The market research process consists of six discrete stages or steps. They are as follows:
- Step 1 - Articulate the research problem and objectives
- Step 2 - Develop the overall research plan
- Step 3 – Collect the data or information
- Step 4 – Analyze the data or information
- Step 5 – Present or disseminate the findings
- Step 6 – Use the findings to make the decision
The task of the second stage of market research is to determine the most efficacious way to collect the information that is anticipated to provide answers to the research questions. Designing a research plan is a complex undertaking because it involves so many different decisions. A market researcher must determine what data sources to use, the type of research approaches to take, how to limit distortions of the data, what research instruments to employ, how sampling plan should be configured, how to protect participants' privacy, and what methods will be used to contact research participants. The overarching concern of the market researcher is how much it will cost to implement the research plan.Before the market researcher can determine what research instruments to use, a decision must be made about the data sources to use. A market researcher can choose to collect primary data, secondary data, or both types of information. Primary data are gathered for the first time for a particular research project or for a specific purpose. Secondary data exists prior to the initialization of a new research project, having been collected for another purpose. The distinction between primary data and secondary data is that freshly gathered data is associated with primary research. A common form of primary research data is syndicated research in which a group of researchers who are interested in the same research problem commission an independent market research provider to conduct a study and share the results with the purchasing participants.
A common and prudent practice is for a market researcher to explore possible secondary sources of data to determine if the research questions can be partly or completely answered without the expense of primary data collection. The advantages of secondary data are that it is generally of low cost or even available for free, and it is immediately available without having to wait for a research study to be completed. A fundamental disadvantage of secondary data is that it will generally not have been configured precisely to fulfill a research agenda. As such, secondary data may be incomplete, inaccurate, dated, or unreliable. In such cases, a market researcher will necessarily need to commit to some type of primary data collection process.
Typically, primary data collection begins with some type of pilot testing, even if it is as simple as interviewing people in groups or individually to get the feel for how people perceive some topic or question. Then a formal research instrument is developed, pilot-tested again for problems, and then used in the field to conduct the desired research, all according to the research plan.
Decide How to Best Collect Primary Research Data
Questionnaires or surveys - For gathering primary research data, surveys are the most commonly used of the instruments. Although the survey instrument is flexible and relatively inexpensive, it requires careful attention during development. All surveys should be piloted tested, at least to some degree, before they are released and administered to a target sample. The forms that the questions take should be carefully considered to ensure they perform as expected and that they fit well into the survey document as a whole. Developing survey questions is both an art and a science. Fortunately, many guidelines to survey construction, administration, and scoring are available.
Mechanical devices are sometimes used to measure physiological responses of research participants to product attributes or advertisements. Generally, what is measured is interest or emotions in response to what is seen, heard, felt, or smelled. Mechanical devices used in primary research data collection include Galvanometers, eye cameras, eye gaze recorders, audiometers, and tachistoscopes that show an image or ad for a brief flash.
Qualitative measures are becoming more common in primary research as advanced in technology support different approaches. Consumers are being turned loose with sophisticated technology on which they can record their impressions of product or aspects of their consumer experience. Some market research provider agencies even go into the homes of consumers to film their interactions with products. These videos are trimmed down to a highlight reel that is used to analyze consumer behavior. One of the primary reasons for preferring qualitative measures to surveys or interviewing is that the expressed beliefs and intentions of consumers often fail to match their actual behavior in the realm of brand engagement or purchase decisions.
Kotler, P. (2003). Marketing Management (11th ed.). Upper Saddle River, NJ: Pearson Education, Inc., Prentice Hall.
Lehmann, D. R. Gupta, S., and Seckel, J. (1997). Market Research. Reading, MA: Addison-Wesley.
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