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Recycling market researchIn my previous blog, we determined that people with access to recycling services don’t necessarily recycle. And men were far less likely to recycle regularly than women.

One problem potential recyclers face is there is no federal standard for what is collected and how. Services vary from one contractor to the next. Items deemed recyclable in one municipality may not be the next town over. As a general rule, bottles, cans, and newspapers are curbside-recyclable. Also as a general rule, prescription drugs, electronic devices, CFL bulbs and batteries are not – they shouldn’t go in the trash either - they require special handling.  But does the average consumer know this? We asked our online panelists who have access to recycling services how they believe their trash/recycling haulers would like them to handle certain items. And here’s what we learned:

  • Knowledge of recycling the Big-3 (glass bottles – aluminum cans – newspapers) is quite high. At least 80% of our panelists with access to recycling services know each of these should be recycled as opposed to trashed. And men and women are equally knowledgeable.
  • Word has spread that electronics do not belong in the trash. But our consumers are divided as to where they should go – 35% believe their contractor wants them in their recycling bin while just 46% believe electronics require special arrangements.
  • When we get to other items, things get a bit murky:
    1. Our panelists are as likely to believe that batteries can go out in the trash or recycling (45%) as believe batteries require special arrangements (41%). The rest aren’t sure.
    2. 19% aren’t sure what to do with compact fluorescent light bulbs.
    3. 22% believe that prescription drugs can be put out in the trash. 17% aren’t sure.
  • Meanwhile, some items that are traditionally “trashed” make consumers take pause – 26% of our consumers believe their hauler wants them to recycle linens and towels.

Focusing solely on those who say they recycle, women are more likely than men to know what goes where…

Recycling Market Research part2

Ladies, you may want to re-think having your gents handle the trash and recycling - or give them a quick lesson on what you've learned!

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Do Americans Recycle Enough? - PART I

Posted by on in Consumer Behavior

access to recycling utilityAccording to Economist.com, Americans aren’t doing a good job of recycling.  There is actually a shortage of materials from recycling facilities that could be used to produce new products. The author posits that there are a variety of reasons for this, including simple access: “a quarter of Americans lack access to proper bins for collecting recyclable material, and another quarter go without any curbside recycling at all.”  But I think it goes beyond access, and I surveyed our intrepid online panel of adult consumers to find out.

A little over a quarter (28%) of TRC’s panelists say they do not have residential recycling service. Increasing awareness and access for rental properties would certainly make a dent: renters are more likely to say they don’t have it (44%) than homeowners (19%).

But what if you are aware and have access?  Does that mean you’re recycling?  Not necessarily.  Only 75% of those who could be recycling are doing so on a regular basis (usually or always). There’s no difference between renters and homeowners with recycling access as far as how often they recycle. But there is one key difference between those who regularly do and those who don’t: gender. Women are far more likely to say that they recycle regularly (84%) than men (62%). I’m not sure why there is a gender disparity, but we’ll explore how knowledgeable men and women are about recycling in my next blog.

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new product pricing research ebayI’ve become a huge fan of podcasts, downloading dozens every week and listening to them on the drive to and from work. The quantity and quality of material available is incredible. This week another podcast turned me on to eBay’s podcast “Open for Business”. Specifically the title of episode three “Price is Right” caught my ear.   
While the episode was of more use to someone selling a consumer product than to someone selling professional services, I got a lot out of it.
First off, they highlighted their “Terapeak” product which offers free information culled from the massive data set of eBay buyers and sellers. For this episode they featured how you can use this to figure out how the market values products like yours. They used this to demonstrate the idea that you should not be pricing on a “cost plus” basis but rather on a “value” basis.
From there they talked about how positioning matters and gave a glimpse of a couple market research techniques for pricing. In one case, it seemed like they were using the Van Westendorp. The results indicated a range of prices that was far below where they wanted to price things. This led to a discussion of positioning (in this case, the product was an electronic picture frame which they hoped to be positioned not as a consumer electronic product but as home décor). The researchers here didn’t do anything to position the product and so consumers compared it to an iPad which led to the unfavorable view of pricing.  
Finally, they talked to another researcher who indicated that she uses a simple “yes/no” technique…essentially “would you buy it for $XYZ?” She said that this matched the marketplace better than asking people to “name their price”.  
Of the two methods cited I tend to go with the latter. Any reader of this blog knows that I favor questions that mimic the market place vs. asking strange questions that you wouldn’t consider in real life (what’s the most you would pay for this?”). Of course, there are a ton of choices that were not covered including conjoint analysis which I think is often the most effective means to set prices (see our White Paper - How to Conduct Pricing Research for more).
Still there was much that we as researchers can take from this. As noted, it is important to frame things properly. If the product will be sold in the home décor department, it is important to set the table along those lines and not allow the respondent to see it as something else. I have little doubt if the Van Westendorp questions were preceded by proper framing and messaging the results would have been different.
I also think the use of big data tools like Terapeak and Google analytics are something we should make more use of.  Secondary research has never been easier!  In the case of pricing research, knowing the range of prices being paid now can provide a good guide on what range of prices to include in, say, a Discrete Choice exercise. This is true even if the product has a new feature not currently available. Terapeak allows you to view prices over time so you can see the impact of the last big innovation, for example.
Overall, I commend eBay for their podcast. It is quite entertaining and provides a lot of useful information…especially for someone starting a new business.

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storytelling market researchMany researchers are by nature math geeks. We are comfortable with numbers and statistical methods like regression or max-diff. Some find the inclusion of fancy graphics as just being a distraction...just wasted space on the page that could be used to show more numbers! I've even heard infographics defined as "information lite". Surely top academics think differently!
No doubt if you asked top academics they might well tell you that they prefer to see the formulas and the numbers and not graphics. This is no different than respondents who tend to tell us that things like celebrity endorsements don't matter until we use an advanced method like discrete choice conjoint to prove otherwise.
Bill Howe and his colleagues at the University of Washington in Seattle, figured out a way to test the power of graphics without asking. They built an algorithm that could distinguish, with a high degree of success, between diagrams, equations, photographs and plots (bar charts for example) and tables. They then exposed the algorithm to 650,000 papers with over 10 Million figures in them.
For each paper they also calculated an Eigenfactor score (similar to what Google uses for search) to rate the importance of each paper (by looking at how often the paper is cited).
On average papers had 1 diagram for every three pages and 1.67 citations. Papers with more diagrams per page tended to get 2 extra citations for every additional diagram per page. So clearly, even among academics, diagrams seemed to increase the chances that the papers were read and the information was used.
Now we can of course say that this is "correlation" and not "causation" and that would be correct. It will take further research to truly validate the notion that graphics increase interest AND comprehension.
I'm not waiting for more research. These findings validate where the industry has been going. Clients are busy and their stakeholders are not as engaged as they might have been in the past. They don't care about the numbers or the formulas (by the way, formulas in academic papers reduced the frequency with which they were cited)...they care about what the data are telling them. If we can deliver those results in a clear graphical manner it saves them time, helps them internalize the results and because of that increases the likelihood that the results will be used.

So while graphics might not make us feel smart...they actually should.

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conjoint-vs-configuratorWe at TRC conduct a lot of marketing research projects using Conjoint Analysis. Conjoint is a very powerful tool for determining preferences for the various components that make up a product or service. The power of Conjoint comes from having consumers make mental trade-offs in evaluating products against each other. Do they prefer a lower cost product that contains few features, or a higher priced product that provides many benefits? How willing are they to choose a product that meets 2 or 3 of their criteria, but not all? Conjoint forces consumers to make these decisions, and the results can then be simulated to determine purchase preferences in a variety of scenarios.
But not all product development problems can be solved with Conjoint. Conjoint requires certain steps in the development cycle to have already been taken (defined features, some idea of pricing – see my previous blog on the topic.) In some cases, though, you may be at a stage in which Conjoint is feasible, but a different approach may be more appropriate, such as a Configurator. In a Configurator, otherwise known as a "Build-Your-Own" approach, you would use the same product features as in a Conjoint, but instead of pitting potential products against one another, the consumer "builds their own" ideal product.
So why choose one technique over the other? There are many reasons, but here are a few:
1. If determining overall product price sensitivity is the goal – Choose Conjoint. Conjoint will produce scores that assess both the importance of price overall as well as price tolerance for the product as features are included or excluded.
2. If you just want to know which features are the most popular, or which ones are selected when choosing or not choosing other features – Choose Configurator. In an a la carte scenario, respondents can choose which items to throw in their shopping cart and which ones to leave on the shelf. Getting simple counts on which features are popular and which ones are not – and in what combinations – can be very useful information, and it's an easier task for respondents. Keep in mind though that the Configurator works best if each feature is pre-assigned a price (to keep respondents from piling on).
3. If understanding competitive advantage/disadvantage is paramount – Choose Conjoint. Conjoint allows you to include "Brand" as a feature, and the results will link brand to the product price to see if respondents are willing to pay more (or less) for your product vs. that of a key competitor. You can also simulate competitive market scenarios. While you can include Brand in a Configurator, modeling the trade-off between brand and product price is far less robust.
4. If you have a lot of features, or complex relationships between the features - Choose Configurator. It's much easier for a respondent to sift through a long list of features and build their ideal product just once than to choose between products with a gigantic feature list multiple times. Conjoint works best when the features are not dependent on one another; a long list of restrictions on the features can disqualify Conjoint as a viable solution from a design perspective.
There are plenty of times when a technique may present itself as an obvious choice, and other times when the choice may be more subtle. And in those cases, we turn to our senior analysts who use their expertise and understanding of the research objectives to make sound recommendations.

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