Market Research: Techniques, Process, and Applications

Posted on Mar 31, 2025 in International Business

Market Research: A General Overview

Definition & Purpose: Market Research is the systematic collection and analysis of data to improve business decision-making.

Understanding Consumer Decision-Making

  • System 1: Automatic, emotional, and intuitive (85% of decisions).
  • System 2: Slow, logical, and analytical (15% of decisions).

Marketing Mix (4Ps) & Market Research Role:

  • Product: Consumer satisfaction, product testing, packaging evaluation.
  • Price: Pricing strategies, discount effects, consumer willingness to pay.
  • Place: Distribution channels, logistics, best store locations.
  • Promotion: Ad effectiveness, brand awareness, customer engagement.

Key Market Research Roles:

  • Researcher: Gathers and analyzes data, translates insights into business decisions.
  • Marketer: Uses research findings to create effective campaigns and strategies.

Types of International Market Research:

  • Centralized: Research conducted from the home country.
  • Semi-centralized: Planning in home country, execution in target market.
  • Decentralized: Entire research process takes place in the target country.

New Digital Players in Market Research:

Tech giants (Google, Meta, Amazon) now dominate data collection and analysis.

The Market Research Process

6 Key Steps:

  1. Define the Problem: Understand the real business issue.
  2. Set Objectives: Goals should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
  3. Research Design: Choose between exploratory, descriptive, or causal research.
  4. Data Collection (Fieldwork): Use primary and secondary sources.
  5. Data Analysis: Clean, process, and generate insights from data.
  6. Communicating Findings: Present insights clearly for decision-making.

Types of Data Sources:

  • Primary: Data collected specifically for the research project.
  • Secondary: Existing data from reports, government agencies, or databases (e.g., OECD, World Bank, Eurostat).

Research Techniques:

  • Quantitative: Structured surveys, statistical analysis.
  • Qualitative: Interviews, focus groups, observational studies.

Marketer vs. Researcher Approach:

  • Marketer: Focuses on business problems and decisions.
  • Researcher: Focuses on data collection and analysis to answer key questions.

Direct Qualitative Techniques

Focus Groups:

  • Small group discussions (6-10 people) led by a moderator.
  • Explore consumer emotions, attitudes, and reactions to products or brands.
  • Pros: Encourages creative idea generation.
  • Cons: May lack depth as discussions move quickly.

In-Depth Interviews (IDI):

  • One-on-one, semi-structured conversations to explore deep motivations.
  • Pros: Ideal for sensitive or complex topics.
  • Cons: Expensive and time-consuming to analyze.

Projective Techniques (Creative Exercises):

  • Word Association: Measures immediate reactions to words.
  • Completion Techniques: Sentence or story completion.
  • Construction Techniques: Creating stories based on images.
  • Expressive Techniques: Role-playing (e.g., describing a brand as a person).

When to Use Qualitative vs. Quantitative Research:

  • Qualitative: Understand deep emotions and behaviors.
  • Quantitative: Measure trends, patterns, and statistical significance.

Indirect Techniques

Declarative vs. Non-Declarative Thinking:

  • Declarative (Explicit/Conscious): Based on language and rational thought.
  • Non-Declarative (Implicit/Unconscious): Based on emotions and automatic reactions.

Example – Dual Thought System:

System 1: Fast, emotional, and intuitive.

System 2: Slow, rational, and analytical

Observation-Based Research:

Researchers do not interact with participants, allowing them to study natural behavior.

Helps minimize observer bias and collect authentic insights.

Types of Observational Research:

Personal Observation: The researcher watches behavior without interference.

Mechanical Observation: Uses technology (cameras, sensors) to record behavior.

Traditional Observational Techniques:

Pseudo-Purchase: Researcher acts as a customer to evaluate service & brand experience.

Mystery Shopper: Evaluates customer service, store organization, and employee performance.

Advanced Neuroscientific Tools:

Eye-Tracking (ET): Measures where people look in ads or stores.

Facial Coding (FC): Analyzes facial expressions to detect emotions.

Brainwave Analysis (EEG): Records electrical activity in the brain to measure reactions.

Skin Conductance (SC): Detects emotional arousal through sweat gland activity.

Projective Techniques for Unconscious Responses:

Word/Image Association: Captures automatic connections to stimuli.

Story Completion: Reveals hidden emotions through unfinished narratives.

Role-Playing (Brand as a Person): Encourages emotional connections with brands.

When to Use Indirect Techniques:

Ideal for uncovering deep, hidden emotions that consumers can’t easily explain.

Helps businesses predict behavior more accurately.