Understanding Market Research Challenges

(part of Intro: Know The Risks)

 

Understanding the risks associated with MR is the key to project success. By familiarizing yourself with the risks associated with MR before beginning any projects, you will know what to avoid, resulting in higher success rates and more accurate research results. Read on to learn about the most common market research challenges.

 

MR can be very challenging. There are many risks, but if it’s planned properly and executed precisely, and if the results are presented such that people can digest and apply them, it can be a very important tool in the business-planning tool chest.

I’m a big believer in preemptive strikes as a way to minimize the risks associated with market research, and much of this book’s content describes and recommends these possible actions. But the first step is awareness of the risks you are likely to face.

Armed with knowledge of common roadblocks, the chance of success increases. Below are the 12 most common factors that contribute to the failure of a MR project.

 

1. Objectives are unclear, leading to conflicting or unrealistic expectations. This often is due to imprecise or too many goals.
   
   Result: muddy research, weak data.
    
2. Sample has quality issues (participants are not sufficiently qualified or authenticated, or do not pay adequate attention), or needed sample size is unmet.
   
   Result: weak data, insufficient data (sample too small for use in extrapolation), research loses credibility.
    
3. Instrument is poorly designed. Long, complicated questionnaire design (or rambling discussion guides for focus groups or in-depth interviews) confuses participants with awkward question sequences and poor answer options.
   
   Result for quantitative: low response rates, high dropout rates, respondent fatigue, pencil whipping, weak data.
   
   Result for qualitative: muddy, biased interviews or focus groups; disengaged participants.
    
4. Data analysis is conducted with more attention to techniques than results; either the choice of analytics is poor or is misaligned with client needs.
   
   Result: misleading data, low usefulness.
    
5. Poor matching of methodology to goals and audience needs (incorrect use of qualitative or quantitative methods).
   
   Result: misleading data, low usefulness.
    
6. Schedules slip significantly; research is completed too late to support intended decisions.
   
   Result: research loses credibility, agency loses credibility.
    
7. Internal skeptics or cynics derail the final presentation.
   
   Result: research loses credibility.
    
8. Internal clients unable to apply the research as originally intended; “actionability” of research is called into question.
   
   Result: research is “shelved,” research loses credibility.
    
9. Research firm's representatives are unable to establish required level of credibility with client or internal clients.
   
   Result: research is "shelved," research loses credibility, agency loses credibility.
    
10. Programming (for online or telephone data collection) is done hastily, and questionnaire logic is not enforced nor approved by client. Entire questions are missing, and answer options are not properly presented.
    
    Result: incomplete data, research loses credibility, agency loses credibility.
     
11. Research report contains egregious errors.
    
    Result: research is "shelved," research loses credibility, agency loses credibility.
     
12. Client-agency relationship is unproductive or strained, causing miscommunication and conflicts.
    
    Result: research loses credibility, agency loses credibility, research is late/deadlines likely missed.

Even if you plan to hire a professional MR agency to handle all aspects of the project’s design and execution, it is best to be aware of these challenges. Even a great agency has limitations; by being educated about the MR process, you’ll be in a better position to protect your company’s investment.

 

This is an excerpt from the book, "How to Hire & Manage Market Research Agencies," which is available on Amazon. Published by Research Rockstar LLC. Copyright © by Kathryn Korostoff. All rights reserved.