2 minutes to read. By author Michaela Mora on August 7, 2012 Topics: Business Strategy, Market Research, Market Research Cartoons
More often than we want to admit, the budget dictates the market research approach taken in projects. Although the combination of both qualitative and quantitative research is ideal, there is not always a budget for both.
Depending on the industry and target market, qualitative research may be cheaper than quantitative research or vice versa. In some cases, both approaches yield similar results. However, this doesn’t mean that picking the cheapest will be your best bet.
For example, I once had a client wanting to test pricing for a new product with a couple of focus groups. Unfortunately, this was a cheap, but useless approach. It was equivalent to asking family and friends what they thought about the product’s price, and take their answers as representative of the population of the DFW metroplex.
Qualitative and quantitative research approaches have different roles in new product development research.
If your budget is limited, think first about the business decisions at stake. That should be the deciding criterion in selecting the best approach.
If you let the market research budget dictate the approach, learn at least what the limitations of the chosen approach are. Moreover, adjust your expectations accordingly. You may realize that you will be wasting time and money on a research approach that doesn’t support decision making.
Some of my clients, in this situation, decide not to do the research. In contrast, others, with newly acquired knowledge, find ways to get the budget to do it right, knowing they will win in the long run.
Ignorance is usually more expensive than paid research.
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