What is Consumer Research?

The study of consumer behavior is an element of market research where the motivation, inclination and buying habits of people who are targeted are found. Research on consumers helps companies or other organizations to understand the psychology of their customers and build detailed buying profiles.

It employs research methods to provide comprehensive information on what customers want. Based on this data, brands are able to make adjustments to the products and services to be more customer-centric which will increase customer satisfaction. This can increase the efficiency of businesses.

A consumer research company that has an extensive understanding of consumer decision-making process is likely to create an item, place an appropriate price on it, and establish distribution centers and market products based on customer research findings that generates more interest from consumers and purchases.

For instance, a consumer electronics manufacturer seeks to comprehend the how a consumer thinks when they purchase an electronic device that can assist companies to introduce new products, monitor the quantity of stocks, etc. Conducting a consumer electronics survey is a great way to determine the demand for their product and identify flaws of their products and uncover problems in the different methods that affect the buying of their products. An electronic consumer survey is a great way to collect details about the shopping experience of the consumer when buying electronics. It can allow a company to make informed and informed decisions about its product and services.

Consumer Research Objectives

When a company is working on new products, consumers research is conducted to determine what customers want or require in a product. What features aren’t there and what do they look for? A well-designed survey software allows companies to conduct effective research.

The purpose of consumer research is to increase the value of a brand. Brands need to be aware of what people think about when purchasing products or services offered by the brand. Each business concept that is successful requires effective consumer research to succeed. The insights of consumers are crucial in determining the positioning of a brand with consumers.

The purpose of consumer research is to improve sales. The purpose of research on consumers is to examine various areas of psychology for consumers and determine their patterns of buying and what type of packaging they enjoy and other similar aspects that aid brands in selling their goods and services more effectively.

Consumer Research Model

According to a research study about a decade ago researchers were thinking differently about the psychology of the consumer, and there was little or no focus placed on mood, emotions or other factors which could affect a consumer’s purchase decision.

There was a belief that marketing was based on economics. Customers always made decisions that were based on data and math and assessed products and services in a rational way and then chose items from those brands that provided the most satisfaction with their purchases with the least cost.

This is however not the case anymore. The public is well-aware of the brands and their rivals. An extremely loyal client is one who does not just buy from a brand , but also would recommend their family and acquaintances to purchase at the exact same store, even when the price is slightly higher , but also provides excellent customer service regarding the products purchased or services provided.

Here’s how the Net Promoter Score (NPS) can help brands determine their brand’s loyalty and satisfaction of their clients. Net Promoter Score surveys use one question given to consumers to determine their loyalty to the brand and degree of satisfaction. The response to this question is determined on a scale of zero and 10 and according to this, customers can be classified as:

Detractors: Who have scored an average of 0-6.

Passives: who have given scores between 7 and 8.

Promoters: They have scored scores between 9 and 10.

Market research for consumers is based on two kinds of research methods:

1. Qualitative Consumer Research

Research that is qualitative in its nature It’s a method of research that employs open-ended questioning to get valuable insights from the respondents and heavily rely on the following research techniques:

Focus Groups: Focus group as the name suggests are a small group of qualified subject experts who come together to evaluate a the product or service. Focus groups comprise of between 6 and 10 participants. Moderators are assigned to the focus group who facilitates discussions between participants to gain meaningful conclusions.

One-to one Interview It is a informal method in which researchers ask open-ended questions to gather data from participants. This technique is heavily dependent on the experience that the researcher has. The extent to which the researcher is capable of tackling relevant questions to obtain the best insight. This can be a lengthy process and could require more than one try to get the information you want.

Text Analysis/Content Analysis Analysis of texts is qualitative method of research that allows researchers to study social interactions by understanding words and images from documents that are available. Researchers study the contexts in which images are utilized and make conclusions from the images. Social media is a prime instance of text analysis. Since the last decade or so, conclusions are drawn from consumer behaviour through social media.

2. Quantitative Consumer Research

In this modern age of technology and information, valuable data is more valuable than platinum. Multi-billion dollar businesses have grown and declined based on the extent to which they’ve been able to analyze and analyse data to derive valid conclusions.

Quantitative research is focused on figures and statistics. A modern consumer who buys regularly can attest to the way that customer-centric businesses are being developed nowadays. The focus is on customer satisfaction to build a loyal customer base. By asking one question, companies can gather information that has the ability to either make or break an organization. Net Promoter Score “On the scale of 0-10, what is your likelihood likely to refer our company to family members or acquaintances?”

The impact of organic word-of-mouth on the behavior of consumers and what they can do to reduce their advertising spending and spend the resources and resources to ensure they are providing excellent customer service.

Surveys, questionnaires online, and polls are the most popular tools for collecting data. The data collected from customers is then mathematically, statistically and numerically assessed to determine the preferences of consumers.