Market research is a process in which you can determine the viability of a new product or service directly with the help of potential customers. It offers great insights to retailers like customer feedback and information about a new market.
The market research can be conducted by the retailer in-house or they can hire another company to perform the research. Of course, this depends on funds and on the needs of the retailers.
Market research is an essential component for R&D (research and development) of a new service or product.
Types of market research
Depending on the needs of the retailer, there are different types of market research that can be performed. Some of the most common are:
This offers the most insightful information because it allows you to dig deeper into the needs and wants of your potential customers.
This is the easiest type of market research retailers can implement to find out information.
- Focus group
A focus group is a type of research that might offer conflicting information and that’s why it is better to use it along with another type of research. Potential customers can influence one another which ultimately affects their answers.
In this type of research, the researcher becomes a “fly-on-the-wall” and observes the potential customer interacting with the product. This type of research offers amazing insights.