Ms. Freud

Sales & Marketing

Overview: Qualitative Marketing Research & How it Benefits Your Hotel

By Johnna Freud, Qualitative Research Moderator, Saul Cohen & Associates

This article is the first in a series about qualitative marketing research. It provides a basic overview about this methodology, especially for those in the hospitality industry who are not fully acquainted with it.

What is Qualitative Marketing Research?

Qualitative marketing research provides an easy and relatively inexpensive way to gain an in-depth understanding of how and why people think, feel and act the way they do. The primary method used to accomplish these objectives is focus groups. Focus groups comprise small groups of individuals - usually fewer than 12 - who are assembled to participate in an open-ended discussion guided by a trained qualitative research consultant - also called a moderator. In most cases, they are conducted in focus group facilities that enable clients to view them in real time from behind a one-way mirror.

Focus groups are particularly useful to explore consumers' opinions on current offerings or test new ideas. They can provide a setting in which to gain valuable insights into travelers' decision making processes that affect the bottom line of establishments from the smallest bed & breakfast to the largest hotel chain in the world.

When to Use Qualitative Research

We know that people select specific hotels for many different reasons, such as location, price, service, ambiance, and loyalty programs. However, focus groups can provide a forum in which to gain an in-depth understanding, for example, about whether amenities (e.g., airport transportation, business centers, exercise facilities, complimentary breakfast, in-house restaurants and Internet access or WiFi) affect travelers' decisions about where to stay. They can uncover unmet needs, such as amenities that guests would like to have offered, as well as help us to understand the relative importance of these desires.

Qualitative research is also a useful tool to exact a higher return on properties' advertising investments. For example, a business that has earmarked a specific sum of money for a new advertising campaign can spend the entire sum on the campaign, but with potential misconceptions about its target audience. As such, there are no assurances that it will have the desired impact.

Alternatively, it can invest a percentage of the budget in focus groups to ascertain whether the campaign achieves its desired result among the intended audience. By investing in focus groups to ensure that the campaign delivers an effective and persuasive message to the intended target market, those advertising dollars have the potential to work harder and smarter than if research was not included.

Another objective of qualitative research can be to aid in the strategic planning process. Focus groups are often used to understand the breadth of issues about a topic. Due to the small sample size, focus groups do not provide statistically significant data for projections, but they are particularly useful in preliminary and exploratory research stages. Focus groups are well suited to develop consumer-friendly language for larger quantitative surveys that can be used for such projections.

For example, economic models may indicate that a particular market might be ideal for a new property. That market may provide favorable tax or other financial incentives. But, before committing to the new site, the investor -- regardless of whether it is an entrepreneur evaluating a market for a single-site boutique hotel or a major hotel chain contemplating expansion -- may want to know how much traffic it has the potential to generate. Quantitative research is the recommended methodology to ascertain how many people might be interested in a new hotel in a specific location. However, prior to conducting this quantitative research, the investor would be well-advised to conduct qualitative research first.

Although the quantitative survey will provide data about how many people are interested -- or not -- it will not provide insights into why they feel that way. Focus groups will provide the investor with an opportunity to identify consumers' questions and concerns as well as to explore new ideas before investing funds to poll a large sample. These questions, concerns and ideas would then be incorporated into the survey and enable the investor to maximize the return on the investment in the quantitative survey.

Executing Focus Groups

Once a decision has been made to conduct focus groups, business decision makers typically select a professional qualitative research consultant. To make the most of the relationship with the consultant, provide as much information as possible on the questions you want answered. From the information you provide, the consultant will advise you on the best methodologies to achieve the study's objectives, oversee venue selection and recruiting, conduct the groups, and provide feedback on the findings.

Next, identify the criteria that will determine who are the correct participants to include in the groups. This is critically important because the usefulness of the information is contingent upon securing it from specific target audiences who have the greatest potential to impact your bottom line. A recruiting and screening questionnaire is developed from these parameters to ensure that the individuals who are invited to participate fit the criteria.

For example, if the objective of the research is to explore travelers' decision making processes for selecting a hotel, consider speaking to customers who are loyal to your hotel, as well as to customers who are loyal to competitive hotels and customers who have tried but rejected your hotel. Invite frequent and infrequent travelers, including some who spend only one or two nights versus some who spend longer periods of time. Consider talking to travelers who avail themselves of specific amenities and others who do not. During this process, the consultant will communicate with you about recruiting progress and other relevant issues.

Prior to conducting the groups, the consultant will draft a suggested discussion guide for your approval based upon the objectives of the research and specific questions you want answered. Once agreed upon, this will become the basis of the focused discussion with the participants. Professional moderators guide the discussion without influencing it by introducing their own opinions or biases. They will also probe participants to uncover the hidden motivations and feelings behind their answers.

After the groups, the moderator helps you interpret the findings. This can be done through verbal debriefings, written reports and/or in-person presentations. Regardless of the method selected, you should expect to receive not only a summary of the findings but also actionable recommendations about how to implement what was learned. In addition, clients frequently request audio tapes, video tapes, and/or DVD recordings of the groups for future reference.

So, the next time you wonder how consumers' feel about reward loyalty programs, how they decide whether to reserve accommodations directly from your property versus through a third-party Internet vendor or travel agent, or how hospitality school students view the universe of potential employers, consider using qualitative research. The answers might surprise you.

Johnna Freud is a Qualitative Research Moderator with Saul Cohen & Associates, Ltd. She has experience in focus group moderating, interviewing, group facilitation and project management. She has worked with service companies, publishers, consumer package goods firms, retail chains, manufacturers, educational institutions, consulting firms, and advertising agencies. Research objectives have included concept evaluation and refinement, communications and advertising assessment, product repositioning, employee/student recruitment and performance evaluation, packaging and displays. Ms. Freud can be contacted at 203-322-0083 or scohenqual@aol.com Extended Bio...

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