Types of Market Research

Exploratory research is used when a business is venturing into an unexplored market or dealing with a brand new problem.
It is generally unstructured and involves deep, thorough investigation.
Information is collected through methods like interviews and focus groups.
This type of research facilitates understanding of the problem, but not necessarily the solutions.

Descriptive research is the most commonly used type. This research sets out to describe various aspects of the market.
The areas may include describing the customer profile, product usage, attitudes and more.
Methods like surveys, observational studies and case studies are typically used in this type of research.
While it helps the business gain a better understanding of current market scenario, it doesn’t explain ‘why’ certain behaviours or patterns exist.

Causal research is used to determine cause and effect relationship between variables.
For instance, how does a price increase affect the sales of a product?
This research involves experiments, field trials which maintains high control over variables.
It is valuable in predicting future scenarios but the complexity and cost can be high.

Predictive research looks to forecast future outcomes based on past data or trends.
This employs statistical models and analytical techniques to predict market conditions.
It’s highly useful in formulating strategies but requires accurate data and may not always be 100% accurate due to unexpected factors and changes.

Competitive analysis is a crucial part of market research where competitor activity is analysed.
Information on their products, pricing, marketing strategy and market share is gleaned.
This research helps businesses position themselves uniquely and stay ahead in the competitive landscape.