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{{see also|Market analysis}}
{{marketing}}
'''Market research''' is an organized effort to gather information about [[target markets]] and customers: know about them, starting with who they are.<ref name=MyResearchBway.NYT>{{cite news |newspaper=[[The New York Times]]|url=https://www.nytimes.com/2006/08/01/arts/01niel.html|title=Nielsen Brings a New Marketing Strategy to Broadway|author=Campbell Robertson|date=August 1, 2006|access-date=July 23, 2020|archive-date=July 24, 2020|archive-url=https://web.archive.org/web/20200724061652/https://www.nytimes.com/2006/08/01/arts/01niel.html|url-status=live}}</ref> It is an important component of [[business strategy]]<ref name="McQuarrie">{{cite book|last=McQuarrie |first=Edward|title=The market research toolbox: a concise guide for beginners|publisher=SAGE|year=2005|edition=2nd|url=https://books.google.com/books?id=qYW8vE0nx4gC|isbn=978-1-4129-1319-5|access-date=2020-11-16|archive-date=2022-08-28|archive-url=https://web.archive.org/web/20220828064133/https://books.google.com/books?id=qYW8vE0nx4gC|url-status=live}}</ref> and a major factor in maintaining [[competitors|competitiveness]]. Market research helps to identify and analyze the needs of the market, the market size and the competition. Its techniques encompass both [[Qualitative research|qualitative]] techniques such as focus groups, in-depth interviews, and ethnography, as well as [[Quantitative research|quantitative]] techniques such as customer surveys, and analysis of secondary data.
|title=The market research toolbox: a concise guide for beginners|publisher=SAGE|year=2005|edition=2nd|url={{Google books|qYW8vE0nx4gC|plainurl=yes}}|isbn=978-1-4129-1319-5}}</ref> and a major factor in maintaining [[competitors|competitiveness]]. Market research helps to identify and analyze the needs of the market, the market size and the competition. Its techniques encompass both [[Qualitative research|qualitative]] techniques such as focus groups, in-depth interviews, and ethnography, as well as [[Quantitative research|quantitative]] techniques such as customer surveys, and analysis of secondary data.
 
It includes social and opinion research, and is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making.<ref>{{cite book |year=2008
|title=International Code on Market and Social Research|publisher=ICC/ESOMAR Amsterdam, the Netherlands|edition=4 |url=http://www.esomar.org/uploads/pdf/professional-standards/ICCESOMAR_Code_English_.pdf|archive-url=https://web.archive.org/web/20180903185324/https://www.esomar.org/uploads/public/knowledge-and-standards/codes-and-guidelines/ESOMAR_ICC-ESOMAR_Code_English.pdf|archive-date=3 September 2018 |url-status=dead|author-link1=International Chamber of Commerce |author-link2=ESOMAR |access-date=29 December 2009}}</ref>
 
Market research, [[marketing research]], and [[marketing]] are a sequence of [[business process|business activities]];<ref>{{cite web|url=https://www.acq.osd.mil/dpap/Docs/cihandbooks.pdf|title=Commercial Item Handbook|quote=market research is a business operation|access-date=2020-08-02|archive-date=2021-10-06|archive-url=https://web.archive.org/web/20211006064312/https://www.acq.osd.mil/dpap/Docs/cihandbooks.pdf|url-status=dead}}</ref><ref>{{cite web |website=Hearst Newspapers|url=https://smallbusiness.chron.com/formulated-marketing-36473.html|title=What Is Formulated Marketing?|quote=Marketing is a business process that ..|author=Alex Burke|access-date=2020-08-02|archive-date=2020-09-23|archive-url=https://web.archive.org/web/20200923023231/https://smallbusiness.chron.com/formulated-marketing-36473.html|url-status=live}}</ref> sometimes these are handled informally.<ref>{{cite journal|url=https://www.emerald.com/insight/content/doi/10.1108/02651339410072980/full/html|journal=International Marketing Review|volume=11|issue=6|doi=10.1108/02651339410072980|title=Export Marketing Research and the Effect of Export Experience in Industrial SMEs|quote=Size of firm seems to be related to the use of informal market research|author1=Susan J. Hart|author2=John R. Webb|author3=Marian V. Jones|year=1994|page=18|citeseerx=10.1.1.461.857|access-date=2022-08-28|archive-date=2022-08-28|archive-url=https://web.archive.org/web/20220828064133/https://www.emerald.com/insight/content/doi/10.1108/02651339410072980/full/html|url-status=live}}</ref>
|url=https://www.emerald.com/insight/content/doi/10.1108/02651339410072980/full/html|journal=International Marketing Review|volume=11|issue=6|doi=10.1108/02651339410072980|title=Export Marketing Research and the Effect of Export Experience in Industrial SMEs|quote=Size of firm seems to be related to the use of informal market research|author1=Susan J. Hart |author2=John R. Webb |author3=Marian V. Jones |year=1994 |page=18|citeseerx=10.1.1.461.857}}</ref>
 
The field of ''marketing research'' is much older than that of ''market research''.<ref>{{Cite journal |url=https://www.jstor.org/stable/1246952|title=Notes on the History of Marketing Research|journal=Journal of Marketing|last=Lockley|first=Lawrence C.|volume=14|number=5|year=1950|pages=733–736|doi=10.2307/1246952|jstor=1246952|access-date=2020-07-23|archive-date=2020-08-16|archive-url=https://web.archive.org/web/20200816183101/https://www.jstor.org/stable/1246952|url-status=live}}</ref> Although both involve consumers, '''''Marketing''' research'' is concerned specifically about marketing processes, such as advertising effectiveness and salesforce effectiveness, while '''''market''' research'' is concerned specifically with markets and distribution.<ref name="McDonald">{{cite book|last=McDonald |first=Malcolm|title=Marketing Plans|place= Oxford, England|publisher=Butterworth-Heinemann|year=2007|edition=6th|url={{Google https://books|.google.com/books?id=os0K20MsepoC|plainurl=yes}}|isbn=978-0-7506-8386-9 |access-date=2020-11-16|archive-date=2022-08-28|archive-url=https://web.archive.org/web/20220828064134/https://books.google.com/books?id=os0K20MsepoC|url-status=live}}</ref> Two explanations given for confusing ''Market research'' with ''Marketing research'' are the similarity of the terms and also that ''Market Research is a subset of Marketing Research''.<ref name=MaResearch.SubSlideShare>{{cite web|url=https://www.slideshare.net/eminenture/market-research-38765720|title=Market Research END-TO-END Benefits|quote=Because Market Research is a subset of Marketing Research, it is easy to see why the two terms are often confused.|date=September 6, 2014|access-date=July 23, 2020|archive-date=August 21, 2021|archive-url=https://web.archive.org/web/20210821113847/https://www.slideshare.net/eminenture/market-research-38765720|url-status=live}}</ref><ref>{{cite web|url=https://marketing-insider.eu/difference-between-market-research-and-marketing-research|last=Claessens|first=Maximilian|title=Difference between Market Research and Marketing Research|date=9 January 2018|access-date=23 July 2020|archive-date=22 July 2020|archive-url=https://web.archive.org/web/20200722223859/https://marketing-insider.eu/difference-between-market-research-and-marketing-research/|url-status=live}}</ref><ref name=MarKReSub>{{cite web|url=https://www.qualtrics.com/blog/market-research-v-marketing-research|title=Difference Between Market & Marketing Research|quote=Market Research is a subset of Marketing Research|date=September 24, 2019|access-date=July 23, 2020|archive-date=July 23, 2020|archive-url=https://web.archive.org/web/20200723132030/https://www.qualtrics.com/blog/market-research-v-marketing-research/|url-status=live}}</ref> Further confusion exists because of major companies with expertise and practices in both areas.<ref name=MaResearchCensus.both>{{cite web|url=https://www.census.gov/eos/www/napcs/finalized/web_54191_final_reformatted_edited_US082208.pdf|title=NAPCS Product List for NAICS 54191: Marketing Research|publisher=United States Census|url-status=dead|archive-date=2012-06-17|archive-url=https://web.archive.org/web/20120617133438/https://www.census.gov/eos/www/napcs/finalized/web_54191_final_reformatted_edited_US082208.pdf|quote=data collection services for marketing research and public opinion surveys, by methods other than ... data collection services provided as part of a market research services package that includes}}</ref>
|url=https://www.qualtrics.com/blog/market-research-v-marketing-research|title=Difference Between Market & Marketing Research|quote=Market Research is a subset of Marketing Research|date=September 24, 2019}}</ref> Further confusion exists because of major companies with expertise and practices in both areas.<ref name=MaResearchCensus.both>{{cite web|url=https://www.census.gov/eos/www/napcs/finalized/web_54191_final_reformatted_edited_US082208.pdf|title=NAPCS Product List for NAICS 54191: Marketing Research|publisher=United States Census|url-status=dead|archive-date=2012-06-17|archive-url=https://web.archive.org/web/20120617133438/https://www.census.gov/eos/www/napcs/finalized/web_54191_final_reformatted_edited_US082208.pdf|quote=data collection services for marketing research and public opinion surveys, by methods other than ... data collection services provided as part of a market research services package that includes}}</ref>
 
==History==
Although ''market research'' started to be conceptualized and put into formal practice during the 1930s as an offshoot of the advertising boom of the [[Old-time radio|Golden Age of radio]] in the United States, this was based on 1920s work by [[Daniel Starch]]. Starch "developed a theory that advertising had to be seen, read, believed, remembered, and most importantly, acted upon, in order to be considered effective."<ref name=MaResearch.BriefHIST/> Advertisers realized the significance of [[demographic]]s by the patterns in which they sponsored different radio programs.{{citation needed|date=August 2022}}
 
The [[Gallup (company)|Gallup Organization]] helped invent the public opinion poll; today, "Market research is a way of paying for it."<ref name=MaResearchGallop.NYT>{{cite news|newspaper=[[The New York Times]]|url=https://www.nytimes.com/1990/03/06/us/gallup-shifts-emphasis-toward-market-studies.html|title=Gallup Shifts Emphasis Toward Market Studies|author=Lisa Belkin|date=March 6, 1990|access-date=July 24, 2020|archive-date=July 24, 2020|archive-url=https://web.archive.org/web/20200724064337/https://www.nytimes.com/1990/03/06/us/gallup-shifts-emphasis-toward-market-studies.html|url-status=live}}</ref>
{{cite news |newspaper=[[The New York Times]]|url=https://www.nytimes.com/1990/03/06/us/gallup-shifts-emphasis-toward-market-studies.html|title=Gallup Shifts Emphasis Toward Market Studies|author=Lisa Belkin |date=March 6, 1990}}</ref>
 
==Market research for business/planning==
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{{Columns-list|colwidth=29em|
* Advertisement research
* Audience research<ref>{{cite news|newspaper=[[The New York Times]]|url=https://www.nytimes.com/1992/12/20/arts/dear-museumgoer-what-do-you-think.html|title=Dear Museumgoer: What Do You Think?|author=Carol Vogel|date=December 20, 1992|access-date=July 24, 2020|archive-date=July 24, 2020|archive-url=https://web.archive.org/web/20200724071742/https://www.nytimes.com/1992/12/20/arts/dear-museumgoer-what-do-you-think.html|url-status=live}}</ref>
* [[Choice modelling]]
* [[Competitor analysis]]
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==Data collection==
{{Main|Data collection}}
"Rigorous sampling methodologies combined with high-quality data collection" is what the magazine ''[[Ad Age|Advertising Age]]'' considers the backbone of market research.<ref>{{cite book|title=The Advertising Age Encyclopedia of Advertising|author1=John McDonough |author2=Karen Egolf |year=2015}}</ref> Data collection can be done by observing customer behavior through in-situ studies or by processing e.g. log files, by interviewing customers, potential customers, stakeholders, or a sample of the general population. The data can be quantitative in nature (counting sales, clicks, eye-tracking) or qualitative (surveys, questionnaires, interviews, feedback). Aggregating, visualizing, and turning data into actionable insights is one of the major challenges of market research and today, [[text analytics]] affords market researches methods to process large amounts of qualitative information and turn it into quantitative data, which is easier to visualize and use for formalized decision making.<ref name="openanswers">{{cite journal |last1=Espinoza |first1=Fredrik |last2=Hamfors |first2=Ola |last3=Karlgren |first3=Jussi |last4=Olsson |first4=Fredrik |last5=Hamberg |first5=Lars |last6=Sahlgren |first6=Magnus |author-link3=Jussi Karlgren |author-link6=Magnus Sahlgren |title=Analysis of open answers to survey questions through interactive clustering and theme extraction |journal=ACM CHIIR Conference |date=2018 |pages=317–320 |url=http://kth.diva-portal.org/smash/record.jsf?pid=diva2%3A1185949&dswid=-9597 |doi=10.1145/3176349.3176892 |isbn=9781450349253 |s2cid=3619476 |access-date=21 February 2022 |archive-date=28 August 2022 |archive-url=https://web.archive.org/web/20220828065639/http://kth.diva-portal.org/smash/record.jsf?pid=diva2:1185949&dswid=-9597 |url-status=live }}</ref> Data collection can use larger audience samples than the few hundred or thousand typically used in market research.<ref>{{cite web|url=https://marketcast.com/when-data-science-and-traditional-market-research-collide/|title=When Data Science and Traditional Market Research Collide|publisher=MarketCast|date=2020-11-24|access-date=2022-08-28|archive-date=2021-12-04|archive-url=https://web.archive.org/web/20211204125333/https://marketcast.com/when-data-science-and-traditional-market-research-collide/|url-status=live}}</ref> Also required is the (at least passive)<ref>{{cite news|newspaper=[[The New York Times]]|url=https://www.nytimes.com/2019/11/02/sunday-review/data-protection-privacy.html|quote=because Congress has never established an agency to |title=The Government Protects Our Food and Cars. Why Not Our Data?|author=Natasha Singer |date=November 2, 2019|access-date=July 26, 2020|archive-date=July 26, 2020|archive-url=https://web.archive.org/web/20200726104845/https://www.nytimes.com/2019/11/02/sunday-review/data-protection-privacy.html|url-status=live}}</ref> cooperation of those being surveyed;<ref>{{cite news|newspaper=[[The New York Times]]|url=https://www.nytimes.com/1993/08/23/business/media-business-advertising-latest-market-research-videogenic-self-analyzing.html|title=The latest in market research: videogenic self-analyzing shoppers.|author=Stuart Elliott |date=August 23, 1993|access-date=July 26, 2020|archive-date=July 26, 2020|archive-url=https://web.archive.org/web/20200726062824/https://www.nytimes.com/1993/08/23/business/media-business-advertising-latest-market-research-videogenic-self-analyzing.html|url-status=live}}</ref> trust<ref>{{cite news |newspaper=[[The New York Times]]|url=https://www.nytimes.com/2020/07/21/technology/us-china-technology.html|quote=it’s hard to know when to believe them.|title=Beware the 'But China' Excuses|author=Shira Ovide|date=July 21, 2020|access-date=July 2126, 2020|archive-date=July 26, 2020|archive-url=https://web.archive.org/web/20200726075034/https://www.nytimes.com/2020/07/21/technology/us-china-technology.html|url-status=live}}</ref> is also helpful.<ref>{{cite news |newspaper=[[The New York Times]]|url=https://www.nytimes.com/2017/11/19/opinion/facebook-regulation-incentive.html|quote=prioritized data collection over user protection and regulatory compliance|title=We Can't Trust Facebook to Regulate Itself|author=Sandy Parakilas |date=November 19, 2017|access-date=July 26, 2020|archive-date=August 11, 2020|archive-url=https://web.archive.org/web/20200811110858/https://www.nytimes.com/2017/11/19/opinion/facebook-regulation-incentive.html|url-status=live}}</ref>
 
Some data collection is incentivized: a simple form is when those on the road contribute to [[traffic reporting]] of which they are consumers. More complex is the relationship of [[consumer-to-business]] (C2B), which sometimes introduces reliability problems.<ref>{{cite news|newspaper=[[The New York Times]]|url=https://www.nytimes.com/2019/11/28/business/online-reviews-fake.html|quote=Customer reviews are incredibly important in e-commerce, but they can be unreliable or downright dishonest.|title=When Is a Star Not Always a Star? When It's an Online Review|author=Sapna Maheshwari |date=November 28, 2019|access-date=July 26, 2020|archive-date=July 17, 2020|archive-url=https://web.archive.org/web/20200717014019/https://www.nytimes.com/2019/11/28/business/online-reviews-fake.html|url-status=live}}</ref> Other data collection is to know more about the market,<ref>{{cite news|newspaper=[[The New York Times]]|url=https://www.nytimes.com/interactive/2017/04/02/technology/uber-drivers-psychological-tricks.html|quote=Faster pickup times mean more idle drivers ... armies of underemployed people looking for extra hours|title=How Uber Uses Psychological Tricks to Push Its Drivers' Buttons|date=April 2, 2017|access-date=July 26, 2020|archive-date=August 9, 2020|archive-url=https://web.archive.org/web/20200809224305/https://www.nytimes.com/interactive/2017/04/02/technology/uber-drivers-psychological-tricks.html|url-status=live}}</ref> which is the purpose of market research.<ref>{{cite news|newspaper=[[The New York Times]]|url=https://www.nytimes.com/2019/12/19/technology/amazon-sellers.html|title=Prime Power: How Amazon Squeezes the Businesses Behind Its Store|author=Karen Weise|date=December 19, 2019|access-date=July 26, 2020|archive-date=December 19, 2019|archive-url=https://archive.today/20191219195205/https://www.nytimes.com/2019/12/19/technology/amazon-sellers.html|url-status=live}}</ref>
 
==International influence from the Internet==
The international growth of available research both from and via the Internet<ref name=MaResearch.BriefHIST>{{cite web|url=https://www.keltonglobal.com/perspectives/a-brief-history-of-market-research|title=A Brief History of Market Research|author=Kuba Kierlanczyk|publisher=Kelton Global|date=February 4, 2016|access-date=July 23, 2020|archive-date=July 23, 2020|archive-url=https://web.archive.org/web/20200723163833/https://www.keltonglobal.com/perspectives/a-brief-history-of-market-research/|url-status=live}}</ref> has influenced a vast number of consumers and those from whom they make purchases.<ref name=MaResearch>{{cite news |newspaper=[[The New York Times]]|url=https://www.nytimes.com/2008/06/23/business/worldbusiness/23iht-research23.1.13861329.html|title=Market research is getting a makeover|author=Eric Pfanner|date=June 22, 2008|access-date=July 23, 2020|archive-date=July 23, 2020|archive-url=https://web.archive.org/web/20200723143450/https://www.nytimes.com/2008/06/23/business/worldbusiness/23iht-research23.1.13861329.html|url-status=live}}</ref> Although emerging [[global markets]], such as China, Indonesia and Russia are still smaller than the US in [[B2B e-commerce]], their internet-fueled [[growth factor]] is stimulated by product-enhancing websites, graphics, and content designed to attract corporate and [[consumer]]/[[B2C]] shoppers. Estimates for 2010 show between US$400 billion and $600 billion in revenue was generated by this medium.▼
The international growth of available research both from and via the Internet<ref name=MaResearch.BriefHIST>{{cite web
▲|url=https://www.keltonglobal.com/perspectives/a-brief-history-of-market-research|title=A Brief History of Market Research|author=Kuba Kierlanczyk|publisher=Kelton Global|date=February 4, 2016}}</ref> has influenced a vast number of consumers and those from whom they make purchases.<ref name=MaResearch>{{cite news |newspaper=[[The New York Times]]|url=https://www.nytimes.com/2008/06/23/business/worldbusiness/23iht-research23.1.13861329.html|title=Market research is getting a makeover|author=Eric Pfanner|date=June 22, 2008}}</ref> Although emerging [[global markets]], such as China, Indonesia and Russia are still smaller than the US in [[B2B e-commerce]], their internet-fueled [[growth factor]] is stimulated by product-enhancing websites, graphics, and content designed to attract corporate and [[consumer]]/[[B2C]] shoppers. Estimates for 2010 show between US$400 billion and $600 billion in revenue was generated by this medium.
 
A report titled "Global B2C E-Commerce and Online Payment Market 2014" indicated a decrease in overall growth rates in North America and Western Europe, even as absolute growth numbers rose.
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==Research and market sectors==
Regarding details for worldwide corporate market research, "most of them are never written about because they are the consumer research done by the country's manufacturers."<ref name=MaResearchUnpublished.NYT>{{cite news |newspaper=[[The New York Times]]|url=https://www.nytimes.com/1975/11/16/archives/market-research-is-now-a-national-pastime.html|title=Market Research Is Now a National Pastime|author=Philip H. Dougherty |date=November 16, 1975|access-date=July 23, 2020|archive-date=July 23, 2020|archive-url=https://web.archive.org/web/20200723150811/https://www.nytimes.com/1975/11/16/archives/market-research-is-now-a-national-pastime.html|url-status=live}}</ref>
 
Market research data has loss prevention aspects; that less than 60 percent of all proposed modifications and new products are deemed failures.<ref name=MaResearchUnpublished.NYT/> When information about the market is difficult to acquire, and the cost of "going ahead with the decision" to offer the product or service is affordable, the research cost may be more profitably used "to ensure that the new line got the advertising send-off it needed to have the best chances of succeeding."<ref name=MaResearchCostCon.HBR>{{cite magazine|magazine=[[Harvard Business Review]]|url=https://hbr.org/1983/07/cost-conscious-marketing-research|title=Cost-Conscious Marketing Research|author=Alan R. Andreasen |date=July 1983}}</ref>
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==Insights industry==
Market research is an industry that overlaps with and is often referred to as the "insights” industry.<ref name="sagepub">{{Cite journal|url=http://journals.sagepub.com/doi/10.1177/14707853211039191|title=The Insights Industry: Towards a Performativity Turn in Market Research|first=Carlos A.|last=Diaz Ruiz|date=March 20, 2022|journal=International Journal of Market Research|volume=64|issue=2|pages=169–186|doi=10.1177/14707853211039191|s2cid=238711288|access-date=June 20, 2022|archive-date=June 20, 2022|archive-url=https://web.archive.org/web/20220620064504/https://journals.sagepub.com/doi/10.1177/14707853211039191|url-status=live}}</ref> However, the distinctive methods and techniques of market research not always correspond to the digital-first approach of insights vendors. The emergence of insights focusing on [[data analytics]] rather than fieldwork is competing with market research for managerial attention and funding. Current research with market research practitioners shows two pressing concerns for the industry: online data commoditization and the increasing distance between market researchers and top management within client organizations. Both concerns boil down to the risk they perceived of market research becoming a legacy activity of the marketing department rather than the cornerstone of [[business strategy]].<ref name="sagepub"/>
 
Market research aims to produce so-called "actionable knowledge" that firms find useful in their operations:<ref>{{Cite journal|url=https://www.sciencedirect.com/science/article/pii/S0019850117306156|title=Actionable marketing knowledge: A close reading of representation, knowledge and action in market research|first1=Carlos|last1=Diaz Ruiz|first2=Maria|last2=Holmlund|date=October 1, 2017|journal=Industrial Marketing Management|volume=66|pages=172–180|via=ScienceDirect|doi=10.1016/j.indmarman.2017.08.005}}</ref>
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