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how market structure works
  Consumer Usage and
Purchase Behavior
Defines a Market
  NuVista’s Market Structure studies go well beyond traditional research in gaining a deep understanding of markets because our methodology is based on consumer’s actual usage and purchase behavior.

Traditional market research focuses on one of two approaches to research. The first approach models purchase behavior of consumers using retail sales data. Products are organized into categories and analyzed based on the way they are traditionally arranged in the grocery store, drug store or mass merchandiser. Consumers shop for crackers or cereals or soft drinks. Marketers measure their market shares as defined in these categories and set marketing strategies within this “category purchase structure”. The structure is based on the hypotheses generated by the team.

The other popular approach is Attitude and Usage research that asks consumers to report their usage and attitudes about the products that are being researched. However, this research only captures stated (not actual) behavior.
  Both of these approaches have limited value in their output. This is because purchase behavior and reported usage fail to accurately capture the actual usage behavior by consumers. Products or manufacturers don’t form markets, consumers do—based on their interaction and usage patterns with the products they purchase.
  For example, rather than thinking, “I’m hungry for a cracker,” consumers think about products in terms of their utility. They think, “I need something to satisfy this craving I have for a food that is savory, and that I can grab and take with me in the car.” That need could be met with any number of products from different traditional categories in the store - crackers or chips or nuts or a Hot Pocket. These products are all competing for that same domain that is defined, quantitatively, through a NuVista Market Structure study.
  To have a clear picture of the products in the market, marketers need to get a true understanding of how consumers use products in their daily activities. The NuVista Market Structure approach statistically identifies groupings of products called usage domains—clusters of products that simultaneously address specific needs of consumers. Once the optimal domains are understood, marketers are able to make better strategic decisions to grow the business.
>   More on how to use Market Structure
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