Exploring the Concept of B2C Market Research
B2C market research is a familiar concept, but what exactly is it? The clue is in the name—B2C stands for “business-to-consumer.” It refers to research…
B2C market research is a familiar concept, but what exactly is it? The clue is in the name—B2C stands for “business-to-consumer.” It refers to research that focuses on consumers instead of business professionals.
Without the correct information, it can be hard to know what your customers need. That means you lose valuable opportunities to serve them better and get their money in the long run. Here is where B2C market research comes in.
By gathering data and insights on who your customers are and what they want, you can make informed decisions about how to package and price your products, which products to develop, and more! And all of this results in more sales-ready customers.
So how does it work? Find out below!
Market Research Method #1: Understanding the B2C Environment
When you start a business, your first instinct might be to jump in with both feet. But one thing you should do before you begin is to identify all the potential legal issues, constraints and regulations that might affect your business.
This kind of legal constraints analysis is part of a package called “environmental analysis” and is often known as PESTEL analysis. It’s a way to understand what external factors might influence your business — specifically, the political, economic, social, technological, environmental and legal (or regulatory) factors.
Here are some rules you must follow:
- You must comply with rules for each region about consumer protection. So do your legal research first.
- It’s also essential to understand the culture and traditions of the people you want to sell to because they may affect their preferences and desires regarding the product or service you provide.
- Understand the technical environment too. Suppose you are selling to a specific country. In that case, you should understand your customer’s country, such as its communication tools, time zones, and language.
- Understand the economic environment because this affects what someone can afford and how much they are willing to pay for a product or service.
When analyzing your environment, keep an eye out for any legal issues that may affect your operations and any opportunities to leverage them for competitive advantage.
Market Research Method #2: Conducting Interviews with Consumers
Interviewing customers is an excellent way to understand their needs, expectations, and pain points. The right interview questions can help you collect the information you need to make better business decisions.
Qualitative interviews are typically used in early-stage research to identify and define problems before developing solutions. In this post, we’ll review three different types of qualitative interviews:
- One-on-one interviews. The most common type of interview tends to be semi-structured or informal. Both the interviewer and respondent have a degree of flexibility in answering questions. The interviewer has more control over how the conversation flows.
- Online discussion boards. These are growing in popularity because they allow companies to gather feedback directly from consumers without having to motivate them to travel somewhere for an interview or focus group session. The researcher typically has more control over the questions that participants respond to but less control over how the conversation flows than in one-on-one interviews.
- Focus groups. Focus groups are an excellent way to explore a topic with a small group of people (typically 8-12). In this setting, each participant is encouraged to share their opinions and experiences as part of a moderated discussion led by a trained moderator.
Market Research Method #3: Doing Online Surveys
One of the most exciting approaches to market research is to conduct an online survey. The survey aims to evaluate and validate the hypotheses you have formulated in the previous steps. It uses larger samples and contains a more significant number of questions.
The survey usually starts with questions related to the customer’s profile, including sex, age, marital status, level of education, income, and place of residence. Their answers allow you to segment your customers to identify specific market niches requiring a different approach.
Next comes the part where you validate your hypotheses about their lifestyle, needs, problems and motivations when buying products or services. This part should also determine if you have identified all relevant factors influencing their purchase decision.
Next, you may wish to know how your customers feel about the offerings from your competitors. The data can determine whether there is a need for further in-depth competition analysis.
To create a safe and anonymous online questionnaire, please keep these rules in mind:
- The length of the questionnaire must not exceed 15 minutes.
- The questionnaire should include no more than 20 questions.
- Questions must be simple and easy to understand while relevant to the research.
- Questions that address sensitive topics should be placed at the end of the survey to avoid skewing the results of earlier questions.
- Before you launch the survey, could you test it out on a small sample of people?
- Keep the questions as short and straightforward as possible.
- Avoid technical jargon.
- Make sure the questions do not lead to a particular answer.
- Ask only one question at a time.
- Avoid negative wording. For example, “Do you disagree with us?” instead of “Do you agree with us?”
You deserve to have relevant, accurate data that you can trust.
Grapedata has enough experience to help you craft the perfect online survey and get to know your customers. Contact us today and let us help you find out what they’re thinking!