Virtual Reality And Artificial Intelligence Have Found Their Way In Market Research Services
Many market research companies are implementing virtual reality (VR) technology to understand customers’ decision-making process. Virtual reality is a computer-generated simulation of a three-dimensional image, sound, and other sensations that replicate an environment that also simulates an individual’s presence in the environment. The technology enables companies to generate critical consumer insights without having to invest in trial and error processes in physical stores and collect opinions from target respondents. Virtual reality enables companies to collect data efficiently from a large sample size with minimum investment. For instance, Nestle implemented Decision Insight’s virtual store to determine prices and placements of 15 new stock keeping units of ice cream cups. After implementing the outcomes of the research, their ice cream sales increased by 53%. Companies on average invest about $30,000 to $1 million for a virtual reality store simulation.
Market research services included planning, developing, creating, and managing activities for studying and analyzing markets according to a client’s specifications. The global market research services market is expected to grow from around $64 billion in 2019 to nearly $72 billion in 2022 at a compound annual growth rate (CAGR) of 4.0%.
Market research companies are also increasingly investing in artificial intelligence (AI) technologies for efficient, accurate and low-cost data collection. AI refers to the ability of computers to perform tasks that require human intelligence, such as speech and image recognition, iterative learning, creative thinking and machine learning to solve problems and execute tasks. Market research firms use AI powered market research tools to execute surveys, predict consumer behavior, reactions and movements, improve conversations, and provide the ability to companies to collect data efficiently while removing the bias associated with data gathering. According to a 2018 survey conducted by Qualtrics with 250 market research companies, 93% of researchers considered AI as an industry opportunity and 80% stated that AI overall made a positive impact on the market research industry.
Market research companies are increasingly using advanced research technologies to generate consumer insights, reduce operational costs and increase delivery speeds. Eye-tracking is another such technology that is helpful for gauging consumer reaction towards products, without any bias or errors. This technology is used in studying consumer behavior during shopping, where researchers can capture actual reactions and time spent gazing at a particular product or a group, which allows researchers to provide unbiased insights. An example of a successful implementation of eye-tracking technology includes Tobii Pro Glasses, that help understand consumer behavior during shopping and give an understanding of consumer actions.