1 Answer | Add Yours
Companies carry out market research for a variety of reasons. Some of these purposes and types of market research are described below.
Test marketing: This type of market research is done to understand the consumers acceptance of a new product introduced in the market. A market research of this type help to take decision on whether or not a product will be successful in the market, and to identify the specific features of product and the marketing approach substantial impacting the acceptance of product by customers.
Market demand estimation: This kind of research is done to estimate the potential demand for a product an a specific market segment. This type of research is conducted to take decision on developing and introducing a new product in the market. Unless there is sufficient demand for a product for the market, it does not make sense to invest in introducing a new product in the market.
Consumer motivation research: This type of research is done to find out the reasons or motivations behind customer decision to buy a product. Insights collected from such studies can be used in design of products as well as advertising campaigns.
Distribution channel research:This type of channel is used to find out the structure and effectiveness of existing distribution channels for a particular type of product.
Mystery buyer research:In this type of research researchers visit retail stores posing as common customers to study how the store personnel treat the customers.
Advertisement effectiveness research: This type of research is carried out to assess the effectiveness of a company's advertisement program.
Competition research:This type of research is carried out to collect information on various aspects of competitor operations including, product quality, prices, and sales.
We’ve answered 315,830 questions. We can answer yours, too.Ask a question