Market research – what types are there?

Market research allows companies and entrepreneurs to identify opportunities and make better data-driven decisions. Their usefulness in improving business results is beyond doubt and is recommended by all types of experts to support important decisions. Moreover, thanks to technology, today’s market research is more efficient and accessible to all types of organisations. Whatever decision you have to make, there is bound to be a market research study specifically designed to help you; and to make it easier for you to find the one you need, today we take a look at the most common types of market research.

Market research with primary and secondary data

When considering market research, one of the first things to consider is the use of primary or secondary data.

• Market research with primary data: primary data is data that is collected to meet a specific information need – i.e. it has not been collected previously. In order to obtain them, a survey will have to be designed to collect the necessary information. Because they are tailor-made, they are better suited to the needs of the company, and are therefore more useful (even if they involve some cost).
• Market research with secondary data: in this case they have already been collected by other people or organisations for other purposes, but can be useful to support the decision being studied. This is the case of public data sources of market data, syndicated studies or open access publications. Because they are not custom-built, they may not answer all our questions, but they can help us make some decisions and do not involve more cost than collecting and analysing them. If there are no in-house resources to do these tasks, there are organisations that specialise in doing what is called ‘desk research’, which is precisely the collection of secondary sources of data.

Quantitative and qualitative market research

Once we have opted for a market study based on primary data, we must think about what we want to do with the information in order to opt for quantitative or qualitative market research.

• Quantitative market research. They seek to precisely quantify a reality, for example, through surveys that will offer measurable and comparable results.
• Qualitative market research. Focuses on understanding behaviours, opinions and motivations Focus groups or in-depth interviews are the most common methodologies for conducting qualitative market research, but there are also other techniques such as ethnographic studies.

Quantitative market research is cost-efficient and solves most situations. Whenever we do not know enough about a market it is necessary to use qualitative research to understand it in depth and perhaps quantify some aspects through quantitative market research in a second phase.

Types of market research according to subject matter

Market research can be classified into some broad thematic blocks. Within each block, we will find different options depending on the specific need.

Market analysis

Whenever you want to enter a new market that you do not know well, it is important to carry out a market analysis to help you understand it better. This includes situations such as the creation of a new activity, the entry into a new sector, the extension of the brand into adjacent categories or international expansion. In all these cases it is very important to do market research to ensure that we are entering the market with the best chance of success. And even if we know a market well, it is important to refresh information regularly. Consumers change their minds over time and new competitors emerge that can alter consumer preferences and habits. That is why it is important to update these studies as often as necessary to avoid being ‘out of the game’. Brands have different types of studies for this purpose.

• Exploratory research. We do not know a market well and we want to explore in depth the key factors that will determine success. Exploratory research is less about quantifying the details of the market and more about understanding what is important to consumers and users in their decision-making process. With that understanding, companies can define new studies to quantify what is necessary to operate in the new market with confidence.
• Usage and attitude research. This is a classic study that finds out key data on purchase – who buys, how much they buy, how often they buy, at what price? – and on consumption – who uses the product, in which situations, with which other products and much more. The questionnaire of a U&A survey usually includes questions on both consumer profile, habits and attitudes (reasons for purchase, reasons for choice, attitudes towards the category, etc.). It is important to renew these studies whenever disruptive events occur – the pandemic or a period of high inflation are recent examples of situations that have introduced abrupt changes in purchasing choices. At We are testers we do not recommend making decisions with usage and attitude studies that are more than two years old.
• Segmentation study. This is a market study that divides your target audience into different groups that have similar characteristics in terms of socio-demographic data, attitudes, purchasing or consumption habits. A segmentation survey helps you to adapt your product or your communication campaigns to the needs and preferences of each group and thus better connect with each of them.

Market research on innovation

Innovation is one of the main drivers of brand growth. However, many new products fail, so to increase the chances of success it is highly recommended to use market research in different phases.

• Concept testing. This is market research that asks consumers to evaluate one or more descriptions of a new product or service that is being considered for launch. Gathering consumer opinion makes it possible to anticipate whether the new product has a chance of success, or if, on the contrary, it has every chance of being a fiasco. This ‘traffic light’ function prevents money and effort being invested in developing products with low potential. Not only would this be a waste of resources, but it could also result in a loss of credibility and competitiveness vis-à-vis other brands. In addition, concept testing allows you to gather information about what consumers value most and what they would change about the concepts, which allows you to improve your product idea.
• Product testing. Once the concept has been validated and its potential has been proven with a concept test, the product needs to be developed. But how do we know that the final product accurately reflects the concept? To what extent does it convince consumers to buy it? What do they think after the test? All these questions can be validated by product testing in which one or more prototypes are put to the consumer test.
• Packaging testing. The presentation of the product in the shop is key to getting the consumer to choose the product. Can the consumer identify the brand? What aspects of the packaging attract their attention? What sensations does it convey? All these questions can be answered by carrying out a packaging test.

Market research on brands

Another fundamental aspect for any organisation is to understand what image of the brand people have in their minds.

• Study of drivers and barriers. The drivers and barriers survey focuses on understanding which are the motivators that lead to purchase and which are the factors that block it, such as the degree of brand awareness, its credibility, the user experience or the price. These studies usually represent their results in the form of a brand funnel. By strengthening the motivators and eliminating the barriers, the brand will be able to win new buyers for the brand and increase penetration.
• Brand survey. This type of study collects information about different brands in the market and measures the strength of their association with different brand attributes. The differences between the image they seek to have and the image they have in the minds of consumers allow us to understand whether the right messages are being conveyed or whether communication on certain attributes needs to be reinforced. In addition, the brand research always compares the image of the brand with that of other options on the market, which will allow us to understand which competitors are managing to position themselves in the attributes that we want for our brand.
• Brand Tracking. It is interesting to carry out brand studies periodically – for example annually – to verify whether the actions of the marketing plan have progressed towards the desired positioning. When the brand study is carried out periodically, we are dealing with brand tracking. All major brands have tracking studies that help them understand their performance.

Advertising and media market research

Communication and media are another important area in which brands carry out numerous market studies, among which the following stand out:

• Ad pre-testing. Launching an advertising campaign always carries risks. The campaign may not be sufficiently impactful to achieve the desired results, or it may even have reputation-damaging aspects. Ad pre-testing predicts the success or failure of a campaign, allows you to choose the best executions and gather key information to improve them before launching the final version. This reduces risk and increases advertising effectiveness.
• Ad post-testing. The advertising post-test quantifies the impact of advertising after broadcast, analyses how it has contributed to achieving each of the advertising objectives and identifies opportunities to improve advertising effectiveness in future campaigns.
• Advertising tracking. When advertising campaigns are frequent or even overlapping, it is difficult to isolate the effect of one campaign from that of others, as many consumers will be exposed to more than one. In these cases, rather than measuring the impact campaign by campaign, it is interesting to continuously measure the impact that is being achieved with the different advertising investments as a whole, something that can be measured with advertising tracking.

Market research on price and promotions

Pricing a product or determining the right level of promotions is one of the most complicated and controversial decisions for any CMO. Fortunately, there are tools to understand what is the most appropriate level.

• Price testing. The price survey analyses consumer sensitivity to the price of a product and determines the optimal price to maximise turnover and profitability. Price testing is carried out when pricing a new product and whenever changes in pricing strategy are desired.
• Van Westendorp price analysis. This is a specific pricing study and perhaps the most widely used worldwide. The Van Westendorp analysis was developed by the Dutch economist of the same name in the 1970s, and is based on a battery of four very specific questions to analyse what price consumers would be willing to pay for a product.

Market research on the point of sale

Product choice on a shelf or in ecommerce is the moment of truth for many retailers and brands. There are a large number of studies to optimise in-store presence and conversion rate.

• Shopping habits research. Whether through syndicated research or U&A research, it is possible to gather essential information about what consumers choose in-store – and what they don’t choose in a particular shop but buy in another store, which is essential for the retailer to manage the category properly.
• Shelf optimisation research: What happens when new products are placed on the shelf, and if the category is organised differently? To determine the best presence of brands and varieties on the shelf, studies are carried out with images of shop shelves. Through eyetracking and heat mapping methodologies, we can analyse how the consumer makes the decision and evaluate changes that optimise the organisation of the shelf.
• Ecommerce usability studies. With the growth of online commerce, UX research has gained weight to improve the conversion rates of a shop. Small changes that make it easier to locate the desired product and complete the mission with ease for the consumer can have a big impact on the results.

Satisfaction survey

Now that we have successfully converted customers, we want to understand the quality of their experience. To do this, there are several types of studies that relate to the Customer Experience or CX area.

• Customer satisfaction surveys. The better the customer’s perception, the more likely it is that the consumer will choose the shop or brand for their next purchase. And for this, companies have different methodologies such as NPS surveys, CSAT surveys or other types of satisfaction surveys that help them to improve the customer experience.
• Employee satisfaction surveys. Employee experience’ or “EX” surveys have gained weight in recent years. The more satisfied and motivated employees are, the easier it is to attract and retain quality talent and the better the impact on the customer experience itself. This is why many companies in all sectors conduct employee engagement surveys to help them identify segments of less engaged employees and the underlying reasons for their disengagement so that they can take corrective action.

Market research with We are testers

As you can see, there are a multitude of market studies that you can use to make better decisions and we hope that this list will help you find the one you need. But if you are still not sure, don’t worry. Talk to our team of research experts at any time so that they can guide you and identify the best way to meet your information needs. And if you want to do the research, we have a research platform that automates routine tasks and saves time and resources so you can do much more with your budget. Create your own studies if you want to save money and have total control or leave it all to our research experts to do it all for you so you can concentrate on bringing the findings to the heart of your organisation’s decision making. With We are testers you decide how to conduct your research.

Contact our team for more details.