07: Customer Discovery and Market Research

Review the “Palm Computing: The Pilot Organizer” case (HBS #9-599-040). This case was originally assigned for the last class. Be prepared to finish our discussion of the case AND review it in the context of today's topic of Customer Discovery & Market Research.

Read Customer Discovery and Validation for Entrepreneurs. This article expands on the critical process of entrepreneurial product development. Here we gain further insight and skills for transforming our technology-driven devices into customer-driven products. Attention is focused on the early adopters, though we do not lose sight of re-positioning that may be necessary to cross the chasm and reach the market mainstream. During your analysis of this reading, think about how you would answer the following study questions and, moreover, how they may pertain to your company and your upcoming market research activities:

• What elements of the teachings of Peter Drucker ("The New Venture," assigned reading), William Davidow ("Marketing High Technology," discussed in class) and Geoffrey Moore ("Crossing the Chasm," discussed in class) do you recognize in this article?
• What do you want to know about potential customers?
• How can you validate demand for your product?
• Who are “lead users” and what are their characteristics?
• What are the steps and roles of the various players in the purchase activity process?
• What is a “focus group” and what is its role in validating demand for your product?
• What is “conjoint analysis?” How does it differ from focus groups when validating demand for a new product?
• Describe other quantitative and qualitative techniques that can be used to validate demand for a high-tech product?

Then, watch/listen to both of two posted video lecture (audio with PowerPoint slides) on Canvas in Files\Class Notes & Handouts:

• Conjoint Analysis

  and handouts EAS545 Conjoint Analysis.pdf

• Concept Test

  and handouts EAS545 Product Concept Test.pdf

These videos introduce two useful market research tools that we will explore further in class.

DUE (assignment, not quiz):

A Product Concept test may use an advertisement (digital or print) to present the product concept to a respondent. Look for a high-tech product advertisement that you believe would be good to incorporate into a Product Concept test. Submit the following as an integrated PDF:

• the advertisement (screen shot and source URL)
• the first question of your concept test
• three follow-up questions you would ask after the initial question
• a brief paragraph describing why you believe the advertisement is good for a concept test

You may use Word, PowerPoint or another app to create your concept test and generate a PDF for submission.

NOTE: We will have no quiz today. However, you should be prepared to apply the principles of both Product Concept Testing and Conjoint Analysis to an in-class exercise.

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Word of Mouth

One Price for a group

Conjoint

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