The Role of Marketing Research in New Technology Ventures
Blair Little, Robert G. Cooper · Research Management · 1977
Documentation of the extent of market research indicates that companies under-spend and under-utilize this tool. A properly conducted market study can enable companies to avoid costly errors and miscalculations and to increase sales. Market research leads to a better understanding of the users' needs and engages the user in a responsible role in product development. Three questions need to be answered: (1) is further investment warranted; (2) what performance does the public require; and (3) how will buyers decide to purchase the product. Decisions on how much to spend on market research can be assisted by using a Net Benefit Method, which compares the cost of the study with the expected value of the results. Details of this procedure are outlined and illustrated. 12 references. (DCK)