Market Research and Analysis E-Book

Mercury Learning and Information

• Herausgeber: Packt Publishing
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 401

Veröffentlichungsjahr: 2024

Beschreibung

This book offers an in-depth exploration of market research and analysis, guiding readers through the entire process from defining research objectives to communicating results. Begin by understanding the purpose and ethics of market research, laying a strong groundwork for your studies. Progress to defining precise research objectives and exploring secondary research methods to gather existing information.

Next, engage with primary research methods, focusing on both quantitative and qualitative approaches. Learn how to develop and distribute surveys, choose the right sampling techniques, and utilize tools for data mining and web scraping. Gain insights into focus groups and observation studies, understanding how these qualitative methods can provide depth to your research.

Finally, master the art of data analysis and result communication. Explore descriptive statistics, hypothesis testing, and inferential statistics to make sense of your data. Learn to effectively present your findings to stakeholders, ensuring your research translates into actionable insights. By the end of the course, you will be well-equipped to conduct thorough market research and communicate your results effectively.

Leseprobe

MARKET RESEARCHAND ANALYSIS

LICENSE, DISCLAIMER OF LIABILITY, AND LIMITED WARRANTY

By purchasing or using this book and companion files (the “Work”), you agree that this license grants permission to use the contents contained herein, including the disc, but does not give you the right of ownership to any of the textual content in the book / disc or ownership to any of the information or products contained in it. This license does not permit uploading of theWork onto the Internet or on a network (of any kind) without the written consent of the Publisher. Duplication or dissemination of any text, code, simulations, images, etc. contained herein is limited to and subject to licensing terms for the respective products, and permission must be obtained from the Publisher or the owner of the content, etc., in order to reproduce or network any portion of the textual material (in any media) that is contained in the Work.

MERCURY LEARNINGAND INFORMATION (“MLI” or “the Publisher”) and anyone involved in the creation, writing, or production of the companion disc, accompanying algorithms, code, or computer programs (“the software”), and any accompanying Web site or software of the Work, cannot and do not warrant the performance or results that might be obtained by using the contents of the Work. The author, developers, and the Publisher have used their best efforts to ensure the accuracy and functionality of the textual material and/or programs contained in this package; we, however, make no warranty of any kind, express or implied, regarding the performance of these contents or programs. The Work is sold “as is” without warranty (except for defective materials used in manufacturing the book or due to faulty workmanship).

The author, developers, and the publisher of any accompanying content, and anyone involved in the composition, production, and manufacturing of this work will not be liable for damages of any kind arising out of the use of (or the inability to use) the algorithms, source code, computer programs, or textual material contained in this publication. This includes, but is not limited to, loss of revenue or profit, or other incidental, physical, or consequential damages arising out of the use of this Work.

The sole remedy in the event of a claim of any kind is expressly limited to replacement of the book and/or disc, and only at the discretion of the Publisher. The use of “implied warranty” and certain “exclusions” vary from state to state, and might not apply to the purchaser of this product.

Companion files for this title are available by writing to the publisher at [e-mail].

MARKET RESEARCHAND ANALYSIS

Methods, Design, and Data

MARCUS GONCALVES, PH.D.

BOSTON UNIVERSITY

MERCURY LEARNINGAND INFORMATION

Boston, Massachusetts

Copyright © 2024 byMercury Learning and Information.

An Imprint of DeGruyter Inc. All rights reserved.

This publication, portions of it, or any accompanying software may not be reproduced in any way, stored in a retrieval system of any type, or transmitted by any means, media, electronic display or mechanical display, including, but not limited to, photocopy, recording, Internet postings, or scanning, without prior permission in writing from the publisher.

Publisher: David Pallai

Mercury Learningand Information

121 High Street, 3rd Floor

Boston, MA 02110

[e-mail]

www.merclearning.com

800-232-0223

M. Goncalves.Market Research and Analysis: Methods, Design, and Data.

ISBN: 978-1-501522-888

The publisher recognizes and respects all marks used by companies, manufacturers, and developers as a means to distinguish their products. All brand names and product names mentioned in this book are trademarks or service marks of their respective companies. Any omission or misuse (of any kind) of service marks or trademarks, etc. is not an attempt to infringe on the property of others.

Library of Congress Control Number: 2024936380

242526321 This book is printed on acid-free paper in the United States of America.

Our titles are available for adoption, license, or bulk purchase by institutions, corporations, etc. For additional information, please contact the Customer Service Dept. at 800-232-0223(toll free).

All of our titles are available in digital format at academiccourseware.com and other digital vendors.Companion files for this title are available with proof of purchase by [e-mail]. The sole obligation ofMercury Learning and Information to the purchaser is to replace the files, based on defective materials or faulty workmanship, but not based on the operation or functionality of the product.

Dedicated to my family, pillars of my strength and inspiration: my wife for her unwavering support; my son Samir for inspiring me daily; Betsy, my daughter-in-law; and my granddaughter “Olivinha.” To Andrea and Joshua, who now dance among the stars in Heaven. To God be the glory!

Contents

Preface

Chapter 1: The Purpose of Market Research

Overview

The Importance of Market Research

The Basic Components of Market Research

When to Conduct Market Research

The Research Team Structure

The Four Basic Concepts of Market Research

Discussion Questions

Recommended Readings

Chapter 2: Market Research Ethics

Overview

The Moral Principles of Market Research Ethics

Clearly Stating Goals and Objectives

Ethical Considerations Regarding the Participants

Ensuring the Anonymity of Responses

Fair Trade and Incentives

Be Aware and Avoid Frugging

Informed Consent and the Right to Refuse

Stereotyping and Bias in Market Research

The Ethics of Web Scraping, Big Data, and Thick Data

Advantages of Using Big Data and Thick Data

Disadvantages of Using Big Data and Thick Data

Ethical Considerations of AI in Market Research

Alexa, Siri, and Other Smart Speakers’ Ethical Concerns

Neuromarketing Data Collection Strategies

Discussion Questions

Recommended Readings

Chapter 3: Defining the Research Objective

Overview

Developing Solid Research Objectives and Supporting Research Questions

Defining a Management Decision Problem and Developing a Market Research Problem

Research Objectives

Research Questions

Differences between Exploratory, Descriptive, and Causal Research

Exploratory Research

Descriptive Research

Causal or Explanatory Research

Defining the Most Appropriate Research Method

Ascribing Appropriate Research Methodologies to Research Requirements

Qualitative Research Methods

Quantitative Research Methods

The Purpose of Each Component within the Research Design and Proposal

Considerations Regarding the Priorities and Practicalities

Determination of the Kind of Data Required

Deciding How Data Will Be Collected

Deciding How the Data Will Be Analyzed

Writing the Research Proposal

Discussion Questions

Recommended Readings

Chapter 4: Secondary Research Methods

Overview

The Differences Between Internal and External Secondary Research

Advantages and Limitations of Secondary Research

Exploring the Advantages and Limitations

Advantages

Disadvantages

Gathering Secondary Data from Credible Sources

Developing a Secondary Research Report with Proper Components

The Purpose of Environmental Scanning

The Importance of Environmental Scanning

Environmental Scanning Examples

A Successful Example: PepsiCo

An Unsuccessful Example: Borders

The Value of Geodemographic Segmentation Tools

Discussion Questions

Recommended Readings

Chapter 5: Quantitative Primary Research: Surveys, Data Mining, and Web Scraping

Overview

Primary Quantitative Research Methodologies

Quantitative Research Methods

Survey Research

Correlational Research

Causal-Comparative Research

Experimental Research

Using Surveys, Data Mining, and Web Scraping Techniques

The Use of Surveys

Data Mining Techniques

Web Scraping Techniques

Web Scraping Tools

Ethics in Web Scraping

Techniques and Application Tools for Gathering Data

Data Mining Tools

Developing Summary Reports

Discussion Questions

Recommended Readings

Chapter 6: Qualitative Primary Research: Surveys, Focus Groups, and Observation Studies

Overview

The Merits of Qualitative Research

Main Qualitative Research Methods

Developing a Qualitative Report Summary

Qualitative Research Summary Report-Writing Best Practices

Discussion Questions

Recommended Readings

Chapter 7: Survey Development

Overview

Components of Common Types of Market Research Surveys

Being Aware of the Methodological Challenges of a Survey

Preparing the Survey

Instrumentation and Implementation of the Survey

Post-Survey Analysis and Recommendations

Methodological and Content Validation

Manipulation and Tabulation of Data

Data Analysis

Interpreting Results and Writing a Discussion Section

Best Practices When Developing Surveys

Discussion Questions

Recommended Readings

Chapter 8: Sampling Techniques

Overview

Census versus Sampling

Census

Sample

Deciding Between a Census or a Sample

Determining Sample Size

Understanding the Confidence Interval

Considerations in Determining a Sample Size

Calculating the Sample Size

Cochran’s Sample Size Formula

Slovin’s Formula

Sample Size Calculators

Probability and Non-Probability Sampling Techniques

Probability and Non-Probability Sampling Techniques in Statistics

Probability Sampling Techniques

Simple Random

Stratified

Systematic

Cluster

Multistage

Non-Probability Sampling Techniques

Convenience

Judgment or Purposive

Quota

Snowball

Discussion Questions

Recommended Readings

Chapter 9: Survey Distribution

Overview

Distribution Method Overview

Email and Newsletters

SMS

Web Intercept

Snail Mail

Telephone Interviews

The Art of Invitation

Response Rate

Online Survey Software

Avoiding Survey Implementation Biases

Survey Ethics

Discussion Questions

Recommended Readings

Chapter 10: Data Analytics Tools and Descriptive Statistics

Overview

Data Preparation

Editing Raw Data

Data Tabulation

Weighting Data

Data Analysis Tools

Descriptive Statistics

Understanding Measures of Central Tendency

Mean

Median

Mode

Quartiles

Outliers

Percentages

Top-box Scores

Cross Tabulations

Measures of Dispersion or Spread

Normal Distribution/Bell Curve

Range

Standard Deviation

Variance

Discussion Questions

Recommended Readings

Chapter 11: Data Analysis — Hypothesis Testing

Overview

The Process of Testing a Theory

Hypothesis Testing

Gathering Data

Hypothesis Statements

Null and Alternative Hypotheses

Independent and Dependent Variables

Selecting Test Statistics

Calculating Test Statistics

Statistical Decision

Discussion Questions

Recommended Readings

Chapter 12: Data Analysis: Inferential Statistics

Overview

The Purpose of Inferential Statistics

The Purpose of Correlation Analysis

Determining Correct Inferential Statistical Tests

Online Statistic Calculators

Discussion Questions

Recommended Readings

Chapter 13: Communicating Results: Reporting Tools and Data Visualization

Overview

Communicating Research Results

The Target Audience

Technical Reports

General Reports

The Content of a Market Report

Choosing Appropriate Reporting Tools for Specific Research Projects

Data Visualization Techniques

Infographics Software

Using Word Clouds

Interactive Infographics Online Tools

Representing Data Correctly through Proper Modes of Visualization

Mean Scores

Percentages

Trending Data Over Time

Area Graphs

Bubble Charts

Candlestick Charts

Gantt Charts

Heatmaps

Histograms

Line Graphs

Nightingale Rose Charts

Open-High-Low-Close Charts

Spiral Plots

Stacked Area Graphs

Stream Graphs

Discussion Questions

Recommended Readings

Appendix: Answers to Odd-Numbered Questions

INDEX

Preface

This book explores market research in depth, emphasizing its critical role in strategic business decision-making. It navigates through the multifaceted aspects of market research, from foundational methodologies to ethical considerations and the evolving landscape shaped by digital advancements and artificial intelligence.

Chapter 1: The Purpose of Market Research

Introduces market research, highlighting its importance in understanding markets, customers, and competitors. It covers fundamental concepts of when to conduct research and the structure of research teams, offering insights into making informed business decisions.

Chapter 2: Market Research Ethics

Focuses on the ethical aspects of market research, stressing the importance of integrity, informed consent, and protecting participants’ privacy. It examines the principles guiding researchers to conduct studies responsibly and ethically.

Chapter 3: Defining the Research Objective

Emphasizes crafting precise research objectives and aligning them with coherent research questions. It illustrates how clear objectives shape the research’s direction and ensure the inquiry remains focused and relevant. The chapter outlines transitioning from a broad management decision problem (MDP) to a finely tuned market research problem (MRP), enabling researchers to design their studies to yield actionable insights. The chapter discusses different types of research, such as exploratory, descriptive, and causal, and offers guidance on selecting the most fitting methodology for the research at hand. It also discusses the elements of research design and crafting a research proposal, reinforcing the necessity of SMART objectives in successful market research endeavors.

Chapter 4: Secondary Research Methods

Focuses on secondary research, outlining its importance in the market research framework. It distinguishes between primary and secondary research, emphasizing the latter’s role in providing a contextual backdrop for more targeted primary studies. The chapter guides readers through various secondary data sources, such as academic publications, industry reports, and government statistics, and discusses how to evaluate their credibility and relevance. It also explores the integration of secondary data in formulating research questions and hypotheses, illustrating its value in enhancing the depth and breadth of market insights.

Chapter 5: Quantitative Primary Research: Surveys, Data Mining, and Web Scraping

Explores quantitative primary research, highlighting its significance in obtaining measurable data and statistical analysis. It underscores the precision that surveys, data mining, and Web scraping bring to research, allowing for collecting large volumes of numerical data. The chapter explores the process of designing surveys, the techniques for extracting patterns from big datasets, and the methods for gleaning information from the Web. It offers insights into the best practices for crafting survey questions, ensuring sample representativeness, and maintaining the integrity of Web-sourced data. Furthermore, the chapter addresses the analytical techniques used to convert raw data into valuable business insights, emphasizing the role of quantitative research in strategic decision-making.

Chapter 6: Qualitative Primary Research

Explores qualitative primary research methods, emphasizing their exploratory nature and strength in understanding the why behind consumer behaviors. It covers various qualitative techniques like focus groups, observation studies, and in-depth interviews, discussing how each method can uncover deep insights into consumer attitudes, motivations, and experiences. The chapter also discusses the challenges and advantages of qualitative research, including the rich, detailed data it can generate and the interpretative skills required to analyze this data effectively.

Chapter 7: Survey Research Design

Provides an in-depth exploration of survey research design, emphasizing its critical role in gathering primary data efficiently. It covers the essentials of crafting practical survey questions, selecting appropriate sampling methods, and the importance of pre-testing surveys to ensure clarity and reliability. The discussion extends to the analysis of survey data, highlighting how to interpret and present findings in a meaningful and actionable way for decision-making. The chapter also addresses common pitfalls in survey research, offering strategies to enhance response rates and ensure data quality.

Chapter 8: Sampling Techniques

Introduces readers to the intricacies of sampling techniques in market research, explaining the crucial distinction between conducting a census and drawing a sample, how to calculate the appropriate sample size, and the various sampling methods available to researchers. It emphasizes the importance of selecting the right sampling strategy to avoid biases and achieve representativeness, guiding readers through creating a sampling plan. The content is designed to help researchers understand the complexities of sampling and how to apply these methods to generate reliable, actionable data for their studies.

Chapter 9: Survey Distribution

Educates readers on effectively disseminating surveys to gather data, discussing the strengths and limitations of various distribution methods. It highlights the importance of crafting compelling invitations and reminders, calculating response rates to ensure statistical significance, and choosing the right software for online surveys. The chapter also addresses potential biases in survey implementation and the adherence to research ethics standards.

Chapter 10: Data Analytics Tools, and Descriptive Statistics

Discusses transforming raw data into actionable insights using descriptive statistics and data analysis tools. It emphasizes the role of descriptive statistics in summarizing findings. It introduces readers to various types of data analysis software that streamline the calculation of descriptive and inferential statistics, making data visualization and interpretation more accessible and providing a foundation for understanding the tools and methods necessary for accurate data analysis in market research.

Chapter 11: Data Analysis – Hypothesis Testing

Deals with the crucial aspect of testing theories in market research. The chapter aims to elucidate the process of developing and scrutinizing hypotheses vital for validating business theories and decisions. It describes hypothesis testing as a systematic process involving data gathering, formulation of hypotheses, selection and calculation of test statistics, and making decisions based on statistical evidence. This process allows researchers to assess if the results from a sample can be generalized to the entire population, thereby influencing business strategy and potentially confirming the efficacy of marketing tactics or product features.

Chapter 12: Data Analysis: Inferential Statistics

Explores inferential statistics, which is crucial for extending conclusions from sample data to broader populations. It distinguishes itself from descriptive statistics by focusing on predictions and generalizations. The text explains how to use statistical tests to validate hypotheses and interpret results, emphasizing the correct selection of tests based on the data and research objectives. It underscores the importance of inferential statistics in deriving actionable insights from data, aiding in strategic business decisions, and adequate market analysis.

Chapter 13: Communicating Results: Reporting Tools and Data Visualization

Emphasizes effectively communicating research findings through structured reports and data visualization. It advises tailoring the presentation to the audience, using appropriate reporting tools, and enhancing reports with visualizations like infographics and software tools. The chapter stresses creating narratives that make data understandable and actionable, highlighting the use of various formats to illustrate research outcomes clearly. The focus is on delivering informative and engaging insights, facilitating informed decision-making and strategic planning.

By reading this book, readers will gain comprehensive insights into market research methodologies, encompassing the entire research process from designing the study to analyzing data and communicating results effectively. The chapters are designed to equip readers with the necessary tools and knowledge to conduct robust market research, analyze their findings accurately, and present their conclusions to inform strategic decision-making. Through a blend of theoretical understanding and practical application, the book aims to enhance the reader’s ability to implement effective research strategies, ensuring they can derive meaningful insights that drive business success.

M. Goncalves May 2024

Acknowledgments

In the journey of bringing this book from a mere concept to fruition, there have been numerous individuals whose support and guidance have been nothing short of instrumental. A few shine exceptionally bright, guiding the path with their expertise, patience, and unwavering support.

Foremost, I extend my heartfelt gratitude to Steven Elliot, Acquisition Editor at Mercury Learning and Information. His belief in my abilities and the potential of this work has been the cornerstone of this project. Entrusting me with another title under his stewardship was an honor and a testament to his faith in his authors. His support throughout this process, from the initial concept to the final manuscript, has been exceptional. His insights, patience, and constructive feedback have been invaluable, making the journey not just possible but a truly enriching experience.

I also express my profound thanks to Jennifer Blaney, Ewa Zurawska-Seta, and the production team for their indispensable roles in developing this manuscript into the final book. Their meticulous attention to detail and unwavering dedication have ensured that this journey from manuscript to publication was smooth and devoid of obstacles. Their expertise and guidance in shaping the manuscript and format, ensuring its coherence and aesthetic appeal, have been crucial. Together, their combined efforts have significantly contributed to this book’s quality and, hopefully, success.

The journey of writing a book is an intricate tapestry woven from the threads of many, each lending its unique strength and hue to the overall picture. Yet, amidst the whirlwind of professional guidance and collaboration, my wife’s quiet support and patience have been the steadfast foundation upon which this endeavor was built. Her unwavering belief in my efforts, her understanding during the countless hours spent in seclusion, and her encouragement in moments of doubt have been as vital to this book’s creation as any editorial insight or expertise. Her role might have been behind the scenes, but it was critical in making this journey possible and deeply fulfilling. I am profoundly grateful for her endless patience, boundless support, and the love that lights my path. Having such a dedicated partner by my side is a privilege that fills me with gratitude daily.

CHAPTER    1

The Purpose of Market Research

Objectives

●Describe why it is essential to conduct market research.

●Understand the essential components of market research.

●Understand when market research should be conducted.

●Understand how research teams function within an organization, as well as externally.

●Describe the basics of the four market research concepts, which include primary, secondary, quantitative, and qualitative.

Overview

Figure 1.1 shows market research is critical when launching a product, trying to improve existing products or services, or for a competitive advantage in the marketplace. It can provide all the essential information needed for better business decisions.

Figure 1.1 The importance of market research.

The Importance of Market Research

Among the many advantages market research may offer, below are six essential ones to aid in product development and business growth for domestic and global markets. Market research enables you or a company to accomplish the following:

1.Better understand local or international markets or customers, depending on your objectives. There are some questions that can help garner the information you need, such as the following:

•Who would buy your product or service?

•What are the ideal target customers and segments?

•How often would customers buy the product/service? What do they need?

•What do they want or expect?

The more information you gather about specific markets, the more information and answers you have, and the more understanding you will acquire about such a market. This can result directly in meeting the customer’s needs better than your competitors.

2.Map out the complete profile of an ideal market or customer. Knowledge of current or prospective customers can assist in solving management decision problems (MDPs), which we will address in more detail later. It can help determine many market variables, such as the market size, what causes customers to buy, market demand, barriers, and competitive forces. Market research enables you to gain valuable insights, such as customer demographics (i.e., age, location, gender, and income). It can also help you develop practical market solutions for your MDPs, objectively tailored market strategies, and customer mix, including product/service features, promotions, and pricing.

3.Gather knowledge about the competition and their approach to the market. Market research allows your business to be more competitive and gives you a better understanding of the competitive forces in a particular market. This knowledge is critical, as these forces differ from market to market, especially in international markets. Market and economic research and analysis can help assess these very diverse (and global) markets to determine both the important players and those who are potential competitors. Furthermore, it can help a company gain leverage over the competition by identifying the weaknesses in its market approach. These gaps can be utilized to gain a competitive advantage and expand your company’s customer base. Market and economic analyses can help you respond to an MDP and provide insight into what strategies worked well for the competition. It can also prompt you to think more creatively while modeling your new approach. Knowing as much as possible regarding your customers or competition is pivotal to the success of your business and the decision-making process.

4.Test your product/service or strategy before launching it. Testing is an essential part of learning what works before starting the implementation of any strategic plan. All business decision-making processes must be tested before fully being executed on the target market. Testing a market with your product, service, or idea will save the company money and, most importantly, prevent it from delivering a bad product/service to the marketplace. You can never be perfectly sure that your market or economic strategy will be successful with your target market or potential customer. By conducting market research, you can find what approach you should take when marketing a product or service or addressing a business problem.

5.Prevent poor business decision-making. We live in a digitally interconnected world, where digital markets abound through diverse digital market platforms. However, Darwin’s famous idea about the “survival of the fittest,” originally used to describe the process of natural selection, is insightful and in effect today in the business community. Large brands, such as Blockbuster (now bankrupt), Nokia, DEC, AOL, and Compaq, have ceased to exist or are struggling to survive due to their inability to remain relevant in the markets and customer’s lives. By contrast, companies like Netflix and Apple have done their market research before competitors and utilized every gap in the market to their competitive advantage. To stay in business and remain relevant, companies must anticipate change and make attempts to predict change. Market research allows companies to help achieve these goals.

6.Foster business growth. Market research helps companies address problems and comprehend customers’ demands. It can also assist in detecting more business opportunities, planning marketing campaigns, minimizing losses, and keeping track of the competition. It allows companies to classify their objectives while following the current trends and take advantage of engaging their target audience. Identifying business problems before they happen is crucial to the success of any company. Active market research can assist in predicting potential business pitfalls that may occur, and it can save corporate resources (i.e., time, money, and personnel). A corporate solution may look like a proper market fit, but the company may be in trouble if the solution does not address the actual business needs.

Market research provides important information to help identify and analyze the needs and opportunities of markets, customers, and competitors. The market research development process is designed to reduce the risk and make the marketing strategy cost effective for your business.

Another aspect of market research, as depicted in Figure 1.2, is digital market research. As the digital marketing industry becomes more popular, the importance of digital market research has grown significantly.

Figure 1.2 Necessity and importance of digital market research.

The ideal digital marketing plan would be a springboard to launch a business ahead of its competitors. As such, digital marketing is reshaping the current marketing industry, setting new trends. Brands, however, will not be able to succeed in the digital marketing revolution if they do not conduct extensive market research first. How market research is undertaken is the differentiator between success and failure. Market research allows market professionals to take advantage of the ability to obtain crucial information that could assist in planning a viable strategy to ensure their brand’s success. Market research enables you to find ways to market your business more effectively.

The Basic Components of Market Research

The essential components of market research may vary, depending on how granular and detailed the researcher may be when developing a research plan or on requirements from funding organizations. In general, as depicted in Figure 1.3, it includes the following phases:

■Definition of research objectives – What objective, problem, or critical questions need to be answered in market research? It should address the research expectations, what is hoped to be learned from the market research, and what results should enable it to fulfill by answering the research question or providing information for decision-making.

■Development of research design, plans, methods, or approach – What research method best addresses the research problem or questions? Should the research be quantitative, qualitative, based on secondary data, primary, or both? In this phase, the researcher designs the research process, selecting the best method or approach to gather datasets and analyze them to answer the research question or business problem. The researcher should develop a plan for the data collection analysis and reporting results based on the method/approach selected and qualitative or quantitative (or both) analytical tools to be used, according to specific requirements. For example, if the research is quantitative, there will be a need to test the statistical significance of the results by selecting the most appropriate inferential statistical tool. How will the results be coded and presented if the data is qualitative? In this phase, the researcher outlines the structure of each of the market research instruments.

■Fieldwork, collection of information (data gathering) – This is the phase where researchers gather data from secondary and primary sources, such as focus groups, surveys, or interviews. Still, many other data sources are available online, such as big data farms, social media, blogs, digitized content, and publications such as journals, books, and magazines.

■Data analysis – Once data is gathered, it is time to analyze it using various instruments subject to the nature of the data, whether quantitative or qualitative or, in many cases, mixed methods. Descriptive and inferential statistical analyses may be necessary to test the statistical significance of the results; the hypothesis may be tested if necessary. In the case of qualitative research, data will need to be collected, emic themes analyzed, and the overall results tested for reliability and validity, among other types of data quality testing.

■Reporting and presenting findings – In this phase, the researcher analyzes and reports the market research. Communicating the results is essential, giving readers a mental/visual picture of the presented data. This section would include reports such as an executive summary, recommendations, infographics, and an appendix of question-by-question results. Contingent to the complexities of the project, the report should include some advanced analytics such as Total Unduplicated Reach and Frequency (TURF), which is an analytical method first employed in media scheduling to gauge the count of consumers contacted by a specific medium and the regularity of such interactions. This technique has been adapted for market research, and it concentrates primarily on the unique reach of a set of items to assess their prospective impact on the market. Other advanced analytical tools include regression, correlation, inferential statistics, and non-traditional analysis and reporting forms.

Figure 1.3 Market research process phases.

When to Conduct Market Research

The main objective of the market research strategy is to equip the researcher or a company with all the needed information to allow the company to make informed and sound business decisions. The “7 Ps” of the marketing mix can be essential when reviewing competitive strategies. As an enhanced model of the “4 Ps,” the 7 Ps help companies review and define key issues that affect the market of their services or products. (This model is frequently referred to as the “7 Ps of the service marketing framework for the digital marketing mix.”) The 4 Ps customer mix was initially conceived at a time when businesses would be more likely to offer products rather than services, and the role of customer service in helping brand development needed to be better known. Over time, Booms and Pitner expanded the framework by adding three more “service mix Ps,” including “Participants,” “Physical evidence,” and “Processes.” (Later, “Participants” was changed to “People.” See Figure 1.4.) Industry experts and practitioners recommend fully utilizing the 7 Ps of the marketing mix when considering reviewing competitive strategies.

Figure 1.4 The 7 Ps marketing mix.

By performing market research regularly, a company can stay abreast of the changing dynamics of the economy and demography, which is especially important when considering international markets, in addition to the ability to adjust to new regulations and technological breakthroughs. Market research, however, can be costly and time-consuming. Assessing the cost of market research is like determining how much your vacation will cost. It will depend on the directions you take, how you plan on getting there, who will be part of that endeavor, and what exactly you desire to achieve. The reality is that many variables will impact the research’s actual cost. The ability to provide a flat cost figure is nearly impossible. It is possible, however, to examine how those factors impact the cost of market research so that you can estimate the costs and how much of an investment will be necessary. Once you have designed your research plan and accounted for all the phases and components involved in the process, you should know the overall cost of the research and decide if you should embark on this journey business class or go back-packing.

It is crucial to establish the value of conducting market research. Why invest in this research at all? History has shown that mistakes or missed opportunities often blindside organizations that assume they know their markets or customers without validating these assumptions. For example, a market research project could assist in harnessing the necessary information unleashed by big data. The ability to excerpt significant data from big data, add context, and identify the business drivers behind the behaviors and relationships uncovered in analytics is essential to justify the expenditure of substantial investment and new ventures. Market research lets you discover potent effects that may offer a green light to new projects or proactively pull the plug on risky investments.

There are times when companies carry out market research unnecessarily. In such a case, it tends to give market research a bad reputation, especially when results convey to the company’s leaders the impression that market research is not valuable, overpriced (when outsourced), costly (when done in-house), and irrelevant, which is false.

How can you determine when market research should be conducted? Table 1.1 provides a brief rationale for when market research should be performed.

Table 1.1 When conducting market research makes sense, and when it does not.

The Research Team Structure

What establishes a structured research team in one department or institution might be described elsewhere as a research group, research center, research division, or even research institution. Regardless of the taxonomy used, the distinctive nature of a market research team should be that it is characterized by a team of research professionals working collectively in a dedicated way toward a mutual research objective. Making sound research-based decisions is more significant than being part of a good organizational structure. Still, ensuring the basic research structure can be critical to the project’s success.

Researchers are typically divided into two main groups: specialists and generalists. Research specialists are critical members of a group, but research generalists also have a role to play. Developing a research team of specialists is much more costly than one composed of generalists. Most market research teams need help to fund one or two specialists on the team. If the research team is well-resourced, however, it may be best to employ both groups, combining the expertise of specialists and generalists. Figure 1.5 provides a typical example of a research team structure.

Figure 1.5 Example of a research team structure.

You should develop a list of top market research firms, which can help you better understand how these companies are organized, their clients, and the type of projects these research firms produce. Table 1.2 shows a list of the top 20 most influential global companies focused on research, data, and analytics.

Table 1.2 List of top 20 most influential companies focused on research, data, and analytics.

The Four Basic Concepts of Market Research

Although market research is a vast discipline with various depending sub-disciplines, four basic concepts remain common, regardless of the field or industry:

A. Methodology.

B. Type of data, which can be quantitative or qualitative.

C. Sources of data, which can be primary or secondary (and even tertiary), and

D. Sampling methods.

A. Methodology

In research, the methodology is the process the researcher will follow to conduct an accurate and valuable investigation. In any research method, a researcher must see that the research goals are being established.

Additionally, researchers need to ensure that the population sample (its size) can be determined and that the data-gathering method aligns with the selected methodology. More importantly, the mode of analysis must also be appropriate, and conclusions and recommendations must be well-formulated, as well as the actionable insights that must be considered.

To determine which methodology to use, the researcher must first define the research problem or questions and any hypothesis he wants to test. In market research, the MDPs are typically concentrated on business challenges, problems that require decisions, and decisions that require more information before making decisions. It can be challenging, therefore, to be able to assess the type of data being required or where and how to collect it. The research objectives and questions derived from it must guide the entire research process. In other words, based on the MDP and market research problem (MRP), the researcher needs to decide on the methodology, data collection, and interpretation of such data, as well as conclusions and recommendations answering these research questions. Again, the research question(s) will determine what kind of data collection method will be needed.

B. Type of Data

Qualitative – Qualitative research is exploratory. In a market research project, it is adopted in situations where qualitative data is sought, such as best understanding prospective consumers’ opinions about a given topic, product, or service. In addition, this type of data assists in identifying potential new theories, as opposed to quantitative data, which tends to focus on testing hypotheses through complex numbers. Figure 1.6 offers an overview of the main qualitative research methods.

Figure 1.6 An overview of qualitative research methods.

Quantitative – Quantitative research is based on numerical data to show statistically significant conclusions. Quantitative and qualitative data can be gathered from various sources, as illustrated in Figure 1.7. The Internet, for example, is a vast source of secondary data that can be gathered through data mining tools, tapping into large and small data repositories, discussion forums, and social media. You can also use the Internet to gather primary data via online surveys, focus groups, or interviews (both structured and semi-structured).

Figure 1.7 Some of the main quantitative research methods.

C. Sources of Data

Secondary Research and Data

Researchers may choose to gather primary or secondary data or both. Secondary research is often crucial in identifying potential issues with the research question that may require primary research to be examined. Secondary data, as illustrated in Figure 1.8, refers to the existing, published data that may be utilized as a source of data and information for market research. Such data is more cost-effective and time-saving than gathering primary research data because the information already exists and can often be accessed online. It is also available in hard copy in books, magazines, and journals that have yet to be digitized.

Figure 1.8 Main types of secondary data.

There are many advantages to relying on secondary data, which include, but are not limited to, its readily available sources and often cheap acquisition. Unfortunately, such types of data can often be outdated. It does not always fit the specific research question or directly answer the research question, as the data would have been collected originally to solve business problems other than the one at hand, therefore lacking sufficient details.

Secondary research and data analysis should always take precedence over primary research and data analysis. They allow for a review of the related literature and existing data, which should assist the market researcher in setting the context and parameters for the primary research. Table 1.3 shows a list of some advantages and disadvantages of using secondary data.

Table 1.3 Some advantages and disadvantages of using secondary data.

Advantages

Disadvantages

The data already exists: there is no need to expend resources collecting it.

The researcher does not have a choice on what is collected, resulting in significant data preparation and clean-up before analysis can begin.

It is typically much cheaper to acquire.

There is no way to ascertain the data being gathered is of a good quality.

The researcher is not personally responsible for the quality of data.

It is challenging to obtain additional data about any issue related to the original data, even if clarification is required.

Tertiary data sources are based on a collection of primary and secondary sources. Examples of tertiary sources include textbooks (which can be considered secondary sources), dictionaries and encyclopedias, manuals, guidebooks, directories, and almanacs.

Digital Research Data

Many companies engaged in market research utilize Web analytics that are recorded digitally as an excellent data source. It is, however, typically not feasible for researchers to access Web analytics data from their competitors. This method can provide a company with information about its customers or clients. Other resources for digital data are the communications and interactions with customers that can be accessed via customer relationship management (CRM) software, which can provide a good source of data about their opinions related to products and services, as well as the market and competitors. Committed customers who complain, comment, or compliment products and services provide primary information that can lay the foundation for customer satisfaction research.

Social Network Research Data

Researchers can gather data from social networks such as Twitter, Facebook, LinkedIn, Pinterest, and Instagram. Blogs and vlogs, such as those found on YouTube and TikTok, are also useful customer and market data sources. The Internet can help researchers during primary or secondary (or both!) data research. There are free research tools, such as population sample size calculators, which include details like the confidence levels and margin of error.

Creative Research Systems (for more information, scan the QR code on the left) provides such services free of charge. Social media can also be an excellent channel to reach large numbers of survey respondents or subjects at a very affordable cost. It offers a variety of ways to assess data on consumer and client sentiments or behavior patterns, which can be tracked, monitored, and analyzed. This sort of data can significantly enhance secondary research.

Taking Advantage of Search Engines’ Advanced Features

Although the Internet can be a potent data source, quality can be compromised due to the sheer amount of data collected through data mining and Web scraping tools, as well as the enormous amount of poor quality or fake data. Finding credible sources can be daunting. An approach to improving the odds of obtaining credible data is to utilize the advanced search engine features. For example, Google offers the option to conduct an advanced search. It also provides many other digital research features, such as Google News Archives, Google Book Search, and Google Scholar. Another alternative method for acquiring data is to utilize free online publications (some publications require payment).

Internal Search Data

Although Web analytics packages are not a valuable source of data, these can offer significant help in using data when searching for topics or URL referrals. They can also be helpful for internal data searches, providing qualitative data on various consumer behaviors when they visit the company’s Web site. However, such resources are not restricted only to qualitative data. They can assist in quantitative data collection and research provided the data is at least observable and accurate. Examples are impressions and click-through rates left by prospective or actual customers when visiting a Web site. It should be noted that quantitative and qualitative data can be either primary or secondary data.

Primary Research and Data

Primary research is original research. The primary research process involves collecting primary (original) data that has never been gathered. Market and other investigations can be carried out through this approach, leading to the development of new theories or even research questions that may require further research and analysis. Primary research data can be quantitative or qualitative. Figure 1.9 lists the main sources of primary and secondary research data.

Figure 1.9 Main sources of primary and secondary market research data.

The most common method of primary research is a survey. Primary research is conducted for a specific product or hypothesis. The data is typically gathered after secondary research data has already been gathered to collect additional information that could not be gleaned. The advantages include that primary research can be tailored to answer a specific research question and focus on an appropriate target market. The disadvantages include that it can take more time to collect, and there are often higher costs involved.

Primary research is typically adopted when data on the MRP does not exist or is unavailable, which requires it to be gathered directly from the source of the MRP, which may include customers, the industry, or the business landscape. Polls, interviews, focus groups, study committees, and neighborhood polls also can be used for primary market research. As outlined in Table 1.4, using primary data has many advantages and disadvantages. The researcher must consider the pros and cons of committing time and resources to both secondary and primary research data to ensure it meets the research objectives and that a budget exists to cover all related costs.

D. Sampling Methods

It would not be possible to conduct market research without sampling it, as it is impossible to access every customer, whether a current or a prospective one. Researchers typically rely on a variety of sampling techniques and methods to capture as wide a range as possible of the types of customers a client is hoping to understand. There is a difference between polling and sampling to obtain data. The former only records the opinions or votes of a population, while the latter is the process, or action, of taking samples of something for further analysis. When market research is carried out, more than simple questions are asked of its sample population.

Table 1.4 Some advantages and disadvantages of using primary data.

Advantages

Disadvantages

The collected data is specific to the research problem or question(s).

The researcher needs to manage the challenges of data collection, such as

■deciding why, what, how, when to collect

■collecting the data (personally or through others)

■seeking research funds and interacting with funding agencies

■handling ethical considerations, such as informed consent and permissions

From the researcher’s point of view, there are no concerns about the quality of the data collected.

Ensuring the data collected is of a high standard, both in terms of validity and reliability:

■Has the data been obtained accurately and in the required format?

■Is there any fake or manufactured data?

■Is there any unnecessary or useless data that has not been excluded (data preparation)?

It is possible to search for new data during the research period.

The cost of obtaining the data is often the major expense in the research.

The best and most beneficial data feedback from your population sample is gathered by mixing qualitative and quantitative research, often known as the mixedmethod. The use of sampling techniques is crucial to the quality of research, which is one of the reasons companies tend to rely on neutral and professional organizations. It is better to hire a researcher or a research firm rather than conducting the research in-house. There are many advantages and disadvantages of conducting market research versus outsourcing it, which goes beyond the scope of this section. Still, it is worth mentioning, as such options must be considered. However, choosing the proper sampling technique is essential so that data is not intentionally skewed or biased.

As shown in Figure 1.10, sampling techniques can be divided into probability and non-probability. Probability (random) sampling techniques allow all target population members to be included in the sample and are not hindered by previous events in the selection process. In other words, selecting groups of individuals for a sampling pool does not affect the possibility of anyone else in the targeted population being selected. There are several random sampling techniques that market researchers can employ, but four types of commonly used methods include the following:

1.Simple Random Sampling – This is the most frequently adopted sampling method. This approach randomly selects people from a list of the population group, with every individual having an equal chance of being selected.

2.Systematic Sampling – Rather than randomly selecting individuals from a population, this method is based on a system of selecting participants. For instance, a researcher may choose from a list of the population every 30th individual. While this strategy allows for a controlled choice from a target group, it could be biased based on how the original roster was developed or structured.

3.Cluster Sampling – Cluster sampling is a variation of simple random sampling. It is typically adopted with larger population groups and through a wide geographic area. Usually, the population group is isolated into groups, and then participants are randomly chosen from these groups.

4.Stratified Sampling – This method combines the simple random and systematic sampling approaches. It is often used when there is a multitude of unique subgroups that require full, randomized representation across the sampling population.

Non-probability sampling techniques are less desirable and often contain sampling biases. Researchers may choose this option when budget and lack of access to an entire population list are limited or restricted. If a non-probability sampling method is selected, the researcher must be meticulous when developing conclusions, as the population group is not randomized, and biases are likely present.

Figure 1.10 Two types of sampling techniques: probability and non-probability.

Discussion Questions

1.Discuss how market research contributes to developing competitive strategies in the digital era.

2.Market research is only relevant for new product development and has no role in improving existing products or services. True or False?

3.Which of the following is NOT one of the 7 Ps of the marketing mix?

a. product

b. price

c. proof

d. promotion

4.When considering using secondary data in market research, which of the following is a disadvantage?

a. immediate availability

b. cost effectiveness

c. may not directly answer the research question

d. can be tailored to meet specific research needs

5.In what situations would primary research be more advantageous than secondary research, and how can a company decide which type to use?

Recommended Readings

Cluley, R., Green, W., & Owen, R. (2020). The changing role of the marketing researcher in the age of digital technology: Practitioner perspectives on the digitization of marketing research. International Journal of Market Research, 62(1), 27-42.

Homburg, C., Klarmann, M., & Vomberg, A. (Eds.). (2022). Handbook of Market Research (pp. 1-40). Springer.