The Significance of "Why": The Practice of Incorporating Anthropology within Market Research
Winter Calaway
winter927@yahoo.com
For the past seven months, I have worked for a market research firm and (with the
assistance of Dr. Hadder) was also able to use this time as an internship through my graduate
program in the Department of Anthropology at Texas State University. Prior to this, I was
knowledgeable that market research firms hired anthropologists and had already decided I was
truly interested in this field because it combined qualitative research with customer service.
These two things I believe I have skill in and personally enjoy. The reason I wished to use this
time as an internship was to allow me an opportunity to get additional firsthand experience in
qualitative data collection with the added benefit of having time to do my own independent
reading about market research. But above all else, I wanted to find out why market research firms
would want to hire anthropologists. Why not just hire business majors? Why are anthropologists
different? More specifically, what do I have to offer to market research companies? I was able to
find the answers through background reading, learning about a company that specifically hires
individuals trained in anthropology, and reflection on my personal experiences working for that
company. This report will be a summary of what I have read and of my experiences. It will
include information on the company I have worked for, their specific approach to market
research, the history of qualitative research in market research, and finally my experience using
SmartRevnue’s data collection methods.
SmartRevenue and its Market Research Model
SmartRevenue is a market research firm that specializes in consumer research and whose
clients are U.S. and international based manufactures and retailers. John Dranow founded the
company in 2000 and, as of April 2014, was still the active CEO of SmartRevenue. Mr. Dranow
applied his unique background in fine arts and food service to his business approach by focusing
on one-on-one customer service with clients and working to humanize customer research. The
company has supported this approach by taking a unique approach to market research by mostly
staffing the company with employees trained in anthropology, some in sociology, and a few in
marketing. The company has done well considering that in 2004 SmartRevenue only contained
ten full time employees, but had grown to nearly 40 by 2009 (Avery 2012).
SmartRevenue conducts practically all of its business online, since all of its staff are
satellite employees. All the employees work from home or home offices and communicate via email, video conferencing, and telephone (Avery 2012). The company has an unofficial home
base in Stanford, Connecticut and there is a supply distribution center in Denton Texas, but none
of these are regular meeting places for any of the employees. The employees only physically see
each other when travel is needed for a project. This can be to present findings to a client or for
directly managing rare specific projects. For example, I had the pleasure of working with a
company employee who originally started working for SmartRevenue in 2009 while living in
Texas but currently is based in Europe. As a contract field ethnographer, I have rarely ever
communicated with any employees outside of e-mail or telephone. The company is not
necessarily unique, as these "virtual workplaces" have become more common. In 2012, there
were an estimated 1.4 million more telecommuting workers in the United States than in 2005
(Global Workplace Analytics). This distant work environment was new and sometimes
confusing to me but I was able to utilize the limited one-on-one time with my supervisors by
learning to consolidate work-related questions and be very detail oriented with paperwork and
writing project reports.
It is common for clients to hire market research firms based on the market research model
the firm chooses to specialize in. Much like theoretical perspectives used in anthropology,
market research models are overarching ways of thinking about market research and directly
affect which data collection and analysis methods are used based on the model preferred.
SmartRevenue specializes in shopper insights, which is the combination of consumer insights
and the umbrella model of shopper marketing. Consumer insights requires researchers to look
into the motivations, moods, and impressions consumers have in relation to brands. Shopper
insights is similar to this except it originates from the shopper marketing argument that
consumers and shoppers should be differentiated. To better understand this, one can think of
consumers as “users” and shoppers as “purchasers”. For example, a teenager that uses their cell
phone is a consumer, but their parent that went to the store and bought the phone would be the
shopper. Shopper marketing marketers would argue that the differentiation is important, as
consumers tend to use certain brands, products, items, and services (whether it is due to personal
preference, locality, or any other reasons.) Shoppers, on the other hand, may be restricted within
budgets, shopping for items of personal interest, or shopping with the needs of others in mind
(Shankara et al. 2011).
SmartRevenue—developed from shopper insights—also distinguishes between in-store
and pre-store decisions. The company argues that "most pre-store decisions are brand driven: the
shopper has purchased the product in the past and will continue to do so in the future. In-store
decisions, however, are often based on perceived value, merchandising, and packaging. As a
result, promotions and displays are a good investment" (SmartRevenue). Shopper marketing
proponents would argue that current changes in technology and media have made purchasing
decisions increasingly in-store (or point-of-purchase) instead of at home. One example of the
shopper marketing model in practice is the increase in gluten free sections in grocery stores,
which not only makes it more convenient for shoppers who tend to purchase gluten free products
to find what their looking for, but also more likely to purchase unfamiliar gluten free products
that otherwise would have been located elsewhere. Using shopper insights, the company has its
ethnographers carefully note shelf organization, signage, and display style. For the same reason,
SmartRevenue's observational methods also include looking for who does and does not carry
shopping lists, timing how long people look at shelving or directional displays, and notice where
people are specifically looking in an aisle.
SmartRevenue, in a nutshell, is a virtual market research company that is headed by
people who approach market research on a human level. They acknowledge that behind every
purchase is a person with individual motivations and context. A key aspect to this approach is in
their choice to hire employees from outside marketing fields. All of these factors make the
company unique and a good place to begin exploring an anthropologists place within market
research.
History: Qualitative Research and Market Research
The relatively long history qualitative research has had in marketing has been commonly
ignored and unappreciated in academia and the private sector and has only gained limited
attention within the last twenty years. Business anthropologists are not exception. Herselman
(2008) has argued that business anthropologists have been stigmatized in the past—and arguable
still are—by both academics and the corporate world alike. Academic anthropologists have often
seen their colleagues working for businesses as sell outs and using their skills unethically. On the
other end, the corporate world has a history of simply not taking anthropologists seriously.
Anthropologists are generally viewed as impractical and their works, as Christian Madsbjerg put
it, "notoriously difficult to understand" (2014: 82). This section is used to explore examples of
market research organizations (from 1930 until the 21st century) that significantly involved
qualitative research to show the natural place anthropologists have within the field of market
research.
The roots of qualitative research and the corporate world working together begins in the
1930s with Paul Lazarfelds who has been called the "founder of modern empirical sociology" but
perhaps should also be titled the founder of qualitative market research in the United States
(Jeabek 2001). Lazarfelds, trained in mathematics and psychology, was an experienced
statistician at the University of Vienna. In 1933 he moved to New York City and established a
market research firm which eventually became the Bureau of Applied Social Research at
Colombia University in 1944 (dissolved 1977). His firm is most credited with applying statistical
survey analysis and mass communication research to marketing research and group interviews
from social research with marketing. (Bailey 2014). Lazarfelds is also well known for writing an
insightful pamphlet titled "The Art of Asking Why" (Dichter 1986, Bailey 2014). This
organization eventually distanced itself from qualitative research but its original incorporation of
qualitative research was a launching pad for future qualitative market research.
Lazarfelds was followed to New York by his student Ernst Dichter in 1937 and, through
Lazarfelds help, got a job working at Market Analysts Inc. Dichter left the company to establish
the Institute for Motivational Research in 1946, a market research firm that drew heavily from
social research. Despite Lazarfelds warning to Dichter that he would never be successful in
America because all the American companies "believe in are figures and statistics" (Dichter
1986: 15), the company did very well. The Institute had such notable clients as Procter &
Gamble, Exxon, Ivory Soap and Chrysler throughout the 1950s (Dichter 1986, Bailey 2014).
Dichter is particularly well respected within business anthropology for his efforts in drawing
attention to the question of "why" by speaking at public events and on TV throughout the 1950s.
The momentum gained in qualitative market research methods during the 1950s grew
during the 1960s, but eventually lost its surge in the 1970s. Dichter opened a London branch of
his company called the Motivational Research Centre in 1959. He placed Bill Schlackman, a
man educated in qualitative research and psychology, in charge of the new branch. Schlackman's
branch was so successful that the William Schlackman Limited was established in 1962
(dissolved 2010). This chain of inspiration continued when Peter Cooper (inspired by his
contract work at Schlackman Limited) created Cooper Research Marketing in 1969, which is
well known for development in extended creativity group workshops. Successful endeavors such
as these were eventually overshadowed by the growing qualitative vs quantitative argument that
became prevalent in the 1960s and 1970s. As a result, qualitative research lost popularity and
gained a reputation as not being as applicable and understandable as quantitative methods
(Bailey 2014).
The lessoned trust and respect in qualitative market research has recently improved. The
development of wider markets, from the expansion of neoliberal capitalism around the world,
spired a greater interest in business anthropology. The growing open markets and increase in
telecommunications created extremely diverse markets and a problem for companies called the
complexity gap. The complexity gap is where businesses become separated from understanding
the different areas and demands of consumers. This spurred interest into understanding why
consumers bought certain items or used certain services (Madsjerg and Rasmussen 2014).
During the 1980s that there was a minimal reemergence of business oriented qualitative methods,
such as the increased use of in-depth interviews and design research (Graffam 2010). Writing in
applied qualitative research increased in the 1990s which led to greater credibility for qualitative
researchers going into outside fields (Bailey 2014). As for consumer insight, it is a relatively new
approach developed my qualitative specialists that has been increasingly used by market research
firms such as SmartRevenue.
History has proven repeatedly that both quantitative and qualitative research has had a
place in business research. This is primarily in thanks to Paul Lazarfelds, who started an
inspiration for future generations. This tradition should be continued by trained qualitative
researchers since their methods have been dangerously taken over by the corporate world. It has
become somewhat common for market research companies to hire staff unrelated to any
humanities fields to gather their qualitative data. Beginning in the 1980s, it was increasingly
thought that "an intelligent mind and a brief training in non-directive interviewing were most of
what was needed to deliver an adequate product" (Bailey 2014: 171). This issue has taken a
recent upswing but qualitative researchers should not let it be forgotten that they have a wellearned place in market research which should be continued.
Anthropology and Market Research
So what do anthropologists have to add to marketing? What makes us qualified in telling
corporations where they should direct their business or who they should be designing their
products for? This argument could get rather complicated but I provide here four interrelated
reasons anthropologists are useful in marketing and the complexity gap. The first reason is the
“why” dilemma which was previoulsy alluded to. Market researchers or quantitative researchers
can count how many times people do something. You can give someone a Likert scale and ask
them on scale from one to seven how much they like something. But these methods do not
answer why those people did something or why they liked something as much or little as they
did. What are at the roots of their behavior? Anthropologists strive to answer that very question
all the time in their work and it is a question that should be equally important to market research
groups.
The second reason anthropologists (or social scientists) are so helpful in market research
is also why they are able to tackle the "why" question; they attempt to limit the effects of
assumptions by being aware of their own preexisting knowledge on a subject . For example
business anthropologists have stood out from their business research colleagues because they do
not commonly provide hypotheses to their clients. One way anthropologists have assisted in
curving problems with assumptions in market research is by assisting in the popular use of
market segmentation models. Market segments is how firms divide large target consumer groups
into smaller subsets. These segments are commonly divided by demographics including culture
and ethnicity. The problem with the market segmentation model is that firms who use it assume
that certain people fit together and act similarly but it is ethnocentric to assume that cultures or
different ethnicities are mutually exclusive. Thus market segments are primarily designed by the
preconceived biases of each marketing firm. (Herselman 2008). Market segments are a primary
tool used in market research and will not be disappearing anytime soon. Having someone within
the analysis process who would attempt at being aware of these sort of issues aid in curbing
them. Or as Herselman more strongly stated "(anthropologists' have an) obligation to expose
ethnocentrism and unethical behavior where-ever they are discerned. The anthropological
perspective to marketing is thus critical" (2008: 46).
The third reason anthropology is useful in market research is because qualitative research
is, by nature, exploratory. For example one such way anthropologists approach design research is
by doing a form of "self-critique" on their client companies. They often interview not only the
customers, but the employees and company heads to learn what is unique about their company
which can reveal their clients strengths or market niches (Madsbjerg and Rasmussen 2014,
Graffam 2010). Another reason the exploratory approach is so helpful is because it can tackle
what Madsbjerg and Rasmussen (2014) calls the "big unknowns." An example of a “big
unknown” could be when a company is doing poorly, have no clue why, and have exhausted all
other options. Another example could be if a company is trying to "understand unfamiliar social
and cultural contexts" (Madsbjerg and Rasmussen 2014: 87). These problems can appear
overwhelming, without a starting point, but the exploratory approach is specifically designed to
narrow down a problem. Anthropologists' previous work with Starbucks can be used as an
example of this. Most market researchers would ask "How can we create a premium offering in
coffee?" but an anthropologist would ask "What is a good coffee experience?" (Madsbjerg and
Rasmussen 2014). The later question tries to limit assumptions about the problem and understand
the customers from their own experiences. If a researcher was able to narrow down what
consumers’ value and enjoy the most when purchasing coffee drinks, a market research team
would then have areas in which to focus their work. The exploratory nature of qualitative
methods allow for market research groups to explore areas of consumer studies that they would
otherwise be closed off to and have the added benefit of guiding future areas of research.
Finally, and most importantly, anthropologists commonly work to humanize consumers.
For example, design researchers make a point to design for people and not market segments
(Graffam 2010). Anthropologists do this firstly by listening to the customers. In-depth interviews
can show how people perceive a brand or product. Secondly, anthropologists reveal what people
are unable to, or unwilling to, articulate by observing their behaviors. Additionally, the rapid
integration of technology into people's lives is an important reason to humanize targets in
consumer research. Technology currently has a significant place in society as people are
extremely involved with their personal tech devices. As Graffram (2010) has stated, "technology
is much more than a mere set of tools; it is a context in which things enable and constrain
individual and group behaviors." Understanding how people interact with and perceive
technology unveils information that cannot be gathered by numerical surveys. Acknowledging
that behind every service or product being purchased and used are real people and that they have
a variety of sub-contexts related to their lives helps companies obtain more realistic approaches
to reaching them. Anthropology is (by literal definition) the study of people and therefor is quite
useful in market research.
Methods: Where I Come In
My position within the company was as a contract ethnographer. This means I was only
involved in SmartRevenue’s data collection process and not any analysis. This section is an
overview of the data collection methods SmartRevenue has had me use and have been more or
less the same in every project I have worked on. However, my goal is this section is not to
explain the methods in detail but to explain my fielding process, aspects that were challenging in
practice, and what was particularly helpful to me. I do this to highlight the important difference
between preparation and practice—something in which most anthropologists have had to learn
the hard way—and also partially to protect the companies' interests. This section will cover
interviews, visual aids, and observational methods and what I particularly learned from each one
in practice.
By far the most important data collection method for the company is the interviews. The
interviews are accessed through an application that is installed on a handheld device. The device
is mailed to the ethnographer prior to fielding along with the interview incentives (to give to the
respondents). Interviews include closed-ended and open-ended questions. The closed-ended
questions are quantitative as they are either single choice, multiple choice, or Likert scale based.
Likert scale questions involve a respondent choosing an answer based on a scale. For example
"on a scale from one to seven, one being strongly disagree and seven being strongly agree, please
state how you feel about the following statement.” Open-ended questions represent the
qualitative part of the interviews. They either involve recording the participant’s response (which
is later transcribed) or an open text box that the ethnographer fills out. Interviews are the most
common form of data collection used by the field ethnographers for SmartRevenue.
The interviews can be uncomfortable for a variety of reasons. For example, each
interview was concluded with an array of demographic questions that included ethnicity and
yearly household income. However, there were two aspects of the interviews that I had some
particular difficulty with. Firstly, the simple act of approaching people can be intimidating,
especially since every refusal has to be logged. I found this concern to lesson with each project
as refusals are short and less common than one would think. I started every approach by first
keeping the incentive visible and trying to clarify as quickly as possible that the company was
trying to get input from customers on “how they could better serve their customers” or
something similar. The second discomfort I experienced was with time management. I found it
important to be aware of how long the interviews took. It is not helpful if the respondent
becomes impatient or, even worse, leaves before the interview is complete (both of which have
happened to me while fielding.) I avoided this in three ways. First, I tried to become as familiar
as I could with interview questions by doing practice rounds before fielding. Secondly, I would
shorten longer questions when reading them to the respondents (taking care to understand the
purpose of the question and interview overall before doing this). Finally, I simply tried to read
through the questions as fast as possible while remaining clear and nonabrasive. Interviews seem
to require ethnographers to figure out what works best for them and adjusting the interviews
accordingly, even though this likely skews the data.
Visual Aids are a secondary form of data collection that is used to support interview data
and observational notes. Visual aids consist of photos and hand-drawn or computer generated
maps. I failed to take full advantage of the opportunity visual aids provided in my initial project.
At first, I simply saw them as independent methods or (in other words) another job duty. Once
the initial project was complete, it became clear how visual methods are used to support the
ethnographers’ insights and create a better form of communication between the ethnographer and
project managers. For example, if a respondent points out something specific during their
interview it would be wise for an ethnographer to make a note of it and take a picture so
someone analyzing the data may have a reference point. Maps are not only helpful for the
company employees to understand the ethnographer's context but also for the ethnographer to
obtain a better understanding of their fielding sites. I have concluded that mapping seems to be
the best first course of action before beginning data collection. Even though I did not take
advantage of the communication and learning opportunities visual aids provided, I plan to keep
this in mind in the future.
Another primary form of data collection is in observational methods which are directly
related to my training in anthropology. These methods are divided between flow counting and
reports. Flow counting is an observational method that involves the observer counting how many
times people do specific actions during allotted time periods. These actions can be the simple act
of passing a certain aisle or handling products in specific sections. This method is the clearest
example of "quantitative ethnography" as the data is numerical but taken from qualitative
observational methods. Despite the method being relatively quantitative, it can also be very
inaccurate if the ethnographer is not watching very carefully, especially during periods of heavy
foot traffic. I attempted to take particular special care to make this data as accurate as possible.
As for the more qualitative observational methods, they require the ethnographer to take
fields notes on any impressions, inaccuracies, or direct observations. These notes are used to
write short daily reports but, more importantly, are for writing the concluding project reports.
Ethnographers should focus on both physical and visual interactions in their field notes to make
their reports as in-depth as possible. Writing field notes is (again) a method that I do not feel I
took full advantage of. This is regrettable because it is the method most specially related to
anthropological methods. I initially misjudged how much the company wants ethnographers to
include personal impressions. I also found myself concentrating too much on getting "enough"
interviews completed instead of properly reflecting on the interviews to create in-depth field
notes. I attempted to improve on this issue the most on my fourth project by keeping a small note
pad in my hand (as clipboards appear to be off putting to potential respondents).
Conclusion
This report did not include details such as the standing or walking for seven to twelve
hours or other similar minor difficulties but over all the work has been enjoyable, interesting, and
sometimes even surprising. More importantly, the knowledge and experience I have gathered
during my time with SmartRevenue and researching for this report will be invaluable to my
future. I have gained the unique experience of working for a virtually based company. I have also
learned about areas of business anthropology that I otherwise would not have been exposed to in
my graduate program, such as learning some major marketing approaches and terminologies.
More importantly for my future, I was able to identify anthropology's place within the market
research field in general. If I am ever faced with the question "what do you have to offer in
market research?” I have an answer; in fact I have a few. I can address my quantitative and
qualitative data collection experience, consolidation of this form of data into concise reports, and
critically analyzing my own productivity. I could assist in strategies that tackle "big unknowns"
but work to create complex understandings of the interest and behaviors of shoppers and
consumers in order to humanize them. More than anything, I believe that I have learned the
importance of the "why" question. Understanding the roots of behavior is not only important in
qualitative research but works to the direct benefit of any market research firm. Everything that I
have been trained in anthropological methodology is in assistance to answer this exact question.
In short, this internship opportunity gave me the chance to learn that the answer to my original
“why” question (why anthropologists are hired in market research) is because anthropologists
have the skills to answer “why”. Not to mention that I have been able to put this into practice by
playing a small role in helping a market research firm in answering their own “why” questions.
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