Purpose and Methods of Market Research

Market research refers to the process of collecting, collating, analyzing and interpreting information about the market, consumers, competitors, etc. to help companies solve market problems or seize market opportunities. The main purposes of market research are the following:

Verify product feasibility. Through market research, we can evaluate whether the product meets the market demand, whether there is sufficient market potential, whether there is a clear target user group, whether there is a competitive advantage, etc.

Discover product innovations. Through market research, we can find the user's pain points, needs, preferences and behavior characteristics, so as to find the direction and inspiration of product innovation.

Optimize product design. Through market research, user feedback and suggestions on the product can be obtained, so as to optimize and improve the function, interface, experience and other aspects of the product.

Develop a marketing strategy. Through market research, we can understand the market environment, competitive situation, user psychology and other factors, so as to formulate marketing strategies suitable for product positioning and target users.

The method of market research can be classified according to the dimensions of information source, information type and information depth. Commonly used market research methods are the following:

Questionnaire survey. Questionnaire is a way to obtain quantitative or qualitative data by designing a series of questions, distributing them to target respondents and collecting answers. The questionnaire survey can be conducted in the form of offline or online, such as home visits, street interception, telephone visits, network visits, etc. The advantage of the questionnaire is that a large amount of data can be collected quickly and widely, which is convenient for statistical analysis; the disadvantage is that there may be sampling bias, untrue answers, unreasonable question design and so on.

In-depth interviews. In-depth interview is a way to obtain qualitative data through in-depth communication between professional interviewers and interviewees on a certain topic. In-depth interviews can be conducted in face-to-face or remotely, such as video calls, phone calls, etc. The advantage of in-depth interviews is that they can gain an in-depth understanding of the interviewee's thoughts, feelings, motivations, and other emotions and behaviors; the disadvantage is that they require high interview skills, time and labor costs, and are difficult to quantify.

Group talks. A panel discussion is a way of leading a group of target respondents to a discussion on a topic through a trained moderator to obtain qualitative data. Group discussions can be conducted offline or online, such as in laboratories, conference rooms, video conferences, etc. The advantage of group discussion is that it can stimulate the interaction and thinking collision between the interviewees, and produce more opinions and ideas; the disadvantage is that there may be problems such as group pressure, host bias, and discussion deviation from the topic.

Field observation. Field observation is a way to observe and record the behavior and environment of the target interviewee by personally integrating into the life or work scene of the target interviewee to obtain qualitative data. Field observation can be conducted in covert or overt forms, such as unannounced visits, escorts, participation, etc. The advantage of field observation is that it can directly obtain first-hand data and avoid the subjective influence of the interviewees; the disadvantage is that it takes a long time and higher skills, and there may be problems such as observer effect and privacy invasion.

Mystery customer. Mysterious customers are a way to obtain quantitative or qualitative data by anonymously evaluating a company's services, business operations, employee integrity, product promotion, and product quality through specially trained shoppers. Mysterious customers can be carried out in the form of offline or online, such as physical stores, online stores, telephones, etc. The advantage of the mystery customer is that it can objectively evaluate the performance of the business and provide suggestions for improvement; the disadvantage is that there may be issues such as shopper preferences, evaluation criteria, and data validity.

Innovative methods and tools for market research

With the rapid changes in the market and the diversified needs of consumers, the traditional market research methods can no longer meet the needs of enterprises, and continuous method innovation is needed to improve the efficiency and quality of market research. There are several innovative methods and tools for market research:

Big data analysis. Big data analysis is a way to obtain quantitative or qualitative data by using massive amounts of data and using advanced technologies and algorithms to conduct in-depth mining and analysis. Big data analysis can be done online, such as the Internet, social media, mobile devices, etc. The advantage of big data analysis is that it can obtain data in real time, comprehensively and accurately, and discover hidden laws and trends; the disadvantage is that there may be problems such as data quality, data security, and data privacy.

Artificial intelligence-assisted methods to improve the efficiency and quality of market research. Artificial intelligence assistance can take the form of online or offline, such as speech recognition, image recognition, natural language processing, machine learning, etc. The advantage of artificial intelligence assistance is that it can improve the speed, accuracy, intelligence and innovation of market research; the disadvantage is that there may be problems such as technical maturity, technical reliability, and technical ethics.

Crowdsourcing platform. Crowdsourcing platform is a way to obtain quantitative or qualitative data by using the Internet to decompose the task of market research into small, operable and evaluable units, which are distributed to a large number of network users. Crowdsourcing platform can be carried out in the form of online, such as questionnaire star, pig eight quit, hundred degree crowd test and so on. The advantage of crowdsourcing platform is that it can reduce the cost of market research, expand the scope of market research, and improve the flexibility of market research; the disadvantage is that there may be data quality, data security, data privacy and other issues.

Scenario simulation. Scenario simulation is a way to obtain qualitative data by designing a scenario that is similar to the real market environment and allowing the target interviewee to simulate it. Scenario simulation can be performed in offline or online form, such as laboratory, virtual reality, augmented reality, etc. The advantage of scenario simulation is that it can simulate real market conditions and observe the real reactions of respondents; the disadvantage is that there may be issues such as scenario design, scenario fidelity, and scenario impact.

Actions and effects of market research

The results of market research should not only reflect the current situation and trend of the market, but also guide the actions and decisions of enterprises, so as to realize the innovation and optimization of the market. The actions and effects of market research are mainly the following:

Product innovation. Product innovation refers to the discovery of market needs and opportunities through market research, and the development of new or improved products to meet market needs and expectations. Product innovation can be carried out by increasing functions, improving performance, improving quality, and reducing costs. The effect of product innovation is to improve the competitiveness, market share, profit margin and brand image of the product.

Marketing strategy. Marketing strategy refers to market research, understanding the market environment and competition, and developing marketing programs suitable for products and target users to promote product sales and promotion. Marketing strategy can be carried out by pricing strategy, distribution strategy, promotion strategy, advertising strategy, etc. The effect of marketing strategy is to increase the visibility, awareness, preference and loyalty of the product.

Service optimization. Service optimization refers to evaluating the quality and satisfaction of services through market research, and providing better services to increase user satisfaction and loyalty. Service optimization can be carried out by improving response speed, increasing service channels, improving service attitude and increasing service content. The effect of service optimization is to improve user satisfaction, loyalty, word-of-mouth and conversion rate.

Market Research Case of Shangpu Consulting Company

Shangpu Consulting is a professional market research and consulting service company, providing customized market research and consulting solutions for customers in various industries. In the process of market research, Shangpu Consulting not only uses traditional market research methods, but also actively adopts innovative market research methods and tools to improve the efficiency and quality of market research. Here are some of the market research examples from Champ Consulting:

Conduct market research for a car manufacturer to understand consumer demand and preferences for new energy vehicles. Shangpu Consulting Company used in-depth interviews, group discussions, field observations, big data analysis and other methods to collect consumer opinions and suggestions, analyze consumer behavior and psychology, and find consumers' concerns and concerns about new energy vehicles. Pain points, such as cruising range, charging facilities, environmental performance, safety performance, etc. Based on the results of market research, Shangpu Consulting provides automakers with suggestions on product innovation and marketing strategies, such as increasing battery capacity, expanding charging networks, emphasizing environmental advantages, and improving safety. According to the recommendations of Shangpu Consulting, the automaker launched a new energy vehicle, which has been recognized and praised by the market.

Conduct market research for a restaurant chain brand to understand consumer demand and satisfaction for catering services. Shangpu Consulting Company used questionnaire survey, mysterious customers, artificial intelligence assistance and other methods to collect consumer evaluation and feedback, analyze consumer satisfaction and loyalty, and find consumers' expectations and problems for catering services, such as food quality, service attitude, environmental hygiene, reasonable price, etc. According to the results of market research, Shangpu Consulting Company provides service optimization suggestions for catering chain brands, such as improving the quality of dishes, improving service attitude, improving environmental hygiene, and adjusting price strategies. According to the suggestion of Shangpu consulting company, the catering chain brand has carried out service optimization to improve the satisfaction and loyalty of consumers.

Conduct market research for an e-commerce platform to understand consumer behavior and preferences for e-commerce shopping. Shangpu Consulting Company uses crowdsourcing platform, scenario simulation, big data analysis and other methods to collect consumer behavior and preferences, analyze consumer shopping motivation, shopping path, shopping decision, etc., and find out the characteristics and trends of consumers for e-commerce shopping, such as multi-channel, multi-scene, diversification, personalization, etc. According to the results of market research, Shangpu Consulting Company provides suggestions on product innovation and marketing strategies for e-commerce platforms, such as increasing channel selection, enriching scene experience, expanding product types, and providing personalized services. According to the suggestion of Shangpu Consulting Company, the e-commerce platform has carried out product innovation and adjustment of marketing strategy to improve the shopping experience and satisfaction of users.

Conclusion

Market research is an important basis for strategic decision-making, which can help enterprises understand market demand, consumer behavior, competitors and environmental changes, so as to formulate effective product innovation and marketing strategies. However, with the rapid changes in the market and the diversified needs of consumers, the traditional market research methods can no longer meet the needs of enterprises, and continuous method innovation is needed to improve the efficiency and quality of market research. Taking Shangpu Consulting Company as an example, this paper introduces the innovative methods and tools used in the process of market research, as well as the actions and effects after market research, and shows the importance and practicality of market research method innovation. It is hoped that this paper can enlighten and help enterprises to carry out market research and consulting services.