NewswireToday - /newswire/ -
Briarcliff Manor, NY, United States, 2007/11/30 - Decision Tactics, a division of ITGi Inc. today announced that it has successfully completed a comprehensive behavioral segmentation program for Luth Research, a leading market research firm.
As part of the program, a survey was administered by Luth Research using its widely recognized SurveySavvy™ online research panel, along with Decision Tactics’ flagship product, Live Behavioral Segmentation™ (LBS™), a friendly Web-based tool, to analyze decision drivers of several brands of digital cameras along three price ranges:
• Under $200
• $200 to $400
• Over $400
Chart: Digital Cameras for Testing
• Olympus FE-115 - $109
• Sony DSC-S650 - $139
• HP R827 - $159
• Sony DSCW55/P - $199
• Canon PowerShot A560 - $199
$200 to $400
• HP Photosmart R927 - $279
• Olympus SP-510 UZ - $299
• Canon PowerShot SD1000 - $299
• Olympus Stylus 750 - $310
• Panasonic DMC-FX50S - $399
• Olympus Stylus 750 - $310
• Canon PowerShot S5IS - $499
• Sony Cyber-shot® DSC-G1 - $599
• Panasonic DMC-FZ50K - $599
• Sony Alpha A100K - $700
Note: Prices reflect period of testing.
The study revealed that the majority of respondents are willing to spend between $199 and $299 on a digital camera. Within this price range, consumers are willing to spend more on a brand they believe in. The study also found that the top three decision drivers of consumers’ purchases when shopping for a digital camera are:
2) Format (SLR, SLR like, Compact, Ultra Compact)
3) Digital zoom
It also showed that consumers process information on different brands differently within different price ranges. With products priced under $200, shoppers who make purchase decisions quickly and rely on less information are far more likely to choose the Canon PowerShot A560, while those who seek more information about features tend to choose Sony’s DSCW55/P. With the products that range from $200 to $400, shoppers are most likely to select Canon's PowerShot SD 1000, indicating high brand recognition and loyalty. When it comes to high-end digital cameras (with price tags greater than $400), shoppers tend to choose either the Sony Cyber-shot® DSC-G1or the Canon S5IS. In comparison, those who make more calculated decisions about their purchases are more likely to go with Panasonic’s DMC-FZ50K.
Through this study, the LBS™ technology showed a promising new solution to tracking consumer behavioral patterns rather than self-reported responses typical in a survey setting, revealing the true consumer decision-making process. Compared to the traditional survey questions or the well-established Conjoint design, LBS™ offers much more flexibility without compromising data integrity. Founded on sound Decision Science, the technology uses advanced algorithms to uncover marketers' most-sought after intelligence -- how consumers aggregate product information into a buying decision, which is vital to fuel ongoing marketing programs and boost conversion.
According to Shlomi Ron, board member at Decision Tactics, “Our technology allows Luth Research to enhance their existing survey programs by producing a much richer understanding of shoppers' decision landscape and pinpoint trade-offs between brand, product features and price.”
To provide its clients with an innovative approach to uncover consumer preferences like these, Luth Research saw unique value in partnering with Decision Tactics. After the success of the current program, the two companies anticipate rolling out more programs utilizing LBS™ across a wide array of products.
About Decision Tactics
Decision Tactics is a leader in the development and deployment of scientific Decision Tracing and behavioral targeting solutions. Its friendly Web-based tool, Live Behavioral Segmentation™ (LBS™), combines sophisticated data mining techniques with cognitive psychological analyses. Decision Tactics` LBS™ help marketers to analyze and predict consumer choice in such sectors as consumer electronics, automotive, finance, travel, and other feature-rich e-commerce contexts where shoppers are presented with multiple product alternatives. The technology was successfully implemented at Gateway and numerous major universities and financial organizations. The company has offices in New York and Israel.
About Luth Research
Founded in 1977, Luth Research has consistently offered clients around the world the kind of forward- thinking market research that moves business ahead. From its innovative online panel, SurveySaavy™, to the creative combination of research methods by an experienced team, clients can always count on Luth Research for excellence in market research.