Thursday, November 26, 2015

Complete Example of Experimental Research

Have you ever been asked by your boss or maybe your professor to conduct a market test and examine the behavior of some consumer segments? Particular research, such as a study to test respondents respond toward a very new product that they have no experience about it, usually cannot be done only through questionnaires. To be able to give the right answer as we need, the respondents need to be in the situation. This is where the design of experimental research is needed.

In this material I would like to apply a case study about market testing for a new product to help you easily understand the use of experimental research. Actually, there are three types of market testing according to its purpose. First, test the market to predict sales of new products will be launched. Before you put a major investment to produce a new product, and to reduce the risk of product will be rejected by the market, the marketers need to test it first through an experiment. Second, to test the best combination of marketing mix. For example, marketers want to change the concept of product packaging with a more colorful package and the concept of the ads in magazines, they try to figure out consumers respond to the new product by conducting an experimental research. Third, experiments can also be used to find the shortcomings of existing products. In this case, the experimental research is taking part as exploratory research design.

Sample Case of Market Testing
Let's take an example, there is a big instant noodles producers in Indonesia named Mie Enak, is intending to launch its new fried noodles variety that is fried noodles with rendang flavor complete with green chili sauce. Before doing mass production, the marketing team is assigned by the Director to test whether the prototype product can get a positive attitude from the consumers (or it will be loved) and how far the new product can motivate the consumers to buy it.

Research objective: To see whether the prototype of rendang flavor fried noodle will be favored by consumers and to see whether the color of the packaging will affect consumer intention to buy the noodles.

From these goals, we are trying to arrange the elements in the experiment as below:
  1. Dependent variable          = Preference and intention to buy instant noodles rendang flavor by consumers

  2. Independent variable      = Product and package of the noodles.

  3. Controlling variable        = The level of spicy flavor and the color of package.

  4. Experiment design           = To test how the taste will affect on consumers preferences we will use a blind test method, while for packaging test will use several colors such as green, red and white colors those are arranged in a rack as in the market. And, we make a dummy magazine to see how these colors give varied effect on the consumers preferences. One respondent is only tested once.

  5. Sampling method        = Simple random sampling.
Based on these elements, then we arrange some scenarios as you can see below. Scenario A and B aimed to see the effect of flavor to the intention of consumers to buy instant noodles. Given rendang identically with the spicy and savory flavors so that the quality of product variable in this experiment is the spicy flavors, which are presented in three variations: the spicy level 1, level 2, and level 3. While to look at the effect of variable color packaging we can make the simulation as in scenario C and D. Note that each respondent in this experiment only had one treatment.

Scenario A
Respondents were divided into two groups, 30 males and 30 females. The respondents presented a ready-made noodles using the same colored plates, but each plate has different taste. For example, spicy level 1, spicy level 2, and spicy level 3. Respondents were not told that the noodles taste of rendang. Respondents were asked to give an assessment on each plate from a score of 1 to 10. The greater the score given means the respondents are more favor with the noodles. Then, we look at the average value of each category of respondents as in the table and graph below.



Based on the table 1 above we can see, on average, respondents prefer spicy flavors level 2 compared to the other levels. From the two groups we also can see that the group of women tend to prefer more spicy flavor (seen from the graph that shows a V-shaped).

Scenario B
Just as in the first scenario in which respondents are presented three plates of instant noodles with different level of spicy, in this second scenario before the noodles are tasted by the respondents, they were told that the noodles are in rendang flavor. Notifying the respondent before the treatment will recall their memories of rendang so that we can know how they perceive the taste of rendang and we see their expectations for rendang noodles itself.



Based on the table above there is a change in respondents preference in noodle taste as they have different perceive what rendang should be. As we can see there is an increase in the average value of the Level 3 spicy from the first scenario. In the second scenario apparently the highest value is still in Level 2. The average value of the second segment of the respondents is 7.25, increase 0.15 points from the values obtained in the first scenario. Based on these results we can conclude that the previous experience affects consumer preferences.

Scenario C
To see which colors can draw highest attention from respondents, in this scenario we create a prototype noodles in the complete package form. After a pre-study we decided to examine three colors: white, dark green, and red colors. We listed the noodles image and its flavor in the front of the package. Then, we make the selves as in supermarkets and arrange them parallel.



From scenarios using settings such as in department stores, the results obtained can be seen in the above tables and graphs. We can see that each color has different result. The respondents tend to be more interested in the color of green packaging. Indeed, in the Indonesian market are not many manufacturers who use green package. It makes green more stand out than other colors.

Scenario D
In the fourth scenario we created two dummy magazines where three pages advertising the noodles offered. The first dummy magazine uses bright color for the background of the three noodles advertisement. While, the second dummy magazine uses dark color for the background. The three advertisement on both magazines are distributed in the center magazine (between several content pages). The advertising pages contain images visible from the front of the packaging, but the product is made of different brands by using the name that has not been used by any noodle manufacturer, for example: Tasty Noodle, Noodle Scrumptious, and Savory Noodles. After looking at the magazine, the respondent was then asked to answer the following questions:
•    Do you see any instant noodle advertisement in the magazine?
•    What color is the instant noodle's package?
•    If you saw more than one advertisement, which one do you think is the most tempting?

After answering all these questions, then the respondent was given the second magazines. Next, the respondents are asked to answer the following questions:
•    Do you see any instant noodle advertisement in the magazine?
•    What color is the instant noodle's package?
•    If you saw more than one advertisement, which one do you think is the most tempting?
•    Compared to the advertisement in the first magazine, which one is the most tempting?



Based on table 4 and graph 4 we can see that the color can determine consumer preference and intention to purchase. The green color is preferred by respondents as compared to the red and white colors. For background using bright colors, red being the most attracting advertisement, followed by the green color in the second position. However, the color green itself is superior when using dark colored backgrounds. On the average, the dark background is preferred by consumers. From these data we can conclude that the green package with a dark background pages will attract more attention of consumers.

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