7.1: Quantitative research

Quantitative research in market research involves gathering and analyzing numerical data to understand market trends, consumer behaviour, preferences, and other measurable aspects. It focuses on statistical analysis, aiming to quantify opinions, behaviours, and patterns within one or more target markets. One of the most common methods for measuring quantitative research is the survey, and knowing how to design a survey is an important tool in the market researcher’s tool box.

When conducting quantitative research, it’s essential to consider the decision problem to gauge if this is the right method to help reach solutions. There are a number of different quantitative methods that are used for market research including:

• Surveys: Online, phone, or in-person surveys with structured questions and predefined response options help gather quantitative data efficiently from a large sample size. A deep dive into how to write a survey is covered later in this module.
• Experiments: Controlled studies allow researchers to test hypotheses and measure specific variables’ impact on consumer behaviour or preferences. An example of an experiment could be a beverage company wanting to test the impact of different pricing on its customers. They may provide three different price points to a sample of customers and observe and measure how each group responds to the different price points.
• Observational Research: Systematic observation and recording of consumer behaviour in natural settings or controlled environments to derive quantitative insights. One example of observational research is mystery shopping. Stores, particularly ones with multiple locations, engage a market research firm to have people pose as regular customers and track their experiences and report back on exactly what happened during the online or in-person interaction. Businesses can then gather valuable insights into customer behaviour. They might discover trends like popular pathways, areas of high and low traffic, or which product displays attract the most attention.
• Scanner-Based Research: Barcode scanning data is used in retail environments to track sales and consumer behaviour in order to understand purchasing patterns. One example of this is the department store loyalty programs, like PC Optimum, which match members to their buying patterns in order to support targeted advertising and coupons based on previous purchases.

In module 4, a chart was presented that illustrated the distinctions between qualitative and quantitative research. Both methods of research provide valuable insights to support decision problems, but there are some benefits to quantitative research:

• Large sample sizes: It enables the collection of data from a large number of respondents, providing a broad understanding of the market or consumer base.
• Generalizability: Findings from quantitative research can often be generalized to a larger population, aiding in the making of predictions or inferences about market trends or consumer behaviour.
• Objective insights: Quantitative data analysis tends to be more objective as it relies on numbers rather than subjective opinions, reducing bias in the findings.
• Comparative analysis: It facilitates comparisons across different segments, regions, demographics, or time periods, supporting the identification of patterns or trends in the market or consumer behaviour.

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