The inspiration for our blog entries comes from a diverse set of sources. This most recent contribution is rooted in an article entitled “What’s Wrong With Consumer Research?” written by Professor Michel Pham and coming out of Columbia Business School’s Alumni Publication “The Centennial Issue.” Pham, who is the Kravis Professor of Business in the Marketing Division at CBS, opines that the business of marketing has never been more central to our lives; however, he argues that the science of consumer research is lagging behind.
His thesis is that we are too focused on purchase behavior and that “consumer behavior is no longer narrowly defined by purchasing.” Instead, consumers have the option now of lending, borrowing or sharing goods, items ranging from cars to tools to sleeping accommodations and, of course, to things like music as well. In turn, researchers are ignoring “vital moments in the consumer experience” by simply focusing on a purchase or an acquisition. Value is now created at the moment of consumption and not at acquisition, as traditional marketing textbooks would like us to think.
This idea is very applicable to those of us in the entertainment industry and, in particular, audio entertainment. While a consumer may give us his/her vote when it comes to being a P1 choice, we cannot remain in that position unless we focus on maximizing value at every moment of consumption. This is clearly where market research (both strategic and tactical) proves its value. Research studies like perceptual studies and AMT/OMTs are designed to make sure that the majority of our target customers are as happy as possible when they tune to a particular radio station (terrestrial, satellite or digital). The objective with a study like our Content Analysis Test is to be as sure as possible that each second of a DJ break or news/talk segment holds as much value as possible to a target consumer.
Interestingly, in this article, Pham criticizes the market research industry for not focusing enough on “the way consumers dispose of products, or disengage from patterns of consumption.” This is very true. The traditional radio industry, in particular, is highly focused on the fact that it is losing younger listeners, but what is it doing to increase its engagement with younger audiences? For us at Global Media, we have found great value in studying these patterns of disengagement and, in particular, the reason/s why these younger demos are spending less time with radio and with specific radio stations. From this kind of analysis, we have been able to provide compelling ways for our clients to stay relevant with younger listeners so that they do not suffer the kind of erosion that seems to be plaguing so many younger-focused stations.
If you want to learn more or to get a copy of Michel Pham’s article, please send us an email: info@GlobalMediaRCP.com.