From quantitative to qualitative primary research to various secondary research methods, learn the different types of market research and how to choose the right one.
Market research comes in several types, each suited to different business challenges and budgets. Qualitative research helps you understand customer motivations, while quantitative research relies on numbers to reveal trends. Primary research, often obtained firsthand, offers fresh insights, whereas secondary research makes use of existing data to inform decisions. Both methods have their advantages and limitations, and knowing when to choose a specific approach can make your efforts more efficient.
Let's unwrap this topic and explore the various market research methods that can work for you.
Types of Market Research: A Complete Guide for CPG Professionals
Understanding the main types of market research methods
Ever wondered why some product launches soar while others stumble? The secret often lies in the market research method behind them. For CPG professionals, choosing the right research approach can mean the difference between a product that connects with consumers and one that collects dust on store shelves.
Market research methods generally fall into two main categories: qualitative and quantitative. Each serves distinct purposes in the product development journey.
Qualitative research focuses on understanding the "why" behind consumer behavior. These methods include:
- Focus groups: 6-10 participants discuss a product or concept in a moderated setting
- In-depth interviews: One-on-one conversations exploring consumer attitudes and perceptions
- Ethnographic research: Observing consumers in their natural environment
- Online communities: Digital forums where consumers share feedback over time
Qualitative methods excel at uncovering unexpected insights and emotional connections that numbers alone can't capture. When Frito-Lay wanted to understand snacking emotions, they used ethnographic research to observe how people interact with their products at home—revealing valuable insights about comfort eating that surveys had missed.
Quantitative research provides the measurable data that validates or challenges your hypotheses. Common methods include:
- Surveys: Structured questionnaires distributed to large samples
- In-Home Usage Tests (IHUTs): Products tested in consumers' homes with feedback collected
- Retail audits: Analysis of sales data and shelf placement
- A/B testing: Comparing consumer response to different product versions
When comparing these approaches, consider their key differences:
| Research Type | Sample Size | Data Type | Best For | Typical Timeline |
|---|---|---|---|---|
| Qualitative | Small (5-50) | Descriptive, contextual | Early exploration, concept development | 1-4 weeks |
| Quantitative | Large (100+) | Numerical, statistical | Validation, measuring preferences | 2-8 weeks |
What about primary vs. secondary research? Primary research involves collecting new data directly from consumers, while secondary research analyzes existing information from reports, studies, and databases. Both have their place in a comprehensive research strategy.
Choosing the right research method for your business needs
Are you asking the right questions with your market research? Selecting the appropriate research method starts with clearly defining what you need to learn. Your research objectives should drive your methodology choices, not the other way around.
When deciding which research method fits your current needs, consider these four key factors:
- Research stage: Where are you in the product development process?
- Early concept stage: Qualitative methods help generate ideas
- Pre-launch validation: Quantitative methods confirm market fit
- Post-launch optimization: Mixed methods track performance and identify improvements
- Decision stakes: How significant is the business decision you're making?
- Major investments like new product lines warrant more comprehensive research
- Smaller decisions like packaging updates might need targeted, focused approaches
- Timeline constraints: How quickly do you need answers?
- Need results in days? Online surveys can deliver fast insights
- Have weeks available? In-home usage tests provide deeper understanding
- Budget realities: What resources can you allocate?
- Limited funds might point toward secondary research or targeted online methods
- Larger budgets allow for mixed-method approaches that provide both depth and breadth
What questions should guide your method selection? Ask yourself:
- Do I need to understand "why" consumers behave a certain way, or measure "how many"?
- Am I looking to discover new insights or validate existing hypotheses?
- Do I need statistically significant data or directional guidance?
- Will seeing consumers interact with my product in context provide crucial insights?
A practical framework is to match your research questions to specific methods. For "what" and "how many" questions, quantitative methods work best. For "why" and "how" questions, qualitative approaches often reveal deeper insights.
For CPG brands, combining methods often yields the most actionable insights. PepsiCo famously used this approach when developing their Bubly sparkling water, starting with focus groups to understand flavor preferences, then following with large-scale surveys and in-home tests to validate their concepts before launch.
Why IHUT is emerging as the most popular market research method
Could your next product breakthrough happen in a consumer's kitchen? In-Home Usage Tests (IHUTs) are becoming the go-to research method for CPG brands, and for good reason. This approach places your product directly in consumers' hands in the environment where they'll actually use it.
IHUTs bridge the gap between artificial testing environments and real-world product experiences. When consumers test products in their own homes:
- They use products as they naturally would, revealing authentic usage patterns
- Environmental factors (like kitchen lighting or bathroom humidity) affect perception
- Family members often provide unexpected feedback
- Usage over multiple days uncovers issues that wouldn't appear in one-time tests
What makes IHUTs particularly valuable for CPG brands? The method excels at answering critical questions that other approaches might miss:
- How does your product perform in diverse home environments?
- Does usage change over time as consumers become more familiar with it?
- What unexpected ways do consumers incorporate your product into their routines?
- How does your product interact with complementary items in the home?
The rise in IHUT popularity correlates with several industry shifts:
- Authenticity demands: Today's consumers value authentic experiences, making artificial testing environments less reliable predictors of market success.
- Technology advancements: Digital platforms now make it easier to collect real-time feedback during home testing.
- Speed requirements: Modern IHUTs can deliver insights faster than traditional methods.
- Cost efficiency: Compared to lab testing or focus groups, IHUTs often provide more insights per dollar spent.
How do successful brands implement IHUTs? Best practices include:
- Carefully screening participants to match target consumer profiles
- Providing clear instructions without overly directing usage
- Collecting feedback at multiple points during the testing period
- Using photos and videos to capture contextual insights
- Comparing results against benchmark products
When Unilever wanted to test a new sustainable laundry detergent, they chose IHUTs over lab testing. The approach revealed that while the formula performed well in controlled environments, real-world factors like varying water hardness and washing machine types significantly impacted consumer satisfaction—insights that led to crucial formula adjustments before launch.
For CPG professionals seeking research methods that deliver both depth and breadth, IHUTs offer a powerful combination of qualitative understanding and quantifiable results in the context that matters most: the consumer's home.
Final Thoughts
Navigating the world of market research can feel like assembling a complex puzzle, with each methodology offering a unique piece of the consumer insights landscape. Understanding the nuanced differences between qualitative and quantitative approaches, primary and secondary research, allows brands to craft more precise strategies that truly resonate with their target audience.
The key is flexibility and strategic thinking. No single research method is a universal solution—success comes from carefully selecting and combining approaches that best illuminate your specific business questions. Whether you're a small startup or an established brand, the right market research can transform raw data into meaningful consumer understanding.
At Highlight, we specialize in providing product testing software that empowers CPG brands to gather authentic, real-world insights through sensory testing and in-home usage tests. Our platform seamlessly complements your market research strategy by connecting you with carefully selected consumers—ensuring you receive feedback that is both detailed and reliable. In fact, while traditional quantitative surveys can see up to 30% of data discarded as junk, our platform typically reduces that number to only 1-2%. Our customers also enjoy the benefits of engaging super niche audiences, achieving over 90% completion rates, and receiving in-depth product insights in as little as three weeks—a significant improvement over the months-long timelines seen with conventional methods.
Think of market research not as a one-time task, but as an ongoing conversation with your audience—one that, with the right tools, can lead to the creation of products that truly connect.