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Overview of Market Research

• Definition of Market Research

  • Process of gathering information about consumers' needs and preferences.

Key Participants in Market Research

Information Users / Clients

• Entities needing research results include:

  • Businesses (e.g., retailers, manufacturers)

  • Examples: Toyota, Honda, Apple, Tesla

  • Governmental Organizations

  • Examples: US government, CDC

  • Educational Institutions

  • Example: Virginia Commonwealth University (VCU)

  • Nonprofits and Advocacy Groups

  • Example: Human rights campaigns focused on protecting queer rights

Market Research Suppliers

• Entities conducting the actual research:

  • Full-Service Research Firms

  • Examples: YouGov, Nielsen IQ

  • Limited Function Research Firms

  • Focus on parts of market research (e.g., data analysis, data collection)

Research Supplier Service Firms

• Types of service firms include:

  • Field Service Firms

  • Example: Firms providing technology for studies (e.g., eye tracking for attention during surveys)

  • Sampling Firms

  • Responsible for selecting appropriate survey participants

  • Software Firms

  • Examples: IBM (SPS, Excel)

Example: VCU's Market Research Needs

• VCU wants to understand enrollment factors to attract new students/faculty:

  • VCU as Information User: seeks research results

  • Possible Research Suppliers: VCU faculty, external market research firms

  • Required Supplier Services: Software tools for data analysis (e.g., Quadrics, SurveyMonkey)

Ethical Concerns in Market Research

• Potential unethical behaviors involving clients and suppliers:

  • For Clients:

  • Engaging multiple suppliers after deciding on one

  • Seeking free services without intention to contract

  • Making false promises to suppliers

  • For Suppliers:

  • Engaging in global pricing (setting prices below industry average)

  • Selling irrelevant research data that fails to assist decision making

  • Allowing subjectivity in research methodology

  • Violating participant confidentiality agreements

  • Abusing research respondents through insensitivity or underpayment

Rights of Participants

• Participants have rights including:

  • Right to choose to participate or withdraw from the research

  • Right to emotional and financial safety

  • Right to be informed about the study's details (informed consent)

  • Right to privacy regarding personal information

Subjectivity in Market Research

• Example scenario: Allowing subjectivity could lead to biased data, such as:

  • Manipulating classification of results for stakeholder satisfaction

  • Non-reporting of unfavorable relevant data

  • Failure to report all measures affecting results

  • Excluding participants based on data outcomes

  • Conducting research without predefined exclusion criteria

  • Collecting additional data only when initial results are unfavorable

  • Selectively reporting results based on geographic areas or consumer loyalty

  • Asking leading questions to influence responses positively

Additional Example

• In the context of a presidential election, suppliers might engage in unethical behaviors such as:

  • Data falsification to skew public opinion results

  • Inaccurate descriptions or reporting of research findings

  • Selecting a biased sample for survey participation

Conclusion

• Market research is a multi-faceted process involving a variety of participants and ethical considerations. Upholding ethical standards is crucial to maintain the integrity of research and protect the rights of respondents.

• Understanding the dynamics among information users, suppliers, and service firms can improve research quality and findings efficiency.