Most successful businesses focus on market research and then use their findings to make business decisions that enable them to leave their competition behind. Whether you are starting a new business or you want to expand your existing business, market research is imperative. It helps you get a better understanding of your target markets, change your marketing tactics and strategies to cater to your target audience, and this, in turn, helps you increase sales.
Here are five ways that you can use market research to help your business flourish and thrive:
Our everyday life includes running errands and constant visits to the supermarket to buy food, drinks, snacks, clothes, and other essential items. Most commonly we get thrilled to compare between various product options to convince ourselves that we have made the best purchase choice and saved some bucks or got a product free.
Though we are mostly convinced that our decisions are our very own decisions while making a purchase, the reality is there are many factors that tend to influence the choices we make between one product over another. Research has been conducted to study these factors and the individual response as to how these factors contribute to the alterations in the decisions.
Neuromarketing can be defined as a scientific study focused on the application of neuroscientific methods to measure and improve human behavior by combining aspects of neuroscience, psychology, and marketing.
Neuromarketing focuses on various factors that influence a buyer’s decision about a product, in order to provide a better commercial acceptance, some of these factors are:
What does neuroscience say about purchasing decisions?
A study conducted by Duke University looked into whether consumers judge items rationally. They asked participants how much a bottle of wine would cost them.
The individuals were first instructed to write down the last two digits of their social security number.
Surprisingly, individuals who scribbled greater numbers were willing to pay 200-300 percent more than those who scribbled smaller amounts. An entirely unrelated number determined the perceived value. This discovery highlights the importance of the unconscious mind in our purchasing decisions.
Researchers and organizations have been using interviews, surveys, and questionnaires to find out what motivates consumers and what are their preferences and needs. These methods do not take into account non-verbal gestures and responses but they can offer important details about consumers.
Research into behaviour has repeatedly shown that most people do act as per what they say. Hence, to learn more about what they will actually do, it is essential to delve into the unconscious and unaired preferences of consumers. This is where neuromarketing research comes into the picture.
In most organizations, HR professionals and reporting managers and supervisors have no idea about the application of behavioral economics in their work. But that is not something to worry about as it can be rectified by making these professionals aware.
All organizations are keen to reduce their costs and time and maximize their profits. However, to accomplish this, organizations need to analyze data and perform market research. It is in these fields that behavioral economics can be a boon for companies. There are several areas of application of behavioral economics that companies can benefit from. Some of these are as follows: