The PDMA Handbook of New Product Development

18.2. The Quantitative Market Research Process

The four key steps in conducting any quantitative survey are (1) writing the survey questionnaire, (2) collecting the data, (3) analyzing the results, and (4) reporting. The most critical step is the first one. It takes training and experience to write a survey that is clear, unbiased, precise, and of appropriate length and difficulty. For example, a survey that asks "how much are you willing to pay for this new widget?" is undoubtedly going to get upwardly biased answers. On the other hand, an experienced market researcher will use one of several 'indirect' techniques that have been shown to be much more accurate in measuring value (one of which is conjoint analysis, covered later in this chapter). A quantitative study cannot recover from a poorly written survey.

Table 18.1. TWO DIFFERENT TYPES OF MARKET RESEARCH.

Qualitative Research	Quantitative Research
Words and images	Numbers
"Soft" data	"Hard" data
More exploratory	More confirmatory
Great for understanding unmet needs	Great for optimizing the new product's appeal
Analyzed by looking for themes and deeper meaning	Analyzed using statistics

NOTE

Each data collection method has its own strengths and weaknesses.

There are several ways of collecting the data. The lowest-cost, but most problematic, is the mailed survey. The biggest problem with using the mail is the very low response rate (1-5 percent is common). Do you really want to base your new product decisions on the tiny minority of unusual ...