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BUSI48907
The research draws attention to the fact that the preferred medium of contact to
engage with boiler companies by the home owners aged between 35 – 65 are
Telephone and face to face meetings. The communication includes General
enquiries, service bookings and complaint registrations. The average
replacement cycle for boilers in the UK is quoted at around 20 to 30
years (Leggett, T., 2017), thus the relationship with a boiler company is long
term and home owners prefer to choose the perfect boiler company based on
trust and reassurance. Further investigations reveal that Google Search, friends
and family are the preferred sources of information for the focus group
participants and the reliability of the information is the driving factor to depend
on such sources. Moreover, Facebook and YouTube are also used as a source of
information by the focus group participants, whereby Facebook is mostly used to
evaluate the company’s online presence and to find reviews, whereas YouTube is
used to seek advice and tips.
From the collected data, it was found that customer advocacy is directly
proportional to the level of customer satisfaction. The focus group participants
found to be interested in the ‘Refer a friend’ scheme. However, participants were
interested in the rewards which can be redeemed for groceries, travel, clothing
or online shopping, rather than at the Boiler Company.
The report evaluates the business 2Red Ltd and concludes with a series of new
and innovative digital marketing techniques and initiatives to boost general
enquiries have been recommended to increase the interaction that potential and
existing customers have with 2 RED.
It is recommended:
The secondary research was carried out to support the response gained from the
primary research. This was carried out by using a series of online research tools,
such as; Mintel, Passport, Google Scholar, Library OneSearch, Financial Times
and GFK. The second section included three recommendations based on the
market research, these being;the use of YouTube and Facebook as the main
marketing tools to promote 2 RED on social media, ‘Refer a Friend’ scheme and
the strategies of Social Media Optimisation (SMO). Each recommendation was
evidenced through secondary research provided by the academic sources listed
above.
2.0 Methodology
“A good marketing research study should always start with secondary data”
(Churchill and Iacobucci, 2005: 169). Prior to collecting Primary data, it is
essential that one commences their research analyzing the work of others,
which then informs the theoretical framework of the research, as such
information is mostly credible and accurate. Online resources such as Mintel,
Passport, Library OneSearch, Financial Times, Google Scholar and GFK were
helpful as they improved the understanding of the Marketing problem and in
defining the population and sample to be taken. Mintel for instance, has a large
information base which provides an accurate research base and analysis.
Secondary data was analysed, concentrating on the home ownership and renting
demographics, how customers search for information and their social media
usage.
Primary data collection was done through two Focus group discussions, followed
immediately with a close-ended questionnaire.The respondents for both focus
groups and questionnaires were staff, mostly men from Nottingham Trent
University (NTU), between the ages of 35-65years.This is a convenient
and accurate representation of over 35year-olds with a stable income and most
likely home owners. This age bracket was derived at based on secondary data
which showed the highest percentage of Home ownership and renting
demographics within the United Kingdom (Barton, 2017). Meanwhile, research
also shows that 45-54-year old are now on social media, and 55-64-year old’s
using social media has passed the 50% mark in 2016 (The Telegraph News,
2016).
Focus group discussions are very useful for providing sufficiently detailed
information in a little amount of time at a low cost (Bertrand et al., 1992).
Consequently, focus groups in nature, explore individual’s thoughts and opinions
by providing insights into the reasons for complex behaviors and motivations
(Morgan and Krueger, 1993). This provided valuable information on why people
choose certain boiler brands and how they arrive at this decision.
In contrast, data from focus groups risk being unreliable if there are both
moderator and respondent biases (Morgan and Krueger, 1993). Furthermore,
respondents answered a questionnaire immediately after the focus group to
confirm or otherwise, their submissions in the discussion.
The primary research data was analyzed using thematic analysis, which
included breaking down key words and ideas into initial themes
with their corresponding codes. Similar ideas were then put in groups to
generate the final themes of Communication platforms, Desired communication
and Marketing Promotions. This method of analyzing data “minimally organizes
and describes your data set in rich detail” (Braun & Clarke, 2006: 79).
The Thematic Analysis method has been used to analyse the qualitative data. It
illustrates the data in detail and deals with diverse subjects via interpretations
(Boyatzis, 1998) and provides a systematic element to data analysis (Alhojailan,
2016). While thematic analysis is flexible, this flexibility can lead to
inconsistency and a lack of coherence when developing themes derived from the
research data (Holloway & Todres, 2003). The data collected from the focus
group interviews are converted to transcripts for the Thematic analysis. Then,
the codes and themes (Appendix C: Thematic Analysis) are generated for the
effective analysis.
From the focus group interviews, it was found that the preferred medium of
contact to engage with boiler companies by the home owners aged between
35 – 65 are Telephone and face to face meetings. The communication includes
General enquiries, service bookings and complaint registrations. It is supported
by Mintel’s research, that the adults above 45years old more prone to choosing
in-person or telephone contact than those under 45years old (Mintel, 2017), to
which the focus group participants link their choice of communication medium
with ‘Trust’. The average replacement cycle for boilers in the UK is quoted at
around 20 to 30 years (Leggett, T., 2017), thus the relationship with a boiler
company is long term and home owners prefer to choose the perfect boiler
company based on trust and reassurance. According to Mackintosh (2015), as
the type and complexity of the contact moves from simple to complicated people
prefer face-to-face or telephone as the 1st choice of contact.
Google Search, friends and family are the preferred sources of information for
the focus group participants and the reliability of the information is the driving
factor to depend on such sources. The information includes details of the boiler
company, boiler brand information, customer service quality and after-sales
service. Apart from the above, Facebook and YouTube are considered to be a
source of information by the focus group participants,
whereby Facebook is mostly used to evaluate the company’s online
presence and to find reviews, whereas YouTube is used to seek advice and
tips. According to Gupta (2016), social media users trust online reviews
and opinions from friends and strangers equally. Gupta (2016) also states that
social media users feel that the company pages on SMS’s supplement sample
information about the products, helping the customer
to do their preliminary research and speed up their decision making and buying
process. Thus, Facebook is a useful platform for building brand awareness and to
improve customer advocacy.
From the collected data, it was found that customer advocacy is directly
proportional to the level of customer satisfaction. The focus group participants
found to be interested in the ‘Refer a friend’ scheme. However, participants were
interested in the rewards which can be redeemed for groceries, travel, clothing
or online shopping, rather than at the Boiler Company. The focus group
interviews also evaluated the influence of personalized marketing in the decision
making, and found that the home owners with average disposable income
always consider economic benefits in the form of gift vouchers and free boiler
services during the decision-making process. Teng (2009), states that these
discounts offeran array of benefits, including, positive feelings and emotions
towards the brand, and an exquisite overall customer experience. Thus,
indicating that gift vouchers and free boiler services can be categorized in the
effective promotional incentives from a boiler company.
According to the focus group results, the process of the participants selecting a
suitable boiler for their home is a big decision that involves a vast amount of
deliberation. For example, Knight (2018) states that the price of the boiler and
installation service, the housing plan, current setup and boiler types are all key
considerations to be made during the decision process.It can be confusing and
difficult to find all the necessary information due to customers having a limited
understanding of how the service works. As a result, they will go online to find
out useful information that can support them during the purchasing process.
The research outcomes are consistent with the study by Forrester in 2006
(see Lempert, 2006). The research shows that customers are now turning
to various social media platforms to conduct their information searches, and
additionally help them to make their initial purchasing
decisions. Similarly, Lecinski, 2011 also highlighted that 84% of the decision
makers in his study used online sources to guide them. The focus group results
reveal that the tips and tricks, advices and reviews on Facebook and YouTube
are the information that customer demand to see when they conduct their
research through this digital medium. Moreover, some respondents added
that this information with need consistent branding design and trustworthy
information in order to be consistent and useful. Research finding by Jevons
and Gabbott (see Yousafzai, Pallister, Foxall, 2005) also mentions the relevance
of brand development to service branding due to its intangibility, technology and
benefits, which contribute to a degree of trust to the
brand. Also, respondents rely on the review of the company social page to
evaluate the service quality. This result reflected a study conducted by
Bazaarvoice.com in 2007, and concluded that products or services with reviews
have a 12.5 percent higher conversion rate than those without reviews.
4.0 Recommendations
Firstly, results from the focus group research suggests that Facebook is the
most preferred social media platform for participants looking for
information about boiler companies, therefore, Facebook is recommended as one
of the main social media tools for promoting 2 RED. During the focus groups, 6
out of 13 participants suggested they would
look for reviews on Facebook. Godes and Mayzlin’s (2004) suggested
that customers rely on online customer-created information to
make purchasing decisions. Therefore, the researchers recommend that
2RED encourage their customers to post positive comments on Facebook, in
order to build awareness and trust.
In addition, 31% of the focus group participants suggested that if a business has
a professional online presence, such as uploading professional content to
Facebook, it will create a more trustworthy image in the minds of potential
customers. Lee, Park and Hen (2011) demonstrated that online customer
reviews (OCRs) will have a higher level of impact on consumers’
purchasing intentions when the business has professional trustful
online presence then the reviews are effective in influencing consumers’
purchase intention. Therefore, 2 RED need to make sure their overall Facebook
presence and the content that they post is professional and trustworthy.
Secondary research illustrated that ‘sharing’ is the most valuable feature of
marketing on Facebook (Yuki, 2015). Tactics such as ‘tag’ or a ‘hashtag’ can
make Facebook posts reach wider target audiences. For
example, tagging 2 RED’s customers on the post after the service will make the
business visible to the customers’ Facebook friends, and will help to improve the
publicity of the business. A hashtag is another tactic which is recommended
for use on Facebook, it allows the business to be more searchable, shareable
and public (Agnes, 2013). This will enable 2 RED’s brand name to
be seen by a wider target audience through hashtagging the service
name, the brand of the installed boiler or the service location, etc.
When analysing the second possible recommendations being made for 2 RED
Ltd, an idea that the group came up with was a ‘Refer a friend’ scheme. When
conducting the primary research, the Refer a friend scheme was mentioned to
both focus groups to spark discussion to find out whether they thought this idea
would be beneficial to them as general customers falling in the age category of
25 – 60. The primary research found that some participants were keen on the
idea but were hesitant to accept the offer if it did not provide them with a useful
incentive to add onto the referral they have made (Appendix B: Transcript). The
focus groups recommended that an Amazon or Tesco voucher, travel related
benefits or a complimentary boiler maintenance service would accompany the
Refer a friend scheme so that they felt they were getting something useful out of
recommending the companies services.
To evidence the response from the focus group on an academic level, secondary
research suggests that there are many pros to recommending a Refer and Friend
scheme to the client. According to Berman (2016) a customer referral
programme is classed as a word of mouth (WOM) initiative that could encourage
existing customers to promote a business to family and friends, with the possible
result of more business for the company. Berman (2016) also states that referral
programmes are particularly useful for companies that sell high-risk goods and
services that are not acceptable to test out on a trial basis.Additionally, this
poses acost effectiveadvantage for companies who do not wish to spend a
fortune on traditional marketing but still have access to their preferred target
market.
Research has also suggested that customers engaging with the company on a
positive level is extremely valuable and contributes to the WOM they will pass on
to family and friends when given an incentive (Yi & Jeon, 2003). Thus, also
providing a competitive edge to other boiler services located on a regional basis.
When referring to the primary and secondary research, the Google Search result
plays an important role in the customers initial decision before they make any
enquiries to the boiler company of choice. According to the two focus group
results, a Google search result is the second most preferred sources of
information after friend and family recommendations. This result is consistent
with previous academic research, thus evidenced by Lecinski (2011), who states
that results from a search engine and friend/ family recommendation are the top
two sources used by consumers when making purchasing
decisions (See Appendix D).
In addition, research from Kushwaha and Shankar (2013) suggests that online
shoppers of technology products provide higher monetary value than other
offline or multichannel customers. As a result, it is highly recommended
that 2 RED UK will continue to expand its service via digital and utilise the
effectiveness and cost efficiency of social media.
5.0 Conclusion
The primary data was collected through two focus groups wherebya number
ofquestion were discussed and opinions were shared between the age category
of 25-60year old participants. The focus group allowed for a more detailed
analysis into how customers think and act when purchasing a new boiler,
therefore, providing first hand knowledge and experience to help boost the
research process and also introducing new ideas that may not have been
considered previously.
After conducting this primary research, the next step was to ensure that each
implementation was effective and academically evidenced, making sure that
there were themes identified to help with the research process and to provide an
accurate set of recommendation strategies for 2 RED as a final result.
6.0 References
7.0 Appendices
2. Where do you search for the information on a boiler and the company?
a. Price –
i. Prefer most common brand as it would be easier to find parts and services in
the UK.
d. Energy efficiency
4. Would you prefer to make your buying decision with the company online via video call?
c. Yes, if the person is familiar with boiler installation or know a local installer – 2
respondents
b. Instagram – 1 respondent
c. Youtube – 4 respondents
d. Twitter – 1 respondent (to check and post negative reviews)
6. Will you use social media to search information about Boiler Company?
7. What do you think Facebook as a communication medium to contact your boiler company?
8. What information will you be interested in finding about the boiler company on social
media?
a. Reviews – 6 respondents
d. Recommendations – 2 respondents
9. How interested you are in personalized discounts, gifts and marketing communications?
b. Not interested –
10. How do you feel about refer a friend and earn scheme from a boiler company?
11. Will you recommend your boiler company if they provide such an offer?
a. Yes –
b. No –
c. Will recommend if the service is good no matter what the reward is – Most of the
respondents.
• Youtube videos showing tips and advices are of interest to the participants
• Trust is an important factor (as boiler is expensive, long term and requires after service)
Appendix C: Thematic Analysis
Themes Codes
Search of information a. Google Search – 4 respondents
Online b. Friends and family – 5 respondents
Offline c. Big companies (brand name)– 4
respondents
Refer and earn scheme a. Interested if they offer something useful – Most
of the respondents
2. Suggested offers: - amazon or tesco
vouchers, travel related vouchers or free
boiler service for a year etc.
COMMUNICATION
ONLINE OFFLINE
FACEBOOK
AND
YOUTUBE
REVIEWS
GOOGLE BRAND FAMILY & FACE-TO-FACE
SEARCH NAMES FRIENDS
INFLUENCING
FACTORS
SERVICE
BRAND NAME QUALITY
AFTER SERVICE
QULITY
DESIRED
INFORMATION
MARKETING
PROMOTIONS
PERSONALISED
REFER A FRIEND MARKETING