive   67%  Customers are really positive about the ratio price/quality of LG. It is a main incentiveto buy a LG 3D TV. Indeed, their prices are lower than Samsung. Its is explained bytheir different strategic choice. Samsung decided to be positioned on the market ofactive 3D TV, with expensive glasses and a more sophisticated technology. LG is onthe market of the passive 3D, with basic glasses. 11
  • 12. A  short  conclusion  Why do customers value LG 3D TVs better than the Samsung ones? ⇒ Costumers think Samsung 3D TV’s are quite expensive while LG is considered much cheaper ⇒ Majority of customers think 3D quality for Samsung is poor and LG seems to have a good 3D quality ⇒ Passive 3D glasses preferred over active 3D glasses? ⇒ But, sound and image quality is more commented on and considered better with Samsung than with LG 12
  • 13. III.  Advantages  and  disadvantages  of  the  research  method  Like every research method, our method has its strong and weak points. 1.  Advantages  Firstly, we did our research on relevant sites and with relevant people. These arepeople that will actually buy the product because of reasons that really matter forcostumers. When a professional reviewer is all fond of a certain aspect of a productand therefore gives the product a good review, it could be the case that this certainaspect is actually not at all important for the everyday-user of the product.We therefore managed to see what really matters for costumers when buying aproduct.Also, the comments are rather easy to track for most products and the sites fromwhich we got the comments, make a database that is available for everyone.Moreover, our method is extremely cheap and requires no money whatsoever if youkeep it basic like we did.Furthermore, because of our double-check of the comment rating, bias is low.Besides, the method is easy to reproduce. We just had to make one Excel-filecontaining all the right information (columns = all the different attributes we thoughtwere important for a costumer, rows = scale, scale-check, the comment itself and thesource) and we could go and look for all the different comments. 2.  Disadvantages  First of all, it could be the case that there are not enough comments available for theproduct. Shopping websites such as Amazon.com should give us enough costumer-reviews, but less-known products and certain types of products (for example food)could be less reviewed and therefore comments will be harder to find.  Besides, we selected the comments ourselves, if a comment seemed to be toocomplicated or unclear, we just skipped that comment and went on to the next one.Moreover, the websites we selected to get the comments from could attract the sametype of costumers so it could be the case that we were not able to get a generalperception of the product because we focussed on one specific group of costumers. 13
  • 14. Furthermore, since we used a five-point rating scale (very negative-negative-neutral-positive-very positive), we made a rather rough analysis of the comments.Additionally, people on the Internet have the bad habit to shout. A rather anonymousplace like the Internet tends to attract people with strong opinions, whether they arepositive or negative.Finally, our method is rather time intensive. Although it is quite easy to set it up asecond time, it takes a lot of time to gather all the comments and give them a gradeof perception. 3.  General  remarks  ⇒ This method is only applicable for a very specific type of product. Unfortunately for Kellog’s, cornflakes will not be discussed on forums, but luxury items (cars, high tech devices) will be. This does not necessarily mean that the method is flawed; it is rather a result of the characteristics of the products we wish to investigate.⇒ To make our research more powerful, we must find a way to process comments more quickly. The aid of a specially designed computer program using word recognition might help us achieve this.⇒ To make the method more representative, we should use all the comments (except for the ‘shout comments’) on a particular forum because our method may have caused the results to be not as representative as we would have liked. Simply choosing 20 comments out of 200 on a forum is not the right way. The users might talk about the same topic for 50 comments, and then switch the subject. If you choose 20 comments about this subject, you reach a false conclusion because the comments you picked were not representative for the total of 200. 14
  • 15. IV.  Value  of  the  research  method            Why  is  our  method  useful  to  tackle  our  management  problem?  First of all, we need to remind ourselves of the management problem: ‘Whichperception do people have on the different attributes of the Samsung 3D TVproducts?’In order to answer this question precisely and objectively we decided to open ourresearch to different types of forums, consumer reviewing websites, or shoppingwebsites, in order to have a representative sample of the Internet population.Besides, the specialized websites would not have been a good indicator for ourresearch, because they regroup only a fraction of the population giving their opinionsabout very technical aspects of the TVs, which are not the main issues for most ofthe consumers. As you can see below2, consumers are looking for information ondifferent type of websites.Our method is useful to tackle the managerial problem because of various reasons.Undeniably, nowadays, with the growing complexity of high tech products we cannotice that more and more virtual “meeting places” about high-tech goods andconsequently about 3D TVs are created on Internet and that more and more usersconsult them. Consumers give their opinion about their last purchase, they complainor value their product, and they explain their point of view. All this data is available forfree and easy to access.2 Lightspeed Research – April 13th 2011 15
  • 16. Furthermore, the 3D TV market is a new market with new products. It means thatconsumers need a lot of information and advices about this new type of items theyhave never bought before. As it is an investment for most of the consumers, the needfor good advice is high in order not to be disappointed after the purchase.Besides, it is recognized that the first place where consumers look for informationabout whether to purchase a product or not is mostly on Internet’s forums orshopping sites (Amazon), as you can see on the chart below3.Last but not least, we can obviously demonstrate the relevance of the data wecollected thanks to a main reason. Indeed, by collecting our data on forums websitesor shopping websites we try to figure out what are the consumer’s opinions. In fact,this is what is essential in our research method because we do not rely onprofessional’s opinions, which can be biased by the brand’s strategy. By searchingthe real consumer’s opinion we can easily notice what are the advantages and thedisadvantages of the brands in the mind of consumers.This is an important step because it is directly linked to the purchasing behavior ofthe customers.3 Lightspeed Research – April 13th 2011 16
  • 17. V.  Method  upgraded     One of the main shortcomings of our method was the lack of input for various variables. One way to solve this issue could have been to score every missing observation as ‘neutral’. This would be based on the assumption that if a reviewer did not say anything about a particular attribute of interest, then he/she had nothing positive or negative to say about it. On the other hand, this could be seen as a biased approach to tackle the problem since the same sampled reviewers might have something positive or negative to say if asked what were their opinions with respect to the attributes they did not mention. At this we point, we will try to design a new methodology that can enforce the strong points of our method and can handle its flaws. 1.  Step  1:  Attribute  Selection   The first step will be to list the relevant attributes of the 3D TV as perceived by the customers: Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 6 Attribute 7Name of Video Image 3D TV Sound Design andthe Price Connectivity quality quality Glasses quality Appearanceattribute Attribute 8 Attribute 9 Attribute 10 Attribute 11 Attribute 12 Attribute 13 Attribute 14Name of Technical Remote Energy Viewing Menu,the Calibration 3D Quality support control consumption angles Featuresattribute Another interesting thing to do in this case is to include another set of variables relating age group, educational level, and family size. This allows us to capture extra useful information. For instance: if someone from a large household says something positive or negative about a product, everyone else in the household will be inclined to feel the same way about the product. Educational level can give us an idea of whether people talk of bad quality because they cannot manipulate their remote control or adjust screen settings. Age group can also give us an idea about who are actually complaining, which age group complains about what feature and why. We believe that with such information, Samsung can not only reposition itself in the 3D 17
  • 18. TV market, but also through certain amends in its product quality, regain high marketshare. 2.  Step  2:  Data  collection  format  Data should be collected from a sample of about 5 - 8 review websites per producttype with extraction of about 30 – 40 observations per review site. The reviewwebsites should be selected based on different regions, types of forums ranging fromexpert to basic consumers so as to capture information from a broader perspective.As seen on some review sites, it would be interesting for Samsung to make thereview sites themselves so that based on the TV attributes selected reviewers canmake comments based on pro’s and con’s for each attribute. In this way, reviewerscan at least say something about the different attributes of the product and we canend up with a complete table of input. 3.  Step  3:  Scale  re-­‐‑check  In other to avoid discrepancies or bias in awarding a scale for each comment, a 3-likeart scale will be preferred over a 5-likeart scale as used in the original analysis.This will help in reducing scoring bias. After data has been collected, a double checkis conducted and scored such that the new score is compared to the old score andthe level of variance between the two can be checked.On the other hand, after conducting the data collection as indicated in our originalmethod, we automatically get an overview of which attributes are most important foreach product. It is also possible to clearly see amongst the most important variables,which makes the product most liked and most disliked. 4.  Step  4:  Comparison  between  LG  and  Samsung    ⇒ First comparison: number of positive/negative about each attribute of 3D TV of LG and Samsung.⇒ Second comparison: attitude toward the attributes, position on the scale for each attributes⇒ Comparison of difference in means for 3D TV attributes in age group, family size and educational level. 18
  • 19. Using these results, Samsung can be able to conduct a SWOT analysis based on theinformation it will have not only about itself but also about its main competitor. This isrelevant because the method is very cheap and efficient. After identifying the keydrivers of 3D TV, the company can be able to regain a share of the market. I believethat if the marketing manager has this kind of information, he would not want to quitthe market. 5.  Usefulness  of  the  method  The advantage here is that it possible to get free feedback from professionals andcustomers in a very quick manner and follow-up can be performed to see if newtrends of customers perception towards not only the Samsung 3D TV, but also theevolving trend of competitors.Although with this method, there’s no guarantee that the opinion of the reviewer is atrue reflection of the actual user experience. Above all, the method is totally free andtime is not wasted. Findings have shown that customers value negative reviewsmore than positive ones for ‘experience’ products meanwhile positive reviews havebeen found to have more impact for ‘search’ products. 19
  • 20. Conclusion  In conclusion, it is fair to say that our method has allowed us to identify Samsung’smost important shortcomings in comparison with LG, and consequently solve themanagerial problem. Although our results may not be entirely statistically correct, wehave indicated how the method could be improved on in the case of a potential newresearch. Our paper shows that even with a limited amount of resources, anyonewith sufficient time can obtain this kind of important information from the Web, thanksto the power of the Internet. Lastly: if companies such as Samsung were to createand control forums themselves and thus gather information in an organized manner,they would be able to draw more accurate, more correct, more powerful conclusions.   20
  • 21. References   • Market tracker Display Search – April 2012 http://english.chosun.com/site/data/html_dir/2012/05/21/2012052100945.html • File ‘Percentage Match LG’ - enclosed • File ‘LG - Position on the scale per attributes’ - enclosed • Lightspeed Research – April 13th 2011 http://www.lightspeedresearch.com/press-releases/consumers-rely-on-online- reviews-and-price-comparisons-to-make-purchase-decisions/ 21