Factors for consideration
Deciding whether to conduct market research depends on a number of factors:
- Time: Research should only be undertaken when there is sufficient time to conduct and analyse the research findings and to apply this information to the decision making process.
- Data availability: When sufficient and adequate data is not available to aid decision making, will you be able to conduct the research to find the data required?
- Nature of the decision: If you are going to invest time and/or money to conduct research, is the decision you are going to make integral to the operation of your online business?
- Value: The benefits of completing the research must outweigh the cost of conducting the research.
Research should not be conducted simply out of curiosity. Rather, market research should be undertaken because it will have a direct impact on the business decision you are required make.
Lee, our online homewares entrepreneur, wants to start selling her goods on her online store.
The problem is that apart from Thomas and Jenny who have shown some initial interest in her products, she doesn’t know who her other potential customers are or who else is selling a similar product.
What advice would you give Lee?
Post your advice to the comments area below.
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