A3 Limitations of Market Research
Sufficiency in market research refers to research that is enough to meet the firm's needs in terms of developing a profitable marketing mix without being too much as this would incur unnecessary costs and time demands. Insufficient market research can lead to decisions that are not well informed and unpopular marketing decisions. This can lead to products that are unpopular and can damage the reputation of a brand.
Accuracy in market research refers to the likelihood that the findings are a true representation of market conditions. This includes customer tastes and preferences as well as competitor strategies. As data gathered informs decisions on new campaigns and adaptations to existing campaigns, inaccurate research data can lead to unsuccessful marketing strategies.
Subjectivity is the influence of a person’s own feelings rather than facts when forming a judgement. When making marketing decisions, researchers may be subjective in decisions due to their belief that a strategy is viable. At times this can be a fast and cost-effective method of making a decision, especially when the researcher has relevant experience to inform their opinion. However, it is the customers needs and wants that are essential to developing a successful marketing campaign. It is very risky to assume that the tastes and preferences of a customer are shared by or fully understood by anybody else without asking.
The reliability of the sample used in the research will have an impact on how effectively the results represent the views of the population. Generating a reliable sample involves replicating characteristics of the population in the sample and using an appropriate sample size.
Bias in market research refers to a range of factors that distort findings. This is due to a set of assumptions all humans have about how others think and feel, often based on the way we think and feel ourselves. As market research involves understanding human behaviour, the bias of both the researcher and the participant can reduce the validity of the findings.
Confirmation bias exists when a person has a preconceived idea about what the findings will be. They may therefore target their research to find that answer and ignore findings that indicate something different.
For example, if a researcher was convinced the best colour for their new packaging was red, they may focus their questions on this and not ask about a wider range of colours.
Social desirability bias exists when people want to be viewed positively by others. This may mean being dishonest about questions about their behaviour or issues they care about to paint themselves in a better light. This may include information about how much they drink or care about social issues. Respondents may also provide answers that they feel the researcher wants to hear to avoid offending them.
For example, when being asked their opinions on a new product, a participant who does not like the design may not say so if they feel the researcher was involved in the design process. This is to avoid offending them but could contribute to the launch of an undesirable product.
