Technology has revolutionized the way many industries conduct their business. This includes market research. From the early boom of Big Data to the emergence of Artificial Intelligence, several technologies are helping streamline the process of market research. As technology continues to advance and consumer behavior evolves, it is important for market researchers to stay up to date on the latest trends and emerging technologies. Below are the top five trends to pay attention to:

1. Artificial Intelligence (AI)

Artificial Intelligence (AI) is a computer operated intelligence system that collects, and synthesizes information. The use of AI is becoming more and more popular in many major industries, with market research not being an exception. The use of AI in marketing research can be useful in automating time-consuming tasks such as data cleaning and basic data analysis. Incorporating AI tools can help save research time on these tasks, allowing researchers to spend more time focusing on big picture tasks such as storytelling, and making marketing recommendations. However, some researchers are concerned about the use of AI in market research, feeling that the technology might take away from their current jobs and negatively affect their career.

2. Big Data

Big Data has become hugely successful since its boom in the early 2010s. Accessing critical data from many participants is now more accessible than ever, which market researchers are using to their advantage. The use of big data analytics tools has enabled researchers to analyze vast amounts of data more quickly and efficiently than ever before. This helps researchers to identify patterns and insights that may not have been apparent before when this amount of data was not accessible.

However, market researchers should be somewhat weary of big data, since it doesn’t always mean that the information is 100% reliable. Collecting a larger amount of data could mean that there is a larger chance that there could be inaccuracies, errors, and bad responses. These errors could lead to researchers unknowingly coming to misdirected conclusions. Market researchers should use their expertise and skills in analyzing big data to ensure they are getting the most out of their data.

3. Social Listening technology

Social media monitoring is a wealth of information about consumer opinions and behavior that breaks down the “why” behind consumer behaviors. Researchers can use software that helps monitor social media and analyze multiple conversations from a variety of social media platforms to gain important insights. These insights can include, tracking brand sentiments, identifying trends, monitoring competitor activities, and targeting specific audiences. These attributes overlap with some of the objectives that are typically the goal of market research, more specifically qualitative initiatives. Social listening is an effective technology that market researchers should consider to garner a “raw” look at consumer opinions than what a survey might bring in.

4. Blockchain

Blockchain technology allows for a secure and transparent way to store and share data. The tech has the potential to significantly improve the market research industry by also improving data privacy and security and helping facilitate faster and more efficient payments to participants. Blockchains can also be beneficial to market research since it allows market researchers to be transparent about how they use and store respondent information. Blockchains are useful because it keeps Personal Identifiable Information (PII) in order, making the respondents feel more secure. Although experts predict that blockchains will become a more innovative feature in market research, they still have a long way to go. Blockchains are still not a commonplace staple in market research due to their newness. Market researchers and consumers alike want to see it put into action in other industries before engaging in it themselves.

5. Virtual Reality (VR)

Virtual reality (VR) has become an increasingly buzzworthy technology that is gaining interest in the marketing world. VR can be used to simulate real-world environments and help invoke strong emotional reactions and thoughts from the person experiencing them. Market researchers are interested in incorporating VR into their designs and strategies. This is because VR gives market research an edge in getting up close and personal with the consumers, something other market research methods lack. Some of the ways that VR can be used in market research include product testing, consumer behavior testing, usability testing, and focus groups. For example, if a supermarket is testing out a new store layout then consumers can use VR to virtually walk through the store and have their natural reactions observed. This could be more poignant than if the consumers were shown pictures or just asked about their attitudes on store layout changes.

The Future of Technology & Market Research

While some people are hesitant about using this new technology, these five advancements indicate that it is a positive change for the industry rather than a negative one. Some researchers are hesitant to incorporate newer technologies such as AI and VR, fearing that they will take over the field and render actual people conducting market research obsolete. However, if we use examples of now commonplace technologies in the industry, such as social listening or the use of Big Data, we can see that this new technology will only enhance our marketing research capabilities by laying a solid foundation to build upon instead of taking away.

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What should the hospitality industry expect for the travel sector in 2023? Thanksgiving numbers may show the demand for flights increasing, but does this bump signify a long-term uptick in travel spending? Provoke Insights, a full-service market research firm, investigated what is happening in the market and how this will impact brands in the hospitality industry.

Inflation’s Impacts on Travel 

Thanksgiving travel numbers reached the highest levels since the pandemic’s start. With airport attendance measuring in the millions, airlines may jump to conclusions and prepare for a busy winter moving forward. However, with the skies more open than they have been in years and fewer regulations for travel being enforced, Families may have rushed to spend Thanksgiving with loved ones with whom they have not been able to spend time.

However, the US Bureau of Labor Statistics confirms that inflation has drastically impacted airline prices, with prices rising 42.9% in just one year. As inflation impacts discretionary spending, will this prevent people from vacationing? 

Consumers’ Reaction to the Economy 

Provoke Insights’ research has found that almost three-quarters of Americans (70%) report being more budget conscious. Since Spring 2022, the following changes have occurred: 

• Only a fifth of consumers expects to travel in the next three months, down 12%.
• 16% of consumers booked a hotel in the last month, a five percent decline.
• 15% purchased airline tickets, a decline of five percent.

What Most Influences Purchases of Airline Tickets and Booking Hotels

Price (76%) and availability (41%) are the largest motivators to purchasing airline tickets—only a quarter care about quality. As a result, deals and specials would move the needle when it comes to purchases of these tickets. Promoting specials such as free baggage check and free wifi or emphasizing lower-tier seating prices, such as “basic economy,” could draw Americans on the fence about vacationing. In addition, showing that your airline has convenient times to travel may also be helpful to consumers. 

While price is also a concern when selecting a hotel, over half (53%) consider quality a primary deciding factor. An emphasis on the facility amenities and room features can pique the interest of consumers, while package deals or multi-night discounts could alleviate cost concerns.

Age Impacts Travel 

Age plays a factor in the types of vacations consumers have in mind. Marketing and advertising initiatives must tailor communication (e.g., messaging and imagery) to best fit each audience’s needs. 

Regarding domestic travel, Baby Boomers and Gen X are more likely to create itineraries within the States. It is important to note that these travelers have a higher household income and are optimistic about the future. 

Travel brands can appeal to these audiences by promoting weekend getaways and luxury experiences. As these travelers are likely to have more expendable income, companies can market higher-end packages with less concern about affordability. From media buys and imagery to messaging should focus on what appeals to this age group. 

On the other hand, international travel is more popular among younger Americans, especially Gen Z, has the highest propensity to get their passports out. These travelers are likely college or post-college-age who are ready to escape and explore the world after two years of isolation and virtual classes. 

Travel brands should promote exotic “backpacking” friendly experiences for this audience. All-inclusive deals or organized group trips will simplify planning for these young adventurers and add an aspect of much-anticipated social interaction. As they are younger, affordability may play a larger role in their travel destination.

Methodology

Provoke Insights conducted a 15-minute survey in the fall of 2022 among 1,500 Americans between the ages of 21 and 65. A random stratified sample methodology was used to ensure a high degree of representation of the U.S. population (household income, age, gender, geography, ethnicity, and children in the household). Statistical differences between subgroups were tested at a 95% confidence level. The margin of error is +/-2.5%.

How does today’s economy impact the hospitality’s food and drink category? Has it impacted the dining experience? Have patrons changed their frequency of eating? Provoke Insights investigated concerns facing dining establishments in its fifth wave of the consumer trends research. 

Economic Impacts on the Restaurant Industry

Prices of services and products are rising across the board, and American consumers are noticing. When it comes to restaurants in particular, over 80% say they have noticed an uptick in the cost of menu items.

Consumers’ wallets (and appetites) are hit hard as inflation is impacting everything from supermarket runs to going out to restaurants. As a result, Americans are cutting down on the amount that they eat out. This is especially true at full-service establishments, where half of Americans are dining less frequently.

When patrons do eat out, almost three-quarters are making budgeting changes to their ordering. Over half are selecting cheaper items (53%), while others are cutting out dessert (42%), appetizers (39%), or drinks (31%).

To combat these concerns, restaurants must take an active approach to attract diners:

• Fast food and fast casual restaurants can offer discounts and promotions to ease the concerns of budget-conscious consumers.
• Fine dining establishments can consider unique offerings and experiences to attract diners, such as live music events, wine tastings, or new technologies.

Menu Availability Impacts on the Restaurant Industry

Inflation is not the only concern for those dining and food and drink establishments. Menu item availability and limited staff are other issues that are impacting dining experience.

Less than thirty percent of consumers are satisfied with menu item availability at restaurants. Many others have experienced being told their selection is sold out for the evening. To avoid these situations, restaurants can create more limited menus or prix-fixe offerings that utilize ingredients that are more assured to be kept in stock. This may mean fewer exotic offerings, but it will prevent customers from feeling frustrated that they can not order their first-choice selection. 

Methodology

Provoke Insights conducted a 15-minute survey in the fall of 2022 among 1,500 Americans between the ages of 21 and 65. A random stratified sample methodology was used to ensure a high degree of representation of the U.S. population (household income, age, gender, geography, ethnicity, and children in the household). Statistical differences between subgroups were tested at a 95% confidence level. The margin of error is +/-2.5%.

What is happening in the alcohol sector this fall? Provoke Insights investigated consumers’ alcohol buying behavior in its fifth wave of the consumer trends study.

Who’s Drinking Alcohol?

Americans like to drink! Almost half (40%) of consumers will be making alcohol purchases. These individuals are more likely men with a higher household income. They consider themselves more environmentally friendly. As a result, eco-friendly alcohol brands may stand out from the crowd. As these Americans favor shopping at small businesses, it is still important to have a presence at mom-and-pop liquor stores.

These consumers prefer to stick to familiar alcohol brands. However, in-store availability is a top influencer for 40% of these consumers when considering alcohol. To stay top-of-mind, brands in this category must ensure their products are available at multiple online and in-person retailers.

A Closer Look at the Liquor Sector

Vodka (21%), followed by whiskey (17%), is the most popular. While in-store still dominates for hard alcohol purchases (81%), over one-quarter of liquor purchasers buy online (28%).

The method they purchase online is mixed; online delivery services, big box retailer websites, national alcohol websites, and liquor store websites are all channels being used. Liquor brands need to consider the multiple ways consumers purchase online, as there is no single way.

Liquor buyers aren’t just drinking. They are interacting with their favorite alcohol brands as well:
Two-thirds (66%) engage with brands online, primarily through the brand’s website (28%), followed by social media (22%).
As brand familiarity is important to alcohol buyers, actively connecting to buyers online is essential for liquor brands to have an edge over competitors.

Methodology

Provoke Insights conducted a 15-minute survey in the fall of 2022 among 1,500 Americans between the ages of 21 and 65. A random stratified sample methodology was used to ensure a high degree of representation of the U.S. population (household income, age, gender, geography, ethnicity, and children in the household). Statistical differences between subgroups were tested at a 95% confidence level. The margin of error is +/-2.5%.

The traditional holiday season is filled with family, joy, and tons of shopping. This year, inflation, the economy, and job stability are on people’s minds. How will this season be different from others? How should brands react to this changing environment?

At Provoke insights, a full-service market research firm, our bi-annual consumer trends study keeps a pulse on the market across multiple industries. The extensive study allows Provoke Insights to stay ahead of the trends and understand consumer mindset in the current moment. We understand how the outside world impacts brands!

Here is a peek at the groundbreaking data included in the reports.

Is Santa in Savings Mode?

In fifteen industry-specific reports, our newest complimentary research highlights how consumer trends are shifting. Three years since Covid began, fears of the pandemic have decreased, but consumers have other growing concerns, from inflation to the economy. Jobs stability is not as much of a worry.

This wave, in particular, highlights how these concerns are affecting buying habits as we head into the most spending-heavy time of year.

Consumers fear their financial future. They are experiencing price increases, particularly at supermarkets and restaurants. These concerns are lowering optimism levels below those of Fall 2020 and leading Americans to tighten their spending. Almost three-quarters (70%) of consumers report being more budget conscious in the past six months. Consumers eat more at home, make fewer impulse purchases, and buy store-label brands. One in ten say they are cutting down travel.

What Can Brands do?

As budgeting constraints affect multiple industries, brands must actively reach consumers this holiday season. Couponing or exclusive experiences may help consumers open their wallets and prevent buyer hesitation. Maintaining relationships with buyers through social media can keep products top of mind, giving buyers time to think and make their purchases decision less impulsively.

Though some strategies can apply across the board, each brand must decide what is best for their industry and company. Check out our industry-specific reports from our Winter2023 Trends, and keep following our blog for industry summaries.

Methodology

Provoke Insights conducted a 15-minute survey in the fall of 2022 among 1,500 Americans between the ages of 21 and 65. A random stratified sample methodology was used to ensure a high degree of representation of the U.S. population (household income, age, gender, geography, ethnicity, and children in the household). Statistical differences between subgroups were tested at a 95% confidence level. The margin of error is +/-2.5%.

All brands, regardless of industry, are competing for consumer support and loyalty. How can brands best understand their market share? Competitive analysis research can be a brand’s blueprint to gauge how they stack up versus the competition. This research can measure a product’s awareness, satisfaction, and loyalty while also comparing the metrics to those of similar products. Though the research has immense value, conducting it can be tricky. Here are some pros and cons to help determine if competitive analysis research is the best fit for your brand.

The Pros of Competitive Analysis

See where your brand stands against competition

It is imperative for any company to pinpoint who its competition is in the market. Otherwise, how can you measure the success of your product? Competitive analysis can help answer a number of questions about how your brand is perceived compared to the competition in the market. How aware are consumers of your brand vs. others? Which brands in your competitive set lead in ad awareness? And ultimately, which brands do consumers prefer? Answering these questions sets benchmarks based on other products to assess their own success.

Understand consumer choices

Just as important as “what” brands consumers buy is “why” they choose to buy them. If a brand is a leading choice among buyers, it is important to know what works so that the company can continue to provide these attributes in its products. Conversely, if a brand seems to be playing catch-up to the competition, companies will need clear direction on improving their offering. It is crucial to include probes within your competitive analysis to gain a strong POV of why or why not they are purchasing your brand. This will allow you to better assess the top attributes that lead to purchase and loyalty and the pain points that deter a consumer from picking the product.

Measure growth with tracking research

Knowing how your brand compares to the competition at a given moment can be helpful, but tracking the changes over time takes competitive analysis to the next level. Integrating a competitive analysis into an annual or bi-annual brand tracker can reveal consumer behavior changes as companies adjust their products and advertising. Though this can benefit any brand, this methodology is especially useful for companies that are not currently the top consumer choice. Tracking a competitive analysis over time can help these brands make adjustments based on consistent consumer feedback to allow them to grow and ultimately overtake the competition.

The Cons of Competitive Analysis

Picking the wrong competitors can tank your research

To run a successful competitive analysis, the brand in question needs to be compared to the proper competitors. A company may want to compare against as many brands as possible, but overcrowding a survey with too many options can flatten the research results. Additionally, brands may have different competitors in different markets, making a national study tricky to create and analyze. Companies should consider conducting preliminary research to uncover the true competitors to include in the analysis. It’s also smart to always include a question on unaided awareness to pinpoint additional brands that can be included in future waves.

You may be unprepared to take in what you find

Sometimes research needs to be the humbling voice in the room. The nature of a competitive analysis could bring in negative sentiment toward your product and an outpouring of praise for a competitive brand. Sorting through such results can be disappointing and difficult to accept. For this reason, it is important to design your survey to give you strategic results and clear calls to action. As a result, your brand will likely see improvements in future waves.

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• Take a look at our research strategies here.
• Email us at [email protected].
• Sign up for our newsletters here. 

How does your brand measure up in your industry? What is driving brand equity? And how can your brand stand out in a saturated marketplace? Does your advertising work better than your competition? Brands should look to benchmarks and norms to answer these questions. 

Provoke Insights has released multiple benchmarks that can be used to understand where an industry stacks up against others. Marketers can also use the data to determine where their brand is compared to others in its category.

Brand Equity Benchmarks

How strong is the power of the brand? How does your brand fit compared to the industry? Provoke Insights evaluated hundreds of brands toå come up with the industry average. 

The chart below assesses different characteristics that influence brand equity. The data below represents the general population according to the US Census. Each question was asked about the brands in the category below via a 7-point agree scale. The data shows an aggregate of the top three of the agreed scale.

Brand Loyalty Benchmarks

Consumers are more loyal to some industries than others. So, what does that mean? Some shoppers tend to stick with their favorite brand over and over again. This is particularly true in the automotive industry. However, in the hotel industry, travelers are less loyal as they want to try new brands.

The Brand Loyalty Benchmarks are based on a five-point scale from “only purchasing the brand” to “only purchasing other brands.” The loyalty score is calculated by the mean overall industry score minus the individual category score. For more information, visit out Spring 2022 Trends Page.

Proprietary Advertising Norms 

Provoke Insights also has several proprietary industry norms to help with advertising testing. These benchmarks are based on an aggregate of several ad tests. This information helps determine if the assessment of the marketing material is below or above the competitive advertisements.

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While furniture tends to be a household item purchased infrequently, there are plenty of consumers who recently bought in this category. Among those who are buying furniture, what are their similarities and motives? How do these consumers feel about furniture brands? Where are they going to make their purchases? In Provoke Insights’ fourth wave of in-house research, we aimed to discover consumer mindsets, purchasing trends, and brand loyalty in several industries, including furniture.

Who’s Buying Furniture?

In the last month, nearly one in ten Americans (9%) purchased furniture. These consumers were more likely to be employed full-time and have children. They are also willing to pay more for sustainably sourced items and read the newspaper weekly. Interestingly, furniture shoppers are more concerned about shopping in-store due to COVID.

A major home improvement was a common motivator for furniture purchases. Furniture shoppers were also more likely to have recently moved homes. Furthermore, these shoppers have discretionary income to spend. In addition to furniture, they are buying other high-ticket items, such as electronics, vacations, and cars.

Where Are They Shopping for Furniture?

While in-store purchasing remains a popular furniture purchase method, online shopping in this category and catching up. Over two-fifths of furniture shoppers (43%) used the Internet for their purchases. The main reason for buying furniture online was the ease of purchase, followed by lower prices, free delivery, and more inventory available.

However, the in-store experience is not going away as the majority (79%) of consumers want to buy future furniture in stores. Those who plan to purchase online are younger, parents, affluent, and living in urban areas. Additionally, these online furniture purchasers are willing to pay more for sustainably sourced items.

Lack of Loyalty

Brand loyalty in the furniture industry is not high. Less than one-third of consumers (31%) said that they only or mostly purchase one brand of furniture. The majority of furniture shoppers (62%) purchase from many different brands. This lack of loyalty signals an area of improvement for furniture companies to stay top of mind.

Download the full report for free here.

Methodology

Provoke Insights conducted a 15-minute survey in the spring of 2022 among 1,500 Americans between the ages of 21 and 65. A random stratified sample methodology was used to ensure a high degree of representation of the U.S. population (household income, age, gender, geography, ethnicity, and children in the household). Statistical differences between subgroups were tested at a 95% confidence level. The margin of error is +/-2.5%.

When it comes to launching a new food brand or line, market research can be make or break in determining the product’s success. Research can answer questions such as:

• What is the ideal price for the product?
• Who has the highest propensity to purchase the product?
• What markets would the product be most successful in? 
• What are the current eating habits of prospects and customers?
• Who is the competition?

Market research surely isn’t the only contributor to a product’s success, but it is a good place to start in ensuring a baseline of security within the market. Included below are the different ways market research could be helpful within the food industry context.

Ideal Price

When trying to determine the perfect price for a product, there are a lot of possible market research techniques to implement. One of the most widely used techniques is the Van Westendorp Price Sensitivity Meter. This technique has participants assign prices to various prompts to understand the individual’s perception of the product’s value. Through plotting all of the price points collected, the ultimate result is theoretically the ideal price, something falling in between too-cheap and too-expensive.

Ideal Audience

One of the most utilized market research techniques to determine who the product should be marketed to is the use of segmentation. Researchers will ask consumers questions about themselves and their likelihood to purchase in an attempt to subdivide the market into more and less receptive consumers. Segmentation is a great technique because it helps companies better understand the sub-groups within their market and the different characteristics that are associated with each. This helps with understanding not only who to market to but how to market to them as well. 

Ideal Market

To help a company understand how successful their product is in a particular market, a company can determine a product’s market penetration. This involves quantifying how much of the market uses their product. This number can then be compared to their competitors to understand where they are falling short and thriving. Once this analysis is complete, a company can attempt to explore different marketing channels to increase its market share. Different channels could include premium and wholesale, for example. 

Trends

Market research can also be extremely helpful in understanding the current market situation. Because the economy, inflation, and world politics are so dynamic, companies must have a solid read on their market to ensure their product’s success. For example, in the last decade there has been a massive shift from brick and mortar stores to online purchasing platforms. Market research can help companies understand how best to market to their consumers in an increasingly online world, whether that means redesigning their websites, increasing their SEO, paying for pop-up ads, etc. In any case, it is essential that companies stay ahead of the curve and continuously iterate their marketing strategies. 

Understanding the Competition

Not only does market research help a company understand how customers are interacting with their product, but also their competitors. Especially in the hyper-competitive food industry market, companies that have a good understanding of their competitors will be able to better differentiate their products from the pack.  

Conclusion

As our world continues to change and evolve, so does the market. Consumer needs and preferences sometimes can be hard to keep up with, but market research allows companies to stay ahead of the curve during all product development and launch stages. This research is helpful and necessary to ensure the product’s initial and continued success. 

Interested in reading more on market research? Check out our other blogs here. 

• Market Research & the Metaverse: What Does the Future Hold?
• How to Spot Bad Survey Respondents
• The Pros & Cons of Hiring a Market Research Firm

Are you interested in our market research capabilities? 

• Take a look at our research strategies here.
• Email us at [email protected].
• Sign up for our newsletters here.