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Does Apple Use Market Research?: Industry Strategists Weigh In

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<strong>Does</strong> <strong>Apple</strong> <strong>Use</strong> <strong>Market</strong> <strong>Research</strong>?: <strong><strong>In</strong>dustry</strong> <strong>Strategists</strong><br />

<strong>Weigh</strong> <strong>In</strong><br />

By Mary M. Flory<br />

Chalk it up to semantics, bravado or just a plain difference in opinion, priorities or strategy, but<br />

there is no misconstruing <strong>Apple</strong> executive Phil Schiller's statement during the recent <strong>Apple</strong> v.<br />

Samsung patent-infringement court proceedings:<br />

"We don't use customer surveys, focus groups, or typical things of that nature. That plays no role<br />

in the creation of [our] products," he said, as originally reported by CNET.<br />

Schiller, <strong>Apple</strong>'s senior vice president of worldwide marketing, spoke briefly, yet candidly, about<br />

the company's approach to using market research, or rather, not using it. Historically, <strong>Apple</strong><br />

representatives, including the late Steve Jobs, have spoken of how the company does not rely on<br />

market research in product development.<br />

“We never go and ask the customer 'what features do you want in the next product?' It's not the<br />

customer's job to know. We accumulate that ourselves," Schiller said, according to CNET.<br />

“[Steve] Jobs always quoted Henry Ford: ‘If I would have asked my customers what they<br />

wanted, they would have said a faster horse,’” points out John LaRocca, the vice president of<br />

strategic partnerships at Cincinnati-headquartered dunnhumbyUSA, which ranked 15 th on the<br />

AMA’s annual Honomichl Top 50 list of market research firms.<br />

It’s true that <strong>Apple</strong> does not conduct traditional consumer research, he concedes. “But, what I<br />

think [Schiller] means is that they just don’t focus on attitude and usage surveys. They are doing<br />

what the industry calls ethnography, meaning that through their <strong>Apple</strong> stores they watch how<br />

people use their devices and see how they interact. I’ve read a few articles on <strong>Apple</strong>, and I think<br />

that it just boils down to [the fact that] they’re creating game-changing innovation. How do you<br />

describe the next big thing?,” he asks.<br />

Mark Schulman, the president of Cambridge, Mass.-headquartered Abt SRBI, which ranked 14 th<br />

in this year’s Honomichl list, adds, “<strong>Market</strong> research is not particularly adept at measuring new<br />

concepts. It’s good at brand extension. It’s good at customer service. However, there are kinds of<br />

insights that market research, polling and focus groups can’t deliver.<br />

<strong>Market</strong>ing <strong>Research</strong>ers 1 August 2012


“Technology develops through a very collective process,” he says “A lot of people, a lot of<br />

software developers, a lot of very intelligent users, etc., pushing the envelope … thus pushing the<br />

technology forward. And again, this is not something that can be accomplished in a focus group.<br />

If we’re talking about more traditional products, rather than new product concepts, market<br />

research is very effective. <strong>In</strong> terms of new product development, <strong>Apple</strong> has always prided itself,<br />

as far as I know, on developing through insight, not through polls.”<br />

David Fish, senior vice president of marketing and product development at Fenton, Mo.-based<br />

Maritz <strong>Research</strong>, which came in the No. 12 spot on this year’s Honomichl list, says, “A lot of<br />

people don’t regard customer experience research as marketing research; they think of it as<br />

customer satisfaction or customer experience.” He suggests that Schiller could be focusing more<br />

on the product development activity and less on customer experience and satisfaction.<br />

“I don’t think the market research industry is in jeopardy of becoming irrelevant, but I do think<br />

that different companies put a different emphasis on using it. Some just don’t, some use very<br />

little and some use quite a bit. I think there’s always a need to show the efficacy of research<br />

because it is such a distill influencer of product outcome.”<br />

Mary M. Flory is the AMA’s Managing Editor of Magazines and e-Newsletters. Be sure to continue this<br />

conversation about the role of marketing research in product development in the <strong>Market</strong>ing <strong>Research</strong><br />

Group in AMAConnect, the AMA’s new online community. You can also follow us on Twitter at<br />

twitter.com/marketing_power and our marketing research list @marketing_power/resrch.<br />

<strong>Market</strong>ing <strong>Research</strong>ers 2 August 2012

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