A car clinic is a market research method used by automotive manufacturers to evaluate consumer preferences, perceptions, and opinions about current or prototype vehicles. This research technique involves inviting a group of potential customers to a controlled environment where they can interact with and provide feedback on various car models.

Definition of Car Clinics

A car clinic involves setting up a venue where participants can inspect, test, and provide feedback on vehicles. These events are meticulously organized to gather detailed consumer insights that can inform vehicle design, features, marketing strategies, and overall customer satisfaction.

Historical Context

The concept of car clinics dates back to the mid-20th century when automotive manufacturers began seeking more structured and systematic ways to gather consumer feedback. Initially, these clinics were small-scale and localized, but they have evolved into sophisticated events often involving hundreds of participants and multiple vehicle models.

Alternative Terms

Car clinics are sometimes referred to as:

  • Automotive Clinics
  • Vehicle Clinics
  • Product Clinics (in the context of automotive products)

Who Uses Car Clinics?

Car clinics are primarily used by:

  • Automotive Manufacturers: To gain insights into consumer preferences and refine vehicle designs.
  • Market Research Firms: To provide detailed reports and recommendations to automotive clients.
  • Automotive Suppliers: To understand consumer perceptions of components and features.

What is the Purpose of a Car Clinic?

The main purpose of a car clinic is to gather in-depth feedback from potential customers on various aspects of a vehicle. This includes:

  • Design and Aesthetics: Evaluating consumer reactions to the exterior and interior design.
  • Features and Functionality: Assessing the usability and appeal of various features and technologies.
  • Comparative Analysis: Comparing the client’s vehicles against competitor models to identify strengths and weaknesses.
  • Purchase Intentions: Understanding factors that influence buying decisions and willingness to pay.

When is a Car Clinic Used?

Car clinics are used at various stages of the vehicle development and marketing process, including:

  • Prototype Testing: Evaluating early-stage designs and concepts before mass production.
  • Pre-Launch: Gaining final consumer feedback before a new model is officially launched.
  • Post-Launch: Gathering feedback on recently launched models to inform future improvements and updates.
  • Competitor Benchmarking: Comparing new models against competitors to understand market positioning.

Why are Car Clinics Important?

Car clinics are crucial for the automotive industry due to several reasons:

  • Consumer-Centric Design: Ensures that vehicles are designed with consumer preferences and needs in mind.
  • Risk Mitigation: Identifies potential issues and areas for improvement before a vehicle reaches the market.
  • Competitive Advantage: Provides insights into how a vehicle compares with competitors, helping to position it more effectively.
  • Marketing Insights: Informs marketing strategies by understanding what features and messages resonate most with consumers.

How are Car Clinics Conducted?

Conducting a car clinic involves several key steps:

  • Recruitment: Selecting a diverse group of participants that represent the target market demographic.
  • Venue Setup: Preparing a controlled environment where vehicles can be displayed and evaluated.
  • Survey Design: Creating detailed questionnaires and feedback forms to gather structured data from participants.
  • Interactive Sessions: Allowing participants to interact with the vehicles, ask questions, and provide feedback.
  • Data Analysis: Analyzing the collected data to identify trends, preferences, and areas for improvement.
  • Reporting: Compiling the findings into detailed reports with actionable recommendations for the client.

In conclusion, a car clinic is a vital market research tool in the automotive industry that provides comprehensive insights into consumer preferences and perceptions. By understanding the definition, purpose, historical context, and benefits of car clinics, automotive manufacturers and researchers can make informed decisions to enhance vehicle design, marketing strategies, and overall customer satisfaction.

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Computer-assisted personal interviewing (CAPI) is a data collection method in which an interviewer uses a computer or tablet to guide the interview process and record responses. This technique streamlines the interviewing process, enhances data accuracy, and facilitates real-time data entry and validation.

Definition of CAPI

CAPI involves an interviewer conducting face-to-face interviews with respondents using a computerized questionnaire. The interviewer reads questions from the computer screen and inputs the respondent’s answers directly into the device. This method replaces traditional paper-and-pencil interviews, offering numerous advantages in terms of efficiency and data quality.

Historical Context The concept of CAPI emerged in the late 20th century as computers became more portable and accessible. Early CAPI systems were bulky and limited, but advances in technology have made the process more efficient and user-friendly. Today, CAPI is widely used in market research, social science research, and public opinion polling.

Alternative Terms CAPI is sometimes referred to as:

  • Computer-Assisted Personal Interviewing
  • Tablet-Assisted Personal Interviewing (when using tablets specifically)
  • Electronic Personal Interviewing

Who Uses CAPI?

CAPI is used by a wide range of organizations, including:

  • Market Research Firms: To gather detailed consumer insights and preferences.
  • Government Agencies: For census data collection and public opinion surveys.
  • Academic Researchers: To conduct social science research and behavioral studies.
  • Healthcare Organizations: For patient surveys and health-related research.

What is the Purpose of CAPI?

The primary purpose of CAPI is to improve the efficiency and accuracy of data collection through personal interviews. It helps in:

  • Reducing Errors: Automated data entry minimizes manual errors associated with paper surveys.
  • Enhancing Data Quality: Real-time validation and skip logic ensure consistency and completeness.
  • Saving Time: Streamlined processes reduce the time needed for data collection and processing.

When is CAPI Used?

CAPI is particularly useful in situations requiring:

  • Complex Questionnaires: Where skip patterns, branching, and real-time validations are needed.
  • Large-Scale Surveys: Such as national censuses or large market research studies.
  • Sensitive Topics: Where face-to-face interaction helps in building rapport and trust with respondents.

Why is CAPI Important?

CAPI offers several benefits that make it a valuable tool in data collection:

  • Efficiency: Speeds up the data collection process by eliminating the need for paper-based data entry and subsequent digitization.
  • Accuracy: Reduces the likelihood of data entry errors and ensures that all responses are captured accurately.
  • Flexibility: Allows for complex questionnaire designs with automated skip patterns and branching logic.
  • Real-Time Data: Enables immediate data validation and storage, facilitating faster analysis and reporting.

How is CAPI Conducted?

Conducting a CAPI survey involves several steps:

  • Questionnaire Design: Creating a computerized questionnaire with necessary skip patterns, validations, and branching logic.
  • Interviewer Training: Training interviewers on how to use the CAPI system and conduct the interviews effectively.
  • Data Collection: Interviewers conduct face-to-face interviews, entering responses directly into the computer or tablet.
  • Data Validation: Real-time validation checks ensure data completeness and accuracy during the interview.
  • Data Analysis: Collected data is immediately available for analysis, reducing the time between data collection and reporting.

In conclusion, CAPI (Computer-Assisted Personal Interviewing) is a modern and efficient method for conducting face-to-face interviews. By leveraging technology, it enhances data accuracy, reduces errors, and speeds up the data collection process. Understanding the definition, purpose, historical context, and benefits of CAPI helps researchers and organizations make informed decisions about their data collection strategies.

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Accompanied shopping, also known as shopper shadowing or in-store observation, is a qualitative market research technique where a researcher follows and observes a shopper during their shopping experience. This method provides valuable insights into consumer behavior, decision-making processes, and interactions with products and store environments.

Definition of Accompanied Shopping

Accompanied shopping involves a researcher accompanying a consumer during a shopping trip to observe and record their behavior, preferences, and interactions. The goal is to understand the consumer’s shopping habits, motivations, and challenges in a natural setting.

Accompanied shopping has its roots in ethnographic research methods, where researchers immerse themselves in the participant’s environment to gather qualitative data. This technique gained popularity in market research as retailers and brands sought more accurate and detailed insights into consumer behavior. The method has evolved with technological advancements, incorporating tools like mobile devices and cameras for more comprehensive data collection.

Alternative Terms

Accompanied shopping is also referred to as:

  • Shopper Shadowing
  • In-Store Observation
  • Shopping Ethnography

Who Uses Accompanied Shopping?

Accompanied shopping is used by market researchers, retailers, and brands looking to gain a deeper understanding of consumer behavior. It is particularly valuable for:

  • Retailers: To optimize store layouts, product placements, and customer service.
  • Brands: To gain insights into how consumers interact with their products and competitors’ products.
  • Market Research Firms: To provide clients with detailed qualitative data on consumer behavior.

What is the Purpose of Accompanied Shopping?

The primary purpose of accompanied shopping is to gather in-depth insights into the consumer’s shopping experience. It helps researchers understand:

  • Shopping Patterns: The routes consumers take, the time spent in different sections, and the sequence of their shopping activities.
  • Decision-Making Processes: How consumers make choices, the factors influencing their decisions, and their interactions with products and promotions.
  • Pain Points and Motivations: The challenges consumers face, their needs, and the motivations behind their purchases.

When is Accompanied Shopping Used?

Accompanied shopping is used in various contexts, including:

  • New Product Launches: To understand how consumers discover and react to new products.
  • Store Redesigns: To evaluate the effectiveness of changes in store layout and design.
  • Promotional Campaigns: To assess the impact of in-store promotions and marketing activities.
  • Competitor Analysis: To compare consumer interactions with the brand’s products versus competitors’ products.

Why is Accompanied Shopping Important?

Accompanied shopping is important because it provides:

  • Real-World Insights: Observing consumers in a natural shopping environment offers more authentic insights than controlled experiments or surveys.
  • Contextual Understanding: Researchers can see the context in which decisions are made, providing a deeper understanding of consumer behavior.
  • Immediate Feedback: Researchers can ask follow-up questions and gather immediate feedback from consumers during the shopping trip.

How is Accompanied Shopping Conducted?

Conducting accompanied shopping involves several steps:

  • Recruitment: Selecting participants who match the target demographic for the study.
  • Preparation: Briefing participants on the process and obtaining their consent for observation.
  • Observation: The researcher accompanies the participant on their shopping trip, taking notes and recording observations.
  • Interaction: Engaging with the participant to ask questions and clarify behaviors and decisions.
  • Analysis: Analyzing the collected data to identify patterns, insights, and actionable recommendations.

Benefits for Brands and Retailers

For brands and retailers, accompanied shopping offers several benefits:

  • Enhanced Customer Experience: By understanding consumer pain points and preferences, brands can improve the overall shopping experience.
  • Optimized Store Layout: Insights into shopping patterns help retailers design more effective store layouts and product placements.
  • Informed Marketing Strategies: Detailed observations of consumer interactions with products and promotions inform more targeted and effective marketing strategies.
  • Competitive Advantage: Understanding how consumers interact with competitors’ products provides valuable insights for product development and positioning.

In conclusion, accompanied shopping is a powerful market research tool that offers rich, contextual insights into consumer behavior. By observing and interacting with shoppers in their natural environment, researchers and brands can gain a deeper understanding of the shopping experience, leading to more informed decisions and improved customer satisfaction.

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An access panel is a pre-recruited group of individuals who have agreed to participate in market research surveys and studies. These panels are typically used by researchers to gain insights into consumer behavior, preferences, and trends. Access panels can be composed of a diverse range of individuals, tailored to specific demographics, or targeted based on particular characteristics relevant to the research objectives.

Definition of an Access Panel

An access panel is essentially a database of potential respondents who have opted-in to participate in various market research activities. These panels are managed by research firms or companies specializing in data collection and analysis.

Historical Context

The concept of access panels has evolved with advancements in technology and changes in market research methodologies. Initially, panels were managed through direct mail and phone calls, but the rise of the internet has significantly streamlined the recruitment and management process. Online access panels emerged in the late 1990s and early 2000s, providing researchers with more efficient ways to reach diverse and global audiences.

Alternative Terms

Access panels are also known by other names such as research panels, online panels, or survey panels. While the terms may vary, the core concept remains the same—maintaining a ready pool of respondents for market research purposes.

Who Uses Access Panels?

Access panels are primarily used by market research firms, company marketing departments, and academic researchers. They are invaluable for studies requiring specific demographic insights or longitudinal research where tracking changes over time is crucial. Companies looking to launch new products, understand customer satisfaction or evaluate brand perception frequently rely on access panels.

What is the Purpose of an Access Panel?

The main purpose of an access panel is to provide a ready pool of respondents for quick and efficient data collection. This approach saves time and resources compared to recruiting participants for each individual study. Access panels enable researchers to conduct surveys, product tests, and other research activities more swiftly and at a lower cost.

When are Access Panels Used?

Access panels are used whenever there is a need for reliable, consistent, and quick access to research participants. They are particularly useful for:

  • Continuous tracking studies: Monitoring changes in consumer behavior over time.
  • Ad hoc surveys: Conducting one-off studies on specific topics.
  • Targeted research: Reaching specific demographics or consumer segments.
  • Product testing: Gaining feedback on new or existing products.

Why are Access Panels Important?

Access panels are crucial for the efficiency and effectiveness of market research. They:

  • Enhance speed and efficiency: Reduce the time needed to recruit participants for each study.
  • Improve reliability: Provide a consistent and known group of respondents, improving the reliability of longitudinal studies.
  • Cost-effective: Reduce the costs associated with participant recruitment and retention.
  • Flexibility: Allow researchers to quickly access diverse demographics and specific target groups.

How are Access Panels Managed?

Managing an access panel involves continuous recruitment, engagement, and maintenance to ensure the panel remains active and representative. This includes:

  • Recruitment: Using various channels to invite potential participants to join the panel.
  • Engagement: Keeping panel members engaged through regular communication, incentives, and feedback.
  • Data quality: Regularly updating the panel database to maintain accurate and up-to-date information.
  • Compliance: Ensuring data privacy and ethical standards are adhered to, protecting panel members’ information.

Benefits for Brands

For brands, access panels offer numerous benefits:

  • Quick Insights: Brands can gather rapid feedback on new products, campaigns, or concepts, allowing for agile decision-making.
  • Targeted Data: Panels can be segmented to match the brand’s target demographics, ensuring the data collected is relevant and actionable.
  • Cost Savings: With an established panel, brands save on the costs associated with participant recruitment for each study.
  • Brand Engagement: Regular surveys and interactions with panel members can enhance brand loyalty and engagement, as participants feel valued for their opinions.

In conclusion, access panels are a vital tool in the market research industry, providing quick, reliable, and cost-effective access to a broad range of respondents. By understanding their definition, purpose, historical context, and management, researchers and brands can better leverage these panels to gain valuable insights and make informed decisions.

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Definition of Fieldwork

Fieldwork in market research refers to the collection of primary data directly from the source or field. This involves various techniques such as surveys, interviews, observations, and experiments conducted with targeted groups or individuals. The main aim of fieldwork is to gather raw data, providing firsthand, in-depth, and accurate information about customers’ behaviors, attitudes, preferences, or any other aspects needed for the study. This data is then used to make informed decisions or predictions about the market.

History of Fieldwork

The history of fieldwork in market research is as old as the history of market research itself. It dates back to the late 19th and early 20th centuries when businesses began recognizing the need for informed decisions based on customers’ perspectives. The modern practice of fieldwork, as part of the market research process, took shape after World War II, when there was increased competition in the market, leading to the need for more detailed consumer insights.

Initial fieldwork methodologies were very traditional, heavily relying on door-to-door surveys and in-person interviews. As technology advanced, fieldwork methodologies have also evolved significantly. They now incorporate online surveys, telephone interviews, video interviews, social media analytics, mobile data collection, etc., allowing researchers to reach larger and more diverse audiences.

Examples:

  1. Surveys: One of the most common types of fieldwork. They can be conducted face-to-face, via telephone, or online. For instance, a beverage company could survey consumers about their flavor preferences for new product development.
  2. Interviews: These can be structured (with pre-defined questions) or unstructured (more open-ended). An example could be a car manufacturer conducting face-to-face interviews to understand consumers’ thoughts on their latest car model.
  3. Observations: Here, the researcher observes consumers in their natural settings. An example could be a clothing retailer observing consumer behavior in their store to understand how they interact with different product displays.
  4. Experiments: These are typically set up in controlled environments to test specific variables. For instance, a restaurant might experiment with different menu designs to see which results in higher sales.

Is the term fieldwork in market research known by any other names?

The term “fieldwork” in market research is often interchangeably used with several other terms, depending on the context and specific methods used. Some of these include:

  1. Primary Research: This term is used because fieldwork involves collecting original or primary data that has not been previously gathered. However, primary research also includes other techniques like experiments and content analysis, which may or may not be considered fieldwork, depending on their design.
  2. Data Collection: This is a more general term that refers to gathering information. Fieldwork is a type of data collection that occurs directly from the source or field.
  3. Ethnographic Research: While technically a type of fieldwork, this term is often used when the research involves immersive observation of the subject in their natural environment over extended periods.
  4. Survey Research: This term is commonly used when fieldwork primarily involves using surveys to gather information from a sample of individuals.

It’s important to note that while these terms often overlap with the concept of fieldwork in market research, they each have their nuances and specificities. Hence, the appropriate term to use would depend on the context and the precise nature of the research being conducted.

Fieldwork Use Cases

Fieldwork in market research has a broad spectrum of applications across various industries. Here are some common use cases:

  1. Product Development: Companies often conduct fieldwork to gather insights about consumer preferences and needs, which can guide the development of new products or services.
  2. Brand Positioning: Fieldwork helps understand consumers’ perceptions of a brand and its competitors, assisting in devising effective positioning strategies.
  3. Customer Satisfaction: By gathering firsthand data from customers, businesses can gauge the level of customer satisfaction and identify areas of improvement.
  4. Advertising Testing: Fieldwork can be used to test the effectiveness of advertising campaigns, with feedback used to optimize future efforts.
  5. Market Segmentation: Fieldwork helps in identifying different customer groups based on their behaviors, attitudes, and needs, aiding in the creation of targeted marketing strategies.

Fieldwork is a vital component of market research, offering a direct line to consumer insights and behaviors. Its robust methodologies, adaptable to changing market and technological conditions, make it a reliable tool for any business looking to succeed in its market.

Trends in Fieldwork in Market Research

As an integral part of market research, fieldwork is continually evolving, keeping pace with technological advancements and changing consumer behaviors. Some notable trends shaping the future of fieldwork include:

  1. Mobile Fieldwork: As smartphones become ubiquitous, they play a key role in shaping fieldwork methodologies. Mobile surveys are gaining traction thanks to their convenience and the ability to reach a broader audience. These surveys allow respondents to provide data in real-time, anywhere, at any time, providing researchers with immediate, valuable insights. An added advantage is leveraging smartphone features like geolocation and multimedia capabilities, enriching the data collected.
  2. Social Media Analytics: Social media platforms have become a goldmine of consumer behavior data. As consumers share their preferences, opinions, and experiences on these platforms, they leave a trail of valuable data points. By observing and analyzing these interactions, researchers can gain profound insights into consumer sentiments and trends. This practice is growing rapidly due to its potential to provide unfiltered, authentic, and timely data.
  3. AI and Machine Learning in Fieldwork: AI and machine learning technologies are revolutionizing fieldwork data processing and analysis. They provide sophisticated tools to handle large and complex data sets, reducing the time and effort traditionally required for data analysis. These technologies can uncover hidden patterns, predict trends, and provide deeper insights, thus enhancing the value derived from fieldwork. With the increase in computational power and the availability of big data, the role of AI and machine learning in fieldwork is set to expand.

These trends are evidence of an exciting evolution in the field of market research. Embracing these changes will enable researchers to conduct fieldwork more efficiently, effectively and deliver more accurate and actionable insights. As market research continues to evolve, it will be intriguing to see how these trends will further shape the future of fieldwork.

Challenges in Fieldwork in Market Research

While fieldwork plays a crucial role in market research, it has its hurdles. Understanding these challenges can help refine strategies and lead to more effective data collection and analysis. Here are some common challenges faced by researchers:

Data Quality: One of the foremost challenges in fieldwork is ensuring the quality of the data collected. Several factors can affect this:

  • Respondent Fatigue: This occurs when respondents become tired or bored during data collection, leading to hurried or careless responses, thus affecting the data’s reliability.
  • Bias: Bias can creep in from various sources – from the researcher’s side (e.g., leading questions) or from the respondent’s side (e.g., social desirability bias where respondents answer in a way they believe is socially acceptable rather than being truthful). Managing these biases is crucial to obtaining accurate data.
  • Dishonesty: Some respondents may provide false information, either deliberately or unintentionally. Such misinformation can skew the research results.

Ethical Considerations: Fieldwork must be conducted responsibly, respecting participants’ rights and privacy:

  • Privacy: Protecting respondent privacy is critical, especially with data protection regulations like GDPR. Researchers must ensure that personal data is collected, stored, and used ethically and legally.
  • Informed Consent: Researchers must ensure respondents understand the purpose of the research, what their participation involves, and their rights, including the right to withdraw from the study at any time without repercussions.
  • Sensitive Topics or Vulnerable Populations: Extra care must be taken when dealing with sensitive topics or vulnerable populations, such as children or people with disabilities. Appropriate measures should be implemented to ensure their comfort and safety during the research process.

Conducting Fieldwork in Rural Versus Urban Areas

Fieldwork in both rural and urban settings has its unique set of opportunities and challenges, given the differences in these environments.

Urban Areas:

Urban areas generally have a higher population density, diverse demographics, and better connectivity. This makes it easier to find and reach target respondents for fieldwork. However, urban respondents may have higher expectations for incentives or maybe less available due to busy lifestyles. There could also be more distractions, potentially affecting data quality.

Rural Areas:

Rural areas, on the other hand, may pose logistical challenges due to lower population density, less developed infrastructure, and potentially greater geographical distances between respondents. However, rural populations may be more available and willing to participate in fieldwork studies. It is also important to be aware of cultural and social norms, which may vary greatly from urban areas, and to adapt research methods accordingly.

Conducting Fieldwork in Multiple Countries

Fieldwork across different countries provides the opportunity to gather diverse and rich data. It enables comparative studies and offers insights into different markets. However, it also comes with its own set of challenges:

  1. Cultural Differences: Different countries have different cultural norms, values, and behaviors, which could affect the conduct and interpretation of fieldwork. Ensuring cultural sensitivity and understanding these differences is vital for successful fieldwork.
  2. Language Barriers: Communication can be challenging if the researchers and respondents do not share a common language. It may be necessary to hire local fieldworkers or translators.
  3. Legal and Ethical Considerations: Different countries may have different laws and regulations around data collection, privacy, and research ethics. It is important to understand and comply with these.
  4. Logistical Challenges: Time zones, travel arrangements, and scheduling can all present logistical difficulties when conducting fieldwork across multiple countries.

To overcome these challenges, careful planning, adequate resources, cultural training, and collaboration with local partners can be beneficial. By taking into account these considerations, fieldwork in different geographical and cultural contexts can yield valuable insights.

Key Considerations for Brands Conducting Fieldwork Research

Fieldwork can provide invaluable insights for brands, but it’s essential to approach it thoughtfully. Here are some crucial considerations:

  1. Defining Clear Objectives: The first step in any research initiative is to clearly outline what you hope to learn. The objectives of the fieldwork must be defined upfront to guide the design of the research methodology.
  2. Selection of Appropriate Methodology: Depending on the research objectives, brands should choose the right mix of fieldwork methods – surveys, interviews, observations, etc. The chosen methods should effectively gather the required information and be feasible in the given context.
  3. Sample Selection: Brands must determine who they will include in their fieldwork research. The sample should represent the population they want to make inferences about. Proper sample selection ensures the reliability and validity of the study.
  4. Training of Fieldworkers: The quality of data collected heavily relies on the skills of the researchers. Brands need to ensure that fieldwork researchers are adequately trained to conduct the research ethically and effectively, minimizing bias.
  5. Data Analysis: The data collected during fieldwork needs to be appropriately analyzed to derive meaningful insights. This might require statistical expertise and the use of appropriate data analysis tools.
  6. Respecting Privacy and Ethical Considerations: Brands must conduct their fieldwork per ethical guidelines and respect participants’ privacy. They need to ensure informed consent, anonymity, and data protection.
  7. Budget and Timeline: Brands must consider their resources in terms of budget and timeline. Fieldwork can be time-consuming and potentially expensive depending on the scale, so proper planning is necessary to ensure efficiency.
  8. Incorporating Findings into Strategy: Finally, brands should plan how to use the insights gathered from fieldwork. The findings should inform decision-making, strategy development, and improvement initiatives.

By considering these factors, brands can ensure their fieldwork research is effective, efficient, and beneficial to their strategic goals.

The Advantage of Partnering with a Market Research Company

Choosing to collaborate with a market research agency, particularly one as established as Kadence International, can be a strategic decision for brands for several reasons:

  1. Expertise: Market research agencies like Kadence bring a wealth of expertise in various research methodologies, including fieldwork. We know how to design effective research studies, choose appropriate data collection methods, select representative samples, and analyze data to derive meaningful insights.
  2. Experience Across Markets: Kadence International, with its global footprint, has experience conducting research in diverse markets. We understand cultural nuances, local market dynamics, and regional consumer behavior, which can be invaluable in multinational research.
  3. Access to Tools and Technologies: Market research agencies often have access to advanced research tools and technologies. This can range from sophisticated data analysis software to mobile or online survey platforms. These tools can enhance the efficiency and accuracy of the research.
  4. Time and Resource Efficiency: Conducting fieldwork can be time-consuming and resource-intensive. By outsourcing this task to a market research agency, brands can focus on their core competencies. Also, agencies often have established processes and resources to conduct research more quickly and efficiently.
  5. Impartiality: An external agency can bring an objective perspective to the research. They can minimize biases that may inadvertently creep into internally conducted research.
  6. Actionable Recommendations: Beyond data collection and analysis, market research agencies often provide actionable recommendations based on their findings. They can help translate research insights into strategic implications, making it easier for brands to apply the learnings.

Partnering with a market research agency like Kadence International can enhance the quality, efficiency, and impact of fieldwork research, driving informed decision-making and strategic success for brands.

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Quantitative research is an important part of market research that relies on hard facts and numerical data to gain as objective a picture of people’s opinions as possible.

It’s different from qualitative research in a number of important ways and is a highly useful tool for researchers.

Quantitative research is a systematic empirical approach used in the social sciences and various other fields to gather, analyze, and interpret numerical data. It focuses on obtaining measurable data and applying statistical methods to generalize findings to a larger population.

Researchers use structured instruments such as surveys, questionnaires, or experiments to collect data from a representative sample in quantitative research. The data collected is typically numerical values or categorical responses that can be analyzed using statistical techniques. These statistical analyses help researchers identify patterns, relationships, trends, or associations among variables.

Quantitative research aims to generate objective and reliable information about a particular phenomenon, population, or group. It aims to better understand the subject under investigation by employing statistical measures such as means, percentages, correlations, or regression analyses.

Quantitative research provides:

  • A quantitative understanding of social phenomena.
  • Allowing researchers to make generalizations.
  • Predictions.
  • Comparisons based on numerical data.

It is widely used in psychology, sociology, economics, marketing, and many other disciplines to explore and gain insights into various research questions.

In this article, we’ll take a deep dive into quantitative research, why it’s important, and how to use it effectively.

How is quantitative research different from qualitative research?

Although they’re both extremely useful, there are a number of key differences between quantitative and qualitative market research strategies. A solid market research strategy will make use of both qualitative and quantitative research.

  • Quantitative research relies on gathering numerical data points. Qualitative research on the other hand, as the name suggests, seeks to gather qualitative data by speaking to people in individual or group settings. 
  • Quantitative research normally uses closed questions, while qualitative research uses open questions more frequently.
  • Quantitative research is great for establishing trends and patterns of behavior, whereas qualitative methods are great for explaining the “why” behind them.

Why is quantitative research useful?

Quantitative research has a crucial role to play in any market research strategy for a range of reasons:

  • It enables you to conduct research at scale
  • When quantitative research is conducted in a representative way, it can reveal insights about broader groups of people or the population as a whole
  • It enables us to easily compare different groups (e.g. by age, gender or market) to understand similarities or differences 
  • It can help businesses understand the size of a new opportunity 
  •  It can be helpful for reducing a complex problem or topic to a limited number of variables
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Quantitative Research Design

Quantitative research design refers to the overall plan and structure that guides the collection, analysis, and interpretation of numerical data in a quantitative research study. It outlines the specific steps, procedures, and techniques used to address research questions or test hypotheses systematically and rigorously. A well-designed quantitative research study ensures that the data collected is reliable, valid, and capable of answering the research objectives.

There are several key components involved in designing a quantitative research study:

  1. Research Questions or Hypotheses: The research design begins with clearly defined research questions or hypotheses articulating the study’s objectives. These questions guide the selection of variables and the development of research instruments.
  2. Sampling: A critical aspect of quantitative research design is selecting a representative sample from the target population. The sample should be carefully chosen to ensure it adequately represents the population of interest, allowing for the generalizability of the findings.
  3. Variables and Operationalization: Quantitative research involves the measurement of variables. In the research design phase, researchers identify the variables they will study and determine how to operationalize them into measurable and observable forms. This includes defining the indicators or measures used to assess each variable.
  4. Data Collection Methods: Quantitative research typically involves collecting data through structured instruments, such as surveys, questionnaires, or tests. The research design specifies the data collection methods, including the procedures for administering the instruments, the timing of data collection, and the strategies for maximizing response rates.
  5. Data Analysis: Quantitative research design includes decisions about the statistical techniques and analyses applied to the collected data. This may involve descriptive statistics (e.g., means, percentages) and inferential statistics (e.g., t-tests, regression analyses) to examine variables’ relationships, differences, or associations.
  6. Validity and Reliability: Ensuring the validity and reliability of the data is a crucial consideration in quantitative research design. Validity refers to the extent to which a measurement instrument or procedure accurately measures what it intends to measure. Reliability refers to the consistency and stability of the measurement over time and across different conditions. Researchers employ pilot testing, validity checks, and statistical measures to enhance validity and reliability.
  7. Ethical Considerations: Quantitative research design also includes ethical considerations, such as obtaining informed consent from participants, protecting their privacy and confidentiality, and ensuring the study adheres to ethical guidelines and regulations.

By carefully designing a quantitative research study, researchers can ensure their investigations are methodologically sound, reliable, and valid. 

Well-designed research provides a solid foundation for collecting and analyzing numerical data, allowing researchers to draw meaningful conclusions and contribute to the body of knowledge in their respective fields.

Quantitative research data collection methods

When collecting and analyzing the data you need for quantitative research, you have a number of possibilities available to you. Each has its own pros and cons, and it might be best to use a mix. Here are some of the main research methods:

Survey research

This involves sending out surveys to your target audience to collect information before statistically analyzing the results to draw conclusions and insights. It’s a great way to better understand your target customers or explore a new market and can be turned around quickly. 

There are a number of different ways of conducting surveys, such as:

  • Email — this is a quick way of reaching a large number of people and can be more affordable than the other methods described below.
  • Phone — not everyone has access to the internet so if you’re looking to reach a particular demographic that may struggle to engage in this way (e.g. older consumers) telephone can be a better approach. That said, it can be expensive and time-consuming.
  • Post or Mail — as with the phone, you can reach a wide segment of the population, but it’s expensive and takes a long time. As organizations look to identify and react to changes in consumer behavior at speed, postal surveys have become somewhat outdated. 
  • In-person — in some instances it makes sense to conduct quantitative research in person. Examples of this include intercepts where you need to collect quantitative data about the customer experience in the moment or taste tests or central location tests, where you need consumers to physically interact with a product to provide useful feedback. Conducting research in this way can be expensive and logistically challenging to organize and carry out.

Survey questions for quantitative research usually include closed-ended questions rather than the open-ended questions used in qualitative research. For example, instead of asking

“How do you feel about our delivery policy?”

You might ask…

“How satisfied are you with our delivery policy? “Very satisfied / Satisfied / Don’t Know / Dissatisfied / Very Dissatisfied” 

This way, you’ll gain data that can be categorized and analyzed in a quantitative, numbers-based way.

Correlational Research

Correlational research is a specific type of quantitative research that examines the relationship between two or more variables. It focuses on determining whether there is a statistical association or correlation between variables without establishing causality. In other words, correlational research helps to understand how changes in one variable correspond to changes in another.


One of the critical features of correlational research is that it allows researchers to analyze data from existing sources or collect data through surveys or questionnaires. By measuring the variables of interest, researchers can calculate a correlation coefficient, such as Pearson’s, to quantify the strength and direction of the relationship. The correlation coefficient ranges from -1 to +1, where a positive value indicates a positive relationship, a negative value indicates a negative relationship and a value close to zero suggests no significant relationship.

Correlational research is valuable in various fields, such as psychology, sociology, and economics, as it helps researchers explore connections between variables that may not be feasible to manipulate in an experimental setting. For example, a psychologist might use correlational research to investigate the relationship between sleep duration and student academic performance. By collecting data on these variables, they can determine whether there is a correlation between the two factors and to what extent they are related.

It is important to note that correlational research does not imply causation. While a correlation suggests an association between variables, it does not provide evidence for a cause-and-effect relationship. Other factors, known as confounding variables, may be influencing the observed relationship. Therefore, researchers must exercise caution in interpreting correlational findings and consider additional research methods, such as experimental studies, to establish causality.

Correlational research is vital in quantitative research and analysis by investigating relationships between variables. It provides valuable insights into the strength and direction of associations and helps researchers generate hypotheses for further investigation. By understanding the limitations of correlational research, researchers can use this method effectively to explore connections between variables in various disciplines.

Experimental Research

Experimental research is a fundamental approach within quantitative research that aims to establish cause-and-effect relationships between variables. It involves the manipulation of an independent variable and measuring its effects on a dependent variable while controlling for potential confounding variables. Experimental research is highly regarded for its ability to provide rigorous evidence and draw conclusions about causal relationships.

The hallmark of experimental research is the presence of at least two groups: the experimental and control groups. The experimental group receives the manipulated variable, the independent variable, while the control group does not. By comparing the outcomes or responses of the two groups, researchers can attribute any differences observed to the effects of the independent variable.

Several key components are employed to ensure the reliability and validity of experimental research. Random assignment is a crucial step that involves assigning participants to either the experimental or control group in a random and unbiased manner. This minimizes the potential for pre-existing differences between groups and strengthens the study’s internal validity.

Another essential feature of experimental research is the ability to control extraneous variables. By carefully designing the study environment and procedures, researchers can minimize the influence of factors other than the independent variable on the dependent variable. This control enhances the ability to isolate the manipulated variable’s effects and increases the study’s internal validity.

Quantitative data is typically collected in experimental research through objective and standardized measurements. Researchers use instruments such as surveys, tests, observations, or physiological measurements to gather numerical data that can be analyzed statistically. This allows for applying various statistical techniques, such as t-tests or analysis of variance (ANOVA), to determine the significance of the observed effects and draw conclusions about the relationship between variables.

Experimental research is widely used across psychology, medicine, education, and the natural sciences. It enables researchers to test hypotheses, evaluate interventions or treatments, and provide evidence-based recommendations. Experimental research offers valuable insights into the effectiveness or impact of specific variables, interventions, or strategies by establishing cause-and-effect relationships.

Despite its strengths, experimental research also has limitations. The artificial nature of laboratory settings and the need for control may reduce the generalizability of findings to real-world contexts. Ethical considerations also play a crucial role in experimental research, as researchers must ensure participants’ well-being and informed consent.

Experimental research is a powerful tool in the quantitative research arsenal. It enables researchers to establish cause-and-effect relationships, control extraneous variables, and gather objective numerical data. Experimental research contributes to evidence-based decision-making and advances knowledge in various fields by employing rigorous methods.

Analyzing results

Once you have your results, the next step — and one of the most important overall — is to categorize and analyze them.

There are many ways to do this. One powerful method is cross-tabulation, where you separate your results into categories based on demographic subgroups. For example, of the people who answered ‘yes’ to a question, how many of them were business leaders and how many were entry-level employees?

You’ll also need to take time to clean the data (for example removing people who sped through the survey, selecting the same answer) to make sure you can confidently draw conclusions. This can all be taken care of by the right team of experts.

The importance of quantitative research

Quantitative research is a powerful tool for anyone looking to learn more about their market and customers. It allows you to gain reliable, objective insights from data and clearly understand trends and patterns.

Where quantitative research falls short is in explaining the ‘why’. This is where you need to turn to other methods, like qualitative research, where you’ll actually talk to your audience and delve into the more subjective factors driving their decision-making.


At Kadence, it’s our job to help you with every aspect of your research strategy. We’ve done this with countless businesses, and we’d love to do it with you. To find out more, get in touch with us.

Market entry is the process of entering a new market, whether at home or abroad. There’s a lot to consider when taking this step, and it’s certainly not a simple process. In fact, for every successful market entry, about 4 will fail.

A new market doesn’t necessarily mean a new geographical area. It could mean selling your product or service in a new language or targeting an entirely new demographic of people. If you do choose to move into a new part of the world — especially if it’s abroad — this comes with its own unique set of challenges.

In this article, we’ll dive into a market entry and some of the challenges involved. We’ll also cover some steps you should take to maximize your chances of success in your new market.

Why enter a new market?

There are lots of good reasons why you should consider expanding beyond your current market. Some of the main ones are:

  • You want to gain more customers, grow your company, and increase your revenue. This is the most obvious reason — new markets represent untapped opportunities for growth and to make more money.
  • You’ve hit a ceiling in your current market. Perhaps you’re struggling to grow more where you currently are, which is an impetus to seek out new pastures.
  • There may be a legal requirement to offer your product in new markets. For example, you might be required to sell your product in different languages.
  • To keep up with competitors. If your competitors are expanding into new markets, you risk being left behind if you don’t do the same.

Domestic vs foreign market entry

Domestic markets will likely be quite similar to your existing markets, whereas international markets present some new challenges to overcome, such as differing cultures, laws, and languages.

However, foreign markets can also bring great benefits and the opportunity to become a truly global brand. If you decide you are ready to take the plunge and expand overseas, this will come with a whole host of brand new challenges.

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How to excel at market entry

Research the market

What is the size of the market? What is its growth rate? Where is the market heading and what are the key trends to watch? These questions can help organizations understand the potential return involved in entering a new market and are typically answered by a combination of desk research, interviews with industry experts and primary research. 

Research your customers and what they want

This is important at any stage of business, but it’s especially crucial when entering a brand new market. The more different your new market is from your current one, the more important this step is.

How do you get to know your customers?

  • Focus groups
  • Online surveys (and other quantitative research methods)
  • In depth interviews (IDIs)
  • Telephone depth interviews (TDIs)
  • Online communities (and other online qualitative research methods)
  • Ask your sales team for their experiences of customers’ opinions
  • Spend time in that market. There’s a lot you can learn – from better understanding consumer behavior to getting a grip on the competitive landscape

In your research, you’ll need to consider a few key questions, such as:

  • Will your product work in the target market? What works well in your current market might not take off at all somewhere else. Is there any real demand for what you’re offering, and does it justify the cost of entry?
  • Will you be dealing with different demographics of people? Will they have different pain points, goals, and budgets? How will you address these differences?
  • Will you need to adjust your marketing strategy or move to new channels? For example, if you’re trying to move to an older market, social media marketing might not be the best approach to take.

Research the competition

Who are your competitors in your new market and what are they doing? These will likely be different from the competitors in your original market, but this may not always be the case.

Entering a new market, you’ll immediately be at a disadvantage to established companies. You’ll need to overcome customers’ long-term brand loyalty and familiarity with other products, and you’ll be competing with brands that already know the landscape well.

You’ll need to work hard to beat your competitors while also fitting into the new market. As such, it’s worth spending time and resources so you can find out as much as possible about your competitors and learn from them. One advantage of being a new entrant is that you can avoid the mistakes other players have made in the past, helping you to optimize your strategy and get ahead.

Understand the culture

When moving overseas to a new market, the cultural differences can be vast. If you want to succeed, you’ll need to make sure your business is on the same cultural wavelength as your new market.

This means adapting to the culture and customs. The best way to do this is by working with people on the ground – or indeed by spending time there and getting a feel for a new place. We have offices across Asia, the US and Europe, so when we work with clients on market entry projects, we’ve already got a deep understanding of the culture of the market they want to target, which can be a huge advantage. 

Understand the local laws and regulations

When moving into a new market, the last thing you want to do is run afoul of the local laws. For example, the EU’s GDPR regulation, built to protect the data privacy of EU citizens, applies strict rules for businesses. Failing to comply can result in a hefty fine.

It’s best to work with a local lawyer who can advise you about all the regulations you’ll need to be aware of and help you navigate this new legal landscape.

Have a clear future plan

When you enter a new market, it’s important to have a clear idea about where you’re going. How are you going to grow and scale? 65% of startups fail because of premature scaling — how will you make sure you grow at the right pace?

Take some time to put together a clear roadmap and market entry strategy that will ensure you develop and grow in your new market in exactly the right way.

Entering a new market is always fraught with challenges. It’s best to work with a team of experts who can help you formulate a strategy that works — guiding you through the complex and demanding process of making a move.


At Kadence, that’s our job. We’ve worked with countless companies, helping them lay the groundwork for a successful move into a new market. To find out how we can do the same for you, read more about market entry in our comprehensive guide, explore our market entry services or just get in touch today.

Market size is a metric that gets discussed a lot in the world of business, but what is market size and what does it actually mean?

There are a lot of misconceptions and a lot of confusion around the real meaning of the term, which can result in people making the wrong decisions or failing to make the most of their strategy.

If you can accurately determine your market size, this gives you a big advantage from day one. It allows you to secure better investment, make more clear-headed plans, and avoid getting sucked into a strategy that simply has no future.

In this article, we’ll break down the basics of market size, and show you how to determine yours and differentiate it from some other concepts.

What is market size?

Essentially, market size refers to the total number of potential buyers for your product. The most common misunderstanding marketers and researchers have about market size is confusing it with the total population of a region or country. Choosing a market based on high population density can be misleading, and does not guarantee the success of your product’s launch. Just because a market has a lot of people residing in it does not necessarily mean that sales will be more than a smaller market with more matches to your target audience.

Alexa defines market size as “the number of individuals in a certain market segment who are potential buyers.”

More technically, it’s the total number of potential customers or sales in a given period (usually a year), or the total potential revenues you can reach in that time.

Why is market size important?

Understanding the size of an existing or potential new market is important for many reasons.

If sales growth is languishing or seems to have reached its peak, one explanation might be the size or potential of the market. The is no reason to keep investing in an existing market if your target audience in that market is not growing or declining.

If you are looking at entering a new market, whether that is locally or internationally, understanding the size of that market, in terms of how many potential buyers there are is an important consideration. Entering a market with a small pool of targets or personas could mean that your product or sales launch falls below expectations, or worse still fails to launch wasting both time and money.

Understanding market size is also important when determining a market’s potential. You may have the opportunity to launch your product in multiple markets. Strategically it makes the most sense to choose a market rich in potential customers. Understanding the potential of a new market also helps formulate pricing strategies, distribution channels and marketing strategies and campaigns.

When you understand the size of a potential market, launching your product or service becomes less of a risk and more of a calculated and strategic investment. If you do not know the size of a market with a high degree of certainty, you should not gamble launching in that market.

There are many reasons why you should be interested in your market size and how to accurately determine it. Here are some of the main reasons:

  • Gaining investment.  Market size is an indicator of the potential for any new business, product or service. If you can show that you have a good chance of making money — and how much — it’ll be much easier to secure investment.
  • Develop a solid marketing and business strategy. Knowing who your market is, how big they are, and how much money they represent gives you a strong foundation for building a strategy and setting clear future goals.
  • Determine budget and hiring plans. Knowing your potential trajectory for growth helps you budget more accurately and hire the right team for the task ahead.
  • Use your Research and Development (R&D) budget wisely by better understanding who your customers are, what they want, and how you can deliver it.
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How to determine market size

So how do you actually figure out your market size? There are a number of ways to go about this:

  • Clearly identify the target market for your product or service
  • Carry out market research to assess the level of interest in what you’re offering — will people buy it?
  • Gather data on the number of potential customers and transactions per year. There are a number of secondary resources you can consult to help you do this.
  • Assess the total revenue generated in that segment of the economy in a given year

Is your market size too small?

So — you’ve calculated your market size, but what does that number mean? How do you know if your business is worth pursuing?

The answer depends very much on the market and the size of your business, but there are some good general guidelines. Usually, $100 million is on the lower end, and if your market size is smaller than this it may prove difficult to convince stakeholders or investors to get on board.

What is the serviceable obtainable market?

Determining your total market size is only the beginning, and this information alone isn’t worth much.

This is because you’ll never be able to reach literally every potential customer. There’s just no way. No business has the marketing tools, scale, and budget to reach every single person in their market.

And that’s without even mentioning competitors. You’ll never corner an entire market, and the most you can hope for is usually a small slice. According to Tx Zhuo of Karlin Ventures “If it’s 1 to 5 percent of the pie, you have a realistic plan.”

This is where we can turn to a useful metric called serviceable obtainable market (SOM). This refers to the potential customers (and potential revenue) you can realistically hope to reach with your marketing tools and budget.

So how can you calculate your SOM?

How to calculate the serviceable obtainable market

There are a number of ways to calculate your SOM. According to Jared Sleeper, an investor in early-stage companies, there are three main approaches you can take.

  1. Top-down. This approach relies on the predictions, forecasts, and assumptions about your market from analysts like Gartner. It’s often based on conjecture and estimates to some extent. Think of statements like: “The wireless headset market is forecast to reach $2.5 billion by 2023”. It’s good for a general overview of the situation, but it’s a little vague and can be challenging to understand what proportion of the market you can realistically corner. 
  1. Bottom-up. This involves starting with your price and how many units you can realistically expect to sell. How many customers can you reach + how much is each sale = your SOM. It’s more tailored to your specific situation instead of just a broad assessment of the market as a whole, so in this sense, it’s a more reliable way to work out your SOM.
  1. Value theory. This final strategy is a little less precise, but it still has some usefulness. It involves considering the value your product or service adds compared to alternatives and estimating how much customers would be prepared to pay for that extra value.

Sleeper recommends options 2 and 3 since they actually consider the specifics of your business and how you would interact with the market, as opposed to a general prediction. It may make sense to use a blend of all three approaches to gain the fullest picture of your SOM and provide as much insight as possible to your stakeholders or investors.

Calculating market size is an important step on the road to building a successful business or launching a new product or service. However, it’s only one step. The metric on its own isn’t worth a whole lot unless you can also show how much of that market you can reach and compete for.


Market research is a crucial part of determining your market size, SOM, and laying the foundations for a successful business. To find out how Kadence can help you with this, take a look at our market sizing services or get in touch with us today.

Market segmentation studies are powerful tools for brands. They help organizations divide a market into distinct segments that share specific attributes. The company can then focus on the most lucrative of these market segments. In this article, we outline the key benefits of this approach.

What is market segmentation in market research?

Market segmentation (sometimes called marketing segmentation) is a marketing strategy that identifies select groups of customers and how to present products to these groups to maximize appeal.

Market segmentation helps brands send the right message by efficiently targeting specific groups of consumers. By dividing a target market into approachable groups, market segmentation creates subsets based on demographics, needs, priorities, interests, and other psychographic and behavioral criteria. By understanding market segments, brands leverage this targeting in product development, sales, and marketing strategies. 

The benefits of market segmentation studies

Focus on the customers that matter most

The core principle at the heart of market segmentation is to break the market into groups of customers you can target rather than addressing the market as a whole. Rather than being all things to all people, this approach allows you to zone in on the most valuable customers for your organization so that you can focus your efforts where it matters most.

So what does this look like in practice? A recent case study brings this to life. We partnered with a leading university to design a segmentation of its alums. Securing donations from alums is a core revenue stream for universities. You may assume that targeting all alums equally is a surefire way to elicit donations. But in reality, a small proportion of alums make the most difference.

There are many ways of segmenting a market. In this instance, we opted for a needs-based segmentation, where we explored the attitudes and values of past students. A demographic segmentation would have allowed us to target those in the highest income bracket or particular professions. But, what mattered, in this case, was the attitudes of the alumni towards the university. We helped our client see that those that had enjoyed their time there and considered it a valuable stepping stone towards their future career were most likely to donate. Dividing the market up in this way means that you can focus on the customers that are most profitable or easiest to convert. This in turn helps to lower your acquisition costs.

Power new product development

Another benefit of carrying out a market segmentation study is that it can uncover new opportunities for innovation. Needs-based segmentations are particularly valuable for this purpose. They do as the name suggests: break the market into distinct segments based on customer needs. 

This can be a great starting point for innovation. By understanding what customers are looking for from your brand or the category and the pain points they face, you can identify whitespace and design products, services, and experiences that truly meet their needs.

Segmentation studies can also help post-launch. They can help you to understand where a specific product falls short versus consumer needs and how it can be improved to pull ahead of the competition.

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Design more effective marketing

Segmentation studies can also provide valuable input to your marketing strategies. They indicate who to target and can reveal where to find these people and how to speak to them. Brands can spend their marketing dollars more wisely and achieve greater cut-through with their comms.

Your brand could be investing in TV advertising year after year, hoping to reach as much of the mass market as possible. A segmentation might reveal that the people you want to target are Instagram addicts or avid readers of a particular publication. This target audience could be reached on these channels at a much lower price. In a world where we can harness digital platforms to target at such a granular level, understanding who to reach and where to find them is vital for any successful marketing strategy.

Another application of segmentation to marketing strategy development is shaping your marketing messaging. Different customers react differently to different messages, and segmentations can help you understand what to say to who. Imagine you’re a mobile phone company with a broad audience of all ages and tech proficiency levels. 

Segmenting your customer base will allow you to create targeted campaigns that appeal to the needs of each segment. Your early adopters may want to see your new device’s technical specifications front and center. But your bargain hunters are likely to want to see something else entirely. By taking a targeted approach to your marketing, you’ll achieve better engagement with your campaigns and maximize conversion.

Deliver better customer service

Segmentation studies are often mistakenly seen as belonging to the marketing department. To get real value from segmentation, the segments should be shared with and understood by everyone in the business – from the CEO to the customer and sales assistants.

We worked with an online dating service to identify key segments based on usage patterns and other behaviors. We then assigned all existing customers in the company’s database to one of these segments. This information popped up wherever the customer interacted with the firm. This proved a powerful tool for the company’s call center operators, who quickly got a sense of the type of person they were talking to – and could understand how best to approach them. 

This is something you’ll have recognized in your interactions with brands yourself. That network provider that offers you new benefits to stay at the slightest hint you’re dissatisfied? The TV provider knows what service to provide you based on your viewing history? These are all based on powerful segmentations designed to empower those working in customer service. With the proper knowledge, customer service agents can up-sell or aid customer retention.

Use your resources more efficiently.

As the examples above demonstrate, segmentation studies can be instrumental in helping businesses understand where to focus. 

Segmentation studies allow for more efficient use of resources – whether they are human resources (for example, getting a sales team to focus on a specific market segment for their outbound activities), or budgetary resources (for example, investing in a trade show that you know is popular with your target customer).

This emphasis on using resources wisely is why market segmentation studies can be most beneficial for the businesses that are least likely to consider them: small to medium-sized enterprises. The most effective market segmentations do require some investment as they rely on market research to understand behaviors, attitudes, values, and needs. But until you can invest, our advice is to start small. 

Take a more fundamental approach to segmentation. This could be a geographic segmentation. You could also segment on demographic factors or behavioral data if you’re lucky enough to have this. This can cut through the noise and provide a much-needed focus for your business.

Develop a more customer-centric culture

A further benefit of market segmentation is that it can result in a more customer-centric company culture, encouraging employees across departments to understand your target market and their needs and to place this at the heart of everything they do.

But it’s important to recognize that developing a segmentation alone will not automatically result in a shift in company culture. This needs to be actively managed, and you can do several things to encourage this.

The first is to secure buy-in to the segmentation early on. You can do this by working with key stakeholders to ensure they are involved and engaged in the process. Segmentations can be disruptive. Ensuring that the people using it feel a degree of ownership of the customer segments is critical if they are to be embraced and adopted long-term.

The second is ensuring that segments are communicated across the organization. Segments should be easy to understand and distinguish from one another. Visual outputs can be a helpful tool in aiding understanding and memorability. 

Over the years, our in-house design team has developed a range of deliverables that transformed slides that may not have made it beyond the insight department into easily accessible outputs that help all employees to embrace the segments and ensure they live on in the business. These deliverables should be shared far and wide. Everyone – from the engineer working on a new car model to the sales team at the dealership – should be able to visualize the segments and have them front of mind in their day-to-day work.

Our final tip for encouraging a more customer-centric culture is to activate the segments and embed them into future strategies. We often work closely with individual teams to help them understand what the segments mean for their department and role.

Create a superior experience for customers

Ultimately, the real benefit of segmentation is the impact on the end customer. Targeted marketing, great customer service, and innovation rooted in customer needs will create a fantastic customer experience that drives brand loyalty.

Segmentations can be powerful tools. In a world where behaviors, needs, and attitudes have drastically shifted, they are more critical than ever. Find out more about our experience in running market segmentation studies, or get in touch to discuss a specific challenge.


Market segmentation is a crucial strategy for businesses to target and cater to specific customer groups effectively. By tailoring your strategy based on the needs of your key customer segments, you can better appeal to the customers that matter most. This guide explores four key types of market segmentation: geographic, demographic, firmographic, and behavioral.

Geographic Segmentation

Geographic segmentation divides the market based on location factors such as:

  • Country
  • Region
  • City
  • Area (urban, suburban, rural)
  • Climate or season
  • Timezone
  • Language

Example: An automotive manufacturer selling four-wheel drives may target rural areas where such vehicles are more practical. However, relying solely on geographic data can be limiting as other factors like income and lifestyle also play significant roles.

Demographic Segmentation

Demographic segmentation creates customer segments based on demographic information, including:

  • Age
  • Gender
  • Income level
  • Level of education

Example: A luxury brand might focus on customers who earn above a certain income threshold, as they are more likely to afford high-end products. However, assuming that people of the same age or income level are alike can lead to ineffective marketing strategies, as demonstrated by Air France’s failed millennial-targeted airline, Joon.

Firmographic Segmentation

Firmographic segmentation is often used for segmenting B2B customers and relies on similar principles to demographic segmentation, looking at factors such as:

  • Company size
  • Industry
  • Job title

Example: Segmenting businesses by company size can help tailor services to the specific needs of small, medium, and large enterprises. However, it’s important to remember that individuals within these companies have unique motivations and values that also need consideration.

Behavioral Segmentation

Behavioral segmentation analyzes customers based on their past behaviors such as:

  • Spending patterns
  • Browsing history
  • Interactions with the brand

Example: E-commerce sites can use browsing history to tailor product recommendations, enhancing the shopping experience. However, behavioral segmentation based on digital footprints only tells half the story and may miss deeper customer motivations.

Needs-Based Segmentation

Needs-based segmentation creates customer groups based on attitudinal factors such as:

  • Needs
  • Values
  • Motivations
  • Priorities

Example: This approach allows businesses to understand how their products or services fit into customers’ lives, helping to put customer needs at the heart of their strategy. It can also reveal opportunities for innovation by identifying unmet needs.

Summary

Market segmentation includes geographic, demographic, firmographic, and behavioral types, each offering unique insights into customer behavior and preferences. By employing these segmentation strategies, businesses can create personalized experiences, retain loyal customers, and effectively target their desired audience.

FAQs

What is market segmentation? Market segmentation is the process of dividing a broad consumer or business market into sub-groups based on shared characteristics.

Why is geographic segmentation important? Geographic segmentation helps businesses tailor strategies to local needs, making it easier to target specific areas effectively.

How does behavioral segmentation improve marketing? Behavioral segmentation allows businesses to tailor marketing efforts based on customers’ past behaviors, leading to more relevant and impactful campaigns.

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Find out more about our capabilities in market segmentation or get in touch to discuss a new project with us. We’d be happy to share our expertise.

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