Research is an important activity that leads to operation and product improvements, planning as well as market expansion for the business. In recent years, investment in market research has increased significantly in large enterprises in many industries, including tourism, when they realize the benefits of this activity.
Why is market research important?
Market research helps companies understand their customers as today, they have too many sources of information to make decisions. By proper research, businesses can minimize costly risks, have strategic advantages over competitors and cope with changes caused by the pandemic.
The goal of market research is to provide useful information for companies to make right decisions. To obtain the information, businesses are willing to pay a certain price.
The cost of Market Research
Factors affecting cost
The cost of market research depends on many factors such as target audience, methodology, type of research, samples, etc. Market research is considered a time-consuming, complex, and quite expensive process, but it is effective.
For example, an online survey on 100 respondents will not cost as much as a phone survey or in-depth interview on the same sample size. In-person surveys usually require the cost of venue, facility, travel,… Or the smaller number of samples will be less expensive than the bigger one. Nevertheless, the smaller the sample size is, the larger the error will cost, a quantitative survey of 10 or 20 people will not be representative and hardly offer reliable results.
How much does market research cost?
Sectors such as Consumer Non-durables, Media and Entertainment, and Pharmaceuticals invest the most in this activity, followed by Government or non-profit organizations, Financial/Banking, Telecommunications, Retail, etc. The tourism industry has not yet invested too much in market research. However, facing big and unpredictable changes, travel businesses and destinations should soon consider investing.
Companies mostly spend from 5-20% of their annual revenue for research and development.
In general, market research does not have a fixed or average cost because they are often unique and serve different purposes.
Set budget and Choose a market research company
It’s very difficult for a business outside the market research sector to determine the number of samples, the type of survey, the way to build a questionnaire, quantitative or qualitative research, etc. The best way is consulting with a good market research firm.
This market research firm should be the one with high expertise, reliability, provide quality and transparent data with proven methods of data collection and analysis. Having cooperated with many domestic and international partners will be a big basis for businesses to choose a market research firm.
Businesses just need to set their budget, purpose and demand for market research, they will be provided bespoke reporting and research solutions as they wish. In case businesses haven’t yet set their reasonable budget, a market research company can propose a suitable quote.