The Importance of Standard Information Gathering in Market Research

As the business landscape grows more competitive by the day, companies are increasingly turning to market research to seek ways to gain an edge over their rivals. Market research is the process of gathering and analyzing data related to a particular industry, product, or service in order to gain insight into a market. One critical aspect of market research that is often overlooked is standard information gathering. In this article, we explore the importance of standard information gathering in market research and the potential benefits it can deliver to businesses.

What is Standard Information Gathering?

Standard information gathering involves the use of standardized tools and techniques to collect data in a consistent way. It is a crucial aspect of market research because it ensures that the data collected is reliable and of high quality. Standard information gathering techniques should be employed throughout the research process, including the development of research objectives, the design of the research methodology, the collection of data, and the analysis of the results.

Why is Standard Information Gathering Important in Market Research?

1. Ensures Reliability of Data

One of the key benefits of standard information gathering is that it ensures that the data collected is reliable. Standardization helps to eliminate bias and inconsistencies in the data collection process, which can alter the accuracy and representativeness of the results. Standardization also reduces the likelihood of errors and increases the validity of the research findings.

2. Increases Comparability

Standard information gathering allows for meaningful comparisons to be made across different datasets. By using standardized tools and techniques, it becomes easier to compare data collected at different times or in different locations. This is particularly useful in longitudinal studies, where the same data is collected over time, and comparative analysis is essential to identify trends and patterns.

3. Facilitates Replication

Standard information gathering also facilitates replication of research studies. Replication is the process of repeating a research study to verify or contradict the original findings. By using standardized tools and techniques, the research methodology can be easily replicated, providing further evidence to support or refute the original findings.

Case Study – The Importance of Standard Information Gathering in Market Research

A classic example of the importance of standard information gathering in market research is the case of the Ford Pinto automobile. In the 1970s, Ford Motor Company introduced the Pinto, a small car designed for the American market. The car was launched with much fanfare and was positioned to be a market leader.

However, within a few months of its launch, reports began to emerge that the car had a design flaw that made it vulnerable to catching fire in the event of a rear-end collision. The news spread like wildfire, and soon the Pinto became infamous for being a deathtrap on wheels.

Investigations later revealed that Ford was aware of the design flaw but had decided to launch the car regardless, believing that the cost of fixing the problem would have been higher than the cost of paying for lawsuits resulting from any accidents.

If Ford had applied standard information gathering techniques during their market research process, they would have identified the flaw much earlier and avoided the significant legal and public relations disaster that ensued. This case illustrates the importance of standard information gathering in market research and the significant impact it can have on a business.

Conclusion

In conclusion, standard information gathering is critical in market research because it ensures the reliability, comparability, and replicability of data. It helps companies to identify market trends, understand customer needs, and gain a competitive advantage in their industry. By using standardized tools and techniques, companies can maximize the potential benefits of market research, avoid costly mistakes, and achieve their business objectives.