Field Market research assists organizations and businesses in drawing meaningful conclusions about consumer purchasing behavior or the likelihood of consumers paying a certain price for a product.
The following are the types, depending on the methods and tools required:
1. Primary Market Research
Primary market research is a process in which organizations or businesses contact end users or hire a third party to conduct relevant studies to collect data. The information gathered can be qualitative (descriptive) or quantitative (statistical).
There are two types of information that can be gathered during primary field market research: exploratory and specific. Open-ended exploratory research investigates a problem by asking open-ended questions in a detailed interview format, usually with a small group of people, also known as a sample. In this case, the sample size is limited to 6-10 people. Specific research, on the other hand, is more focused and used to solve problems discovered through exploratory research.
As previously stated, primary market research is a hybrid of qualitative and quantitative market research. A qualitative market research study collects semi-structured or unstructured data using some of the most commonly used qualitative research methods, such as:
- Focus Groups
One of the most common qualitative research methods is focus groups. A focus group is a small group of people (6-10) who usually respond to online surveys. Focus groups are great because they allow remote data collection. Complex data collection makes this method more expensive.
- Individual interview:
As the name implies, this method involves personal interaction in the form of an interview, in which the researcher asks a series of questions to the respondents in order to collect information or data. The questions are mostly open-ended and asked in a way that encourages responses. This method is heavily reliant on the interviewer’s ability and experience in asking questions that elicit responses.
- Ethnographic investigation:
This type of in-depth research is conducted in the respondents’ natural settings. This method requires the interviewer to adapt to the respondents’ natural environment, which could be a city or a remote village. Geographical constraints can be a barrier to conducting this type of research. Ethnographic research can last anywhere from a few days to several years.
2. Secondary Market Analysis:
Secondary research makes use of information organized by outside sources such as government agencies, media, chambers of commerce, and so on. This information disseminates through newspapers, magazines, books, corporate websites, free government and nongovernment organizations, and so on. The secondary source employs the following:
- Public sources: Public Sources such as libraries, are fantastic places to get free information. Government libraries typically provide free services, and a researcher can document available information.
- Commercial sources: Commercial sources, while reliable, are costly. Local newspapers, magazines, journals, and television are excellent commercial sources of information.
- Educational Institutions: Although it is not a popular source of information, most universities and educational institutions are a rich source of information because they conduct more research projects than any other business sector.
Methods in Conducting Field Market Research
Understanding how to respond to diverse situations that could occur during the exploration will save time and reduce problems. Today’s successful businesses rely on powerful field market research survey software to conduct comprehensive research on a unified platform, providing actionable insights much faster and with fewer issues.
The steps for conducting effective field market research are as follows.
- Define the Problem
Researchers will benefit from having a well-defined research topic when they ask questions. These questions should direct towards problem solving and tailors to the project. Ascertain to write questions clearly and that the respondents comprehend them. Researchers can run a test with a small group to see if the questions are understandable and if they are sufficient to yield insightful results.
Compose the objectives of the research precisely and include a brief description of the information in need and how can it be obtainable. They should be able to answer the question, “Why are we conducting research?”
- Define the Sample
Researchers need a representative sample to conduct market research, which can be collectable using one of several sampling techniques. A representative sample is a small group of people who accurately represent a larger group.
A representative sample can be obtainable in two ways:
- Probability sampling
In probability sampling, the sample is chosen at random, ensuring that each member of the population has the same chance of being selected and included in the sample group. To ensure representativeness, researchers should ensure that they have up-to-date information on the population from which they will draw the sample and survey the majority.
- Non-probability sampling
Different types of people use non-probability sampling to obtain a more balanced representative sample. Knowing our group’s demographic characteristics will undoubtedly aid in narrowing the profile of the desired sample and defining the variables that interest the researchers, such as gender, age, place of residence, and so on. Researchers can control the creation of a representative sample that is efficient for us by knowing these criteria prior to obtaining the information.
Although sample size is critical, it does not guarantee accuracy. More than size, representativeness relates to the sampling frame, or the list from which people draws, as in a survey.
- Perform data collection
To begin, a data collection instrument should be created. They will cause research errors if they do not respond to a survey or answer it incorrectly. This will be avoided if data is collected correctly.
- Examine the outcomes
Analyzing and interpreting the results is the process of looking for a broader meaning in the data obtained. All of the previous phases have led to this point.
- Complete the Research Report
When presenting the findings, researchers should consider what they hope to achieve with this research report, and they should not assume that the survey structure is the best way to conduct the analysis. Many researchers make the mistake of presenting their reports in the same order as their questions, failing to recognize the potential of narrative.
- Proceed to Decision-Making
A market research study can provide researchers with a wide range of information, such as consumer purchase intentions or feedback on the growth of the target market. They can also find valuable information that will assist them in estimating the prices of their product or service and determining a point of balance that will benefit both them and the consumers.