For a firm to excel in market, searching ideas for innovation of firm’s products or services is essential. One of the ways that a firm can adopt is research approach. Marketing research enable markets to predict how consumers would react in the marketplace and understand why consumer made this purchase decision. The following is the research approaches that can use by Amway to adopt in searching ideas for innovation of firm’s products or services.
Observational research helps marketers gain an in-depth understanding of the relationship between people and product by watching the consumer buying and using the products. By observing the customers, company can get information by identify consumer subconscious felling and underlying motivations. For example, Amway can assign some employees in the store to act as a customer and stand ...view middle of the document...
For example, Amway can select a number of people which are currently using Amway to discuss the product and services. Amway can give some questions to the respondents and encourage the respondents to discuss based on customer opinions. Perhaps Amway want to know about the oral care products. Through the discussion, Amway may find out that some customers would like to look for toothpaste for sensitive teeth. This can be a new direction for the firm to develop new products.
Survey research can obtain information based on questioning respondent’s purchasing preferences by personal interview, telephone, mail and online surveys. For example, Amway can use the telephone survey to ask the customer about the products and services of Amway. By using this survey, Amway find out that the customers purchase Amway’s hair shampoo is because the customers like the shampoo fragrances. Thus, Amway can produce a product line which is the body shampoo with this fragrance. This can help Amway to cater this group of customers.
By using the behavioral data, customers leave traces of the purchasing behavior in store scanning data, catalogue purchases and customer databases. For example, when Amway customers swipe the member card, Amway can analyze the customer purchasing record. Through the analysis, Amway find out that the most sellable product in Amway is the hair shampoo. This is because the customers perceive that Amway hair shampoo is fast in effect. Thus, Amway can follow this direction to produce more hair shampoo such as anti-hair fall, repair for hair damage and color hair to capture the market needs and wants.
By using the research approaches, Amway can gain an in-depth understanding on the customer interest, attitudes, reactions, motives, lifestyles, feeling above the products and usage experience. Amway can choose to use the observational research. This is because most of the customers will try to hide the real feeling. Through this research, Amway can know the customer subconscious felling and underlying motivations.