0502

Problem

What are the advantages and disadvantages of using the Internet for market research?

Step-by-step solution

Show all steps

Step 1/3

Market research is the orderly and objective identification, assortment, investigation distribution and use of evidence for decision making. Marketing research is the main focus for any effective marketing program. Market research helps to determine the potential customers, buying behavior of customers, potential sales to each customer and competitor’s approaches.

Step 2/3

In the settings of business to business, market research is used for forecasting, trend development, finding potential of market and competition examining. Market research also facilitates in developing sales quotas and sales forecasts. Advent of the internet in the market research enabled collection of both secondary and primary data. The advantages of using internet for the research of market are as follows:

1. Internet had enabled users to reach respondents without any telephone or mail systems.

2. Virtually it is possible to get the data source to anyone, anywhere in the globe through the internet.

3. Faster, accurate information development and comparing sources of data at low cost is possible through the internet.

4. The marketing information system facilitates in developing, storing and using information from every source to frame effective plans and strategies for marketing.

5. Internet is used for both focus groups and surveys in market research, as they are less costly than live focus groups and tele surveys.

Step 3/3

There are numerous disadvantages of using the internet for market research. The disadvantages of using internet for the research of market are as follows:

1. For any business-to-business market research, the cost of internet project is similar or higher to that of the telephone project.

2. There is lack of email addresses sources of the respondents and requires paying every respondent incentive for getting involved in the project.

3. Falling of completion of surveys via internet and overuse of the panelists are problems in using internet for market research.

4. Internet focus groups and internet surveys does not provide clarity in who is responding. There is misinterpretation and confusion in the market research on using internet to determine the respondent’s identity.

Hence, the above advantages and disadvantages are present, when using internet for market research.