Sensitivity Analysis

In marketing research many enquiries are directed at asking customers and potential customers whether they would buy or use a particular product or service.  And the answer can be “yes”, “no” or “don’t know” – a simple answer to a simple question.  

 

However, a well known phenomenon of human nature is its inaccuracy in answering anything clearly, concisely and irrevocably.  Quite apart from the hesitancy of the answer at the time of the interview there is the fickle nature of the respondent, who can quite easily change his mind when actually faced with the purchase decision.

So how does the marketer accurately gauge the mood of his market prior launching his product?  There will never be a fool proof research method of forecasting sales of new products but marketing research has provided techniques that will go a long way to reducing the risk of launching lemons.

Market Research: Sensitivity Analysis

The word “yes” has many shades and can even sometimes mean “definitely not” or “yes but…“or, such as in the Afrikaans expression, “ja/nee”.  So how can the market researcher, the keen analyst of the hidden meaning, really know when “yes” means “yes” and when it means “no”?

Various scaling techniques provide a means of measuring how likely the respondent is to use the product or service on a scale of “very likely” to “definitely not” or on a numerical scale of, say, 1 to 5 or several other ways of measuring the possible likely purchase of a product.

When measuring the likelihood of a consumer purchasing the product the market research consultant needs to approach the subject carefully and to introduce the benefits of the product step by step, one benefit at a time, all the while measuring the likelihood of the respondent purchasing until the final answer should give a clear indication of how likely the product is to be purchased.

Many of our market surveys are directed at forecasting, on behalf of our clients, their likely success in new product or service areas – We simply call it Sensitivity Analysis.

We offer a full range of marketing research services, including sensitivity analysis.

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