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Henry Ford on Market Research

 

Henry FordIt's practically a Godwin's Law of market research: "As a discussion of new product development grows longer, the probability of a citation of Henry Ford approaches 1."

You know the quotes:

  • "If I asked my customers what they want, they simply would have said a faster horse."
  • "People can have the Model T in any color--so long as it's black."

Ford is making the point that customers don't know what they want and can't articulate their needs. He was also in favor of constraining choices in order to reduce manufacturing costs. As Sheryl Connelly pointed out in her AMA MRC presentation "Envisioning the Future at Ford", every Model T was black not from any consumer preference but simply because black was the fastest drying paint.

Well, to quote Ford again, "History is more or less bunk."

The horse, as noble and beautiful an animal as it is, makes for pretty impractical transportation. Speed was probably not one of the major concerns of horse owners.  Imagine interviewing those owners about what they wanted. Those who weren't farmers owned a horse as transportation. They had to feed it, groom it, exercise it and--yikes--muck out the stable, even on days they weren't going anywhere. If Henry Ford had asked me, I would have said I wanted a horse that didn't eat and excrete.

Michele Harris of Applied Marketing Science put it well:

The bottom line is that customers usually aren't very good at describing solutions. But when properly asked, they're very good at describing their needs - what they like, what they don't like, what makes their lives hard or easy, what they wish for, and what they're trying to get done. And after all, it's not the customer's job to come up with the solution - that's the developer's job! Their job is just to articulate their needs.

Our job as market researchers is to thoroughly identify sources of dissatisfaction with current products and services. Sometimes we can identify solutions to those issues, but the majority of times the research and development arm of our companies and our clients will need to use those items of dissatisfaction as a source of inspiration. Working together with market research, R&D can uncover the next automobile industry or smart-phone industry. They can invent the "faster horse".

For some additional quotes and commentary that segue from our modern Henry Ford (Steve Jobs) to Ford himself, see Apple Does No Market Research So You Don't Have To Either.

Comments

Great blog, Jeffrey! Very well put re: how much we can really expect from the customer vs. needing to connect the dots/create based on their needs/wants/described gaps...and then do more research to get their reactions to what has been created...what do they like/not like/not understand, etc...so simple!
Posted @ Tuesday, February 02, 2010 8:42 AM by Jen Berkley
Very nice comments on how reality interferes with best plans. If only customers could really tell us what they want, how they want it, and why they want it.
Posted @ Tuesday, February 02, 2010 10:50 AM by Robert Frolick
The point of quoting Henry Ford is not to downplay the importance of talking to customers to understand their needs. The point is that conversations with customers have to be facilitated properly to gain useful information. 
 
 
 
The vast majority of people who owned horses probably did face the grooming, feeding, exercise, and cleanliness problems you describe, but it doesn't mean they would have thought to mention those problems if the interview simply asked, "What do you want in a transportation product?" 
 
 
 
Furthermore, what people say they want isn't always what they in fact do want. 
 
 
 
Henry Ford's quotes are a reminder that "talking to customers" is a very naive first step towards understanding a market and shaping a product. Product management skills (facilitation skills, in particular) are essential.
Posted @ Tuesday, February 02, 2010 3:50 PM by Roger L. Cauvin
Thanks for commenting, Roger, but I couldn't disagree more. 
 
 
 
I've heard plenty of people using Henry Ford to dismiss research all together. Steve Jobs said you can't even ask customers -- it's your job to figure out what you would want as the consumer. 
 
 
 
Second, I think customer research is an essential first step, not a "naive" first step. You need to know when to gather research, when to ignore it, and when to seek more research.  
 
 
 
You are right that product management skills are essential -- your post on the Pragmatic Marketing Framework provides a useful overview.
Posted @ Wednesday, February 03, 2010 9:03 AM by Jeffrey Henning
We agree that Henry Ford's quotes shouldn't be used to dismiss market research altogther. They are valuable because they remind us it doesn't suffice to merely to say, "I talked to customers, and they said . . . ." We have to facilitate our conversations with customers for the research to yield actionable and reliable information.
Posted @ Wednesday, February 03, 2010 9:43 AM by Roger L. Cauvin
I agree with Michele Harris that a primary prupose of listening to the voice of the customer is to understand his/her wants and needs. The key to doing this successfully is to talk (question and answer) in the area where they ar most comfortable, that is, the benefits they are seeking in a product of service. This is a two step (question) process: "What do you want?" followed by: "And why do you want that? (Or, "Why is that important to you?" Often, the answwer to the second question is more helpful in understanding the customer than the answer to the first question.  
 
The answers to the two questions provide the research sponsor some lattitude in responding to the customer. I may not be able to give you exactly what you ask for, but I might come up with an alternative that provides mnore of the benefit you are seeking. If I can do that, I am in a position to outperform competition.
Posted @ Monday, April 05, 2010 10:27 AM by Robert Burian
I think Henry Ford meant that people are good at framing their requirements in terms of their current experience and based on using the current solution. Helping customers to imagine outside of this frame of reference is not going to be easy. When truly new solutions come to the market they often help shift the frame of reference and stimulate new needs. I bet Henry would have been surprised by a requirement for a horse with leather trim... Current customer requirements are vital but they don’t tell the whole story and there should be room for product vision.
Posted @ Wednesday, June 16, 2010 11:47 AM by Eric Worrall
In user research, it is possible to find a user with insight who suggests a useful next step, or who identifies a subtle problem. But the questions have to be structured to invite thoughtful responses, and convey the confidence that the responses will be used. Otherwise you will never see the idea that might have saved the product. Pay attention. Respect your users, or don't bother to ask them.
Posted @ Wednesday, November 24, 2010 7:55 AM by John Carpenter
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