CONSUMER RESE~S~ EVALUATION OF CONSUMER RESPOHSE TO bN INIOVlnlYE (SMOKE1ESS) CIGARETTE PROOUCT BRIEF i. To provide a ~rellnfndry view on whether there Ir a potential narket for a 'smokeleJs cigarette 2, On the asrwnptfon o~lrartet potential, to give an Indtcatlon of the type of consumer segment most responsive to the concept, 3, Also on the assumption of a market potential, to indicate likely patterns of preferred product usage (Ile whether as a substitute pr a supple~nent to canventfonal cigarettes and whether used In highly specific envf ronmentll circumstances or not), I, To examine the price elasticity of demand for the novel proposition relative to conventional e~garettes, KEY MEASURES I, Response to the concept pre·trlal~ 2, Response to the concept lost·Ronad~e trial, 3, Response to the product post·monadle trial, 4, Response to the product post·placement when used as I conventional cigarette substitute, (l,e, total replacement] 5, Response to the product and concept post·placen~ent when used as an unconstrained supplement or substitute for conventional (l,e, free to use with or without conventional cigarettes 6, Product usage patterns, 7, Price sensitivity pre and post trial, a, Hypothetical purchase opportunity measure of re·trla~ vol ume, All the above measures to be taken against legnent~tlon by sex, delivery level smoked and degree of sensitivity to environmental smoking rertrfct· tons, SAMPLING PO consumer subjects drawn Ir~n~ the Charter Research maintained population and secpnented as follows: Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ·2· GROUP A 10 male moderate consumption full Ilavwr smokers, GROUP B 10 female moderate consumption full flavour smokers, GROUP C 10 male moderate consumption ion tar smokers, GROUP O 10 female moderate consumption low tar smokers. Degree of concern over envlrannental restrictions to be segmented within group where possible by telephone contact pre·rcreentng~ PROOUet FAVOR REUILAR, two packs per respondent, METHOO STAGE i: Central location hall session conducted lepantety for each respondent groups To open with a qualitative session covering reactions to the concept, product expectations and anticipated usage pattern, fo then continue with exposure of the product, followed by monadic sampling and discussIon, To close with a scaled questionnaire adninistered individually to quantify concept and product reaction. A clear briefing will be provided regarding confidentiality, STAGE 11: The mdnadic sampling Involved in Stage 1 would be presented by placing one pack with each respondent, the ren~alnlng sticks (5) after the monadic test are to be retained by the respondent and taken away as an In·ha~ne placenent, Instructtont for the in· home placement will be that, until the pack Is finished, no conventional products should be smoked, This Ytotal substitution' trial nill be policed by the promise of a (bo9US) CO breath test to be conducted during an in·hme followup, Thein-hame follow up will be conducted within four hours of the hall session and nill con~grlse 1 repeat of the Stage 1 questionnaire, a ruppl sentary section of questions dealing with the adequacy of the product in 4 total substitution situation and a bogus breath test, ihls In·haane follow up nill conclude with the placement of a further pack of the product per respondent together with a sealed follow up qucstlonnalre Respondents will be instructed that theft use of the product will be unconstrained (i,e, they Ire free to use then either as a total substitute or a supplement to conventional dgarettes and they may use theet in however few or many environmental sftuations as they wish), The follow up questionnaire Is to be completed on finishing the last of the placement and comprises a repeat of the Stage 1 quertlonnaln, plus a supplementary section of questions dealing with the product usage pattern in this unanrtnlned situation. Clit; PDF -!::!!::!!::!.f3 StlC.i: Dill -3· STAGE ill: 4·5 days following Stage 11 each respondent group will be convened separately back in central hall location, During this seslon, the In·hone questionnaires will be collected, followed by a gualltatlve session covering reactions to the prcductlconcept following trial experience, The elperfmental product 512 will then be sampled nponadtcally to determine if this product represents a preferred option, price elasticity of drmand and future intent to purchase will be measured simultaneously In an hypothetical toteo allocation exercise In which tokens representing monetary value are allocated against opportunity to purchase quantities of own bnd conventional cigarettes andlor the FAVOR product, finally a detailed de·brlef covering confidentiality will be provided, The athad may now be represented schematically: RESEARCH METHOD: SCHEMATIC STAGE 1 (EXPECUITIOH REACTION) IH;HOME~PLAC%MENT BY EXCLUS SUBSTITUTION STAGE 11 (TRIAL) UNCONSTRAINED USAGE STAGE 111 (OISPOSITION) TIMII(G 14 days from initial recruitment to top line report, Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 .4- AOOI~IOHA1 CONSIDERATIONS I, it will be necessarl to clear all aspects of product liability for legal/ethical acceptability, In this respect It should be recalled that since the subjects are sx·eharter Research they are still engaged in I voluntary agreement to the ewpany, 2, The relative merits of using a third perty to implement this research design should be given consideration, 3, It 15 strongly reccmnnded that a parallel investigation be conducted in the U,S, marketplace where the product Is In limited circulation, The Ideal position would be to Rlthfuily reproduce the methodology herein, the minimum acceptable fall·bacl; pqsltlon would be a 2·3 day field observation by an experienced observer, The specific time of year for which this study Is Intended (January) may prove to be a constraint on time scale since recruitment and attendance are notoriously difficult to achieve In the post-Christmas period, Should problems arise, incentives may have to be increased, R,P, FERRIS RPF/BCH 17,12,85 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 IllaWI I)I[BIL ossn rolr II slcxFlFII ~c~my. XE1 plllglllS Ilctlnld 'This rta9 was designed ~ providee preliminary viewOnpotential market response to the FIYOR Irotelo, dq~r~ttL subsidiary objectives were to (1) indicate the type of consunlr segment most responsive to the concept (b) to predict likely patterns ol product usage and (c) to examine price elasticity of (II1I( for FAIOp flIltlyC to conventional cigarettes, ~Le research used 1 snail population If Flalm rCI~1 by age tal delivery level of own brand md degree of e~~g difficulty In dealing with restricted smoking situations. (~hl~ latter segmentation was based on responses to the ~es~on 'when put In I position ~ere you are not allowed to note, how difficult do you find It to cope without your clglrettcsl')~ Consumer response to concept and product was measured uJing a combination of qualitative group dllcurrion, questionnaires and personal dll~e~ I master qucltloaa~(re collected comparable infornation fr# three stages of increasing product cxplurl: (1) following concept presentation Id one stlct trial (b) after I ~Ur hour period of use as In exclusive substitute for conventional cigarettes and (c) after a lour day extended use trill, Results in overall terms, rclponle ~ bob concept ad product was positive, sustained throughout initial trf~ and four hour usage, and only showing i decay after four day trf~e product used throughout the exercise (FAVOI IEGULR) war eventually compared in sensory evaluation ~lll~ted nuder of experimental ~~m~tlver~ ~tse results indicate clearly that the fall off In positive attitudes Ir attributable to product shortcomings which are capable of Ilproracltl A likelihood of purchase ·Irute showed hill 151 of respondents were. potentially interested In ~OR (uere it availahle In the U.K.J following one-shot trial. This measure declyl to 751 at lour hour exposure and 501 after four day usagel a more realistic measure of colsn~t demand was provided by 1 trade-off exercise at the close Of the I~~~ II part of their rauncratlon, consumers were Invited to Illoe~te tokens against qulntlMer of either conventional cigarettes or FIYOR REGUU (Rvl tokens per consumer, each token being worth either one pset conventional or one pack FIYOR, It should he noted that a standard pact of FIVOR Includes six sticks, which are claimed to he egrlralent ~ (p~t of tuenty conventional dglrrt~l)~ S1RY , ClibPDF - v~~fastio.soni laFage token Illocltfon was 1~3 to conventional and ,3 to FblOR REGUUR~ FAVOR demand strengthened further when experimental alternatives hen considered: I 1 I Conventional I F~YOR I 1 Conventional v FIYMI HLNnOL 1 312 1 118 I i Conventional v FAYOR 333 2,9 2,1 I ) I -- HLellhood of purchase and token allocation measures all Indicate greater FMOR responslvenerr for sales, lower delivery sn~n~okers and those who have less eoplng/dbstlnence difficulty when rrgulred to refrain from s~chlng, The lower rerpansrveness of females Is apparently a function of social embarrassment associated wl:th FIYOR use (fenale responsiveness Is actually higher than males prior to four day trial and direct measures show far higher unease during public use for the fenalesl, ThlJ social la~barrasaent response was LI~IIIY conditioned by the current absence of any advertising and public bareness of FEIYOR, It may be expected that female responsiveness to FAVOR would re·~ssat and probably be greater than male responslvenerl following more general social promotion of the product, Fu;ther indication of the posl tlve consumer response to FAVOR is given In the end of session finding that 351 of consumers felt FIYOR would thieve some degree of success If launched In the U.K. FAVOR was' seen pr~marlly for use supplementary to conventional cigarettes .by the end of the exercise 721 of respondents still co~sldered the product appropriate In such a context [Interestlnglyl 38 of the sample also considered FAVOR potentially appropriate as a total substitute for conventional cigarettes, males and low coping conee'ri~Tii~ivldualr being oYer- represented In this group). Expected future users of FIYOR art seen by the partie~pants to be law tar, lower consumption smokers, females and socially reserved. Situations In which FAVOR use war expected to be most appropriate were rto·nnating theatres, restaurants and other peopler Cars and homes~ Prior to any opportunrty for social exposure, consumers anticipated sodal reaction to be predoafnantly interest and approval, with low tar smokers most likely to expect this reaction and females being Mre likely to ,:xpeet amusement and rlQlcull. Subepuent measures after four day usage shoved that Interest and approval was in fact the experienced IpaSorltY reaction within the hone, but amusement and ridicule was the main public reaction (percelved especially keenly by females and low tar IIPO/LlrlJ~ o: Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Ic·rbdtol It bl dll ,1 tit ac~lll (51 II tlht plCI kit It roll rrlPg FIII II IlbllE (d51 of alel, in of fa~lr, 9ot of rlddll 8r lld ~m of 1# 8r I~er~)l oriooiol] ldYIntlgoloI nl wre IJIIEI 11 It~ CJ~I II1 ~n· Ihor~~lnpr wlrl llrJoty loororY bble~P ~~~ I~nlr too l11, Iru clfort IOd Irrlbl9 too Llgh, ~~tlrf~etlon Icvell iou Ind vlsull/~ctlle (r1118 1Rtrfflelel~~ Il~r~1, troup dllcusrlon Id swpllng of oxporIRootal Itodr~tr cooflrncd thlt l11 thra footuror nn lern to be uyYe II dylkrt 1Sn~rt A·nR n ur ylnn~ ~nd thlt thl egultlon of six FIYOR stlctr to twcoty colrcltfon~l elglr,tt~s wit 1 er~lble dill, With ~~I of tho ~t~ Iloolo rlportlng 1 dKILIIC In Eonvcntlon~l cIglrcttc conlunptlon during tho cx~ndcl FI101 trl~t. ~~ thc gcwr~l context of eonlucr ovolultioor of r~~c~ly iooovltivo product propolltlonr, thl rclultl of thil oxoroiso InHcl~ I dg~fle~n~y porItIvl rrlpoa5l, Laai~. 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