Market Potential & Pricing Research for a Wearable Technology
25 Jun 2021

Market Potential Problem

A luxury brand set out to establish a business case for a new innovative twist on luxury timepieces. This technology would be ground-breaking in the luxury watch industry, but needed research on market potential. The company commissioned Provoke Insights to develop a study focused on:

  • Developing a go-to-market strategy
  • Assessing the market size and interest
  • Determining the ideal product messaging
  • Evaluating the best and worst product features
  • Determining the ideal price at which the company could sell the product

Market Potential Solution

Provoke Insights conducted an online survey to measure market potential and pricing. The research also included:

  • A MaxDiff to determine what attributes would most persuade consumers to purchase this new luxury technology.
  • A Van Westerndorp Price Sensitivity Meter to determine the ideal price for the product.

Research Results

Provoke Insights firstly mapped and executed a go-to-market strategy for a luxury brand looking to break into the market. The results indicate high interest in wearable luxury technology, particularly among high-income Americans. As a result, the findings revealed the market potentials, the target audience, product concept feedback, and the ideal price range for the luxury technology. 

Though the target audience was niche, they offered a wide range of suggestions and feedback during the concept test portion of the survey. These perceptions are valuable to the brand as they directly access unique insights like potential customers’ opinions, attitudes, and product pricing. 

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Looking Ahead: The “New Normal” of Qualitative Research
09 Jun 2021

When the world shut down at the beginning of the COVID-19 pandemic, every industry rushed to make adjustments to their protocols and procedures. In response to stay at home orders and social distancing, many industries shifted to a work-from-home setup. For researchers, this meant conducting what would normally be in-person qualitative research, such as focus groups and in-depth interviews, in virtual formats.

As the world comes closer to a sense of familiarity, there is also talk of the creation of a “new normal.” This is to say that some changes that came as a result of COVID-19 may not disappear too quickly, if at all. As of January 2021, over half of Americans were still concerned about shopping in person and many prefer shopping online even if they are comfortable going to a store. Regarding companies and industries, many have shifted to permanent work-from-home or hybrid formats, as workers realized the extent of what is possible without coming into an office.

At some point, focus group centers will reopen, in-person interviews will be possible, and some sense of normalcy will return to the research industry. But when this happens, will virtual versions of these methods become a thing of the past? Here are some reasons why we believe virtual qualitative research is in it for the long-haul.

See participants in their natural settings

By definition, qualitative research is meant to provide a deep look into the minds, thought-processes, and lives of consumers. Focus groups and IDIs provide this by asking open-ended questions and follow up questions, and by allowing moderators to analyze participants’ emotions and expressions. Virtual versions of these methods add a new layer of possibilities. Researchers can see participants in their own homes and environments. This allows the analysis to include notes on lifestyle factors that would not be seen in a facility location. You can also tell a person’s interests based on belongings that are caught on camera. Additionally, participants may feel more comfortable and responsive in their own familiar surroundings.

Research a larger variety of markets with ease

Qualitative research is a common step in introducing a product or service to new markets or even new countries. However, conducting focus groups in a facility means either traveling to the prospective locations or skipping out on attending  in person. This can be a time consuming process, especially if your company is considering multiple markets. With virtual focus groups, you can run a session in London one hour and a session in New York the next! Researchers can even mix different markets within the same focus groups (for example, you can include people from all over the East Coast of the US in one group). Virtual tools open up qualitative research to these possibilities that were difficult, if not impossible, before. 

Fit qualitative research into your plans on a smaller budget

Qualitative research can run up a significant tab and take up a large portion of a project’s budget. Aside from travel expenses, focus-groups and IDIs require renting facilities, provide a large enough incentive to entice participants to commute, and more! Virtual focus groups can reduce or even eliminate many of these costs. There is no room rental and participants are willing to join for a lower cost. These reduced costs together with the lack of travel needs can open up qualitative research to companies who, until now, have not been able to fit it into their budgets.

The world may be on it’s way back to normalcy, but in many ways we should learn from the past year. We can reflect and appreciate what we learned in both the way we live and the way we work. Some of what we have implemented over these months should continue, as they open up doors that we did not previously know existed. This surely applies to virtual focus groups and IDIs.

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Looking Ahead: How the Pandemic Revived Three Trends
07 Jun 2021

The COVID-19 pandemic hit last year, disrupting daily life, habits, and businesses as we know it. With vaccinations available to all Americans, it now seems to be slowly ebbing away. However, there are many lasting consequences that consumers and society will take away from it for years to come. Face masks and hand sanitizers may become a common fixture, while international travel might stay abated for years. In addition to these predictable widespread pandemic trends, there are three trends that have been revived from the past and are likely to stick around for some time: QR codes, drive-in movie theatres, and at-home exercise.

The Revival of QR Codes

These little squares are everywhere in 2021. Take a look in any restaurant and you’ll likely find them at your table – an easy, touchless replacement of the classic menu. QR, or “Quick Response” codes, allow anyone with a smartphone to open their camera app, hover over the code, and toggle instantly to a website. 

QR codes were invented in Japan in 1994, but they didn’t take off in the general public until 2010 when smartphones were finally able to read and process the data. Though they were an immediate hit in China, in the United States they were doomed to an ugly fate. For the next ten years, brands used them in gross excess in order to appear tech-savvy. The market for QR codes was saturated with advertisements, and until 2020 they were perceived as unergonomic, quirky, and lame. 

Since the pandemic hit, QR codes are a hallmark of touchless, socially distanced technology. QR codes are not only common at leisure venues like restaurants, bars, movie theatres, and arenas. Workplaces, schools, and colleges post QR codes to record people’s locations, which allows for seamless contact tracing. They are also vital in healthcare and medical spaces, with doctor’s offices, hospitals, and vaccination clinics using them to display crucial health data. 

These new, and less advertisement-focused applications of QR codes are just a few revived pandemic trends that are here to stay.

The Return of Drive-In Movies

The drive-in movie theatre is a classic American invention. One might recall images of 1950s suburban America, Elvis Presley, and the golden age of cinema. Though going to the drive-in theatre is a beloved vintage pastime, drive-ins had been on a steady decline pre-pandemic. In October 2019, 305 drive-ins existed in the U.S., compared to a height of over 4,000 in 1958. Rather than being seen as a functional pastime, going to the drive-in movie became a one-time novelty.  

After the pandemic shuttered movie theatres and indoor leisure, the drive-in came back to life. Old drive-ins saw revitalized business, while makeshift drive-ins were set up in parks and mall parking lots. It combined the excitement of going to a theatre with the safety bubble of the car. Families, partners, and small groups could go out again – without the risk of contracting COVID-19. Drive-ins offered a glimpse of human connection, shared enjoyment, and public life.

Drive-in religious services, concerts, graduations, and weddings are other pandemic-induced variations of the classic drive-in movie. During the 2020 election, President Joe Biden held campaign drive-in rallies, replacing the typical stadium-filled rally. Though movie theatres are opening their doors to the public once again, Americans remember the popular pastime of the bygone days, and will likely continue to seek them out.

The Demand for At-Home Exercise Equipment

COVID-19 introduced a new wave of people to exercise. With stay-at-home orders in place and a sharp adjustment to working from home, people turned to at-home workouts in order to counter their sedentary lifestyles. And, with gyms closed, regular gym-goers found themselves needing alternative plans.

The demand for at-home exercise equipment exploded in the early stages of the pandemic. From March to October 2020, treadmill sales were up 135%, while Peloton sales increased by 232%. More Americans than ever looked to fitness tracking devices, like apps and watches, and there was a new demand for virtual or outdoor Zoom workouts. These safe alternatives to group fitness classes offered the community engagement and social interaction that some craved.

Others who felt a burning desire to get out of the house ventured to the greater outdoors. Hiking was one of the few safe activities available to Americans in 2020. Sales of hiking and camping gear were up in 2020 as family road trips to state parks became increasingly popular. Rather than booking plane tickets and hotels, people looked to the great outdoors. Hiking is a low-risk activity that also allows for social distancing; even as the pandemic ebbs away, it is likely here to stay. 

It is undeniable that COVID-19 has rocked personal habits, the economy, and brand strategies around the world. As we look towards a return to normalcy, these revived trends of the pandemic world are here to stay: QR codes, drive-in theatres, and at-home exercise.

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