5 Major differences: Consumer Research vs Market Research

Consumer research and market research are not the same thing. Yes, it is a commonly faced myth that consumer research and market research are similar. But they aren’t. 

In today’s blog, we are uncovering the major differences between these two terms. By the end of this blog, you will also understand the key pros and cons of each research method involved. 

So before we start, let’s get ourselves familiar with the important terms. 

 

What is market research?

Market research is finding out about the market you're in. It's about learning who your customers are, what they like, what your competitors are doing, and what's going on in your industry. You do this by asking questions, looking at data, and studying what's happening around you. The goal is to help businesses make smart decisions about their products and how they sell them.

 

In theory, market research is the process of gathering, analyzing, and interpreting information about a market, including its consumers, competitors, and overall industry trends. Its purpose is to help businesses make informed decisions about their products, services, and marketing strategies.  

Related: What is Quantitative Research?

 

What is consumer research?

Consumer research is all about understanding what people want and why they want it. It's like asking questions, watching how people shop, and looking at data to figure out what makes customers tick. Businesses do this to make products and ads that people really like.

 

In theory, consumer research is the process of studying and understanding consumers, their preferences, behaviours, and needs. It involves gathering information about consumers through various methods such as surveys, interviews, observations, and data analysis. The goal of consumer research is to gain insights into what drives consumer decisions, how they interact with products and brands, and what influences their purchasing behaviour.

Related: Consumer Research Process Explained in 7 Simple Steps

 

Differences between consumer research and market research 

Consumer research and market research are related but focus on different aspects of understanding the market and consumers.

 

Consumer Research:

1. Approach: Often qualitative in nature, aiming to delve deep into the psychology and motivations of consumers.

2. Focuses specifically on understanding consumers, their preferences, behaviours, and needs.

3. Aims to delve deep into the psychology and motivations of individual consumers.

4. Involves studying consumer attitudes, beliefs, perceptions, and emotions towards products and brands.

5. Uses methods such as surveys, interviews, focus groups, and observation to gather insights directly from consumers.

 

Market Research

1. Approach: This can be both qualitative and quantitative, depending on the objectives and scope of the research.

2. Encompasses a broader scope, including not only consumers but also competitors, industry trends, and market dynamics.

3. Involves analyzing the overall market environment to identify opportunities and threats.

4. Considers factors such as market size, segmentation, growth potential, 

5. Utilizes various research methods such as surveys, data analysis, and competitor analysis to gather information about the market.

Let's differentiate consumer research from market research using an example of an Over-The-Top (OTT) streaming platform like Netflix:

 

Consumer Research:

Focus: Consumer research for Netflix would involve understanding the individual preferences, behaviours, and needs of its subscribers. This includes studying factors such as what types of content they like to watch when they prefer to watch, and how they interact with the platform.

Example: Netflix conducts consumer research by analyzing viewing habits, collecting feedback through surveys, and monitoring user engagement metrics. They may discover insights such as certain genres being more popular among specific demographic groups or trends in binge-watching behaviour.

 

Market Research:

Focus: Market research for Netflix would encompass a broader view of the streaming industry, including competitors, industry trends, and market dynamics. This involves analyzing factors such as market size, subscriber demographics, competitive landscape, and emerging trends.

Example: Netflix may conduct market research to assess the competitive landscape by analyzing the offerings and strategies of rival streaming platforms like Amazon Prime Video and Disney+. They may also study industry trends such as the rise of original content production or changes in consumer preferences for streaming devices.

 

Both types of research are essential for Netflix to make informed decisions about content creation, user experience improvements, and strategic planning.

In summary, consumer research focuses specifically on understanding individual consumers and their preferences, while market research encompasses a broader view of the entire market environment, including consumers, competitors, and industry trends.

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