ESOMAR, the world organization for enabling better research into markets, consumers and societies, confirmed this week a slowdown in market research revenues worldwide.  Although global market research revenues grew by 4.5% in 2008 to reach US$32 billion, this only equates to a net 0.4% increase when inflation is taken into account.  According to the latest ESOMAR Global Market Research Report, market research revenues in 10 of the top 25 market research markets showed a decline after inflation.

While the growth rate has undoubted been affected over the past year because of the economic downturn, according to ESOMAR President Gunilla Broadbent, “the sustained growth in some emerging markets, particularly Latin America, is encouraging.”

North America, which is responsible for almost one third of all global marketing research revenue, was affected by the downturn with both the USA and Canada posting small declines (of negative 2.1 and 2.2% respectively) after adjustment for inflation.

While Europe as a whole showed little growth (slowing to 4.7%, or 0.9% after inflation), both the UK and German market research industries bucked the trend by each posting 2.5% net growth.

The strongest performing region was Latin America where market research revenues grew by 5.6% after inflation (13.4% actual).  Market research in Argentina, Peru and Panama was particularly strong.

Asia-Pacific, which has boasted strong growth in recent years, slowed a little.  However, with 6.3% year-to-year growth (2.1% after inflation), Asia-Pacific still fared better than most other regions.

The annual ESOMAR Global Market Research Report also revealed some interesting statistics about the market research industry in general.  In terms of research methodologies, quantitative research methods account for 80% of global research spend.  Qualitative research methods account for a further 14%, with desk and secondary research taking the remaining 6%.  Online research and online traffic/audience measurement now account for at least 10% of overall research spend in 22 countries (74 countries are covered by ESOMAR’s report), increasing from 18 countries in 2007.

A recent article featured in BtoB magazine – Online market research takes off
– suggests that internet surveys combined with more traditional research methods are becoming the norm.

The article estimates that 43% of all survey research carried out last year was conducted online.  Whilst quantitative consumer research has been leading the online research charge, thanks to a much greater number of potential respondents, b-to-b research is believed to be heading in the same direction.

But it’s not just quantitative research techniques – the most widely used of which is the online survey – that are increasing in popularity.  Qualitative research techniques, such as online focus groups and online panels, are increasing in prevalence too.

B2B International Director, Matthew Harrison, was interviewed for the article.  He acknowledged that around 15% of B2B International’s overall research happens online, with particularly high usage among our Asian markets, especially Japan.

Harrison recognizes that the feasibility of online research is sometimes limited by the availability of qualified contact lists, but if such lists are available, this is a useful data collection method.  As well as faster turnaround times, there are often significant cost-savings associated with online market research.

Yet in spite of its many benefits, online research is almost always a complement to traditional research techniques.  All techniques used in the market research industry have their own distinct advantages and disadvantages.  For example, online research techniques may not allow such detailed open-ended probing as telephone research, and response rates can be lower than with other methods.

When defining the methodology of any market research project, B2B International carefully considers the research objectives, and assesses which technique – or combination of techniques – will yield the best results within a given budget.  These include, more and more frequently, a range of online techniques, but not to the exclusion of tried and tested ‘traditional’ methods.

Why not read our white paper, Using Online Focus Groups As A Business-To-Business Research Technique?

A new B2B International white paper – Using Market Research For Product Development – is now available online.

In it, Julia Cupman assesses the importance of product development to a company’s growth prospects, focusing in particular on the vital role(s) that market research plays throughout all the different stages of the product life cycle, from initial concept through to product maturity.  Product development research serves a host of purposes, such as establishing (unmet) needs, estimating likely demand, setting prices, shaping the specification of the product or determining optimal price points, to give but a few examples.

Of course, product development research does not just examine the product alone; packaging, advertising, pricing, service, brand and company reputation are some of the other factors which together make up the complete customer value proposition.  Indeed, improvements to packaging, delivery, or any aspect of service support could have just as big an impact as improvements to the physical product itself.

Whether establishing potential opportunities for brand new products or trying to breathe life into a former favorite seemingly on its last legs, market research provides insight into the needs of the market, and reduces the risk associated with any form of product development.

To read the white paper in full, please click here

For further details on B2B International’s product development research services, please click here

In his first Thursday Night Insight, David Ward – B2B International’s Head of Data Processing and resident number cruncher – warns us of the dangers of taking statistics at face value.

Numbers and statistics are quoted at us all the time but how often do we stop to think about what they really mean before we’re drawn in by them? Outside a farm shop a mile or so from where I live, I saw a sign which was advertising fresh milk for sale. This was no ordinary milk. In fact it was very special 96% fat free milk. For a split second I thought about it, was impressed, and then realised it was effectively ‘full fat’ milk. The way in which the information was presented made all the difference. The impact of the sign was as much about what it didn’t say as what it did.

The same can be said of the stores on the high street that are trying their hardest to get us to part with our money at the moment, and sales signs are in every store (or at least it seems that way). I’ve seen many signs offering up to 50% off, but what does this really mean?

Perhaps this is a little cynical but an alternative sales sign could read…

“Up to 50% off items in store, well to be honest most items have 15% off. It’s the 4 items that nobody wants and that we’ve been trying to sell for 6 months that have 50% off”.

Judging by a story in my local newspaper, it seems that some of the shoppers hoping to pick up a bargain at the closing Woolworths store left with thoughts not too dissimilar from my alternative sign. No one can deny that 50% off is a very tempting offer on the face of it, but my alternative sign may be more representative of the reality of what awaits the shopper.

There is a serious point here and it is that numbers can be made to say or infer almost anything you like. In market research, different messages can be shown depending on how the numbers are presented and indeed which numbers are presented. Even something as seemingly simple as indicating a typical respondent or trend isn’t as straight forward as is often assumed. Is it better to depict the “typical” respondent with the mean or median? How often are we told what the average person thinks without being told whether that figure has been taken from the mean or median?

Working in data processing, I spend a large proportion of my day working with numbers, whether it is column locations, frequency counts or checking that the figures in the tables are presented well. Not only do I put the effort into getting the raw data into table format, I spend equally as much effort in making sure those figures are correct. I want to be confident that this effort is not wasted and that the figures are being used in the most appropriate way.

Just like the sales signs I saw in the Woolworths shop windows, reading something into the figures that isn’t really there is all too easy.The ability to sift through the sea of information that a quantitative project can generate, be able to pick out what is relevant and interesting, and be able to apply the correct conclusions based on those numbers, is a real skill. It is an important skill in market research, and one that should not be underestimated.