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Home > Blog > Survey >

Consumer Research: Definition, Types and Methods

Are you ready to dive into the fascinating world of consumer research?

We’ll take you on a mind-blowing journey where we’ll uncover the secrets behind why consumers make the choices they do.

So, what is consumer research?

Consumer Research
Source:chartexpo.com

In today’s rapidly evolving market landscape, understanding your consumers is more than necessary—it’s the bedrock upon which successful businesses are built. Consumer research acts as a compass, guiding enterprises through the complexities of market dynamics by shedding light on consumer desires, preferences, and behaviors. Whether you’re a seasoned market researcher, a consumer behavior analyst, or a visionary business owner, unlocking the secrets held within consumer data is critical to carving out a clear path to success.

In this blog, you’ll learn the following:

Table of Content:

  1. What is Consumer Research?
  2. Why is Consumer Research Important?
  3. Consumer Research Objectives
  4. Consumer Research Model
  5. Consumer Research Process
  6. Types of Customer Research
  7. Top 5 Consumer Research Examples
  8. Consumer Research Methods
  9. How to Conduct Customer Research in Just 8 Easy Steps?
    • Step# 1: Define your research objectives
    • Step# 2: Identify your target audience
    • Step# 3: Determine the survey format
    • Step# 4: Design the survey structure
    • Step# 5: Pretest the survey
    • Step# 6: Distribute the survey
    • Step# 7: Analyze and interpret the data
    • Step# 8: Summarize the findings
  10. How to Analyze and Interpret Consumer Research Data?
  11. Benefits of Conducting Consumer Research
  12. Best Practices For Effective Consumer Research
  13. After The Consumer Research Process
  14. Consumer Research FAQs
  15. Wrap Up

Before diving into the blog’s core, we’ll address the following question: What is consumer research?

What is Consumer Research?

Definition: At its core, consumer research is gathering and analyzing data about customers’ needs and preferences. It delves into the “why” and “how” behind consumer decisions, offering a window into the factors driving their purchasing behavior.

By revealing the context of consumer actions, businesses can anticipate market demands, tailor their offerings, and stay ahead of the curve. Understanding consumer research is akin to conversing with the market itself – an exchange of questions and answers that shapes the future of product development and marketing strategies.

Video Tutorial: How to Visualize Consumer Research Data

How to Visualize Consumer Research Data in Excel?

How to Visualize Consumer Research Data in Google Sheets?

How to Visualize Consumer Research Data in Power BI?

Why is Consumer Research Important?

Consumer research is important because it provides businesses with valuable insights into customer behaviors, preferences, and needs. By understanding these factors, companies can make informed decisions, create products that resonate with their target audience, and develop effective marketing strategies. It helps minimize risks, improve customer satisfaction, and stay competitive in the market.

Consumer Research Objectives

1. Identify Consumer Needs

Understanding consumer needs is the foundation of any successful business. This objective focuses on discovering what products or services customers require, their expectations, and the problems they face. By addressing these needs, businesses can create solutions that add value and stand out in the market.

2. Understand Buying Behavior

Analyzing how consumers make purchasing decisions is a key aspect of business research methods. It helps businesses identify key triggers, such as price sensitivity, brand loyalty, or convenience. This insight enables companies to optimize their offerings, promotions, and sales strategies to better align with consumer habits.

3. Segment the Target Audience

Audience segmentation involves dividing consumers into specific groups based on demographics, preferences, or behaviors. This objective allows businesses to deliver personalized experiences, targeted marketing, and tailored solutions to meet diverse consumer needs.

4. Evaluate Product/Service Satisfaction

Measuring customer satisfaction provides valuable feedback on product performance, usability, and quality. By understanding customer opinions, businesses can identify areas for improvement, reduce churn, and enhance overall satisfaction.

5. Analyze Market Trends

Keeping track of changing consumer preferences and market trends is crucial for staying competitive. This objective helps businesses identify emerging demands, adapt to shifts in consumer behavior, and capitalize on new growth opportunities.

Consumer Research Model

1. Exploratory Research Model

This model is used to gain insights into consumer behavior, preferences, and needs when little is known about the subject. It involves qualitative methods like focus groups, interviews, and open-ended surveys to uncover trends and ideas.

2. Descriptive Research Model

The descriptive model focuses on defining consumer behavior, characteristics, and preferences in detail. It uses structured surveys, observations, and data collection methods to quantify behaviors, such as purchase frequency or product usage.

3. Causal Research Model

This model identifies cause-and-effect relationships between variables, such as how price changes affect sales. Experiments and simulations are commonly used to determine the impact of specific factors on consumer decisions.

4. Predictive Research Model

The predictive model uses historical data and analytics to forecast future consumer behavior. Techniques like regression analysis and machine learning help businesses anticipate trends, preferences, and purchasing patterns.

5. Applied Research Model

Applied research directly addresses specific business problems, such as improving product satisfaction or optimizing marketing campaigns. It focuses on actionable solutions derived from consumer insights to solve real-world challenges effectively.

Consumer Research Process

Embarking on a consumer research project follows a structured process:

  1. Define the Problem: Clearly articulate what you need to understand about your consumers.
  2. Design the Research: Choose between qualitative or quantitative methods based on your objectives.
  3. Collect Data: Gather information from various sources using tailored research instruments.
  4. Analyze Findings: Interpret the data, looking for patterns, correlations, and actionable insights.
  5. Report and Decide: Present the results in a meaningful way to inform business decisions.

Types of Customer Research

Let’s dive into the world of consumer research and explore the two main types of consumer research methods.

  1. Qualitative Consumer Research

Qualitative consumer research is like the art of business strategy. It’s about interpreting the subjective experiences of consumers, often through methods like focus groups, in-depth interviews, and ethnographic studies.

This approach emphasizes the nuanced motivations and emotions that quantitative data may not fully capture. Brands become storytellers, engaging in a dialogue that uncovers the rich, layered fabric of consumer sentiment.

  • One-on-one Interviews

Another approach is conducting one-on-one interviews. This method involves you conversing with a respondent, and asking open-ended questions.

It requires your expertise to probe effectively and obtain maximum insights. Though time-consuming, this method can yield valuable information when done right.

  • Text analysis

It entails analyzing words and images from various sources like social media. By decoding the context in which images and words are used, you conclude consumer behavior. Social media platforms are a treasure trove of information for analyzing consumer sentiments and preferences.

  1. Quantitative Consumer Research

If qualitative research is the art, then quantitative consumer research is the science. It deals with objective data that can be measured and analyzed statistically, such as surveys or usage patterns.

This type of research provides a broad overview of consumer trends, helping to quantify preferences and behaviors that can inform large-scale strategic decisions.

Top 5 Consumer Research Examples

1. Product Development Feedback

A company launching a new smartphone conducts surveys and focus groups to understand consumer needs and preferences. This research helps identify key features, pricing strategies, and design elements that appeal most to the target audience.

2. Customer Satisfaction Surveys

A restaurant chain sends out post-visit surveys to customers to gauge their dining experience. The results highlight areas of improvement, such as food quality, service speed, and ambiance, helping the company enhance customer satisfaction.

3. Brand Perception Analysis

A global clothing brand conducts interviews and social media listening to analyze consumer perceptions of its brand. This research uncovers how consumers view the brand compared to competitors and what emotional connections they have with it.

4. Market Segmentation Study

A car manufacturer uses surveys to segment its customer base by demographic factors, driving habits, and income levels. This allows them to create targeted marketing campaigns for each segment and offer tailored financing options.

5. Purchase Behavior Tracking

An e-commerce platform tracks consumer browsing and purchase behavior through website analytics and observations. This research helps optimize the user experience, product recommendations, and sales strategies to boost conversions.

Consumer Research Methods

A myriad of methods exist for unpacking the complexities of consumer behavior. Some include:

  • Surveys and Questionnaires

Surveys and questionnaires are efficient tools for gathering broad consumer opinions. They allow businesses to quickly collect data from a large group, helping identify trends and preferences through structured questions.

  • Interviews

Interviews involve direct, one-on-one conversations to dive deep into individual consumer perspectives. They provide detailed insights into motivations, opinions, and decision-making processes.

  • Focus Groups

Focus groups bring together a small group of consumers to discuss a product or service. These discussions generate collective ideas and feedback, useful for exploring new concepts and identifying common opinions.

  • Observations

Observations involve watching how consumers interact with products or services in real-world settings. This method provides unbiased insights into consumer behavior, revealing patterns that may not be captured through surveys or interviews.

How to Conduct Customer Research in Just 8 Easy Steps?

Let’s walk through a step-by-step guide to help you create an effective consumer research survey and gather valuable insights.

Step# 1: Define your research objectives

Clearly outline the goals of your consumer research. Determine the specific insights to gather from the survey. This will guide the entire survey creation process.

Step# 2: Identify your target audience

Define the demographic characteristics of your target audience, such as age, gender, location, etc. This information will help tailor your consumer research survey questions appropriately.

Step# 3: Determine the survey format

Choose the consumer research survey format that best suits your needs. You have the option of choosing online surveys, phone interviews, in-person interviews, or paper-based surveys. Online surveys are the most convenient and cost-effective option.

Step# 4: Design the survey structure

When designing the survey, establish clear objectives, select appropriate question types, ensure logical flow, and use unbiased language. Also, include demographic questions, and pilot test the survey for clarity and effectiveness.

Step# 5: Pretest the survey

Before distributing the survey, conduct a pretest with a small group of respondents. This helps you identify issues, confusing questions, or technical problems.

Step# 6: Distribute the survey

Choose the most suitable channels to distribute your survey. This could include email invitations, social media platforms, etc. Consider the characteristics of your target audience and select the channels they use the most.

Step# 7: Analyze and interpret the data

Once you’ve collected data, it’s time to analyze the data. Use charts like the Likert Scale Chart to visualize your data and derive meaningful insights. Look for patterns, trends, and correlations that can inform your next course of action.

Step# 8: Summarize the findings

After analyzing the data, summarize your findings in a compelling data story. This will help you translate your insights into strategies and actions that drive your marketing efforts forward. With these steps in mind, you’re ready to create a consumer research survey.

How to Analyze and Interpret Consumer Research Data?

Congratulations on successfully learning how to unlock valuable insights from consumer research surveys. Now, it’s time to unlock the true potential of your consumer research survey data by analyzing it.

While tools like Excel help organize data, they lack consumer research survey-specific charts, like the Likert Scale Chart.

Don’t worry.

There’s an exciting solution that can take your consumer research survey data analysis to a whole new level. It’s called ChartExpo.

ChartExpo is a powerful Excel add-in that will revolutionize how you analyze your best survey questions.

With its user-friendly interface and a wide range of consumer research survey-based charts, ChartExpo effortlessly transforms survey responses into actionable insights.

You don’t need to be a programming genius to use ChartExpo’s features.

One of ChartExpo’s standout features is the Likert Scale Chart. This chart acts as a magnifying glass, allowing you to dive deep into your survey data for hidden insights.

Try ChartExpo’s free 7-day trial and experience its full potential

How to Install ChartExpo in Excel?

Let’s imagine you run a restaurant. You want to know whether your customers are satisfied with your menu, services, and other aspects of your restaurant.

You’ve organized a survey to gather feedback from your customers and you’ve used the sample questions below:

  • Are you satisfied with the quality of our food menu?
  • Are you satisfied with our staff’s behavior?
  • Are you satisfied with our overall quality of service?

Let’s further imagine you’ll use the following answer options in your consumer research survey format.

  1. Very dissatisfied
  2. Somewhat dissatisfied
  3. Neither dissatisfied nor satisfied
  4. Somewhat satisfied
  5. Very satisfied

Example

In the coming section, we’ll use ChartExpo, and sample data to demonstrate how you can leverage a Likert Scale Chart to visualize your consumer research data for insights.

Before we dive into this, we’ll show you how to install ChartExpo in Excel.

Are you satisfied with the quality of our food menu? Are you satisfied with the staff’s behavior? Are you satisfied with the overall quality of the service?
Very satisfied Somewhat satisfied Somewhat dissatisfied
Neither dissatisfied or satisfied Very dissatisfied Very satisfied
Somewhat satisfied Somewhat dissatisfied Neither dissatisfied or satisfied
Very dissatisfied Neither dissatisfied or satisfied Very dissatisfied
Neither dissatisfied or satisfied Very dissatisfied Somewhat satisfied
Very satisfied Very satisfied Somewhat satisfied
Very dissatisfied Somewhat satisfied Very satisfied
Somewhat satisfied Somewhat satisfied Somewhat dissatisfied
Very dissatisfied Somewhat dissatisfied Very satisfied
Very satisfied Somewhat satisfied Very dissatisfied
Neither dissatisfied or satisfied Neither dissatisfied or satisfied Very satisfied
Somewhat dissatisfied Very satisfied Neither dissatisfied or satisfied
Somewhat dissatisfied Somewhat satisfied Somewhat dissatisfied
Neither dissatisfied or satisfied Very dissatisfied Somewhat satisfied
Somewhat dissatisfied Somewhat satisfied Very dissatisfied
Very satisfied Very dissatisfied Neither dissatisfied or satisfied
Somewhat dissatisfied Somewhat dissatisfied Very satisfied
Very satisfied Somewhat satisfied Somewhat satisfied
Very satisfied Neither dissatisfied nor satisfied Very satisfied
Somewhat satisfied Very satisfied Very dissatisfied

To get started with ChartExpo in Excel, follow the steps below:

  • Open your Microsoft Excel.
  • Open the worksheet and click the Insert button to access the My Apps option.
Consumer Research 1
  • Click the Insert button to initiate the ChartExpo engine.
Consumer Research 2
  • Click the Search box and type “Likert Scale Chart.”
Consumer Research 3
  • Highlight your data and click the Create Chart From Selection button, as shown below.
Consumer Research 4
  • Use the multiple-choice responses you deployed in your survey to gather responses to map your Likert Scale Chart.

In our case we’ll use the following multiple-choice responses:

    • Very dissatisfied=1
    • Somewhat dissatisfied=2
    • Neither dissatisfied nor satisfied=3
    • Somewhat satisfied=4
    • Very satisfied=5
Consumer Research 5
  • Click the Create Chart button, as shown above.
Consumer Research 6
  • To add the chart header, click the Edit Chart
  • Once the Chart Header Properties window shows, fill in your header in Line 1, as shown.
Consumer Research 7
  • Toggle the small button below Line 2 to the right side to activate the header.
  • Click the Apply button, as shown above.
Consumer Research 8
  • To edit the legend properties, click the pencil-like icon on the X-axis.
  • Once the Legend Properties window shows, fill in your legend below the Text
  • Click the Apply All button, as shown above.
  • Click the Save Changes button to preserve all the changes.
  • Check out the final Likert Scale chart below.
Consumer Research 9

Source:chartexpo.com

Insights

  1. Service Quality Satisfaction

  • 50% of customers expressed satisfaction with the quality of our service.
  • Conversely, 35% of customers reported being unsatisfied.
  • The remaining 15% remained neutral.
  1. Staff Behavior Satisfaction:

  • 50% of customers indicated satisfaction with the behavior of our staff.
  • On the other hand, 35% of customers expressed dissatisfaction with our staff’s behavior.
  • Additionally, 15% of customers chose not to answer.
  1. Food Quality Satisfaction

  • 45% of customers stated satisfaction with the quality of our food.
  • However, 35% of customers reported being unsatisfied.
  • Meanwhile, 20% of customers remained neutral on this matter.
  1. Survey Response Overall

  • Out of the respondents, 48% provided a positive response to our survey questions.
  • Conversely, 35% of customers responded negatively to our survey questions.
  • The remaining 17% of customers chose to remain neutral.

Benefits of Conducting Consumer Research

6. Stronger Brand Positioning

Consumer research enables businesses to gain insights into how their brand is viewed by the market. This insight enables companies to refine their positioning, strengthen brand identity, and differentiate themselves from competitors.

7. Increased Sales and Revenue

By aligning products and marketing strategies with consumer preferences, businesses can drive higher demand. Understanding what drives purchasing decisions helps optimize sales strategies, ultimately increasing revenue.

8. Better Customer Retention

Research into customer satisfaction and behavior can uncover opportunities to enhance the customer experience. Improving aspects such as customer service, product quality, or post-purchase support leads to higher retention rates.

9. Minimized Business Risks

Consumer research provides valuable insights into potential market challenges, such as changes in consumer preferences or emerging competitors. By anticipating shifts, businesses can adjust their strategies and reduce risks associated with new product launches or market changes.

10. Optimized Pricing Strategies

Through consumer research, businesses can gauge the price sensitivity of their target audience. This allows for more effective pricing strategies that maximize profits while remaining attractive to consumers.

Best Practices For Effective Consumer Research

1. Define Clear Objectives

Set specific goals for your research, such as understanding consumer behavior, testing product ideas, or evaluating customer satisfaction. Clear objectives help focus your research and ensure it yields actionable insights.

2. Choose the Right Research Methods

Select the most suitable methods for your goals. Use surveys and questionnaires for broad data collection, while interviews or focus groups can offer deeper insights into consumer motivations and preferences.

3. Segment Your Audience

Segment your consumer base by demographics, behaviors, or preferences to ensure your research targets the right groups. This helps in gathering more relevant and personalized insights.

4. Analyze and Interpret Results Effectively

Carefully analyze the collected data to identify trends and patterns. Proper interpretation allows you to turn raw data into actionable insights that can inform strategic decisions.

5. Ensure Data Accuracy

Use reliable tools and methodologies to gather data. Ensuring the accuracy of your data is crucial for making informed decisions and avoiding misleading conclusions.

After The Consumer Research Process

After completing consumer research, the next steps involve analyzing the data to uncover insights and trends. These findings lead to actionable recommendations, which are shared with stakeholders to align business strategies.

Implementing the changes based on these insights helps improve products, services, and marketing efforts. Finally, monitoring the outcomes ensures the changes meet consumer needs and drive success.

Consumer Research FAQs

What are the two methods used for consumer research?

The two methods used for consumer research are qualitative research and quantitative research.

How do you run consumer research?

To run consumer research, you need to follow these steps:

  • Define research objectives
  • Identify target audience
  • Choose appropriate research methods (qualitative or quantitative)
  • Design surveys or conduct interviews
  • Collect and analyze data
  • Summarize findings and draw actionable insights.

Wrap Up

In conclusion, consumer research is a powerful tool that can help you unlock valuable insights into your target audience’s minds and behaviors.

Moreover, it can help you understand your target audience, identify market opportunities, and make informed decisions.

By leveraging the insights gained through consumer research, you can tailor your products, services, and marketing strategies to meet consumer needs effectively.

ChartExpo, a leading provider of data visualization tools, can play a crucial role in helping you analyze and present consumer research data.

With its user-friendly interface and robust features, ChartExpo simplifies the process of transforming raw data into visually appealing charts and graphs.

This enables you to gain a clearer understanding of the consumer research findings and communicate them more effectively to stakeholders.

Visit ChartExpo to explore the power of data visualization and make informed decisions that drive growth.

Sign up for a 7-day free trial today.

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