How Business Research Helps Businesses in Decision Making
Businesses of all types and sizes undertake extensive research methods to improve and grow. The long term success of a start up, medium sized business and even established business depends on efficient and cost effective research undertaken.
Companies often rely on various business research methods to obtain information from the consumers or other businesses. Such business research methods undertaken enable a company to do an in depth study about several internal and external factors influencing the market share and profitability of the company.
Business research methods that help in decision making
Based on the information obtained through the different business research methods, companies whether new or established can undertake some essential business decisions such as the following-
- Possibility of the business to survive and succeed in a new geographical region
- Assessment about competitors
- Adopting a suitable market approach for a product
Businesses may choose to adopt either one or all of the below discussed research methods to achieve their business goals:
1. Case Studies
The business research method of case study is generally undertaken by those business houses who want a detailed and comprehensive understanding of the consumer response about a particular product or service.
Case studies primarily help a business in the following ways:
- Thorough assessment of consumer satisfaction.
- Consumer attitudes and opinion about a product.
Though case study method of business research is time consuming, it helps in the collection of in depth information about customer’s likes, dislikes and preferences thus throwing light on strength and weakness of a specific product or service.
2. Conducting Surveys
Conducting surveys is a very common method adopted by businesses to gather larger amount of information or data immediately at a very low cost. Due to large popularity of this method of business research, a standard survey sample is easily available for companies which they can put together to ascertain relevant information.
The biggest drawback of survey research method is failure of response from consumers in the specific target market along with less detailed, incomplete surveys and minimum information pertaining to the specific target market.
Companies rely on this method of business research to track actual consumer experiences with respect to a particular product or service. Consumers are asked specific questions which they have to answer at length based on which companies get a clear picture about the level of consumer satisfaction, experience of the consumer in lieu to a product or service.
The main advantage of this research methodology is the chance to ask follow up questions which throws light about the consumer response with respect to a specific product or service. The only drawback is that a careless interviewer can partially influence the response provided by interviewee. Also this method of business research tends to be time consuming.
4. Focus Groups
Focus group can be described as a in between research methodology among the various business research methods. The idea behind undertaking this method of business research is to obtain an honest suggestion and feedback from the consumers about a specific product or service.
The focus groups aim to provide a larger sample as compared to interviews and case studies. The only drawback from undertaking this type of research is that there are chances of the facilitator in asking irrelevant questions which might divert the research in a particular direction thus defeating the ultimate purpose of the analysis undertaken.
Some essential steps to overcome shortcomings of business research methods
Research is fundamental to all business and it is often as essentially important to the business as the data availability. Many errors are likely to occur in the process of business research. For instance, inaccurately recorded data, irrelevant questions posed by the researchers pose as challenges while making important business decisions.
As business research methods acts as a guiding light. Managers should learn to use it with caution by becoming aware about its impending shortcomings. iResearch Services is a leading name in the business research industry having catered to some of the world’s leading Fortune 500 companies. Be it How Competitive Intelligence Helps in Devising Better Marketing Strategy or opinion studies, iResearch Services has extensive experience in delivering world-class business research services.