Everyone is talking about virtual reality, but very few of us are doing it, and fewer still are doing it well. Advanced Simulations has been doing variations of VR research for 25 years and has just introduced a new, more realistic and immersive version that works offline or online anywhere in the world. We will talk about what is and what is not important when using virtual reality to conduct marketing research.

1. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
VIRTUAL REALITY
THE PAST, PRESENT, AND FUTURE
IN 15 MINUTES
Dr. Stephen Needel
Advanced SimulaDons

2. What are the emerging technologies in Market Research?
Ray Poynter, The Future Place
Festival of
#NewMR 2018
NewMR 2018 Sponsors
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3. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Three Things To Know
VR designed as an
improvement to less
precise techniques
An ideal tool for shopper
research – defines the impact
of shopper markeAng and
category management
Technology enhancements
will conAnue to develop -
but not all will be useful

4. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Happy Birthday, VR
è 25th year as a markeAng research tool
è Born as a reacAon to:
→ In-store observaAon
→ Analysis of syndicated sales data
→ ReacAve and inefficient central locaAon methods
→ Controlled store tests

5. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
ObservaDon/Analysis
UPSIDES DOWNSIDES
Hypothesis generaAon Can be simplisAc – blinding flash of
the obvious
Nuggets to be found No test of whether it’s right
SomeAmes simple soluAons
è We oZen use passive measures of shopping behavior – in-store
observaAon, shop-alongs, or analysis of syndicated sales data

6. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Need BeTer Science
“There are lots of ways of
knowing the world – only one
of them is science…and a
good control group is hard to
beat.”
Bill Bean – MaTel/PepsiCo/Kra

7. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Central LocaDons
è CreaAng a mock shelf in a
central locaAon and asking
shoppers to go shopping has
never been a realisAc or cost
effecAve way to get at shopper
behavior

8. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Controlled Store Tests
è Create mulAple store panels, each receiving one level
of the test variable
→ Need 10-15 stores per panel
→ Need 3 or more purchase cycles for the category
→ Analyze with analysis of covariance

9. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Central LocaDon/Controlled Store
UPSIDES DOWNSIDES
More scienAfic Can be unrealisAc (Central)
Specific answers Expensive
Can be very realisAc (Ctrl Store) Time consuming
Inefficient (Central)
Not confidenAal (Ctrl Store)
è These are more acAve approaches to understanding shopper
behavior

10. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Birth of VR
è VR systems were built to overcome these issues –
wanted:
→ Experimental control
→ ConfidenAality
→ Much lower cost
→ Quick to run

11. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Past - Visionary Shopper (1993)
è First VR system for markeAng
research
→ CombinaAon touch-screen and
trackball
→ Cartoonish look
→ Difficulty with round or odd-
shaped objects
→ But validated well

12. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Past and Present - 4D Shopper(2003)
è Environments less cartoonish
→ Ability to create walk-arounds
→ Easier navigaAon for shopper
→ Fast and easy to execute
→ Extensively validated

13. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Today - 4D Shopper Plus (2017)
è Photo-real store environments using
Azure Knowledge’s Digiwalks system
è Able to cut-in test categories and
make them shopable
è Walk-around and shop or take them
to the shelves we are interested in

14. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Future - 4D Shopper TrueVR (?)
è Shoppers use VR headsets to move
around the store and interact with
products
è Can be done today but:
→ Can create verAgo
→ Sample limited to those who
already use VR headsets
→ Not validated

15. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Future – Eye Tracking
è We have the capability to track
eye-movements in Base and Plus
→ 3rd party merges video of
screen and eye-tracking
→ Codes viewing areas
→ SAll have the issue of whether
VR viewing is “real”
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50%
VIRTUAL STORE % FIXATING
LIVE STORE % FIXATING
% FIXATING BY BRAND (r=.71)

16. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Future – Facial Coding
è We have the capability of doing
facial coding
è QuesAon whether we should
bother when tesAng CPG/FMCG?
è Do shoppers really react much to
products and shelf sets?

17. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Future – MulDple Senses
è Auditory – can do now
è Olfactory – can do but very obtrusive
è HapAc – problemaAc for texture

18. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Future – Online Shopping
è Viable in theory, but:
→ IniAal imaging of 50,000 items expensive
→ Maintenance is doable, but a logisAcal nightmare
→ No evidence [yet] that it would be any beper (trial or retenAon)

19. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Three Things To Know
VR designed as an
improvement to less
precise techniques
An ideal tool for shopper
research – packaging,
pricing, promoAons, shelf
assortments/layouts
Technology enhancements
will conAnue to develop -
but not all will be useful

20. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Thank You!
Dr. Stephen Needel
Advanced SimulaDons
www.advancedsimulaDons.com
drsteveasl@gmail.com
+1-404-944-0248

21. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
Q & A
Dr. Stephen Needel
Advanced SimulaAons
Andrew Jeavons
Signoi

22. Virtual Reality – The Past, Present, and Future in 15 Minutes
Dr. Stephen Needel, Advanced SimulaAons
Festival of
#NewMR 2018
NewMR 2018 Sponsors
PlaAnum
Gold
Silver
CommunicaAon
Your name here?
SAll Ame to be a
2018 NewMR Sponsor