1. 1 Primary Market Research Market Data Model

2. 2 Overview: What do we communicate? –Expected, exciting, revealed information Kano 2-dimensional survey –Questions, scale, examples Applications –Product planning, focus groups, surveys

3. 3 What We Communicate We expect that people who share common experiences and history also share common information about those experiences. Common knowledge allows us to communicate clearly yet efficiently. At work, school and at home our discussions tend to be concrete, focused, practical, and real-world oriented; informing people of activities, objectives, status and plans. Only with the right people, in the right circumstance will we talk about issues that excites us – our hopes and dreams, wild and impractical plans. Dr. Kano’s research provides insight into the tools used to gather market data, the information obtained with these tools and our interpretation of this information.

4. 4 Expected Characteristics Roughly: –“Common sense,” “common knowledge,” –Too obvious to talk about unless asked –Basic features necessary for product acceptance Example: Customer comment during a focus group, “I’d use it on my stove.” The customer expects (but may not say explicitly) that the device won’t burn or melt during use

5. 5 Revealed Characteristics Roughly: –“Practical,” “reasonable,” … –Everyday topic of discussion –Incremental refinements to a product design Example: an elderly chef reveals that a larger handle, shaped to their hand and constructed of yielding material would reduce fatigue and discomfort (e.g. Oxo TM kitchen products)

6. 6 Exciting Characteristics Roughly: –“Radical,” “unknown concepts,” –Too outlandish to talk about unless asked –Radical innovation for new product concepts Example: business people were asked if being able to point a small spot of light across the room would be useful. They were excited about using such a device for presentations (e.g. Laser pointer – new application for laser diodes)

7. 7 Practical Considerations Do perceptions of whether a characteristic is expected, revealed or exciting change over time? Yes – power assist brakes, voice post-its and self-cleaning ovens used to be exciting - now they’re expected Do perceptions of whether a characteristic is expected, exciting and revealed differ from person to person? Yes – knowledge, needs and experience shape each person’s perceptions. This question is closely related to the issue of market segmentation

8. 8 Practical Considerations Is there a systematic, reliable way of to identify characteristics as expected, exciting or revealed? Yes – Dr. Kano developed a “two-dimensional survey” that works very well. What is learned from Dr. Kano’s research? –Theoretical basis for the use and development of focus groups, surveys, interviews, etc. –Improved primary market research, product planning, service delivery, etc.

9. 9 Kano Survey Questions Kano’s 2-D survey uses question pairs of the form: –“The product HAS feature X. How do you feel? –“The product LACKS feature X. How do you feel? Kano 2-D survey is constructed from two 1-D surveys Kano survey scale is typically: –“I like it” –“It should be that way” –“I don’t feel anything” –“There is no other choice” –“I don’t like it”

10. 10 Analysis Matrix “Product” LACKS Feature. How Do You Feel? Very Satisfied SatisfiedNeutral Dis- satisfied Very Dis- satisfied “Product ” HAS Feature. How Do You Feel? Very Satisfied N/A Exciting Revealed SatisfiedMinusN/A Little Interest Expected NeutralMinus Little Interest Expected Dis- satisfied Minus N/AExpected Very Dis- satisfied Minus N/A Row Sum Column Sum

11. 11 Examples “The Airline Hostess” (Revealed) “The Voice Output Thermostat” (Exciting) “Quick-Release Wheels” (Expected)

12. 12 Customer Centered Design Product planning tools (e.g. Quality Function Deployment) systematically integrate marketing, engineering, design, … information and perspectives Driven by product requirements and the importance of these requirements to customers “Product requirements” - features, performance, appearance, operation are obtained through customer focus groups and interviews “Requirement importance” is obtained through customer surveys

13. 13 Product Requirements Expected Requirement –Basic and necessary, features and capabilities –Product fails in the market if an expected requirement missed Revealed Requirement –Incremental/evolutionary product refinement –Maintain or grow market share Exciting Requirement –Revolutionary product innovation –Great business opportunity, rapid market growth

14. 14 Focus Groups Expected and exciting issues are often unspoken during a focus group unless a specific question is asked. Revealed issues can still be overlooked on chance Implication: 1.Market and technical research should be conducted to identify candidate (expected, exciting, revealed) issues 2.Focus group scripts should be prepared based upon this research 3.Focus group moderator should refer to this script in order to ensure that “all” exciting and expected issues are probed

15. 15 Surveys Market research and product planning typically employ 1-dimensional surveys that are inherently misleading Implications: 1.2-dimensional surveys should be considered when establishing the importance of product requirements 2.2-dimensional surveys should be considered when establishing market interest or preferences Not quite this simple - many other issues beyond the current discussion…

16. 16 Related Issues Questions, Comments, Suggestions