Answer to Question #168550 in Marketing for Sunny

Question

Explain how you might use different types of research ( focus groups, observation, survey and Experiment) to forecast market reactions to a new kind of disposable baby diaper, which is to receive no promotion other than what the retailer will give it. Further assume that the new Diaper's name will not be associated with other known products. The product will be offered at competitive prices.

Answer 1

Focus groups are essentially group discussions that rely heavily on the interaction between group members and the relationship between the researcher and the respondents. Focus groups have been a dominant form of qualitative data collection in market research for more than 30 years. Focus groups, observation, survey, and Experiment can forecast the market reaction of the new baby diaper by interacting with people actively, discuss with consumers or sellers what is going on in the market, and provide in-depth qualitative data that can be used in analyzing how the people are reacting to the diapers. The focus groups will observe, survey the market and experiment the baby diapers into the market to gain data. Since the products will not be offered at a cheap price to encourage customers to buy them, and no promotion apart from what the retailer will give, then the interaction of focus groups will be essential to gain information about the nature of the baby diaper and acceptance or rejection in the market. If the product is bought at a competitive price and consumers are commenting well about it, then the forecast will be that the product will compete in the market but if even the consumer does not change their taste then the product will fail few weeks after launch. Focus groups, observation, survey, and Experiment will conduct research based on the price of the diapers with other substitute products, prices of related goods or services either complimentary or purchased along with a particular item, or substitutes and bought instead of a product and tastes or preferences of consumers.