If you are keen to get inside the minds of your customers, you need to do qualitative market research. This research can provide valuable insights into your products, your target market your customers’ opinions, and what motivates your customers to buy your products. But what is qualitative market research?
Before you find out the importance of market research, it’s necessary to understand what market research is. It is the process of gathering data, analyzing it, and then interpreting the result to solve issues and challenges that you face in marketing. When you perform market research, you can make an informed decision be it to launch a new product or develop a marketing strategy. The research helps you understand the needs of your target audience and packaging your marketing messages based on them.
Every business desires to sell in high quantities, outselling their sales and competitors. This desire has propelled brands, retailers, economists, psychologists, and neurologists into developing methods and tricks to manipulate the consumers into spending more or making a buying decision faster. One of the tricks being employed is the scarcity principle. Unlike other principles and tricks, the scarcity principle requires less effort and is one of the oldest economic tricks. Consumers are tricked into believing a product is almost of stock, limited offer, compelling them to purchase at the moment.
The Decoy Effect
Retailers are becoming creative with selling nowadays. But creativity is the least of their techniques. Marketers now work tirelessly with neurologists and psychologists to study brain patterns and consumer reactions to stimuli. From their successes is the decoy effect. Retailers use this method to trick customers into buying a higher relative valued product, at a higher price. The decoy effect is also being used in employment and the government. This trick is useful for retailers and customers alike. As a customer, you can learn the method of the trick and better avoid it when next you’re shopping.
The saying that the poor remain poor and the rich remain rich is beyond accessibility to money or resources. Social scientists have discovered another factor that affects wealth creation. The ‘psychology of scarcity’ as studied by professor Eldar Shafir Ph.D. and Sendhil Mullainathan, Ph.D. holds that decision-making is greatly affected by a person’s financial state. Poor people are said to be less efficient when making tough financial decisions. This theory changes the way class economics and poverty are studied. This psychology, however, doesn’t negate the fact that decision making can also be terrible with rich people. It simply holds that a poor person’s wrong decision has more and consequences, which is more felt because of their economic state.