Within market research, there are certain methods that are utilized to gather information about target markets, products, customers, competitors and other aspects that are useful to the companies conducting the research. The methods used depend on the time a company is willing to spend gathering information as well as the budget and type of data needed.
Most market research methods involve collecting primary research and secondary research. Primary research involves surveys, interviews, field trials and more — information that needs to be gathered directly from potential customers. Secondary research is information that has already been compiled in different sources. The following is a list of some of the methods that are used in market research and how they are beneficial.
Surveys
This method may include in-person surveys, telephone surveys, direct mail surveys and online surveys. Surveys are used to gather feedback from customers such as the feedback form given at restaurants along with the bill. By creating a survey that has concise and targeted questions, data may be gathered from a small to large group of participants. A large group will relay the most reliable results.
Focus Groups
Focus groups are a group of people led by a moderator. The moderator has a script of topics or questions to present to the group to discuss. The script involves questions referencing the product or service, the group’s preferences and the product development. Members of the focus group usually have something in common, such as their age group or gender. Typically, focus groups are held in a neutral location in a room that has videotaping capabilities and a one-way mirror for observation. However, with today’s technology, focus groups may be conducted virtually. At least three focus groups need to be conducted in order to get the best results.
Field Trials
Field trials are designed to test how customers react to a new product under real-life selling conditions. By using this type of market research, businesses can see if they need to adjust prices, improve packaging, make product modifications and take other actions regarding their product.
Interviews: Personal interviews are conducted to learn about customers’ attitudes and their opinions about products and services. Interviews are usually recorded and include unstructured, open-ended questions.
Observations
This type of research involves studying consumers in action by videotaping their behavior in stores, their homes or at work. The videos depict a more truthful representation of a consumer’s habits and shopping patterns.
Secondary Research
This is the type of information that is the most readily accessible when conducting market research. Secondary sources compile research from academic studies, government agencies, trade associations or other related industries. Some sources may include public sources, commercial sources and educational institutions.