What Drives Satisfaction in the Life Science Market?
Biological scientists expressed a high degree of satisfaction with the technologies and suppliers who support their research. These same scientists tend to perceive their primary suppliers to be “reliable” and “stable” according to a recent survey of more than 2,000 biotechnology researchers.
(PRWEB) February 5, 2003
ARLINGTON, VA – February 5, 2003 – Biological scientists expressed a high degree of satisfaction with the technologies and suppliers who support their research. These same scientists tend to perceive their primary suppliers to be “reliable” and “stable” according to a recent survey of more than 2,000 biotechnology researchers. While these results will please the market’s top vendors, they also carry a warning against complacency. “Scientific customers are generally satisfied because they tend to stick with products that have worked well for them in the past, and this makes it harder for smaller companies to gain market share,” says Robin Rothrock, PhD, Director of Market Research at BioInformatics, LLC. “But this strong brand loyalty has a flipside — even a perceived drop in product quality or service can have a very negative impact on levels of satisfaction and scientists have long memories when the success of their research may be at stake.”
These conclusions were drawn from a new report, “Brand Awareness in the Life Science Market,” published recently by BioInformatics, LLC (Arlington, VA). The report is designed to help life science suppliers understand the role that various qualities play in a scientist’s decision to choose one suppler over another in ten separate market segments. For each segment analyzed, the scientific respondents rated the importance of eighteen product and supplier attributes in their purchase decision. They also answered questions regarding their areas of research, the frequency with which they use certain laboratory products, their primary suppliers and overall levels of satisfaction.
To sort through this enormous volume of data, quadrant analysis was used to visually show how various attributes affect a scientist’s overall level of satisfaction with the brands and suppliers available in each market segment. These attributes were correlated with satisfaction because satisfaction plays such an important role in building brand loyalty. “By understanding which product and supplier attributes have the greatest impact on levels of satisfaction, clients can determine which combination of attributes and customer perceptions will contribute directly to their success,” says Rothrock. “Given the great similarities among many life science products, most scientists aren’t deciding between products, they’re deciding who to buy from. Creating satisfied customers builds brand loyalty, and loyalty is what drives market share and profitability.”
Suppliers should emphasize those strengths that are most important in a scientist’s decision to choose one supplier over another, as well as attributes that may play a role in ensuring customer satisfaction and retention. For example, the quadrant map for the market for molecular biology kits and reagents shows that while “fast response or problem resolution,” “product availability” and “reasonable prices” are attributes that are important to customers, they have less of an impact on a scientist’s level of satisfaction than other qualities such as “excellent technical references/protocols” and “on-time delivery.”
Results show that of the top suppliers across all market segments, Pierce Biotechnology (OMX:PBIO), Qiagen (NASDAQ:QGENF), Promega, Bio-Rad (AMEX:BIO) and BD Biosciences Clontech (NYSE:BDX) enjoy exceptionally satisfied customers. Other companies with relatively strong showings included Waters (NYSE:WAT), Amersham Biosciences (NYSE:AHM) and Invitrogen (NASDAQ 100:IVGN). The leading suppliers in each of the ten market segments were also analyzed in terms of their corporate “personalities.” This knowledge helps companies understand those personality traits that help drive satisfaction and create marketing programs to reinforce positive images and address perceived weaknesses.
Key driver analysis was also used in the report to understand which attributes increase or diminish the importance of a brand or a specific supplier in a scientist’s thought process if all other considerations were equal. In the cell biology kits and reagents market, “state-of-the-art technology” has the greatest positive impact driving the importance of brand, while “convenient size and/or packaging” and “compatibility with other products” also play a role. By isolating and quantifying the elements that drive the importance of a brand or a specific supplier, the report is designed to help companies implement an aggressive brand strategy that reflects the values scientists most desire.
The ability to command premium prices, sustain market share and increase shareholder value are all signs of a strong, healthy brand. To achieve them all simultaneously, suppliers need to understand the “ingredients” that make up both the image and strength of the brand. “Within most companies, managers have a sense of how they are perceived, but few have the genuinely objective view that is contained in this report. This snapshot of the market’s perception will show companies where they are now relative to competitors and where improvements are needed to align themselves with what customers deem most valuable,” says Rothrock.
For a complimentary Executive Summary of this report, please visit http://www. gene2drug. com/reports (http://www. gene2drug. com/reports)
ABOUT BIOINFORMATICS, LLC
BioInformatics, LLC is a market research firm located in Arlington, Virginia. BioInformatics supports marketing, sales and R&D executives in the life science, medical device and pharmaceutical industries through published research reports, custom research and consulting. BioInformatics sponsors the world’s largest market research panel of scientific customers — The Science Advisory Board (http://www. scienceboard. net (http://www. scienceboard. net)) — which consists of more than 14,000 scientists, physicians and other life science and medical professionals from 62 countries who participate in surveys that address emerging technologies, test customer reactions to new product concepts, measure brand awareness and assess advertising effectiveness.
For more information, please contact:
Alyssa Martin
BioInformatics, LLC
2111 Wilson Blvd., Suite 1200
Arlington, VA 22201
703.525.3872 x358 (phone)
703.522.3685 (fax)
A. martin@gene2drug. com
Http://www. gene2drug. com/ (http://www. gene2drug. com/)
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