Market Research


DEFINITION of 'Market Research'

The process of assessing the viability of a new product or service through techniques such as surveys, product testing and focus groups. Market research allows a company to discover who their target market is and what these consumers think about a product or service before it becomes available to the public. Market research may be conducted by the company itself or by a third-party company that specializes in market research. Test subjects are usually compensated with product samples and/or paid a small stipend for their time.

BREAKING DOWN 'Market Research'

For example, a company that was considering going into business might conduct market research first to test the viability of its product or service idea. If the market research confirms that company's predictions, they can proceed confidently with their business plan. If not, they can use the results of the market research to make adjustments and do additional testing. Though market research can be expensive and time consuming, it should be less expensive and time consuming than fully developing and bringing to market a new product or service that will generate little or no interest from potential customers.

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  4. Marketing

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  5. Economic Moat

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  6. BCG Growth Share Matrix

    A planning tool that uses graphical representations of a company’s ...
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  1. How might a company use demographics to assess the size of a potential market?

    Demographics can be used to help a company determine key characteristics of the potential population to which it company ... Read Full Answer >>
  2. How can a business determine its most effective value proposition?

    To determine its most effective value proposition, a company must make a purposeful effort to craft a unique value proposition ... Read Full Answer >>
  3. What is the difference between business intelligence and competitive intelligence?

    Competitive intelligence is the act of understanding a company's industry and industry rivals so the company can make better ... Read Full Answer >>
  4. What's the difference between Porter's 5 forces and PEST analysis?

    The major difference between Porter's five forces and PEST analysis is that PEST analysis is designed more for the company ... Read Full Answer >>
  5. How do Internet companies profit if they give away their services for free?

    Companies that operate in Internet services have grown in number consistently in recent years as more consumers are utilizing ... Read Full Answer >>
  6. What's the difference between consumer confidence and consumer sentiment?

    There isn't a difference between consumer confidence and consumer sentiment. Both terms are used to refer to the degree ... Read Full Answer >>

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