Wednesday, September 30, 2015

Relevance Of Quantitative Research In Decision Making

Managers must have usable data to develop marketing strategies.


Quantitative research is used to predict future customer behavior. For example, a company may conduct phone surveys to determine how many customers will continue buying its products. The sample size is what sets quantitative research apart from qualitative research, which is conducted among smaller groups of people. The sample size in quantitative research is large enough to represent the entire market or population. Hence, quantitative research has great relevance in the decision making process.


Determining Customer Satisfaction


Companies need to know whether their customers are satisfied with their products and services. Therefore, quantitative research is often used to measure overall customer satisfaction. For example, a software company may want to study how satisfied customers are with its customer service department. In the process, the company may survey customers who have either called in, written an email or talked to technical support. Survey results may show that people are generally satisfied with technical support, but often spend too long on the phone with other customer service reps. Quantitative research through surveys can help managers identify potential problems, then make plans to correct the problem. For example, the company could hire more customer service reps to cut back on the duration of customers' calls.


Testing New Products


Companies can use quantitative research to test the ideas of certain products, called product concepts, before actually producing products. For example, a pharmaceutical company may want to develop a new drug for hypertension or high blood pressure. The pharmaceutical company may conduct research surveys with doctors to determine whether doctors would endorse the new drug. Similarly, a consumer products company may want to know if customers would like it to produce a soap dispenser for bathing or showering. Companies use quantitative research to avoid wasting money on products that customers don't want.


Tracking Advertising Effectiveness


Companies use quantitative research to track the effectiveness of their advertising. For example, a restaurant company may run a television commercial for six weeks. The restaurant company may conduct phone surveys to determine the percentage of the population that saw the ad. Additionally, the restaurant company's advertising department may want to know if consumers recall certain aspects of the ad, or remember the jingle or underlying theme. The restaurant company may find that consumers do not understand the ad. Subsequently, the restaurant company can revise its advertising to better attract consumer attention.


Solving Problems


Quantitative research can be used to help companies solve potential problems. For example, a retail store may experience a 10 percent drop in sales. The retailer may find that customers are patronizing a competitor's store because of lower prices and better customer service. The retailer could then change its prices and hire better employees for its customer service department. Companies should list all the factors that could influence a particular problem in their research, according to Gaebler, an online marketing reference site. For example, the retailer may also suspect that it doesn't run enough sales for customers. Moreover, consumers may also perceive that the retailer does not sell enough brands. Marketers should fully evaluate various problems before making plans to rectify them.

Tags: customer service, restaurant company, Companies quantitative, Companies quantitative research, company conduct, company want