market intelligence session 4 false claims based on research and ftc; focus groups, colgate,...

Market Intelligence Session 4

False claims based on research and FTC; Focus Groups, Colgate,

National Insurance Q&A

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Agenda

• False claims based on research• Focus groups• Colgate• National Insurance Q&A

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Agenda


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Do companies use research and/or statistics to make false claims?

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Do companies use research and/or statistics to make false claims?

• Yes. • And it’s worse than you imagine…

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Case Study 1: L’Oreal

• Product 1: Lancome Genifique• Product 2: L’Oreal Youth Code

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• In the study depicted in that bar graph, 34 women who applied Genifique twice daily for 8 weeks answered questionnaires about their experience with the product. The women answered each question on a nine-point scale, with one on the scale equivalent to “disagree completely” and nine equivalent to “agree completely.” Among others, the questionnaire included the following three questions: Skin appears more radiant/luminous; Skin tone/complexion appears more even; and Skin feels softer.

• Subjects were not asked to rate the magnitude of results achieved, but merely to indicate whether there was any improvement in a particular measure (e.g., the women were not asked how radiant or luminous their skin felt after using Genifique, but how strongly they agreed or disagreed that there was any improvement in their skin’s radiance or luminosity after using the product). While 85.3% of women gave a positive response to the question asking if their skin appeared more radiant/luminous after 7 days, only 35.5% of subjects indicated that they “agree[d] completely” that their skin was more luminous. Similarly, only 29.4% of women agreed completely with the statement that their skin tone appeared more even, and only 58.8% agreed completely with the statement that their skin felt softer.

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Case Study 1: L’Oreal

• Product 1: Lancome Genifique• Product 2: L’Oreal Youth Code

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• Respondent has represented that the L’Oreal Paris Youth Code products target specific genes to make skin act younger and respond five times faster to aggressors such as stress, fatigue, and aging. The bar graph titled “CLINICAL STUDY,” presents the results of a study that did not involve a L’Oreal Paris Youth Code product, or the ingredients in any such product.

• The study population in the clinical study included two groups of males: a “young” group with an average age of 27 years, and an “aged” group with an average age of 67 years. Both groups were subjected to repeated physical stress on the forearm, and gene expression (the process by which genes produce proteins) of skin cell samples was measured at several time points. The study concluded that expression of certain genes following physical stress was delayed in aged skin compared to young skin

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Case Study 2: Sensa

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From Sensa infomercial• MICHELLE FERNANDEZ: So, how does Sensa work? Well, at

the heart of the Sensa program is a revolutionary technology that’s based on 25 years of research and testing. It was discovered by a brilliant research scientist and my hero, Dr. Alan Hirsch. Dr. Hirsch holds five medical board certifications and is recognized as the world’s leading expert on the science of smell and taste.

• DR. ALAN HIRSCH:. The key is a medical phenomena called sensory specific satiety. As you eat, Sensa works with your senses to activate your body’s natural control switch and triggers your body into thinking you’ve eaten more than you have. So, you begin to lose weight without having to think about it.

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The claims

• Study 1: average weight loss was an incredible 30 and a half pounds. The group that was not given Sensa lost an average of only two pounds.

• Study 2: double-blind, placebo-controlled study conducted by an independent laboratory, in which participants lost 27.5 pounds and about 14% of their body mass, on average. Participants were instructed not to change their existing diet or exercise program. Those in the control group gained half a pound, on average.

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The research?

• Defendant Hirsch reported the results in an abstract printed and distributed by The Association for Chemoreception Sciences at its 25th Annual Meeting. The distributed abstract states that the 92 completers lost an average of 5.6 pounds over six months, while the control group gained an average of 1.1 pounds.

• Study was not blinded -- researchers and subjects knew what treatment was being administered; it also was not randomized or placebo-controlled; the subjects self-reported their weights; the test subjects were encouraged to diet and exercise; and the underlying data are unavailable for verification.

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But there was an independent study…

• 46 test subjects and 32 control subjects

• Sensa funded the BATTS study and participated in or exercised control over the design, conduct, and report of the study

• Data “unavailable”

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• FTC fined them $46M, they claim they can only pay $26M of it.

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Website now…

OPERATIONS FOR SENSA INC. AND SENSA PRODUCTS, LLC HAVE CEASED.Sensa, Inc. and Sensa Products, LLC entered into Assignments for the Benefit of the Creditors under California state law on October 17, 2014. An Assignment for the Benefit of the Creditors is a form of insolvency under state law.

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Case Study 3: Skechers Shape-Ups

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• Superbowl ad

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• Defendant has represented that the clinical studies conducted on the Shape-ups footwear products were independent case studies. In fact, conducted by chiropractor Steven Gautreau, who is or was a compensated endorser for Shape-ups, and who is married to a senior vice president of marketing at Skechers.

• The first study: 8 participants. Ps wearing Shape-ups lost an average of 3.25 lbs. No control group (a group of participants who wore standard fitness shoes).

• The second study: showed that Ps wearing Shape-ups footwear lost an average of 2.78 pounds, compared to 0.30 pounds for the control group that wore standard fitness shoes, and reduced their body fat 1.31%, compared to 0.57% for the control group that wore standard fitness shoes. Defects:

– The data relied upon during the study were altered and incomplete: some participants wearing the Shape-ups footwear gained weight, but were falsely reported as having lost

– 2subjects who were in the control group and lost weight had their data falsely attributed to the Shape-ups group

– In addition, some of the study's participants were connected to the researchers: the wives of two of the study's co-authors, the parents of one of the study's co-authors, and employees of and/or persons associated with Dr. Gautreau.

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Agenda


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Focus groups in new product screening

• Several concepts often tested in one session• Object: to “fix”, modify, revise, or “file away”

concepts• No go/no go decisions, no head counting• Follow with quantitative testing (surveys,

conjoint, BASES, etc)

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Why can’t we make decisions based on focus group data?

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Why can’t we make decisions based on focus group data?

• Small sample• Not always representative of your target market

– Usually selected for high involvement in category– Usually selected to be homogeneous

• Participants influence each other• Common biases:

– Like concepts with prototypes more than without– Like familiar more than non-familiar– If can’t think of anything negative, decide they really like

it

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Some focus group decisions

• # participants?• Homogeneity• # of concepts?• Prototypes• Traditional versus online

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# participants

• 8-10 standard, but range can be 6-12• “mini focus groups”: 3-5

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Debate over homogeneity • "Homogeneous groups....are generally more comfortable and open with

each other, whereas mixed sex, ethnic, or socioeconomic groups make it more difficult to achieve a high degree of group interaction" (Keown 1983, p. 66)

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• "Mixing participants from distinct market segments into a single group is not recommended because each person's segment has different requirements" (Welch 1985, p. 247).

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• "A number of individuals may be very different in national origin, religious beliefs, political persuasion, and the like; but if they share a common identity relevant to the discussion...., a group can form." (Goldman 1962, p. 62)

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• "Sometimes a varied group is wanted, for the interplay of diverse views on a topic that all can discuss.... However, sharp diversity or division in the group is hazardous." (Levy 1979, p. 30)

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• "Sometimes a varied group is wanted, for the interplay of diverse views on a topic that all can discuss.... However, sharp diversity or division in the group is hazardous." (Levy 1979, p. 30)

• "....it is usually helpful to provide for both homogeneity and contrast within specific groups." (Wells 1974, p. 4)

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• Exogenous homogeneity: similarity in such characteristics as gender, ethnicity, social class, religion, personality, attitudes, values, and age when the factor is not related to focus group topic – consumers who differ greatly in social class and

stage in the family life cycle have such different resources, problems, experiences, and perceptions that they may have difficulty communicating with each other

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• Issue homogeneity: similarity in response to the focal issue, e.g., product usage, preference, attitude, motivation, etc. – Lower levels better for provoking introspection

through exposure to contrasting perspectives, revealing reasons behind differences in behavior and attitudes, and exposing the researcher to a broader range of consumer response

– But: when the topic is sensitive, it is important to have high levels of issue homogeneity.

Participant Screening for Colgate

• Those who brush their teeth 2x or more a day• Those who answer rating of 5, 6 to the

question, "Oral hygiene is important to me" (1 -6 scale)

• 50/50 male/female• At least 50% of the recruits employed full-time• Recruit 9 white; 3 ethnic• Age 20 years or older• High school graduate or better• Recruit 4 parents with kids ages 3-18 yrs old 40

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# concepts

• 4-6 typical• More than 6, may need to winnow down• “auctioneering”:

– concept boards around room– Ps take notes like silent auction – bid on concepts– winning concepts get discussed more

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Prototypes

• Advantages/disadvantages?• When best to use?

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Prototypes

• Advantages– Better understanding of product– Less clarification questions during session

• Disadvantages– Anchor on sensory features of product, can’t imagine it differently– Ps will be less creative with ideas

• When best to use– If you have flexibility in terms of design, features, aesthetics of

product, often is best to initially let Ps tell you what they want– Often products are tested first in concept form (no prototype) and

then later tested with prototype once developed. – Mixing prototype and concept testing in 1 session: often biased

toward ones with prototype

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Online vs. in person

• Advantages? Disadvantages?

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Online vs. in person• Advantages

– Quicker– Often cheaper (1 time investment in software)– Don’t need to travel, Ps from different geographies can “interact”– Can easily translate to other languages– Client can unobtrusively give moderator guidance during session– Can show media, mock ups, without having to build prototype– Can get answers to survey questions anonymously, during session

• Disadvantages– If chat based: Typing can cut short response length, can have long waiting times waiting

for people to type– If spoken: errors with speech recognition software– If skype: internet connection, limits # of people– Don’t build same level of rapport with moderator or fellow Ps – Can’t look for body language– Ps can’t hold, feel, smell, taste product

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I have 300 pp of transcript, now what?

• Write up report • Use respondent verbatim comments to back

up statements• Which comments to include? Not all are

equal! (see next slide)• Draw conclusions (in form of hypotheses)

grounded in data

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How to weigh comments

• An interesting comment has been made about product, price, design, attributes, etc. – Who said it?– If >1 concept tested, not all members are targets

for every concept– Are they one of the target users for that concept?– Will they be in the usage situation for which the

product has the most benefit? – Weigh it accordingly!

Moderator’s Performance

– Building Rapport and Trust– Facilitating Spontaneous Discussion– Controlling Flow of Topic Discussion– Balancing participation– Probing when necessary– Intentional ignorance– Don’t head count– Don’t ask leading questions

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Dangers

• Avoid jumping to conclusions!– You may have a strong hypothesis, now need to

test with quant• Avoid hearing what you want to hear

– Levi: Not by jeans alone– Dodge Aztec

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Agenda


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Usage situation framework

• Bucket versus thread approach• Your assignment

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Usage situation framework

• Bucket versus thread approach• 3 benefits to threads:

– Identify which usage situation has biggest benefits vis-à-vis competition

– Identify skepticism and what you will need to address in promotion

– Design decisions

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Colgate Combo Example of Usage Based Analysis

Usage Occasions Users Competitors Benefits Skepticism

Clarifications/Issues

Possible Modifications

after lunch at work workers

dentist toothbrush

more compact, discreet

refiling a hassle? Only colgate toothpaste?

dispoable or refillable?

refillable best (6 v. 4), needs good brush

travel

patrons of hotels, travelers

mini travel size toothpaste and brush

1 item instead of 2

built for convenience = not durable, low bristle quality? Price/value?

effects on firmness of handle? needs case

overnight tripts kids

regular brush and paste, mini

? Less problem of loss? disposable better?

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dentist toothbrush





travel



1 item instead of 2






Helps you define value proposition

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dentist toothbrush





travel



1 item instead of 2







Helps you determine what to communicate

in advertising

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dentist toothbrush





travel



1 item instead of 2







Helps you determine what to communicate

in advertising

Helps you with design

Colgate Dental SprayExample of Usage (Occasion) Based Analysis

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on road, can't brush after lunch workers

breath freshers, mints

cleans better

pocket spray v. dose necessary; spit or swallow?

how to get in mouth?

safe to swallow, portable

general cleaning all?

toothpaste and brush

more convenient

clean without scrubbing? Strong-irritating to gums. Brushing needs prerinse

how does it work? Delay formatino or remove tartar? How many pumps? applicator?

Colgate: Revised Combo

New Colgate Combo combines the best in Colgate toothpaste and toothbrush technology in one space saving product to make brushing at home or on the go more convenient. With Colgate Combo, there's no need for a separate messy tube of toothpaste. The Combo's hollow toothbrush handle holds enough toothpaste for at least 14 brushes and can be refilled in a snap with any Colgate toothpaste cartridge. Holding the Combo like a regular toothbrush, use your thumb to slide the lever on the handle to release the desired amount of toothpaste directly onto the custom quality toothbrush bristles. Simply cap the toothbrush head when not in use. And when you travel, you don't have to pack a separate toothbrush and bulky tube of toothpaste. The Colgate Combo is ideal for your busy lifestyle whether you're at home, at work, on the road, or anywhere you need a hassle-free, convenient, and compact toothbrushing solution. Colgate Combo - the innovation you need, the quality you trust. 63

Revised Dental Spray

Colgate Dental Spray is a new way to fight tartar and bad breath without the hassle of brushing when you're on the go. Your busy lifestyle doesn't always make it easy to brush when you want to. Colgate Dental Spray is conveniently sized to fit in pockets and purses, so you can have a clean, fresh mouth any time or place. This pocket spray is gentle on teeth and gums but has powerful anti-plaque and tartar-fighting ingredients that act fast to effectively clean teeth any time of day. Colgate Dental Spray's unique penetrating micro-capsules remove build-up just like regular brushing. Colgate Dental Spray's scientifically formulated ingredients are completely safe to swallow making it even more convenient to use anytime. It can be used in the office, on the road, or at home for clean teeth and fresh breath. When you can't brush, spray!

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Revised Concepts

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The results are: (Purchase Intent for Each Concept)

Definitely Will Not

Purchase

Probably Will Not Purchase

Might or Might Not Purchase

Probably Will

Purchase

Definitely Will

Purchase

(low) 1 2 3 4 5 (high) Total

Combo 6% 13% 21% 39% 22% 100% (102)Spray 3% 8% 19% 39% 31% 100% (102)Liquid 6% 12% 27% 36% 19% 100% (100)UltraGum 6% 9% 18% 45% 21% 100% (99)

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Agenda


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For next time

• Quiz #1!

• A few teams to present ethnography slides

• Qualtrics tutorial

market intelligence session 4 false claims based on research and ftc; focus groups, colgate,...

Documents

aged skin

clinical study

imagine5case study

study population

years of research

young skin11case study

proteins of skin cell

research andor statistics