Opportunities and limitations of conducting market research online

Market research is a critical component of marketing. Firms rely on roll uping information from clients, rivals, and modern-day economic conditions to analyze possible markets and program effectual runs ( O’Brien 2004 ) . With the development of advanced engineering, the Internet is now closely connected and inseparable from concern. Assorted companies devote themselves to carry oning on-line market research to understand the status of current markets to use appropriate selling schemes to advance their merchandises. To be compared with traditional market research, on-line market research provides more advantages than traditional 1s ; for illustration, the Internet has reduced obstructions such as clip and distance that exist between houses and clients ( Krishnamurthy 2003 ) . On-line market research has broken new land of research and offered chances and restrictions to sellers. This paper will sketch the background of market research and the relationship between the Internet and market research. Afterwards, the virtues and drawbacks of on-line market research are identified. The chances and restrictions for the sellers to carry on on-line market research will besides be discussed. In add-on, the pizza company, Domino ‘s, will be analysed to discourse its opportunities and limitations of following on-line market research by using the theories provided in the paper. The recommendations will besides be given to propose the methods Domino ‘s can follow to suppress the restrictions.


2.1.Market Research

Market research has been identified as an of import articulation of selling. Callingham ( 2004 ) describes that market research can be used as a method to derive understandings of consumers on the market construction and affect deeply in back uping the corporation internal cognition. Through market research, the administrations are able to get the information of clients and rivals to plan their merchandises, develop selling schemes, and expeditiously section the market. To prove the market, the penetrations discovered from well-designed studies can be used to inform the companies about existent information of their selling chances, inclinations, and bullyings ( Fairlie 1993 ) . Therefore, inquiries in studies must be developed carefully to derive valuable informations that benefit merchandise placement and selling to run into clients ‘ demands in the market. Callingham ( 2004 ) besides illustrates market research that makes the most powerful part to determination devising in the house can act upon the clime and full thought of a company. It can be noted that market research is critical to help houses to place themselves in the market, adjust selling schemes, program merchandise pricing, and detect client buying behaviours.

2.2. On-line Market Research

The rapid developments of engineering enables people connect with the universe instantly through the Internet. Diversified factors that companies should pay attending to the Internet include lower monetary value to pull off the web sites and connect with stakeholders, more clear information than traditional communicating manners, and less clip to cover with issues ( McGarvey & A ; Campanelli 2005 ) . The widespread use of the Internet provides a platform for sellers to advance their merchandises, build connexion with consumers closely, detect consumer perceptual experiences and attitudes quickly, and so forth. Harmonizing to O’Brien ( 2004 ) , traditional market research methodological analysiss comprise telephone, mail, facsimile, face-to-face, and concentrate groups ; nevertheless, these methods seem inefficient when compared with on-line market research. Traditional market research is time-consuming and dearly-won ; for case, it can take few yearss to direct questionnaire by mail to the clients and the company besides has to pull off the studies for another period of clip. Krishnamurthy ( 2003 ) indicates classs of on-line market research can be divided into two dimensions, including qualitative and quantitative research. Qualitative research infers look intoing clients ‘ deep penetrations with open-ended inquiries such as on-line focal point groups interviews and hunt log analysis, while quantitative research focal point on market intervention through analyzing big graduated table of information such as on-line studies through pop-ups and electronic mails or clickstream analysis. Fitzgerald ( 2009 ) argues that on-line market research which is besides an of import portion for business-to-business selling to bring forth real-time information to derive latest informations. Firms like Domino ‘s are able to pull off its order and trade with the relationship with providers. In footings of rivals, sellers besides are able to achieve information through online studies, and fix tactics to parallel them. However, on-line market research that progressively adopted by sellers is indispensable for houses to run their concerns.

3.Opportunity and Advantages of carry oning market research online

Sellers now are able to take advantage of on-line come oning engineering to develop advanced market research ; however, they besides might lucubrate undiscovered Fieldss of the market in the huge Web universe. Dann & A ; Dann ( 2001 ) mean that the important advantage of operating research online is that little concern besides can be successful by accessing qualitative informations to back up its decision-making. A assortment of possible opportunities that companies can do good to carry on on-line market research usage are explored and discussed in the undermentioned paragraphs. The pizza company, Domino ‘s, will be associated with the theories to exemplify its possible opportunities with on-line market research.

3.1.Closer connexion with clients

The Internet has differentiated the field of market research. Companies can make their clients fast and effortlessly through on-line market research that is considered as an cheap manner to derive information that houses desire to direct their hereafters. Harmonizing to Miniwatts Marketing Group ( 2010 ) , the entire figure of Internet users of the universe has risen to 19.6 billion, which represents 444 % growing to be compared with 3.6 billion in 2000. This grounds shows that houses are able to reach with more clients online than the past decennary. Sellers are able to obtain big sum of informations from on-line methodological analysiss to help themselves with more accurate waies to market their merchandises. Traditional manners of research have suffered from significant lessening in response rates since the 1950s ( Cook, Heath, and Thompson 2000 ) . The Internet broadens the scope of market research for that the audience can shop web sites anytime, so sellers are able to have real-time informations to larn clients ‘ latest demands of merchandises. It is backbreaking to reach office workers or pupils who can non be reached through traditional studies due to clip struggle, and now these people can be approached through the Internet ( Krishnamurthy 2004 ) . Therefore, houses can plan different market orientation for those who are freshly discovered groups of clients through on-line research. Domino ‘s can get more information of work professionals to cognize their preferable manners of pizzas and their office hours to be after proper selling schemes that suit office workers ‘ life modus operandis to broaden this cleavage, so Domino ‘s might hold new thought of selling undertaking for business communities to transport out.

3.2.Business Internationalization

The Internet has offered a world-wide platform for people to utilize. Combined with traditional market research techniques, online market research non merely authorizes companies to roll up investigated selling resources with superior quality and measure but besides globalize the houses with global information ( Dann & A ; Dann 2001 ) . Firms can set their selling schemes for different states by admiting the demands of consumers all around the universe through the Internet. Customers from assorted locations and countries can be reached easy with on-line engineering ( Krishnamurthy 2004 ) . Sellers so are able to spread out their market globally by analyzing the possibility of running concern in the country from on-line local participants ‘ positions. Domino ‘s, as the same note, can run on-line research before being really introduced to the market in other states. Domino ‘s may grok whether it is executable to develop in the state by the consequences of research that might change with civilizations and life styles. Taking Domino ‘s in Australia as an illustration, it could analyze if the citizens accept the Australian spirit of “ Australians ” by posting questionnaires on its web site. For other states such Japan, Domino ‘s besides can look into the degree people would wish to buy its new culture-based-flavor pizzas. Hence, Domino ‘s can follow the form to detect the possible markets and merchandises in other states.

3.3.Diversity of research methods

There are more multiform methodological analysiss of on-line research provided in virtuousness of the development and popularity of the Internet. Most used methods such as on-line studies, on-line focal point group bulletin, hunt log analysis, and clickstream analysis are widely used by sellers as on-line research methods ( Krishnamurthy 2003 ) . Sellers do non hold to restrict market research to traditional manners ; alternatively, a assortment of picks provided through the Internet can be selected as houses can place the 1s that are suited to use. Dann & A ; Dann ( 2001 ) imply that chink trailing is a specific means to track users ‘ motion while surfing the web site. Domino ‘s can roll up clients ‘ “ most-clicks exceeding ” to convey up thoughts of their buying forms through online order system. The concern has opportunities to develop new merchandises through analysis, so present them on its web site to research the possible popularity of the merchandise and launch depending on clients ‘ reactions. Smith ‘s, the trade name of murphy french friess has besides held similar gesture that authorizes consumers to make new spirits and launch through vote ( www.smiths.com.au ) . Another broadly-used mode to apportion people in studies is pop-ups. Supre, an Australian miss ‘ dress vesture trade name, besides offers pop-up for on-line studies on its web site ( www.supre.com.au ) . In the same mode, Domino ‘s is recommended to utilize pop-up on its web site to increase the figure of participants by attending. Diverse methods of on-line market research assist quantitative research with great sum of informations ; hence, sellers might continue with a concern program more accurately.

3.4.Personalised Research

The online techniques have enriched the ocular presentation of studies, including extended stimuli potency of utilizing colourss, sounds, and artworks ; flexible signifiers of questionnaires, and greater delectation in engagement of research ( Adam & A ; McDonald 2003 ) . Online studies can be visually abundant by planing the advanced web sites with colourful images and characters, games, and lifes. M & A ; M, the cocoa manufacturer in America has held an activity on its web site in 2010 called “ vote for your favourite character ” by demoing the images of assorted characters ( hypertext transfer protocol: //www.mms.com/us/vote/ ) . This on-line vote event has gained 3.4 million ballots. Vivid studies seem a new tendency for sellers to develop a assortment of market research that can pull more participants. Domino ‘s can develop similar manner of studies of supplying images of pizza with different spirits or enable clients to make their ain spirits with a assortment of stuffs ; in this manner Domino ‘s can look into the per centums of stuffs clicked to cognize clients ‘ favourites and let participants to vote for the top spirit. With such activity, Domino ‘s can obtain informations of clients and invent new merchandises with clients ‘ favourites. Games, besides a great motive, can be used as a camouflage signifier of market research. Domino ‘s can allow the users to choose their favorite-flavor pizza as the character in the game to mensurate their penchants, and the game can be designed to associate to popular events such FiFa Worldcup or Christmas to pull more diverse client base. An mixture of signifier of research might derive more clients ‘ attending. Conducting such lively research besides increase the willingness of clients to take the study.

3.5.Cooperation with popular virtuousness communities

Many corporations already cooperated with celebrated web sites and hunt engines such as Yahoo and Google ( www.google.com ) . Those on-line digital companies assist several houses with their advertizements of on-line studies on the chief Web pages or pop-ups ( Krishnamurthy 2003 ) . Online practical communities besides can offer similar chances to join forces with houses that would wish post their links or advertisement to appeal to online population to take part in their research. As the users of practical communities including Facebook, Myspace, Twitter, and so forth have increased late, sellers can take advantages to make the audience. For illustration, Facebook filters users ‘ informations to turn up their involvements and personalize the affiliated advertizements. These communities besides permit users to snap “ like ” button to connote their beliefs through simple actions. Domino ‘s has the opportunity to expose its research information to its targeted client groups by age, business, or favourite nutrient, which the practical communities will automatically filtrate these audiences through internal system. In add-on, Domino ‘s can hold competition of originative picture for assorted pizzas in order to acquire more clients involved by this type of publicity. Therefore, Domino ‘s non merely cod clients ‘ sentiments through the activity but the remarks from the web site of YouTube where the audience perchance uploads these pictures ( www.youtube.com ) . Nevertheless, cooperation with on-line communities and websites increases the possibility to reach with ideal consumers who are willing to take portion in research.

4.Limitation of carry oning market research online

Despite of the advantages offered by the Internet, there are still assorted limitations for sellers to take into consideration when they arrange concern runs. Some issues that seller have to take notice of while suggesting on-line market research will be elaborated below. The restrictions that Domino ‘s might meet and some recommendations will besides be illustrated.

4.1.Creditability of the informations

In malice of the growing of Internet users in 2010, Miniwatts Marketing Group ( 2010 ) besides shows that the universe population has increased to 68.4 one million millions, so the Internet incursion merely takes up 28.4 % of entire population. It can be noted that the Internet users can be little part of existent clients for companies. The information that sellers collect through on-line market research does non encompass extended scope of clients. Dann & A ; Dann ( 2001 ) indicate that most of the online users are by and large financially unafraid and intelligent. Hence, it can be an tremendous trouble for sellers to mensurate the market because they are non able to entree the offline audience ; that is, the targeted market that companies aim at might be middle-class people and have ignored others that could be the chief resource of their clients. For case, people from lower societal category without computing machine equipments can besides afford to buy unrecorded necessities such as ice pick, so sellers may hold problem roll uping information from this group through on-line market research. Domino ‘s might hold trouble to research some market cleavage since the Internet perchance neglects one portion of its critical clients.

The quality of the informations acquired through on-line market research will besides be suspected because participants might suggest wrong or unsuitable responses ( Krishnamurthy 2003 ) . The information companies accumulate might be non believable, so it is hazardous to answer on it. To suppress this job, sellers try to attach new technique that participants have to make full in accurate informations in each column for successfully subjecting to forestall people from giving incorrect or meaningless responses. Therefore, this safeguard might besides diminish disposition of clients to partake in research. Nadilo ( 1998 ) notes that small grounds can verify the connexion between website browse and existent buying behaviors. The research utilizing clickstream might be non dependable for sellers. Furthermore, the issue of the deepness of on-line research is necessary to be considered. Traditional method of face-to-face interview enables sellers to carry on in-depths research and derive more qualitative figures than on-line studies. Despite of usage of Skype or MSN courier to hold in-depth online interview with clients to help qualitative research, the costs of engaging interviewees and the willingness of participants to fall in should be taken into consideration. Above all, the quality of informations online research generates is another obstruction for houses.

4.2.Degree of client cooperation

Although sellers have diverse chances to carry on market research online, they can non guarantee the willingness of clients to take part in research. Several concerns of clients toward on-line market research consist of privateness and security because people are loath to uncover their personal information ( Dann & A ; Dann 2001 ) . To derive clients ‘ trust becomes the barrier that houses have to get the better of. Campanelli & A ; McGarvey ( 2005 ) suggest that one manner to work out this job is to salvage client databases to the computing machine with the Internet connexion. Besides, houses have to vouch and assure the safety of on-line research and follow stronger data-protection system to protect their clients.

Another issue is the reluctance of clients to take part in research. Krishnamurthy ( 2004 ) demonstrates that pop-ups ads are identified as the mode that clients detest ; conversely, they are still widely used. The dislikeful pop-ups will cut down the measure of informations and consequence in misjudgment of sectioning markets. Furthermore, Nadilo ( 1998 ) notes that studies sent by electronic mails are the manner most sellers prefer to carry on on-line research whilst these electronic mails are normally neglected as “ Spam ” . It becomes a tough undertaking to reach with clients if they can non even entree the electronic mails. Hence, multiple research methods are supposed to be considered. Domino ‘s can still roll up clients ‘ informations with traditional questionnaires and integrate assorted research manners to garner information intensively. In add-on, vouchers are ever good option to catch the attending of clients ( Peter & A ; Olson 2000 ) . Incentives therefore can be used to promote the audience to take part in research. Domino ‘s can besides leave vouchers to accomplish the ideal engagement of the audience. All the factors mentioned above affect the degree that clients cooperate in research. It can be assumed that sellers confront several adversities to carry on market research through the Internet.


Market research is an of import tool to guarantee client satisfaction, analyse the mark market and assist execution of selling scheme. The Internet has differentiated the field of market research, supplying a fast and cost-efficient way to make the clients. With the advancement of online engineering, sellers are able to run market research through the Internet with a assortment of chances including sweetening of familiarity with clients, concern internationalization, diverseness of on-line manners, color of research, and cooperation with on-line community. Hence, houses are capable of making their clients extensively and get more quantitative and qualitative informations so that companies can mention to set their decision-making. Besides, assorted online researches are besides another manner to expose the company to the audience and perchance beef up trade name image through successful run. On the other manus, sellers have to chew over over the restrictions of set abouting on-line market research- the creditability of online informations and the grade of consumer cooperation. It can be risky for houses to implement selling schemes if the information is non trustable and wrong. Companies should be cognizant of the possible hazard of on-line market research and carefully trade with it. Traditional research methodological analysiss besides can endorse up online methods if necessary. Domino ‘s, by the same item, can develop originative online research harmonizing to the existed online methodological analysiss and beware of the danger it might face.