Market Research

What to Use, When, and Why

ME THODOLOGIES:

Market research is a key tool used in determining the best strategy for a new market, a new product, brand equity and many other business objectives. Virtually, all significant initiatives require some market research to provide a base line for future development and to gain a clear and measurable understanding of issues to be addressed, competition, etc. For most research projects, its best to use both qualitative and quantitative research in order to achieve the most broad and reliable outcome. Understanding the type of information that is required to meet the project objectives is the key to determining the methodologies that should be used. Gaining a better understanding of qualitative and quantitative research and the methodologies associated with each of them will help clarify which ones should be considered for a particular project.

An Overview of Qualitative Research

Qualitative research provides an in-depth look at representatives of a market and explores their thought process from problem recognition to purchasing behavior. It uncovers feelings and assesses preferences and beliefs. Qualitative research is recommended when an organization needs initial insight into a market, further detail on a subject or confirmation on a marketing direction. Focus groups, one of the most widely used methods of qualitative research, brings together ten to twelve qualified participants into a group for a discussion led by a moderator. The moderator leads the discussion and encourages everyones participation. When done correctly, a focus group discussion takes shape on its own with the respondents listening to one another, sharing their experiences and exchanging ideas. It is this dynamic discussion among participants that provides the researchers strong insights and educated hypotheses that can be further validated through quantitative research. A lower number of participants in focus groups (6-8) can stimulate dynamic group discussion, while allowing greater participation and in-depth probing into each participants thought process and behavior.

An adversarial or courtroom type group atmosphere can create an interesting dynamic with participants who have opposing viewpoints. Participants on opposing sides must defend their position about the issue being discussed. This conflict elicits more honest and detailed information from both sides and gives a more complete answer to the why question sought after in qualitative research. The challenge for the moderator is to maintain control over the group, so the conflict doesnt result in a hostile environment.

Market Research Methodologies: What to Use, When, and Why

In-depth interview approach is another form of qualitative research used when individual accounts are more meaningful than a group discussion. These interviews can take place at a participants home, place of work, in a central location, or over the phone. In-depth interviews are often used for audiences who are too busy to come to a pre-determined focus group such as business leaders (C-Suite Officers), key influencers (1st Adopters), and other highly specialized occupations (Doctors). Moderators probe into the why and get participants to delve deep into the reasons behind their beliefs and actions. These interviews are analyzed for patterns in similarities and differences among the groups of participants. It is not uncommon to devote resources to pre-research the participants for these interviews before actually conducting them, in order to ask more effective questions, eliciting the most viable results. Ethnography studies require the actual observation of behavior. If the goal of the research is to understand how a customer decides to buy a product, then the moderator needs to observe the respondent during the purchasing process. This observation technique is effective for concept testing, understanding lifestyle or work environment influences and discovering game changing solutions. When used with an interview between the moderator and respondent, the combination often gives a company insight on how a concept or potential solution will be accepted, how it will be used and how it could be improved in the future. The Future of Qualitative Research As technology continues to grow, some of the methods above (focus groups and in-depth interviews) can be done online. While the interpersonal aspect is minimized using online mediums, careful execution of qualitative online research can open geographic borders and encourage apprehensive customers to offer feedback.

An Overview of Quantitative Research

Once patterns and hypotheses have been identified through the qualitative process, the question of how much or how many is answered through a quantitative phase of a research project. Quantitative information can help a company measure not only consumer behaviors, but also determine market trends, brand awareness, customer satisfaction and pricing. When quantitative data is tracked over time, it becomes an important indicator of how markets develop and change; a key tool in determining the strategic direction or communication mix of an organization. Quantitative research is heavily dependent on the survey. Questions in the survey are carefully developed by professionals resulting in a measurable, concise measurement related to the issues or hypothesis raised in the Qualitative research effort. Skip patterns allow participants to complete only the parts of the survey that are relevant to him or her. The numerical results of these surveys are then analyzed using a variety of statistical methods. Common methods of surveying include internet surveys using online panels or targeted email distribution lists, mail surveys using targeted mailing addresses, telephone interviewing, or on-site interviewing.

Market Research Methodologies: What to Use, When, and Why

Internet surveying is used as a cost effective way to reach many participants. With so many individuals online today, even the most reclusive group of respondents can be contacted. Respondents are able to answer the survey form in privacy and in their own time frame. Professional sampling companies (research panels) or associations and publications are potential resources for reaching qualified prospective survey participants. It is important to determine and manage statistically sound quorums in order to realize reliable results. Higher quorums of completed responses are required for more sophisticated analysis or results by multiple demographic, geographic or psychographic segments. Mail surveys have similar advantages to the internet survey method and can reach prospective participants where phone numbers or opt-in email addresses are not available. When email is used, more individuals tend to opt-out or neglect to respond. Snail mail with postage paid or toll-free fax return options can break through the clutter and realize strong response. Mailing lists can be rented through similar venues mentioned for email and are more easily controlled geographically than email participation. Due to the level of respondent involvement (filling out the survey and returning it by mail), the responses are likely to be from participants who have strong feelings regarding the subject of the research.

Telephone interviewing is used mostly in the B2B world since Do Not Call lists and cell phones dominate the consumer market. If determined to be the best option for a consumer project, the fielding should be conducted through a pre-recruited panel from a sampling company in order to avoid any unnecessary penalties and abild by professional marketing research standards. When utilized, surveys are programmed into data collection systems on computers and interviewers take participants through the survey. The interviewer needs to be professionally trained to clarify questions and encourage respondents to stay on the line until the survey is complete. The interviewer must be careful not to express any bias and solicit only the respondents clear and truthful answer. On-site interviewing is similar to the methods discussed in qualitative research, except the questions asked are quantitative. Personal interaction is a key factor in doing this type of survey. Speed is an issue as well. Capturing the respondents experience recall and providing an instantaneous opinion to the interviewers questions needs to happen at a location where the participant has interacted with the product, venue or service provider. Surveys used in this type of methodology need to be kept as short as possible to obtain complete answers in a very short amount of time. This method is very useful in gathering data related to new product trials, shopping experiences, service use, or entertainment venues.

A market research professional can be very helpful in defining overall objectives, participant qualifications and making the decision between qualitative research and quantitative research or if a combination of both is required for a project. Most often, the combination of qualitative and quantitative research will best answer the what, why, when, where and how much questions and result in the most accurate and statistically sound decision support. Keep in mind, the only thing worse than lack of information is inaccurate information. When making important decisions, it is important to utilize research professionals who will not only deliver accurate information but provide valuable insights into how best to leverage the investment across multiple objectives.

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