Market research is an essential tool for businesses to understand their markets, identify opportunities, and make informed decisions. Market research can generally be classified into certain major types that serve different purposes and provide insights into various aspects of a market. The main types of market research include Quantitative Research, Qualitative Research, Behavioral Research, Attitudinal Research, and Competitive Analysis.
Quantitative Research
Quantitative research involves collecting numerical data about values, attitudes, opinions, behaviors, or defined variables in a population using statistical methods for analysis. Its intention is, therefore, to quantify attitudes, opinions, behaviors, or other defined variables in a population. Its principal goal is to establish mathematical models, theories, and hypotheses related to a market phenomenon and apply them where applicable.
Quantitative Research Methods
Questionnaires: These are organized surveys that may be carried out online, on the phone, or face-to-face. They are ubiquitous with closed-ended questions that allow measurable data.
Experiments: These refer to controlled research based on specified hypotheses by modifying and observing variables.
Secondary Data Analysis: This is the analysis and application of data already collected and prepared.
Quantitative Research Applications
Also, quantitative research has been determined to be ideal for measuring the market size and demographics, identifying market trends, and forecasting future trends. It also establishes customer satisfaction and product usage, makes hypotheses testable, and tests them.
Qualitative Research
The study of qualitative research focuses on investigating ideas, opinions, and motivations. It provides insights into the reasons and motivations behind certain consumer decisions. The approach to this kind of study is more free-form in structure, and the questions asked take a more open format compared to quantitative research.
Qualitative Research Methods
Interviews: These are detailed one-on-one talks, often looking into personal opinions and experiences.
Focus Groups: A focus group is a small, group brought together to discuss a particular subject led in discussion by a moderator.
Ethnography: Ethnography is a type of observational research in which one studies people in their natural environment to understand their culture, behavior, and interaction.
Qualitative Research Applications
Qualitative research is especially good at exploring new product concepts and development ideas and understanding consumer emotions and attitudes. Qualitative research is also used for identifying gaps and meeting unmet needs.
Behavioral Research
Behavioral research is the study of behaviors, purchase patterns, and decision-making processes of consumers. It mainly tracks actual consumer behaviors and analyzes them instead of relying on self-reported data.
Behavioral Research Methods
Observation: For example, observing consumers in their natural environment or controlled settings to see how they interact with products, services, and applications.
Transactional Data Analysis: Transactional data analysis refers to the purchase of data from retail information systems, loyalty programs, or online tractions.
Web Analytics: This describes online behavior, including the number of website visitors, clicks on your site, and conversion rates.
Behavioral Research Applications
Behavioral studies are paramount for understanding purchase triggers and purchase barrier identification, enhancing the placement of the product and the merchandising, and making the user experience and design of the website better. Behavioral research also allows companies to offer made-to-order marketing based on the behavior patterns of the consumers.
Attitudinal Research
An attitudinal study explains consumer attitudes, views, and opinions about the product or brand under consideration. Usually, the study should include the respondent’s surveys, focus groups, and interviews that capture data somewhere.
Methods of Attitude Research
Surveys: This questionnaire-based approach is used to gauge a customer’s attitudes, satisfaction, and choice.
Focus Groups: As mentioned before, these are discussions designed to investigate shared attitudes and opinions.
Interviews: Detailed individual views and beliefs are often revealed through one-on-one conversations.
Applications of Attitudinal Research
Attitudinal research is useful for understanding your brand’s health and evaluating its position in the marketplace. It is also helpful for assessing how effective your marketing campaign was. Attitudinal research also helps companies understand customer satisfaction and loyalty. It calculates public opinion on several issues.
Competitive Analysis
Competitive analysis is a research approach geared toward competition, and businesses do this type of research to understand the competitors’ relative strengths and weaknesses, both in business strategies and in the marketplace. Such research is done to identify opportunities and threats in the competitive landscape of businesses.
Competitive Analysis Methods:
SWOT Analysis: SWOT is an acronym for strengths, weaknesses, opportunities, and threats, which must be analyzed in competing products.
Market Share Analysis: Market share analysis is the comparison of competitors’ market shares to find out who the leaders and challengers are. Benchmarking involves comparing current performance measures with regard to industry standards and competitors.
Applications of Competitive Analysis
Competitive analysis is important because it is essential for competitive strategy development and positioning. It also helps companies identify market opportunities and threats, performance benchmarking, target setting, and understanding industry trends and dynamics.
Each type of market research has its purpose and can deliver different information. Consequently, it can often be of great importance to apply a mix of quantitative and qualitative methodologies to properly provide insights into the markets, customers, and competitors. As a result of market research, appropriate strategies can be formulated and implemented for success within the industry.
