What is Market Research?
Market research is a process that helps businesses understand their customers and the market. It increases customer loyalty, improves marketing strategies, and helps to optimize price points for product offerings. Market Research in the simplest of terms is a study or research on what customers want and how they think about certain goods.
Types of Market Research
The types of market research may differ depending on who is carrying it out, but there are three major categories to consider when thinking about Market Research: Qualitative, Quantitative (or Statistical) & Experimental Design.
- Qualitative Method: Qualitative market research uses qualitative questionnaires such as “describe your feelings towards” or other forms that ask for open-ended responses from participants. This type of data can give insight into why people do things and also helps identify trends across many different groups.
- Quantitative Method: Quantitative method uses data like surveys and polls to get responses, which can be numerical in nature. It may also use graphs, charts, and other visuals to present data in a way that can be interpreted easily. This type of research may rely on objective answers from participants rather than subjective ones or those which are open-ended.
- Experimental Design: Experimental design tests products out with consumers before they are mass-produced by having them a test drive the product, use it for free, etc
Market research is an important process for any company, large or small.
It helps organizations understand the needs and wants of their customers in order to create a product that will be successful in the market.