Market Research 101
This is what businesses do when they want to know what customers like, don’t like, or want more of.
Market research.
When a business asks customers to fill out a questionnaire, what type of research method is it using?
A survey.
If we add all the test scores in class and divide by the number of students, what do we get?
The average (mean).
If a restaurant raises its prices, but people still buy the same amount of food, the demand is called…
Inelastic (Fancy word for “people still buy it!”)
This global pizza chain tested a new 3-cheese stuffed crust recipe in only three cities before rolling it out worldwide.
Pizza Hut. Companies test new products in small areas before going big (called a test market).
If you want to find out why people love bubble tea, you could gather a small group of people and ask them questions. This type of research is called?
Focus group.
If a company secretly watches how many people grab Pepsi vs. Coke at a supermarket, what kind of research is that?
Observational research.
You do a survey and only 2 out of 100 people reply. What’s the biggest problem here?
Low response rate.
People are more likely to buy something if they see “LIMITED STOCK!” on the ad. What marketing trick is this?
This company changed the color of its soda cans once and people freaked out.
Before selling a new snack, a company gives out free samples and asks people what they think. What kind of research is this?
Primary research.
If we want to test whether people prefer pizza with pineapple or without, we split a group in half and make them try both. What is this method called?
Experimental research.
A chart that shows data with bars instead of numbers is called a…
bar graph.
Why do people wait in long lines for a Starbucks coffee, when there are other coffee shops around?
Brand loyalty.
This online streaming service collects data on what you watch to recommend your next favorite show.
The first step in market research is figuring out exactly what you need to know. What is this step called?
Defining the research problem.
Your friend loves spicy food. You ask only them if a restaurant is good. Is this good research or bad research?
Bad research - it's biased!
If we flip a coin 100 times and it lands on heads 99 times, would you trust this data?
No. (Something is definitely wrong!)
When McDonald’s offers a big discount on fries but makes the burger expensive, what are they doing?
Pricing strategy.
This shoe brand used data to make sneakers for different types of runners.
In 2017, Nike launched the Nike Zoom Vaporfly 4%, using research from elite marathon runners to improve running efficiency by 4%.
If you want to understand the secret behind a company’s success, instead of asking them, you read their annual reports and online reviews. What kind of research are you doing?
Secondary research.
If a company wants deep and detailed answers, should they do multiple-choice surveys or one-on-one interviews?
One-on-one interviews.
If a p-value (probability value) is less than 0.05, does that mean your results are good or random?
If the p-value is low, the results are GO! 🚀 (We can trust them!)
If the p-value is high, the results say goodbye! 👋 (It might just be random.)
NOTE: If it’s below 0.05, we’re 95% sure it’s not random, meaning our research has found something important!
A company releases a new spicy ramen and wants to know if people like it. What’s the BEST way to test it?
Product testing.
This tech company used market research to figure out the best phone size for people’s hands.
Apple.