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DEBATE Is marf^Gt research a waste of money? Y E S Philip Graves author of Consumer.ology reviewed on page 17 Market research is an unhelpfully broad term, so let me define it here as asking people questions—something that UK companies spend hundreds of millions of pounds on each year and which I believe is a waste of money. Organisations have been seduced by the idea that consum ers know what they think and understand what they want. There is little legitimate data to support this notion and an ever-increasing body of evidence that this isn t the case—for example, studies that show purchase choices can be swayed by the presence of a particular smell, type of music or adding in a product option that no one will buy but that changes how they feel about other choices. The unconscious mind is in play far more than we realise. This doesn t stop us constructing conscious justifications, or claiming particular attitudes and beliefs. But they are no more likely to be accurate than our daily horoscope. Leaving aside our capacity to notice only what suits our wishful thinking, that means about half the time. The value of market research is limited to what those commissioning it feel that it gives them . It s no better than a placebo, potentially benign, but possibly dangerous if it stops you doing something that would have been more productive. Yet we re not short of examples when research-driven thinking has backfired. Investment in market research goes beyond a simple waste of money: i t corrupts an organisation s ability to learn and, if that wasn t damaging enough, can lead to untold waste in the pursuit of strategies and initiatives that would never have been developed with an alternative—and psychologically informed—approach to understanding consumer behaviour. question time: can marl?et research help decision-maRing or does it corrupt an organisation s ability t o leamT N O Rowland Lloyd vice-president. The Market Research Society Market research is essential. It informs business strategy and reduces risk in decision-making. Without research there is a lack of evidence on which to make appropriate decisions. Public and private services need to adapt quickly and effectively to the needs of the public, and reliable research findings are at the centre ofthat process. Cost efticiency is the name of the game, both in government and business. When a company launches a product or a government department cuts back on a public service, they need to get it right first time to avoid costly errors. Market research narrows down the options and provides the insight required. Good research is not just about asking the right people the right questions. It is about getting to the core of needs, wants, and emotions. The government s localism agenda, for example, includes plans for local authorities to fund health services. But how will it know where to aim resources? The answer: good research to assess current and future health problems, so the right services can be established. Research should sit alongside behavioural data, purchasing patterns and information on the use of public services. The best researchers will not only provide evidence and interpret it. They can blend this information with other data to provide a comprehensive picture of business issues. Research predicts what people will do, need or want through the use of robust evidence, interpre tation and analysis. Our society encourages an interpretation of public opinion. So why would anyone reject this by condemning research? • ^ Does market research benefit busines s? Ha ve your say at www.dlrector.co.ut? 30 Director.co.uli September 2010
