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Marketing research plays a crucial role in excelling marketing performance. In fact, it is inevitable to understand and treat customers more effectively than competitors. Marketer can satisfy customers by maintaining close contact with the target market by marketing research. It is one of the basic tasks of modern marketing. However, it is not free from limitations. Marketing manager must be aware of these limitations.
Main limitations or practical problems have been discussed as under:
1. Effect of Extraneous Factors :
Extraneous means external and uncontrollable factors. In most of the cases, the extraneous factors affect marketing research results adversely. Due to impact of such factors, the net impact cannot be estimated. For example, if marketer wants to study the impact of 10% price rise on demand and he raises price by 10%.
As a result, demand falls by 20%. Here, decrease in demand cannot be fully attributed to price hike only. Demand might have been affected by other factors like introduction of new superior product, attractive offer of competitors, availability of powerful substitutes, etc., over and above price rise. Whatever degree of precaution is taken, one cannot eliminate effect of such factors completely, and as a result, marketing research cannot serve the purpose.
2. Time Gap Makes Research Irrelevant :
Systematic marketing research project needs more time. It takes weeks, months, even years. When marketing research is carried on to investigate or solve the problem, final outcomes are available after considerable time. When outcomes are made available, situations might have been changed thoroughly or problem for which research was made might have been solved automatically. Decision-maker needs information in time. But, practically, it is not possible. Sometimes, time, money, and efforts contribute nothing.
3. Cost Consideration :
To conduct marketing research systematically is a luxury. A firm needs money for research design, data collection, data analysis, interpretation, and report preparation. Statisticians and computer experts charge heavy fees. When research is conducted regularly, a company has to maintain a separate well-equipped marketing research department. Marketing research has become costlier. So, it is difficult for medium and small companies to afford.
4. Problem of Rapid Change :
Today’s market is characterized by tremendous changes. Whatever is applicable or relevant today is out-dated tomorrow. Due to rapid changes, marketing research cannot serve the purpose. Research results or outcomes available after the specific time period seem irrelevant or meaningless.
5. Problem of Trust and Accuracy :
Marketing research is based on trust and accuracy. Right from the identification of problem to the final outcomes, all depends on trust. Company has to trust on marketing research officer; research officer has to trust on field officer; and field officer has to rely on response of respondents. At any stage of marketing research, accuracy is vital issue. To the extent inaccuracy prevails, marketing research results suffer.
6. It is not Problem Solving Technique but an Aid to Solve the Problem :
It is interesting and shocking to state that marketing research does not solve any problem directly. It is not a problem-solving technique but can assist to solve it. It is not a magic stick to solve marketing problems; it is a source of information. To the extent source is reliable and is used properly, it is useful. Even, an excellent research project is useless if outcomes are not considered.
7. Subjective or Biased Result :
When human being is involved, a completely bias-free response or result is not possible. Effect of personal value, prejudice, attitudes, needs, and other socio-cultural factors affect the objectivity of research adversely. Subjectivity may lead to utter chaos.
8. It cannot Eliminate Risks Inherent in Decision-making :
In every economic decisions, there exists risk and uncertainly. Marketing research cannot eliminate risk and uncertainty. It is an attempt to minimize degree of risk. So, heavy costs on marketing research don’t guarantee safety and certainty.
9. Applicability or Use :
Contribution of research project depends not only on quality and reliability alone, but also the proper use of information. Many times, marketing research reports remain just a formality for top management. Recommendations are neither considered seriously nor implemented fully.
10. Difference between Filed Officers, Data Analysts, and Decision- makers :
Marketing research activity involves a number of people such as marketing manager, field officer, data analysts, and finally decision-maker. All these people have different objectives, backgrounds, and perspectives. Consistency or parity among them is a vital issue. Unless high degree of integration and intimacy among them exit, one cannot expect a success. In fact, it is difficult.
Marketing manager and those involved in marketing research activity must be aware of these limitations/practical problems. Note that these limiting factors cannot be completely eradicated. Attempts should be made to minimize adverse impact of these limiting factors. Careful plan, adequate budget, teamwork, accuracy, timeliness, proper use and implementation, etc., have a strong prospect to contribute in successful marketing research.
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- Marketing Research: Scope, Advantage and Limitations |Marketing Management
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Marketing Research - Limitations and Constraints
Last updated 22 Mar 2021
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Accurate, up-to-date information obtained by marketing research can be of enormous value to a business in gaining and/or maintaining its competitive edge. However, there are a number of reasons why, in reality, these potential benefits may not be realised.
Budgetary constraints
Gathering and processing data can be very expensive. Many organisations may lack the expertise to conduct extensive surveys to gather primary data, whatever the potential benefits, and also lack the funds to pay specialist market research agencies to gather such data for them. In these cases, organisations may be forced to rely on data that is less than ‘perfect’ but that can be accessed more cheaply, e.g., from secondary sources
Time constraints
Organisations are often forced to balance the need to build up as detailed a picture as possible regarding customer needs etc. against the desire to make decisions as quickly as possible, in order to maintain or improve their position in the market
Reliability of the data
The value of any research findings depend critically on the accuracy of the data collected. Data quality can be compromised via a number of potential routes, e.g., leading questions, unrepresentative samples, biased interviewers etc. Efforts to ensure that data is accurate, samples are representative and interviewers are objective will all add to the costs of the research but such costs are necessary if poor decisions and expensive mistakes are to be avoided.
Legal & ethical constraints
the Data Protection Act (1998) is a good example of a law that has a number of implications for market researchers collecting and holding personal data. For instance, researchers must ensure that the data they obtain is kept secure, is only used for lawful purposes and is only kept for as long as it is necessary. It must be made clear as to why data is being collected and the consent of participants must be obtained. In addition to this, there are a number of guidelines, laid down by such organisations as the Market Research Society, that, although not legally binding, encourage organisations to behave ethically when dealing with members of the public.
- Secondary research
- Quantitative research
- Qualitative research
- Marketing research
- Primary research
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- Marketing Research
- Limitations of Marketing Research
Following are the main limitations of Marketing Research:
Humans have a tendency to behave artificially when they know that they are being observed. Thus, the consumers and respondents upon whom the research is carried behave artificially when they are aware that their attitudes, beliefs, views, etc are being observed.
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Authorship/Referencing - About the Author(s)
The article is Written and Reviewed by Management Study Guide Content Team . MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider . To Know more, click on About Us . The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.
- Marketing Research: Step by Step Execution
- Qualitative and Quantitative Research - Concept
- Types of Marketing Research and their Application
- Projective Techniques
- Survey Method
- Techniques of Survey Method
- Observation Method
- Secondary Data
- Sources of Data
- What is Big Data ?
- Big Data and the Power to Predict
- Attitude Measurement Scales
- Questionnaire Design
- Statistical Tools and their Usage - Factor Analysis
- Conjoint Analysis - Meaning, Usage and its Limitations
- What is Mystery Shopping ?
- Regression Analysis
- Concept Testing
- Brand Health Survey
- Importance of Market Research to Organizations in an Age of Unpredictability
- It’s Not Just the Data that is collected that Counts, but, the Quality of the Data as well
- What is the Efficient Market Hypothesis and How it Works and Doesn’t Work in Practice
Limitations and Future Research
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In closing, several important key areas for further research are identified which are not only suggested by the findings but also address limitations inherent in the research presented in the course of this thesis.
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Dennhardt, S. (2014). Limitations and Future Research. In: User-Generated Content and its Impact on Branding. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-02350-8_11
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