In this video, we will discuss how to evaluate survey results.
Remember, that we do formal market research to answer the question,
does the new product represent an opportunity in a market?
To answer this question, we need to look carefully at the data in part three of
the survey: future needs, and part two of the survey: past and current experience.
Does the new product represent an opportunity in a market?
Respondents' future needs are the most important information
to answer this question.
Therefore, even though it is the last section,
part three usually has the most important data.
Remember, the questions in part three about new toothbrush?
One: would you like to try New Toothbrush?
Two: if yes, which New Toothbrush would you prefer?
Three: are you interested in buying New Toothbrush?
Four: if yes or maybe, how much would you be willing to pay for one New Toothbrush?
Respondents' past or current experience may also be important information
about whether a new product represents an opportunity in a market.
Do respondents have habits and preferences that seem to support a new product,
or do they have habits or preferences that do not seem to support a new product?
For example, asking people if they like the toothbrush they currently
use or a toothbrush they used in the past
can tell researchers whether they might try a new toothbrush.
If they like their current toothbrush a lot,
they probably are not interested in trying a new one.
On the other hand, if they don't like their current toothbrush,
they will probably be very happy to try a new one.
This information can help entrepreneurs make
confident conclusions about the chance
that respondents will be willing to consider the new product in the future.
Therefore, researchers can analyze the results from part three and
part two to help decide whether a new product does or
does not present an opportunity in a market.
They do this by looking to see if there are extreme results or scattered results.
Let's look at extreme results first.
Extreme results are data that is strongly positive or strongly negative.
This is very useful data because it means that respondents have clear opinions.
For example, if 75% of respondents are not interested in buying a product,
an entrepreneur can quickly and
easily conclude that a new product does not present an opportunity in a market.
Even though this is a negative conclusion,
it will save the entrepreneur a lot of time and money.
Hopefully, it could lead the development of a new product
with a better chance of success.
On the other hand, if only 40% of respondents
are interested in buying a product, then the results are less clear.
And the entrepreneur may have a more difficult time deciding what to do.
Entrepreneurs will probably have to do more market research before continuing
the new product development.
Now let's look at scattered results.
When results from a question are unclear and
show a variety of responses, the results are scattered.
This means that the respondents have very different opinions, and
no clear conclusion can be made.
This can happen for two reasons.
First, this topic is very new for respondents, and
they have not yet developed clear opinions or preferences.
Second, the survey question's not clear or needs to be more specific.
The entrepreneur can change the question to improve understanding and
be more specific.
However, there isn't much an entrepreneur can do if
respondents do not have opinions and preferences.
Once entrepreneurs have analyzed the data from part three and part two,
they group the survey results into most extreme to least extreme.
Now it's time to look at part one: demographic profiles and
how they are related to the data.
This helps entrepreneurs see if there is a market niche for the new product.
Let's look at two examples.
Example one, 75% of respondents are interested in a new product.
By looking at the demographic profiles of those respondents,
the entrepreneur notices that most of them are men.
The entrepreneur may conclude that the new product is more
attractive to men than women, and that men are the niche market.
Example two, 25% of respondents are interested in buying a new product.
By looking at the demographic profiles of those respondents,
the entrepreneur notices that all of the respondents are young men and young women.
The entrepreneur may conclude that the new product may have a niche market
with young men and young women.
Usually, this will lead to more research with that specific market.
In this video, we discussed evaluating survey results by looking at part three:
future needs and part two: past or current experience,
to see if a new product is an opportunity in a market.
Evidence is chosen from the survey to support this conclusion.
Extreme results are useful, while scattered results are unclear.
Then demographic profiles are connected to the results to
see if a market niche exists.