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Understanding ‘Global’ Consumer Behavior
New Rules for Success
About Us

 Ipsos is 3rd largest research company in the world



 Vantis is a division specializing in connecting research results to financial
 impact across a variety of industry verticals
 – Mostly innovation focused
 – 25+ year history of model development




                                                                                 2
Topics




         3
Stating the obvious




                      4
….And the (very) slightly less obvious




                       Going into 2011, among Western CEOs…
                        More than 80% felt they could grow abroad
                        Fewer than 50% felt they could grow at home



    Abroad    Home

                                                                      5
What is changing in research?




                                6
Means of reaching consumers is different… and changing fast

                    ‘90s              ‘00s                  Today




                                                              +


                                                              +




                                 ‘00s methods are combined with today’s
                                                                          7
Social media is re-shaping consumer access




                    Population is ranked 3rd in the world.


     1. China            1,336,450,000           6. Brazil       192,651,000


     2. India            1,178,436,000           7. Pakistan     169,010,500


     3. Facebook           845,000,000           8. Bangladesh   162,221,000


     4. United States      308,898,000           9. Nigeria      154,729,000


     5. Indonesia          231,369,500           10. Russia      141,927,297


                                                                           8
Polling Question

 Compared with 12 months ago, how much more social media driven data
 are you using?
 – A lot more
 – A little bit more
 – About the same
 – Less
 – We don’t analyze social media data




                                                                       9
And, once you reach consumers…

 The way they answer questions is different
 Fortunately in a somewhat systematic way…
 – By education
 – By cultural disposition
 – By how and in what ‘medium’ questions are asked


   Example of Raw Survey Score Interpretation From Around the World




                                                                       Definitely Would …
                                                                       Probably Would …
                                                                       Might or Might Not …
                                                                       Probably Would Not …
                                                                       Definitely Would Not …
                                                                             ... Buy




        10%              12%             11%              8%          Year End Penetration




                                                                                                10
Modality and Venue matter. Example:




   Online     Intercept           Pre-               Pre-     POP
   Panel                         recruit            recruit
                                   IDI              Group




                     Middle of              Beginning
                     a Survey              of a Survey
                                                                    11
Polling Question

 In the past year, have you had to think through how to reconcile data from
 different sources (different countries, different data collection methods)?
 – Yes
 – No




                                                                           12
Statistics are getting harder to apply to consumer data as
an ‘arbiter of truth’



                   Do not call
                   regulation and
                   time-shifting




                                               Increasing reliance on
                                               social gathering places
                                               vs. controlled sampling




                   Over-abundance
                  of on-line survey
                  ‘pop ups’

                                        Nuance in data Interpretation


                                                                         13
The dynamics of adoption have changed




           It is a period where the evolution of social
        interaction is rapidly outpacing the evolution of
            social science…moreso than historically
                                                            14
… which may explain this…




                                                                                              Top Two Box %
                   16%       21%       18%     34%     26%          28%        21%          19%       33%




                                               8%
Purchase Intent




                                                                                                       12%
                                                                    8%
                                                        9%
                              6%                                                4%
                                        5%                                                  6%
                    3%
                                               26%
                                                                    20%                                21%
                             15%                       17%                     17%
                   13%                 13%                                                  13%


                   Nokia    Amazon     Apple   HP      Apple       Palm         LG         Apple       Dell
                  Booklet    Kindle     TV     Mini   iPhone        Pre      Chocolate     iPad      Inspiron
                    3G         2                        3Gs                                            11z


                                                      Definitely Would Buy
                                                      Probably Would Buy
                                      Failed                                             Succeeded
                                                                                                                15
So what does all this mean?

       mar·ket·ing re·search: noun mär-kə-tiŋ rē-sərch
       The process of gathering, analyzing and interpreting
       information about a market, about a product or service to
       be offered for sale in that market, and about the past,
       present and potential customers for the product or service




        …but, now, in a smaller world with more access challenges,
         rapidly proliferating data sources, and disparate data biases

        …’Truth’ is getting harder to come by via data analysis – and
        marketing research data are hard to understand

                                                                         16
Bottom Line….




                17
The New Rules – 7 of Them

(maybe not all 7 for today…
the sky is not falling….
but rules for ‘soon’…)
1) Developing Market Best Practices Are Global Best Practice




                 vs




         GREATER GLOBAL                    MORE FOUNDATIONAL
          CONNECTION                           RESEARCH


           RELATIVELY MORE IN PERSON
           METHODOLOGIES AND DOING
                     ‘MORE WITH LESS’
                                                               19
2) The >20 Minute Online Survey Is Untenable, Globally




                                                         20
3) Journalism Skills Must Be Embraced By Market Intelligence




  1) Opportunism: ‘scooping’ the
     competition (and getting
     engaged eyeballs!!)

  2) The principles of the
     discipline




                                                               21
Getting the Scoop

 Because there is significantly more social interaction, there are more
 useful scoops (consumer insights) to be found at any moment…
 But it requires more might than is typically exerted in marketing intel:


  Journalism Textbook:
  Getting scoops requires a great deal of effort,
  and a very large support team. Many papers
  station journalists all over the world in the
  hopes of getting scoops on unexpected major
  stories, and they supplement these journalists
  with stringers who sell content to the highest
  bidder. Having foreign correspondents in place
  is a crucial part of running a successful major
  paper, and many news outlets dedicate a large
  chunk of their budget to maintaining such
  correspondents, along with their contacts.



                                                                            22
Principles of Journalism

  1. Journalism's First Obligation Is To The Truth
  2. Its First Loyalty Is To Citizens
  3. Its Essence Is A Discipline Of Verification
  4. Its Practitioners Must Maintain An Independence From Those They Cover
  5. It Must Serve As An Independent Monitor Of Power
  6. It Must Provide A Forum For Public Criticism And Compromise
  7. It Must Strive To Make The Significant Interesting And Relevant
  8. It Must Keep The News Comprehensive And Proportional
  9. Its Practitioners Must Be Allowed To Exercise Their Personal Conscience




Pew Research Center Project for Excellence in Journalism                   23
Principles of Journalism

  1. Journalism's First Obligation Is To The Truth
  2. Its First Loyalty Is To Citizens
  3. Its Essence Is A Discipline Of Verification
  4. Its Practitioners Must Maintain An Independence From Those They Cover
  5. It Must Serve As An Independent Monitor Of Power
  6. It Must Provide A Forum For Public Criticism And Compromise
  7. It Must Strive To Make The Significant Interesting And Relevant
  8. It Must Keep The News Comprehensive And Proportional
  9. Its Practitioners Must Be Allowed To Exercise Their Personal Conscience




Pew Research Center Project for Excellence in Journalism                   24
Principles of Journalism

  1. Journalism's First Obligation Is To The Truth
  2. Its First Loyalty Is To Citizens
  3. Its Essence Is A Discipline Of Verification
  4. Its Practitioners Must Maintain An Independence From Those They Cover
  5. It Must Serve As An Independent Monitor Of Power
  6. It Must Provide A Forum For Public Criticism And Compromise
  7. It Must Strive To Make The Significant Interesting And Relevant
  8. It Must Keep The News Comprehensive And Proportional
  9. Its Practitioners Must Be Allowed To Exercise Their Personal Conscience




Pew Research Center Project for Excellence in Journalism                   25
Principles of Journalism

  1. Journalism's First Obligation Is To The Truth
  2. Its First Loyalty Is To Citizens
  3. Its Essence Is A Discipline Of Verification
  4. Its Practitioners Must Maintain An Independence From Those They Cover
  5. It Must Serve As An Independent Monitor Of Power
  6. It Must Provide A Forum For Public Criticism And Compromise
  7. It Must Strive To Make The Significant Interesting And Relevant
  8. It Must Keep The News Comprehensive And Proportional
  9. Its Practitioners Must Be Allowed To Exercise Their Personal Conscience




Pew Research Center Project for Excellence in Journalism                   26
4) A Key Research Function Is Making ‘Decoder Rings’




      DIFFERENT COUNTRIES




    DISPARATE DATA SOURCES

                                         Because all data are biased, a
                                          precondition to uncovering
                                           insights is fixing biases.

       DISPARATE BIASES
                                                                    27
4) A Key Research Function Is Making ‘Decoder Rings’


                         BENCHMARKS
                          VALIDATION
                    MODELED (vs Stated) DATA
                        PARALLEL TESTS
                       DELPHI ANALYSIS




                                                       28
5) We Have to Convey Insight in Universally Understood Terms




                                                               29
Example Archetypes




         Top       Winner
      performer    Under-priced
      archetypes   Good concept


                   Breakthrough     Over-priced   Niche/targeted    Potential future hit
        Middle
                   Me too           Average       Atypical          Skeptical
  ?   performer
      archetypes
                   For Want
                   Value Branding
                                    Too premium
                                    Commodity
                                                  Value resistant
                                                  Unconvincing
                                                                    Unbelievable
                                                                    Caught in middle

         Poor
      performer    Dog
      archetypes




                                                                                           30
6) We Have to Report Conclusions, Not Analysis and ‘Proof’




     Demographics

                        Male
                                             Total
                                             (161)
                                              49
                                                     Target
                                                      (48)
                                                      60
                                                              Index

                                                              122
                                                                      $100M+ Opportunity
      Gender (% )
                        Female                51      40      78
                        18-24                 21      25      119
                        25-34                 30      30      100
                        35-44                 20      21      105
      Age (% )
                        45-54
                        55+
                                              17
                                              12
                                                      21
                                                       3
                                                              124
                                                              25
                                                                            Type A
                        Mean Age             36.7     35      95
                        Male 18 - 34          22      35      159
      Gender / Age      Male 35+              27      25      93
      Quads (% )        Female 18 - 34        30      19      63
                        Female 35+            21      21      100
                        Caucasian             63      46      73
                        Hispanic              14      23      164
      Ethnicity (% )    African-American      14      15      107
                        Asian                  6      10      167
                        Other                  3       6      200
                        Married               51      44      86
      Marital
                        Single/Wid/Div        49      56      114
      Status (% )

                       Age 5 and under        25      28      112
      Children at home Age 6 to 12            21      28      133
      (% )             Age 13-17              14      28      200
                       HH Size (mean)         2.7     3.2     119

      Total household
                        Yearly mean ($000)   54.3     48.5     89
      income



                                                                                           31
7) Looks Matter




                  32
Implications for Research
A little more like journalism…




                                 34
A positioning direction…




  Deliberate               Rushed


Authoritative              Titillating


   Scientific              Intuitive


   Left Brain              Right Brain




                                         35
Thank You
           Jason Brown
jason.brown@ipsos.com
         212 584 9248

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Understanding ‘Global’ Consumer Behavior- New Rules for Success

  • 1. Understanding ‘Global’ Consumer Behavior New Rules for Success
  • 2. About Us Ipsos is 3rd largest research company in the world Vantis is a division specializing in connecting research results to financial impact across a variety of industry verticals – Mostly innovation focused – 25+ year history of model development 2
  • 3. Topics 3
  • 5. ….And the (very) slightly less obvious Going into 2011, among Western CEOs… More than 80% felt they could grow abroad Fewer than 50% felt they could grow at home Abroad Home 5
  • 6. What is changing in research? 6
  • 7. Means of reaching consumers is different… and changing fast ‘90s ‘00s Today + + ‘00s methods are combined with today’s 7
  • 8. Social media is re-shaping consumer access Population is ranked 3rd in the world. 1. China 1,336,450,000 6. Brazil 192,651,000 2. India 1,178,436,000 7. Pakistan 169,010,500 3. Facebook 845,000,000 8. Bangladesh 162,221,000 4. United States 308,898,000 9. Nigeria 154,729,000 5. Indonesia 231,369,500 10. Russia 141,927,297 8
  • 9. Polling Question Compared with 12 months ago, how much more social media driven data are you using? – A lot more – A little bit more – About the same – Less – We don’t analyze social media data 9
  • 10. And, once you reach consumers… The way they answer questions is different Fortunately in a somewhat systematic way… – By education – By cultural disposition – By how and in what ‘medium’ questions are asked Example of Raw Survey Score Interpretation From Around the World Definitely Would … Probably Would … Might or Might Not … Probably Would Not … Definitely Would Not … ... Buy 10% 12% 11% 8% Year End Penetration 10
  • 11. Modality and Venue matter. Example: Online Intercept Pre- Pre- POP Panel recruit recruit IDI Group Middle of Beginning a Survey of a Survey 11
  • 12. Polling Question In the past year, have you had to think through how to reconcile data from different sources (different countries, different data collection methods)? – Yes – No 12
  • 13. Statistics are getting harder to apply to consumer data as an ‘arbiter of truth’ Do not call regulation and time-shifting Increasing reliance on social gathering places vs. controlled sampling Over-abundance of on-line survey ‘pop ups’ Nuance in data Interpretation 13
  • 14. The dynamics of adoption have changed It is a period where the evolution of social interaction is rapidly outpacing the evolution of social science…moreso than historically 14
  • 15. … which may explain this… Top Two Box % 16% 21% 18% 34% 26% 28% 21% 19% 33% 8% Purchase Intent 12% 8% 9% 6% 4% 5% 6% 3% 26% 20% 21% 15% 17% 17% 13% 13% 13% Nokia Amazon Apple HP Apple Palm LG Apple Dell Booklet Kindle TV Mini iPhone Pre Chocolate iPad Inspiron 3G 2 3Gs 11z Definitely Would Buy Probably Would Buy Failed Succeeded 15
  • 16. So what does all this mean? mar·ket·ing re·search: noun mär-kə-tiŋ rē-sərch The process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service …but, now, in a smaller world with more access challenges, rapidly proliferating data sources, and disparate data biases …’Truth’ is getting harder to come by via data analysis – and marketing research data are hard to understand 16
  • 18. The New Rules – 7 of Them (maybe not all 7 for today… the sky is not falling…. but rules for ‘soon’…)
  • 19. 1) Developing Market Best Practices Are Global Best Practice vs GREATER GLOBAL MORE FOUNDATIONAL CONNECTION RESEARCH RELATIVELY MORE IN PERSON METHODOLOGIES AND DOING ‘MORE WITH LESS’ 19
  • 20. 2) The >20 Minute Online Survey Is Untenable, Globally 20
  • 21. 3) Journalism Skills Must Be Embraced By Market Intelligence 1) Opportunism: ‘scooping’ the competition (and getting engaged eyeballs!!) 2) The principles of the discipline 21
  • 22. Getting the Scoop Because there is significantly more social interaction, there are more useful scoops (consumer insights) to be found at any moment… But it requires more might than is typically exerted in marketing intel: Journalism Textbook: Getting scoops requires a great deal of effort, and a very large support team. Many papers station journalists all over the world in the hopes of getting scoops on unexpected major stories, and they supplement these journalists with stringers who sell content to the highest bidder. Having foreign correspondents in place is a crucial part of running a successful major paper, and many news outlets dedicate a large chunk of their budget to maintaining such correspondents, along with their contacts. 22
  • 23. Principles of Journalism 1. Journalism's First Obligation Is To The Truth 2. Its First Loyalty Is To Citizens 3. Its Essence Is A Discipline Of Verification 4. Its Practitioners Must Maintain An Independence From Those They Cover 5. It Must Serve As An Independent Monitor Of Power 6. It Must Provide A Forum For Public Criticism And Compromise 7. It Must Strive To Make The Significant Interesting And Relevant 8. It Must Keep The News Comprehensive And Proportional 9. Its Practitioners Must Be Allowed To Exercise Their Personal Conscience Pew Research Center Project for Excellence in Journalism 23
  • 24. Principles of Journalism 1. Journalism's First Obligation Is To The Truth 2. Its First Loyalty Is To Citizens 3. Its Essence Is A Discipline Of Verification 4. Its Practitioners Must Maintain An Independence From Those They Cover 5. It Must Serve As An Independent Monitor Of Power 6. It Must Provide A Forum For Public Criticism And Compromise 7. It Must Strive To Make The Significant Interesting And Relevant 8. It Must Keep The News Comprehensive And Proportional 9. Its Practitioners Must Be Allowed To Exercise Their Personal Conscience Pew Research Center Project for Excellence in Journalism 24
  • 25. Principles of Journalism 1. Journalism's First Obligation Is To The Truth 2. Its First Loyalty Is To Citizens 3. Its Essence Is A Discipline Of Verification 4. Its Practitioners Must Maintain An Independence From Those They Cover 5. It Must Serve As An Independent Monitor Of Power 6. It Must Provide A Forum For Public Criticism And Compromise 7. It Must Strive To Make The Significant Interesting And Relevant 8. It Must Keep The News Comprehensive And Proportional 9. Its Practitioners Must Be Allowed To Exercise Their Personal Conscience Pew Research Center Project for Excellence in Journalism 25
  • 26. Principles of Journalism 1. Journalism's First Obligation Is To The Truth 2. Its First Loyalty Is To Citizens 3. Its Essence Is A Discipline Of Verification 4. Its Practitioners Must Maintain An Independence From Those They Cover 5. It Must Serve As An Independent Monitor Of Power 6. It Must Provide A Forum For Public Criticism And Compromise 7. It Must Strive To Make The Significant Interesting And Relevant 8. It Must Keep The News Comprehensive And Proportional 9. Its Practitioners Must Be Allowed To Exercise Their Personal Conscience Pew Research Center Project for Excellence in Journalism 26
  • 27. 4) A Key Research Function Is Making ‘Decoder Rings’ DIFFERENT COUNTRIES DISPARATE DATA SOURCES Because all data are biased, a precondition to uncovering insights is fixing biases. DISPARATE BIASES 27
  • 28. 4) A Key Research Function Is Making ‘Decoder Rings’ BENCHMARKS VALIDATION MODELED (vs Stated) DATA PARALLEL TESTS DELPHI ANALYSIS 28
  • 29. 5) We Have to Convey Insight in Universally Understood Terms 29
  • 30. Example Archetypes Top Winner performer Under-priced archetypes Good concept Breakthrough Over-priced Niche/targeted Potential future hit Middle Me too Average Atypical Skeptical ? performer archetypes For Want Value Branding Too premium Commodity Value resistant Unconvincing Unbelievable Caught in middle Poor performer Dog archetypes 30
  • 31. 6) We Have to Report Conclusions, Not Analysis and ‘Proof’ Demographics Male Total (161) 49 Target (48) 60 Index 122 $100M+ Opportunity Gender (% ) Female 51 40 78 18-24 21 25 119 25-34 30 30 100 35-44 20 21 105 Age (% ) 45-54 55+ 17 12 21 3 124 25 Type A Mean Age 36.7 35 95 Male 18 - 34 22 35 159 Gender / Age Male 35+ 27 25 93 Quads (% ) Female 18 - 34 30 19 63 Female 35+ 21 21 100 Caucasian 63 46 73 Hispanic 14 23 164 Ethnicity (% ) African-American 14 15 107 Asian 6 10 167 Other 3 6 200 Married 51 44 86 Marital Single/Wid/Div 49 56 114 Status (% ) Age 5 and under 25 28 112 Children at home Age 6 to 12 21 28 133 (% ) Age 13-17 14 28 200 HH Size (mean) 2.7 3.2 119 Total household Yearly mean ($000) 54.3 48.5 89 income 31
  • 34. A little more like journalism… 34
  • 35. A positioning direction… Deliberate Rushed Authoritative Titillating Scientific Intuitive Left Brain Right Brain 35
  • 36. Thank You Jason Brown jason.brown@ipsos.com 212 584 9248