Research seeks out Romanian trendsetters in Virtual Bucharest/Second Life

Using the social network Second Life, Bucharest-based research company GfK Romania is reaching into consumers’ alternate realities to glean insights into their real-world activities.

GfK Romania has established the first focus group aimed at exploring the opinions, attitudes, motivation, expectations and lifestyle of Second Life visitors ages 15-22 who “live” online in Virtual Bucharest, a Second Life community established in November 2008. Participation in the virtual research is marketed to Second Lifers as “an interesting and well paid ‘job’ for any resident wishing to share information about their consumption habits inside the virtual world,” according to Virtual Romania.

One project was conducted from September to October 2009, and GfK Romania used a mix of qualitative methodologies: classical focus groups, discussions on online forums and virtual focus groups among Second Lifers, where the moderator and the respondents “met” in the conference space of Virtual Bucharest. Participants were recruited via questionnaires and informal discussion groups and selected based on which respondents behave as opinion leaders among their peers.

Second Life users are generally trendsetters, early adopters, people with influence in their social circles and masters of social networking tools. Most of them are producers of content - writing on blogs, using photo and video sharing or producing virtual goods.
Virtual Bucharest is a three-dimensional virtual replica of the capital and aims to gather within its borders the Romanian community. Before GfK Romania brought research into Virtual Bucharest, other companies had developed marketing plans (conferences, live concerts, product launches, live competitions) in the Second Life environment. As of late 2009, Second Life had over 15 million registered accounts, an economy and its own currency (Linden dollars).

Chipotle kids’ menu shows the possibilities are limitless

Chipotle Mexican Grill is using research to see if less is indeed more. While the simplicity of its menu is one of its cornerstones, the company aims to appeal to cash-strapped parents by highlighting its ability to make virtually anything with the ingredients available at the behest of the customer, according to Jordan Melnick’s October 2009 Web-only article “Chipotle’s secret menu,” for QSR magazine.
The menu at most Chipotle outlets hasn’t changed much in the past 16 years; across the country the options may seem standard to a fault, with only a few traditional end-product items to choose from: burritos, tacos, quesadillas, chips and guacamole.

A meal of $6 burritos that can border on two pounds each is hardly a logical choice for most families with small children, so as a gesture toward Chipotle’s smallest customers the company has decided to come forward with its longstanding (but largely unadvertised) kids’ menu. Kids’ menu items include quesadillas, single tacos and a build-your-own taco kit, all for under $4.

In its effort to cater to budget-conscious consumers looking for a little variety, Chipotle is conducting research in markets across the U.S. to see if its kids’ menu can draw in more families and get customers thinking beyond the menu board. Research indicated that customers are not grasping the depth of Chipotle’s menu, which contains over 60,000 ingredient combinations, and Chipotle’s kids’ menu demonstrates the versatility of the standard ingredients (and staff) to meet the needs of customers. After a promising test run in its hometown of Denver, Chipotle has included the kids’ choices onto the menu board in Boston, Dallas, Sacramento and Denver, as well as statewide in Arizona and Wisconsin.

Though still in its infancy, there are some signs the kids’ menu is going over well with customers. “We’ve had almost triple the kids come in than we normally have because they love the meals,” said J.B. Gordin, a cashier at a Sacramento location. “The parents think it’s great because a lot of times they have to order a big burrito or a big quesadilla for the kids and they end up having to throw most of it away.” Gordin says so far the build-your-own taco is the big seller.

Study coins four post-recession consumer typologies

While anxiously awaiting the return of a robust and booming economy, marketers must consider the long-lasting effects of the recession on the consumer mind-set. Gone are the days of frivolity and the naïve notion that the good times can last forever. In their place are cautious spending and future-planning, at least for many Americans, according to Marketing to the Post-Recession Consumers, a study conducted by Decitica, a New Jersey research company.

The study identifies four distinct consumer segments that will remain after the smoke clears: Steadfast Frugalists, Involuntary Penny-Pinchers, Pragmatic Spenders and Apathetic Materialists.

Steadfast Frugalists (20 percent) are committed to self-restraint, engaging in prudence with unequivocal enthusiasm. Eighty percent of Steadfast Frugalists say the behaviors they have adopted will likely stay with them for a long time, and 29 percent of individuals in this group considered themselves tightwads. They are the least brand-loyal and most likely to discount marketing messages.

Involuntary Penny-Pinchers
(29 percent) have been severely affected by the recession and are mainly made up of households with less than $50,000 in income. Presently, their actual behaviors do not differ widely from those of Steadfast Frugalists. Where they diverge is in their aversion to expending effort in money-saving strategies. Only 17 percent find buying store or generic labels to be satisfying, compared to 59 percent of Steadfast Frugalists. Seventy-seven percent of Involuntary Penny-Pinchers admit to being more scared by the recession, 81 percent more stressed and 87 percent more worried about the future than other groups.

Pragmatic Spenders (29 percent) are consumers whose income has blunted the effects of the recession. Only 28 percent of Pragmatic Spenders feel the recession has changed what and how they will buy in the future, compared to 55 percent of Steadfast Frugalists. Pragmatic Spenders are over-represented by people in their 60s and from the Northeast and West.

Apathetic Materialists (22 percent) seem least changed by the recession. They have not embraced the new frugality to the same extent as others and get minimal satisfaction from such behaviors. Only about 6 percent in this group find price comparison to be satisfying, in contrast to 85 percent in the Steadfast Frugalists camp. This group has more men (55 percent) and younger consumers (72 percent) below the age of 40. Eight percent admit to being very focused on value, compared to 30 percent of Pragmatic Spenders and 52 percent of Involuntary Penny-Pinchers.