Market research has always been regarded as an integral component of the business strategy for organizations that desire to drive information about their target markets. Traditional market research has been on the forefront in this quest. It normally involves assessment of the overall market for a good or service, conducting focus groups to ascertain the responses of consumers regarding a new product and surveying consumers regarding their dislikes and likes (Krishna, 2011).
However, traditional market research is becoming problematic. This is because there have been indications that it is not very reliable. 9 out of 10 new products tend to fail in the market. This is despite the relevant organizations conducting their research and ascertaining that everything is in order.
The shortcomings emanating from traditional market research might be as a result of the irrational behavior demonstrated by consumers. People conducting the research have to rely on data coming from consumer self-reports. This means that it is more subjective rather than objective (Genco et al., 2013). People tend to be influenced by emotions while making decisions, hence presenting the opportunity of being irrational.
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