Market Research Methodologies

To capture reliable and meaningful data from different sources, market researchers use various methodologies. The methods or approaches one may undertake as a researcher depend on the demographics, industry, costs, and intended purpose of the research. Let’s touch on and delve deeper into these methodologies.

F2F

F2F or face-to-face interviewing, is one of the most elementary methods of market research. It involves a surveyor meeting the participants or target audience in person to ask questions. F2F can be performed with a classical pen and paper or with the more advanced Computer Assisted Personal Interviewing (CAPI), which uses a device like a tablet. The most beneficial aspect of F2F surveys is that they can reach the intended audience on a personal level as well as low-income demographics with restricted communication means. However, it is restricted by the sample size and requires careful sample planning and surveyor training to extract meaningful results.

CATI

CATI or Computer Assisted Telephone Interviewing, involves an interviewer asking questions to a participant over the telephone with a computer software logging and storing the responses. CATI is a relatively less expensive and convenient method of market research as it is conducted remotely without the need to travel to the sample group. You can include both detailed qualitative and quantitative questions in your surveys. It also offers flexibility in explaining and expanding the questions to the participants, gathering more accurate insights. The computer software records the responses in real time, eliminating manual logging. The intended audience also has the flexibility to be available as per their schedule and large sample sizes can be surveyed quickly. However, since CATI requires a telephonic response, this method cannot reach demographics with no direct access to wired connectivity, generally rural and low-income groups. 

CAWI

CAWI implies Computer Assisted Web Interviewing or simple online surveys, in other words. CAWI forms a major component of data collection in market research, with a much faster turnaround time. The participants are provided with a pre-made set of questions through an online link via email, app, or message notification. As a researcher, you may include text questions with audio-visual prompts as well for engaging responses. CAWI is very easy to deploy and does not require trained professionals to conduct the survey. Consequently, it is a low-cost method with a wide and scalable reach and quick results. Since data collection is done online in real-time on secure servers, researchers can gain insights much faster. Although CAWI can only reach out to populations with internet access and internet savvy individuals in relatively moderate income groups. 

P2W

In the market research context, P2W is referred to as Phone to Web. P2W is a two-step process that involves capturing the participant’s responses through a phone interview (CATI) and transferring the data to a web-based server. The web transition of the captured data helps with faster and more efficient analysis. P2W is a hybrid methodology where the pros of both a telephonic survey and web-based response analysis are leveraged. The telephonic survey obtains interactive responses from the target audience, where they can even access the web portal in real time while communicating with the trained surveyor. This hybrid and innovative approach helps avoid the shortcomings of both CATI and CAWI methodologies. P2W is a great way to reach large audiences remotely and obtain actionable insights quickly while retaining personal interaction.

Mystery Shopping

Mystery Shopping is a research practice that involves a participant as an ‘undercover’ customer to assess, analyze, and gather data regarding customer experience. Mystery shopping requires the shopper to either go in person to a designated business or reach out over the phone or the web. It can be used both for internal assessment as well as to gauge the competition’s standing. It works as both a qualitative and quantitative methodology. It can be designed with either a structured approach in mind or as a more natural exercise. It allows researchers to focus on key areas of interest or get more realistic insights regarding the user experience. Metrics measured include in-store environment, customer friendliness, staff conduct and promptness, product availability, variety, pricing, etc.

Focus Groups

Focus groups are a very popular and common method of qualitative market research where a small group of individuals discuss a topic, concept, or product/service. A moderator, participants, and observers make up a focus group. Moderators ask questions, encourage open and free discussions, and dictate the flow and tone of the entire session. Focus group is an excellent method to gather emotive insights on a deeper level that allows participants to express their opinions freely. It also helps researchers to gather data as to why and how members feel about a product by taking verbal, facial, and bodily cues. If you want to go into great detail on your research topic, then a focus group is the most appropriate method. Focus groups also help to uncover data points missed by other methods and are a great tool for concept testing, brand research, product reception, etc. Focus groups do involve higher costs and time but the outcomes are extremely valuable.

IHUT

IUHT or In Home User Testing is a proven and long-standing method for conducting research before the actual launch of a product or service. Products are provided to potential customers so they can use them at the convenience of their homes and give meaningful and honest feedback in return. You obtain realistic results, which can supplement your in-house testing under controlled conditions. It also ensures that your product satisfies the needs of the target audience before a market rollout. Additionally, IHUT gives companies the flexibility to test products at different stages of development, like prototype, pre-launch, or post-launch. IUHT also covers a wide range of demographics, as the users can be located anywhere. The only costs incurred are those involved in shipping to the respective users.

Companies and organizations tap into market research to reach out to their end users to create, tweak, and evolve their products and services. It helps them understand the needs and aspirations of the market, optimize costs, and increase profits.