The role of Consumer Research and Organisation Structure

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1. Some new products experts maintain that getting close to customers through intensive research is the only way to develop successful new products. Other experts disagree and maintain that customers can't possibly provide useful feedback on what they don't know and can't provide insights that will lead to breakthrough products. What is your position on this? To the extent possible support your answer with substantive data and examples.

The following studies corroborate the importance of market research in NPD.

"We have tested and supported the claim that the user and the society are equal partners in the product innovation process. We have put forward the Fourfold Helix model that features a new formation of institutional relations where special focus is placed on the involvement of the user and the society in NPD"(Nusa et al, 2010).

This article investigates what functionalities best fit the consumers' needs and wants for life insurance products by extracting specific knowledge patterns and rules from consumers and their demand chain. By doing so, this paper uses the a priori algorithm and clustering analysis as methodologies for data mining. Knowledge extraction from data mining results is illustrated as market segments and demand chain analysis on life insurance market in Taiwan in order to propose suggestions and solutions to the insurance firms for new product development and marketing(Liao et al 2009).

The functional beverages category is considered one of the most significant drivers of new product development (NPD) in recent years. Fifteen in-depth interviews and three focus groups were held between February and March 2003 to identify the most important attributes influencing consumers' purchase decisions for orange juice, and to explore consumers' attitudes towards existing and new functional orange juice beverages. The results suggested that functional food and beverage manufacturers should place a greater emphasis on the base product when evaluating new productconcepts. This study highlighted the key role of qualitative research in facilitating the integration of consumers with the concept stage of the NPD process.(Sorenson et al, 2005 ).

Before taking any investment decisions on its K series, Kellogg's undertook market research. It wanted to answer these questions:

• What changes taking place in society are likely to affect the product?
• How might new technologies affect our business?
• What are likely to be the future market trends?
• Where are the opportunities within the market place?
• What new categories would appeal to the target market?
• How far do consumers think the brand could stretch into the market for different product categories?
Kellogg's had to understand how the product could be extended into a series of variants which would keep the core product strong, but grow the brand as a whole.

Another study shows that marketing research is critical in a market driven industry as food processing. "The results are quite strong in showing the advantages of integrating marketing research (and marketing) deeply into the NPD process at every stage. Clearly, success in a market driven industry such as food processing ...