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Benchmark Review of Trade Attitudes

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1. INTRODUCTION

The client company were a leading manufacturer and distributor of components and fittings supplied to a fragmented and independent network of companies involved in the assembly and fabrication of a home furnishing product. The client wished to undertake a detailed review of trade attitudes towards them on a wide range of product and service criteria.

Primarily, the client wanted to develop an understanding of current customer perceptions and attitudes towards them and their major competitors, in order to drive their product and service development programme, and to establish benchmark levels of performance to measure changes in attitudes in the future.

2. OBJECTIVES

The specific objectives of the project were:

  • An assessment of the major requirements of fabricators from their material suppliers in terms of product range, quality standards, technical and marketing support, price levels, delivery speed and reliability etc.
  • Review of buying processes across the fabricator network, with a specific focus on differences between small and large customers, and among users and non-users of the client's products.
  • Review the major suppliers in the sector and compare customer attitudes across a range of performance criteria and evaluate their critical success factors.
  • Assess overall satisfaction levels with alternative suppliers and identify key factors influencing decision to change supplier.
  • Establish specific benchmark criteria and measurement to provide a basis for measuring future changes in customer attitudes.

3. METHODOLOGY

The research methodology was divided into two key sections - a pilot survey of 10-12 personal interviews, followed by a comprehensive telephone survey of over 100 respondents across a mix of recent and well established customers, but also including some non-customers.

The objective of the preliminary interviews was to develop a detailed understanding of the key buying and specification criteria influencing customers in their choice of suppliers, as a basis for designing a telephone questionnaire to provide a quantitative assessment of attitudes towards the client and other leading component suppliers..These preliminary interviews were conducted across a mix of customer types in terms of size, location and product specialisation.

The questionnaire was very comprehensive in addressing the information requirements outlined in the Objectives, and was developed by AMA and agreed with the client. Interim meetings at the end of the preliminary interview stage and early in the telephone interview stage were also undertaken, to review the criteria to be assessed.

4. LOGISTICS

In terms of timescales, the project was completed within around 10 weeks from the date of agreement to proceed. This included both phases of the research and analysis of the findings which were submitted to the client in a detailed report, together with spreadsheets containing benchmark data.

The total cost of a project of this nature would typically be around £8-12k, depending on the number of personal and telephone interviews that would be considered appropriate to meet the information requirements. This figure would include all telephone and administration expenses, but exclude accommodation cost or travelling expenses.

5. OUTCOMES

As a result of this survey, the client was able to develop a detailed understanding of trade perceptions of the company and its competitors on a wide range of issues. For example, many comments relating to product range quality and aspects of poor service performance in relation to competitors, provided the basis for a comprehensive internal review.

Over the next 12 months a programme of new product launches and changes to sevice support were implemented. Some 2 years later, the client commissioned a follow-up survey to assess changes in customer attitudes as a result of the developments introduced by the client. The follow-up survey was also comprehensive, but provided the client with a detailed insight into changes in customer perceptions and also identified areas where further improvements were required.

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