Market research has seen significant transformation over the past century, adapting to technological advancements and shifting consumer behaviors. From traditional methods rooted in surveys and focus groups to modern approaches leveraging artificial intelligence and big data. The industry is constantly evolving, with new techniques and technologies being developed and deployed to deliver richer insights, faster turnaround times and more cost effective solutions. Some approaches fall out of favour, whereas others continue to be used.
In this article we’ll explore the evolution of the market industry and some of the key trends that have shaped the techniques and technologies being used
Early Beginnings: Quantitative and Qualitative Research
Quantitative Research: The roots of market research can be traced back to the early 20th century with pioneers like Daniel Starch and George Gallup. Starch's work in the 1920s involved in-depth interviews to understand the effectiveness of advertisements, laying the foundation for quantitative research. Gallup's development of the aided recall technique in the 1930s further advanced this field by measuring the memorability of ads without showing them to respondents
In the 1960s and 1970s, companies began utilizing computer technology to store and analyze data. This period marked the beginning of predictive analytics, where businesses used past consumer behavior to forecast future trends. Large corporations, such as Procter & Gamble and Coca-Cola, invested heavily in market research to refine their marketing strategies and product offerings.
Qualitative Research: Post-World War II, the focus shifted towards understanding consumer motivations and attitudes. This period saw the rise of qualitative research methods such as focus groups and in-depth interviews. These techniques aimed to delve deeper into the psychological and emotional aspects of consumer behavior. Despite innovation in market research techniques focus groups and IDIs have remained a staple of the industry, but whereas ten years ago you were likely to attend one of these in a market research facility or community hall you are now more likely to be sat on a Zoom or Teams call with participants from different regions rather than your local area. AI led interviewing is the latest innovation in this space, with interviews being conducted without the use of a moderator.
Ethnography is the study of cultures and societies through immersive observation, and has deep roots in anthropology, sociology, and colonial exploration. It emerged as a formal research method in the late 19th and early 20th centuries but draws on much older traditions of documenting human life and behaviors. It’s use in the corporate world took off in the late 20th century as a tool to understand consumer behavior and workplace cultures. Digital ethnography utilising online platforms and applications represents the latest innovation in this discipline, with consumers documenting aspects of their life and behaviour via their smartphones.
Advanced Analytics: Statistical techniques to charge up quant insights
The application of statistical methods to economic data laid the groundwork for predictive modeling in business decisions, with regression analysis essential for identifying relationships between variables (e.g., price vs. demand).
Regression Analysis: The use of regression analysis in market research dates back to the mid-20th century. Initially, it was employed to understand the relationship between different variables, such as price and sales volume. This technique allowed researchers to identify trends and make predictions based on historical data. The foundational principles of regression analysis were established in the field of statistics, with significant contributions from mathematicians like Carl Friedrich Gauss and Sir Francis Galton. Regression analysis is a powerful statistical tool used to understand the relationship between variables. In market research, it helps identify the factors that influence consumer behavior and predict future trends. By analyzing historical data, researchers can make informed decisions about product development, pricing, and marketing strategies.
Segmentation: The concept of market segmentation emerged in the 1950s and 1960s as businesses sought to better understand and target specific consumer groups. Wendell R. Smith's seminal paper in 1956, "Product Differentiation and Market Segmentation as Alternative Marketing Strategies," laid the groundwork for segmentation by advocating for the division of markets into distinct groups based on consumer characteristics. Market segmentation involves dividing a broad consumer market into smaller, more homogeneous groups based on shared characteristics. Advanced analytics techniques, such as cluster analysis and factor analysis, help identify these segments and tailor marketing strategies to specific target audiences.
To learn more about how advanced analytics can help you do more with data, check out the Bryter Labs section of the Bryter website where you can learn how statistical techniques can be used for brand perception, equity and landscaping, product and concept testing, pricing studies, message testing and segmentation studies
New thinking: Semiotics and Behavioral Science – getting beneath the surface and going beyond self reporting
Traditional market research traditionally relied on direct questioning—surveys, interviews, and focus groups—to understand consumer preferences. However, semiotics and behavioral science offer deeper insights by analyzing the unspoken, unconscious, and contextual factors influencing decision-making. These approaches provide richer, more predictive insights than standard research methods alone.
Semiotics: In the mid-20th century, semiotics emerged as a crucial tool in market research. This approach involves the study of signs and symbols and their meanings in communication. By analysing how consumers interpret various symbols and messages, marketers could craft more effective advertising strategies, design products, packaging and retail environments to communicate specific values and develop more effective brand and communication strategies.
To learn more about semiotics and the different applications of this approach read our article ‘Semiotics and culture: Signs, symbols and their meanings for insights and marketing’
Behavioral Science: The integration of behavioral science into market research brought a new dimension to understanding consumer behavior. This field examines the psychological, cognitive, and emotional factors that influence decision-making. Techniques such as observational studies and experiments became popular, providing deeper insights into how consumers interact with products and brands. Key principles that the industry has recognised and now factors into study design and analysis include
The Digital Revolution: New Tools and Techniques that have changed the way the industry conducts research
Innovation in the field of market research has been continuous and progressive. The industry has been quick to adopt new technologies that can help deliver work faster, more efficiently and in ways that fit around the native technologies that consumers have adopted.
Digital Tools: The advent of the internet and digital technologies revolutionized market research. Online surveys, social media analytics, and web analytics tools enabled researchers to gather vast amounts of data quickly and cost-effectively. These tools also allowed for real-time data collection and analysis, providing immediate insights into consumer behaviour. Online surveys have all but replaced postal and telephone surveys except for government research, niche and hard to reach audiences like B2B decision makers
Eye Tracking & facial coding: Eye tracking technology became a valuable tool for understanding how consumers interact with visual content. By monitoring eye movements, researchers could determine which elements of an advertisement, website or retail environment capture attention and how users navigate through visual information. But even this innovative technology has in turn been disrupted, this time in the field of AI. Whereas once this approach required participation by research subjects wearing eye tracking glasses, AI is now able to accurately replicate gaze plots and generate heat maps without the need for human participation. Emotional facial coding is further innovation in the field of monitoring human response. Emotional facial coding analyses facial expressions to detect subconscious emotional responses. In market research, it's used to measure authentic reactions to ads, products, or branding without relying on self-reporting. The science behind this is somewhat questionable though, and we explore this in more detail in our blog post 'Facial coding - a useful tool for market research?'
Self-Serve Tools: The rise of self-serve market research platforms democratized access to research tools. These platforms allow businesses of all sizes to conduct their own surveys, analyse data, and generate reports without the need for specialized expertise. This trend has made market research more accessible and affordable and empowered in house research teams to pick manage aspects of market research without the need for an external consultancy.
Digital Ethnography: Digital ethnography involves studying consumers in their natural online environments by allowing them to document and capture aspects of their life and behaviour in real time via digital platforms and smartphone applications. By observing online communities, social media interactions, and digital behaviours, researchers can gain a deeper understanding of consumer culture and preferences. As with many of the technological innovations in the research industry these tools have helped to cut the cost and speed up the process of ethnographic research making it a more accessible methodology for a broader .
Semiotics investigates the visible part of the brand iceberg: the product or communication signs and symbols; and b) decodes the invisible part of the iceberg, which is meaning. In culture it is understood as codes (cultural conventions), myths (oft-repeated stories), and ideologies (normative beliefs and values that guide a political or social thought).
Artificial Intelligence: Is synthetic data the future of market research?
The explosion in the use of and potential for AI is also affecting the market research industry. AI led qualitative interviews and synthetic data are datasets that simulate survey outputs without the need to survey research participants are two recent innovations that are looking to disrupt the industry.
The use of AI in these contexts is driven by much of the innovation in the industry – reducing the cost and time it takes to conduct research. In the case of synthetic data there is also the added benefit of being able to generate insights about audiences that have traditionally been hard to reach and interview.
The verdict is currently out on these new approaches. Both have potential to change the way research is conducted and even what it is to be a researcher, but they also come with potential downsides. The old saying that you want it fast, cheap and high quality – pick two may also be highly relevant in the case of AI for market research. Time will tell.
The evolution of market research techniques reflects the continuous quest to understand and predict consumer behaviour in an accurate way. From the early days of quantitative and qualitative research to the integration of digital tools, AI, and advanced analytics, each advancement has moved the industry forward provided new and deeper insights and more effective strategies for businesses. As technology continues to evolve, market research will undoubtedly continue to innovate, offering even more sophisticated tools and techniques to understand the ever-changing consumer landscape, and adapt to the changing demands of clients who want quicker results without compromising on quality.
To read more about how market research services key sector like healthcare and pharmaceuticals, technology, gaming and B2B markets read our article ‘Bryter – market research company – an overview’
Get in touch with one of the insights team if you want to learn more about different approaches to market research and to understand which methodology may be most appropriate for your insight needs