The reason why we do not have a fixed price list is that market research is, in all respects, one of those services that must be shaped from time to time according to the client's needs and that cannot be standardized by their very nature. The final prices have such a wide range that it is not possible to express an opinion until there is a draft project.
While it is impossible to estimate a cost in advance, summarizing the factors that affect the final cost is a useful exercise to better understand the topic. At the end of this article, you will not have an exact number, but you will have understood the level of complexity necessary for your project and will therefore be a little closer to the answer you are looking for.
The objectives and scope of a market research
The first point to clarify in order to evaluate the cost of a market research is the (exact) objective of the research itself, and in which market area it will operate. Market research is in fact such a generic term that includes completely different investigations. We could define it, in extreme synthesis, as the collection and analysis of information relating to the market of a company, useful for developing strategies relating to the marketing of products or services.
The objectives can therefore be many:
Understand the effectiveness of the company's current strategies, or conversely evaluate the potential and profitability of new initiatives;
Define the ideal characteristics of the product (for example the price, the additional services to be integrated into the offer, etc.);
Analyze the target audience in depth, for example to obtain a segmentation useful for improving promotional initiatives;
Evaluate the company's situation and the perception of its products and services, highlighting its strengths and weaknesses;
Thoroughly investigate your competition, both direct and indirect.
This variety and complexity of objectives is then accompanied by the variety and complexity of the different markets: B2B or B3C, niche or mass market, local or national (or even international) and so on.
Often, precisely defining the subject and scope of market research is actually part of the project itself. In fact, every market research starts with a rather generic question from the company: “would an expansion into the Spanish market have a good chance of success?” or “is the current pricing strategy correct?”. These questions are just the kick-off; starting from them, analysts will define with the utmost precision the variables to be measured and the values to be used as a comparison or reference.
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The impact of research methodology on the final cost
Different market researches do not only differ in the object of the investigation, but also in the methodology used to collect and analyze the data. Sometimes, in fact, a certain information can be found in different ways, which have different costs that also correspond to different levels of reliability of the results.
Let's think about the different ways in which useful information can be collected for market research:
By analyzing the data available internally within the company relating to sales and customers;
By using information available on the web, including by relying on specific monitoring software;
By purchasing and analyzing specialized studies on the different reference markets, usually made available by independent research institutes;
Through market interviews , focus groups, data collection directly from the points of sale…
Finally, to be significant, market data in the strict sense often need to be cross-referenced with broader scenario analyses, which take into consideration the socio-economic and cultural situation of a nation or geographical area.
Just as it is not easy to define the object of the investigation with the necessary precision, it is not always easy to understand which is the most appropriate investigation method for each need. For example, if you want to investigate the reputation of a brand, you could use social listening tools, but the results will probably be partial and focused on negative reports; an online questionnaire will certainly give more complete results, but physical interviews could bring out many more aspects that were not initially considered. Furthermore, depending on the research methodology chosen, the professional figures to be employed will change: data analysts, sociologists, psychologists for filling out the questionnaires, and so on.
