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Enabling entrepreneurs to perform more efficient market research by exploiting social media

Written by R.R.M. Frenken

Paper category

Bachelor Thesis


Business Administration>Entrepreneurship




Bachelorarbeit: Entrepreneurial search behavior and traditional market research methods The difference between entrepreneurs and managers lies in their desire for innovation. Entrepreneurs recognize opportunities that non-entrepreneurs fail to recognize (Shane, 2003). So what makes these entrepreneurs unique? What qualities do they have that distinguish them from senior executive managers? One possible difference may lie in the "entrepreneurial search behavior" defined by Jeffrey Dyer et al. (2007). According to Dell et al. These behaviors can be genetically inherited, or they can be acquired through learning and practice. These behaviors can help entrepreneurs identify opportunities, evaluate opportunities, and develop opportunities. In order to understand how to use these behaviors in practice, this chapter also discusses traditional market research methods and attempts to associate market research methods with one or more behaviors. 2.1.1 Entrepreneurship search behavior According to Dyer et al., the ability of entrepreneurs to identify new ideas that become the basis of new businesses is supported by questioning, observation, experimentation, and idea network behavior. According to Sarasvathy et al. (2003) and Miller (2007), a triple classification of how entrepreneurs "create" opportunities can be determined; (1) Opportunity identification, where existing solutions are used to solve unrelated problems in existing markets Or demand. (2) Opportunity discovery, one of the solutions or needs has been developed or known, the other is discovered by the entrepreneur, and finally (3) Opportunity creation, in which products or services are created for unknown problems or needs. However, all these situations require a kind of interaction, a kind of behavior, which is the characteristic of entrepreneurs. Dell et al. It has been determined that these four behavior patterns are significantly related to the creation of innovative businesses. Through in-depth interviews with 73 top innovative entrepreneurs and executives, their valuable insights and comments are often used as examples. Asking questions For any manager, entrepreneur or senior management, asking questions seems to be a fairly obvious behavior. However, research by Dell et al. shows that how managers and entrepreneurs use this behavior are different. The purpose of managers asking questions is usually to improve the status quo or to understand how current processes work and how to optimize them, while entrepreneurs ask questions to challenge the generally accepted status quo. Entrepreneurs will ask why things have become the way they are now. The main principle behind this question is that this kind of behavior continues to challenge and question the status quo, and put forward discussions. Meg Whitman, the former CEO of eBay, said and cited in an article by Dell and others that “real entrepreneurs have fun from disrupting the status quo,” and “they can’t stand it. 2.1.2 Traditional market research methods As mentioned by Stevenson, Roberts and Grousback (1985), the opportunity to identify and select new business ideas is one of the key characteristics of successful entrepreneurs. Therefore, for start-ups to succeed, entrepreneurs should get a deep understanding of the "voice" of consumers. In the development of entrepreneurial opportunities, entrepreneurs hope to create new opportunities, which usually involve unmet needs or desires of consumers. Although it is sometimes argued that consumers hardly know what they really want (Ulwick, 2002), consumer research still increases the chances of success in the market (Van Kleef, van Trijp & Luning, 2005) because of understanding how your product Factors that are perceived by consumers and/or drive their needs and decision-making process. Van Van Kleef et al. (2005) defined ten research methods that help collect market information. These same methods may also allow entrepreneurs to extract information from consumers in the market, allowing them to "listen to the voice of consumers." The ten methods are: (1) Empathy Design, (2) Category Evaluation, (3) Joint Analysis, (4) Focus Group, (5) Free Lead, (6) Information Acceleration (IA), (7) Kelly Repertoire grid (8) ladder, (9) main user technology, and (10) Zaltman metaphor derivation technology (ZMET) (Van Kleef, van Trijp, and Luning, 2005). These market research methods are also associated with the entrepreneurial search behavior to which these methods belong (Dyer et al., 2007), and combine the three stages of the EOD process. In the first stage of the EOD process, entrepreneurs can passively or actively discover business opportunities or ideas. This stage is usually characterized by observing behaviors and questioning behaviors, because these behaviors provide opportunities to observe or discover consumer (hidden) needs. A new business idea (Den Engelse, 2012; Dyer et al., 2008). In the second stage, the entrepreneur tries to evaluate the idea to see if it is reasonable. For example, its view on the market and this and questioning, experimentation and ideas Internet behaviors are consistent, because these behaviors are characterized by interacting with consumers, starting discussions, generating feedback, or outsourcing the problems they face, so as to discover whether ideas need further adjustment and how to be perceived (Dyer et al., 2008; Dyer et al. , 2011; Sarasvathy, 2001), the third and final stage is to execute typical ideas. ly consider the start and further development of the business, and be consistent with the experimental behavior, because the experiment allows entrepreneurs to generate ideas about aspects or ideas Feedback, such as how people use the product. For example, this can lead to better market positioning (Saravthy, 2001). Read Less