[Marketing Research]Market Research Reduces Risk

Market research plays a very important and prominent role in marketing. By assessing the needs and wants of consumers, organizations obtain information about their target market, which allows them to target goods and services more effectively. By seeking both marketing problems and opportunities, market research can point marketers in the right direction.

Becoming educated and learning more about their target market answers many questions.

Although the answers market research provides are not necessarily 100% accurate, it reduces the marketers' risk. Think about it: would you want to introduce a new toy to children without having the slightest clue what their reaction will be? By surveying these children, you would obtain a general feel for their attitudes towards the toy, and by asking the correct questions, you could also discover modifications and improvements.

Market research is simply a supplement used in marketing procedures. It isn't practical to survey groups everytime a difficulty or question arises, but instead, it educates the marketer into making better marketing decisions.

By being a part of an online survey, one can then see how survey participants directly influence the products and services of tomorrow. Survey results are taken very seriously by marketers so voice your opinion today!

[Marketing Research]Determining Sample Size for Online Surveys

How to determine sample size for online surveys varies hugely.

Factors on this decision include budget constraints, sample availability, time available, etc. Obviously a sample of 1000 individuals will produce more accurate survey results versus a sample of only 100 people. This is simply because generally, a larger group of people will more accurately reflect the attitudes of an even larger group, simply because there is more individual variety, and this therefore will yield a larger variance in answers.

Now, admittedly this is a general and over-simplified answer. Complicated statistics on sample sizes, confidence intervals, and statistical validity on how all of these relate would better explain how this all works.

A similar question was posted on Infosurv's website, and the following response was provided:
"To achieve statistically valid results, we recommend that a statistically significant sample of n=400 completed surveys be obtained for online market research surveys. This will provide statistical validity at the 95% confidence level with +/- 5% confidence interval. For clients on a tighter budget, we sometimes recommend a sample of n=200 completed surveys which provides statistical validity at the 95% confidence level with +/- 7% confidence interval. In any event, a reliable sample source is very important, as is an unbiased random sampling methodology." http://www.infosurv.com/blog/2005/01/market-research-survey-questions.html#comments

"n" in this case simply represents the number of people comprising the sample.

As you can see then, there needs to be a decent sized sample in order to eliminate as much bias as possible. This does not mean that it is necessary to conduct a survey with 100,000 participants in order to get accurate answers.

What does this mean for you? When there is a chance to win cash or product as a survey participant, keep in mind that your chances of winning are decent. The chances of winning the jackpot in a national lottery are usually more than 1 in 10,000,000, and you must purchase a ticket, which involves a cost. You could very well be offered a chance to win a plasma tv worth $5000 for 15 minutes of your time, when there are only a few hundred other participants. What are you waiting for?

[Marketing Research]Marketing Research Glossary

The following is a glossary of commonly using marketing research terms - it is by no means complete, but merely provides an overview on marketing terminology.

ACORN - Acronym for "A Classification of Residential Neighborhoods". Used to classify neighborhoods using variables such as demographics, housing types, etc.
Ad Hoc Research - A special type of research specifically for a particular client, or for a particular market.
Armchair Research - Using existing information from sources such as publications, for research information purposes. Secondary information source.
Attitude - The way in which people think and behave towards each other and things.
Average - A mathematical term that is used to represent a number that has been calculated by adding several figures together, and dividing the total by the number of figures added.
Closed Question - A question with only a yes/no possibility for a response. Ex. Do you have a mortgage?
Competitor Research - Research conducted into the existing or potential competition of an organization. Areas explored include competitor's strengths and weaknesses, customer base, and competition reaction.
Consumer - A person or organization who purchases goods and services.
Consumer Panel - A group of consumers who provide feedback on the products/services they have used in order to facilitate better product development or new advertising initiatives.
Consumer Research - Research conducted to identify why consumers buy goods or use services, and what their future buying habits may be.
Consumer Survey - A survey conducted to identify existing and potential demand for a product or service, be it new or existing.
Control Group - A group of people which is used as a cross-reference check for a sample group.
Extrapolation - The process of applying primary research results to the entire potential market in order to find the market size for a product or service of a potential market.
Focus Group - A group of people who are brought together to informally discuss a market-research question. These individuals are usually contacted by a marketing research company, on behalf of another company.
Margin of Error - The number of errors acceptable in a survey. Usually expressed as a percentage.
Market Area - A geographical area representing a particular market. For example, an area where the Internet is used.
Market Development - The search for new markets for a product or service, using a method of information gathering.
Marketer - A person or company that engages in marketing activities.
Marketing Research - Research conducted in the name of producing better marketing results. Includes market research, consumer research, and product research.
Multiple Choice Question - A type of question which lists different types of answers. Usually limited to 5, so as not to overwhelm the respondent.
NDP - Acronym for "New Product Development"
Open Questions - Questions in which no options for response are given, as many responses are possible. These types of questions are used to facilitate new ideas for an organization. Ex. Who is your favorite politician?
Opinion Leader - A person who's opinions particularly influence others in society. Examples include celebrities and politicians.
Opinion Leader Research - Research conducted to understand the opinions and attitudes of opinion leaders.
Opinion Poll - Asking a sample group of people what their opinion is on a particular topic, so as to guess the opinions of the whole population. Sample group is usually selected using the SRS (simple random sample) method.
Panel - A group of people (usually consumers) who provide feedback on marketing problems.
Pantry Check - A survey method whereby a sample of households tracks the purchases they have made during a given period of time. Recently the introduction of wireless barcode scanners has made this process less tedious, and more convenient for households.
Personal Surveys - A one-on-one, in-person survey between a respondent and interviewer. Popular in public places such as shopping malls.
Poll - Asking a group of the population how they feel about a particular topic.
Population - The number of people who live in any given area including a neighborhood, city, State, country, etc.
Postal Survey - A survey method in which a printed questionnaire is produced and is sent by mail to respondents for them to fill in and send back. Postal surveys traditionally have a very low response rate.
Sample - noun A small group which is studied to represent a larger group.verb To ask a representative group of people questions to find out what the reactions of a larger group would be.
Sample Size - The number of people used for a survey.
Sampling - The testing of reactions in a small group of people, used to represent the attitudes of a much larger population.
Sampling Error - The difference in results between what a small sample of people think and what the results would be if the entire population were surveyed.
Sampling Point - The place at which sampling is conducted.
Scale Question - A question where a scale is used for purposes of rating something. Ex. Would you rate your health as excellent, average, or poor?
Semi-Structured Questionnaire - A questionnaire often used in business to business research where a large range of responses are anticipated. They include the use of a combination of open questions, multiple choice, true false questions, and scale questions.
Structured Questionnaire - A questionnaire used in large surveys where specific answers are anticipated. They include the use of multiple choice and scale questions.
Telephone Surveys - A survey conducted via telephone where potential respondents are called by an interviewer to answer questions.
Unstructured Question - A questionnaire used for technical/specialist markets where in-depth questions are asked with the intention of accumulating a large variety of responses.

**A more thorough marketing research glossary can be found at Quirk's Marketing Research Review.

[Marketing Research]What is Marketing Research?

Market research is the process of gathering and analyzing information to help businesses identify consumer needs and wants to form proper advertising and marketing decisions. It is also often referred to as "consumer research" as it asks questions about the business environment including competitors, economic trends and market structure.

Market research is conducted using sample surveys, opinion polling, focus groups and by using other techniques to measure and study consumer markets. These can be conducted online, by telephone, mail, and in person.

Companies including advertising agencies, and specialized market research organizations provide market research services. Oftentimes large businesses and government agencies conduct their own market research.

[Tips]Commonly Asked Questions about Taking Online Surveys

What are online surveys?
Companies need to understand consumers, and to do this they hire market research companies to survey their target audience. By registering online with these market research companies and providing your demographic information, you become eligible to voice your opinion in surveys that shape company decisions.
How do I participate in online surveys?
Once you register with a survey provider, your information is placed into a database. When a study matches your profile, you are sent an invitation by e-mail to participate in the survey. The e-mail states the approximate length of the survey, the topic and the incentive (cash, prizes, points, etc.) The survey is conducted online and once completed your check is mailed to you, or you are provided with information on how your incentive will be provided.
What's the difference between free surveys and pay to join surveys?
Free Surveys are just that - they are free. This means that registration is free, and participation is free too. You will still be provided with incentives to participate in studies. Pay to Join Surveys are a little bit different. You pay a small initial fee to register with these companies, and they will find surveys for you that are available for participation. People who would use this service are typically those who take online survey-taking more seriously, and would like to make a fair amount of money doing so.
How will I be contacted to receive survey invitations?
When you register with survey providers, you will be asked to provide an e-mail address. This address will then be used to e-mail you survey invitations. Simply follow the instructions in the e-mail, and your survey will be conducted online, via your browser. Rarely is there anything to download.
How will I be paid after I participate?
Normally you will be paid by check a few weeks later. Sometimes other payment receipt options such as PayPal are available. Othertimes if a gift certificate or product is the survey incentive, after completion of the survey, details will be provided as to when and how your reward will be delivered.
How often will I get survey invitations?
This depends on a variety of factors. Of course, the more market research companies you register with, the better chance you have of being invited to participate in studies. Also, if you fit a demographic that companies are particularly interested in, you will likely receive more survey invites than somebody else.
When I'm e-mailed a survey invitation, do I have to participate?
No. If you do not feel like participating in a particular study, the choice is simply yours.
Is there any cost to join?
There is no cost to participate in surveys. The only time there is ever a cost involved to participate in online surveys is when you register with a pay to join survey company which scours available surveys for you to take. A better explanation of what pay to join surveys are is provided above.
Who can register?
As you navigate our website and click on a survey provider, you will be provided with information that states who qualifies to register with the chosen company. For example, many companies only allow US residents who have reached the age of majority to register, while others allow international residents over the age of 13 (with parental consent) to participate.
What do I get for participating?
Incentives range from a stated amount of cash, to merchandise, to chances to win big prizes, to points redeemable for cash or merchandise. Incentives (or rewards) for surveys are stated in the e-mail invitation you will receive, inviting you to participate in the survey. Keep in mind that when you are offered a chance to win a large sum of money, your chances are of winning are pretty good (compared to something like the lottery). You are often only competing against a few hundred other participants.
What do market research companies do with my data?
They report their findings to corporations that have hired them to conduct the studies. They don't mention names and the data is provided in a form of a report, with findings for the entire group, not just simply one individual. Market research providers normally have privacy policy statements on their website, assuring participants that their privacy is protected during survey experiments.
Can I get rich taking online surveys?
Probably not. Any website that says you will is lying. Even if you sign up with every single market research company in existence, you'll probably only have enough surveys to do as a part time job. Online survey taking is more like an easy and fun way to supplement your existing income. Who else would pay you $25 for less than 15 minutes of your time, to answer a bunch of questions about, say, candy?