The Worldwide Web:

An Underutilized Tool in Market Research

By Ronald T. Nielson

            The Web, with its worldwide, automated, reasonably priced capabilities, is one of the easiest and most accurate ways of collecting data today. Unfortunately, many research professionals have thus far failed to take advantage of the Web’s almost limitless potential as a market research tool.

Quality, accurate data can be collected in many ways, but using the Web is one of the most effective and efficient methods used today. Online research conducted via the Web combines the strength of direct mail surveys with the dynamic nature of phone surveys. Like mail surveys, online methods allow respondents to carefully consider the questions presented to them without the need to remember all the answer choices on the spot. And like phone surveys, online methods provide the ability to customize questions and answer choices based upon respondents’ answers. Most importantly, the data from Web-based surveys is collected automatically, reducing human error.

            In addition to these strengths, the Web’s ability to include visual images, audio streams, and other packaging effects makes it a rich, multimedia tool like no other. With these online extras, survey respondents are able to rate or comment upon an entire range of subjects that have historically been difficult to present. For example, instead of using expensive real physical products or prototypes, virtual online mockups are relatively simple and inexpensive to produce.

            Besides providing an easier way to depict products, the Web also significantly simplifies data collection methodologies. The Web allows research companies to present multiple design concepts, for example, and ask respondents to rate their different aspects. The ratings can then be analyzed, making it easier to determine which aspects work and which should be taken from different designs to be incorporated into the final product. By holding some variables constant, precise measurements are more easily gathered on others.

Given these powerful online methods of data collection, it is easy to see why the Web is rapidly becoming such an important market research tool.  It also has several other major benefits:

·        It’s Economical: Basic Web-based data collection is generally administered via HTML pages that are controlled by a back-end script, so many of the costs of conducting online research are incurred before the first survey takes place. The Web’s automation eliminates the need to pay interviewers to conduct each survey individually and reduces the overhead costs of phone centers, phone bills, and administrative support. These reduced costs make larger sample sizes more affordable, thus increasing the reliability of the data collected.

·        It’s Convenient: Respondents can pick the time they want to take a Web-based survey.  Surveys can be partially completed at one time and then finished later. 

Here’s an example of how a Web-based survey works.

ü     NSØN sends out an e-mail invitation to a selected list of potential respondents.

ü     When these respondents open our e-mail invitation, they can click on a URL to participate in the survey. The URL can include passwords, if desired, to monitor who has taken the survey.

ü     The URL is hosted by NSØN, enabling our client to see real-time progress of the survey.

ü     Email messages reminding respondents to take the survey are sent out.

ü     Results are computed and presented in whatever data base format clients prefer.

Some Concerns

            There are some problems regarding the cost to purchase the sample population of respondents in Web-based surveys.  If a client is using an employee list, customer database or a membership list from an organization, the cost of the sample may be minimal.  If, however, a targeted professional or business survey is being considered, the cost of acquiring a genuine cross-section of the population can be very costly. 

            Opt-in panels of Web survey respondents are frequently used to obtain random lists of respondents.  NSØN’s SurveyFever™ panel is composed of thousands of people who have enrolled in SurveyFever expressly to participate in online surveys. 

Some critics worry about the accuracy or randomness of information coming from online panelists because of the incentives that are commonly involved. But realistically, the slim chance of winning $100, for example, is far outweighed by the number of eligible participants and by the time it takes to respond. It would be difficult, if not impossible, to make a living as a Web survey respondent.

A more valid criticism of online surveys is the difficulty of reaching people over the age of 60 or those earning less than $15,000 per year, two groups that do not usually have easy access to the Internet.

In general, the advantages of Web-based market research far offset its disadvantages. Because of its worldwide reach, cost-efficiency, accuracy and speed, the nature and complexity of online studies is limitless.

At NSØN, we believe using a combination of relevant research methods provides the best solution to obtaining accurate, useful research data.  Telephone studies are better for some types of studies, whereas Web-based research is completely acceptable for other problems. 

In conclusion, we believe several things are becoming clear to market research professionals.  First, the Web is here to stay.  Second, the Web has enormous potential as a valid, legitimate research tool.  Third, the Web has been underutilized thus far by many people within the market and opinion research community.  

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Ronald T. Nielson is the founder and CEO of NSØN Opinion Research, an international public opinion and market research firm based in Salt Lake City since 1992.