Innovation and Markets / 9.4 /
Market Research
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Market research is any organized effort to gather information about markets or customers. Market research often identifies how to improve the product, service or system and increase its chance of success within a particular sector or segment. The price a user is prepared to pay is usually determined through market research. This in turn sets an upper limit of cost to the design and production of a potential product, service or system. Market research has a crucial role in determining the constraints a designer has to work within.
9.4.1 | Market Research Purpose
9.4.1 | Market Research Purpose
Market research is the systematic gathering of data about individuals or organisations using statistical analysis and techniques to support decision-making.
Market research can be costly and time-consuming but is important as product development benefits immensely from input from a diverse range of stakeholders. There are many purposes of market research.
Gathering information in order to be able to generate new ideas for a product
Evaluating the market potential of products at various stages of development
Developing ideas into products to suit market requirements
Identifying suitable promotional strategies
Gathering information relating to demographics or social roles
Collecting data relating to economic trends
Taking into account technological trends and scientific advances
Data can be collected directly from first-hand experience. Such large-scale primary data collection can be very costly but is generally more accurate to the context of the development of a specific product than secondary data. Secondary Data is published data collected in the past by other parties. Secondary data often relates to demographics, economics or overall market analysis.
9.4.2 | Market research strategies
9.4.2 | Market research strategies
User research: Obtaining users’ responses through questionnaires and Interviews.
User trial: The observation of people using a product and collection of comments from people who have used a product.
Expert appraisal: The reliance on the knowledge and skills of an expert in the operation of the product.
Literature search: The use of consumer reports, newspapers, magazines, encyclopaedias, manufacturers' information, etc. To conduct research.
Perceptual mapping: A tool to quickly compare a product to others in the market in a graphical representation.
Environmental scanning: The study and interpretation of the political, economic, social and technological events and trends that influence a business, industry or market.
9.4.3 | Consumer Reactions
9.4.3 | Consumer Reactions
Consumers often react to trends, fashions, fads and advancements. These can be either positive or negative reactions. Each of these reactions will influence how and why a design is developed, and which market segment it will be targeted at. Two of the largest ‘reaction’ groups are for Green design and Technological advancement.
Green design and sustainability are hot topics and more and more consumers are becoming environmentally aware. They are now expecting more from the products or services they buy.
Consumer reaction to technological advancements can be characterised by the adoption curve.
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