You may make all the decisions about your business, but the consumers have the power to make you fail or succeed. You need to establish their likely response before taking actions that can disrupt the market and possibly your sales.

Why market research matters

Market research connects you to your customers wherever they are – you understand their demands and pain points. The data from market research gives you information about a range of components, such as trending products in your business niche, factors that influence purchases and spark conversations about your products or services, features that attract your customers, and reactions to pricing. You can use the information obtained to modify your product and make it naturally attractive to prospective buyers.

The ultimate goal of market research is to eliminate all assumptions that hinder you from connecting with your customers. Once you understand their attitudes and what influences their preference for a specific product, you can make necessary adjustments to cater to their needs.

Market research types and methods

Primary research

Primary research is the collection of raw data that helps in the market divisions and determining buyer preferences – it is more personalized. The research can either be specific, where you first identify principal components and delve into the individual, or exploratory, where you focus more on potential problems that require team effort rather than customer trends.

Qualitative and quantitative researches also fall under this category. You can use primary research methodologies to collect numerical and non-numerical data. However, qualitative research does not give exact answers, meaning you can only derive general hypotheses. Quantitative analysis can help pinpoint empirical evidence that proves an already existing assumption.

The research type involves vast data that can be difficult to analyze without professional assistance. However, the freshness of the information makes it an invaluable means of collecting data that confirm your hypotheses.

Secondary research

Secondary research is the preferable choice for most people because it involves data from third parties, especially those that have been analyzed and published. The data is usually easily accessible, making the research option a favorite for many small businesses because of the low budget requirements.

Although both market research options have pros and cons, they produce the best results if combined. You can use any of the following methodologies.

Interviews – You can conduct face-to-face interviews with professionals in your industry or a section of customers who meet specific criteria. You may have to develop the questions that allow yes or no answers when dealing with the latter category.

Focus groups – A focus group is a small segment of your target customers. They can participate in product testing and give feedback on their experiences.

Surveys – Survey questions should highlight your business goal to enable you to address areas you seek clarification on. For example, you can ask questions that help you determine how much customers are willing to pay for a product or where they prefer to shop.

Get expert help from Product Insights

Our experienced market research team has all the mandatory skills to handle all types of market research hassle-free. Contact us if you need any assistance.