Answer to Question #248811 in Economics for Neha

Question

Ms. Schauna Chauhan the CEO of Parle Agro, plans to start off with a new range of products for Health Drinks. Chalk out consumer research techniques and tactics that can be used to understand consumer’s behaviour for this new upcoming product.

Answer 1

Consumer research is extremely important, because consumers may purchase competitive products if a company fails to garner customer feedback. Companies employ varied techniques to garner important consumer information.

• Companies observe focus group responses behind a one-way mirror. A focus group is usually run by a moderator or experienced focus-group interviewer. Companies use focus groups to gather initial information about consumers. For example, a small food manufacturer may be introducing a new drink.
• Telephone surveys are usually conducted in large volume, which makes the results more representative of the population. For example, a small food manufacturer may survey 300 or more customers in several markets to determine how much it is willing to pay for a new cereal.
• Companies may observe the behavior of consumers rather than talk to them on the phone or in person. For example, a small manufacturer may observe whether consumers choose a particular product on the shelf because of special packaging.
• Companies use market segmentation to identify consumers that are most likely to purchase their products. For example, a marketing research manager may study demographic information from customers to determine the average age, income level and attitudes of his company's customers.