Limitations of Marketing Research


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Limitations of marketing research are as explained below:

 

(1)   Marketing research offers suggestions and not decisions: Marketing research is not a substitute for decision-making process. It only offers possible suggestions/solutions to marketing problems. It actually acts as a tool that facilitates decision-making process. It guides marketing managers in taking balanced, result-oriented and rational decisions. The suggestions offered by marketing researchers are usually possible/probable solutions but not the exact solutions.

 

MR offers predictions but they are not necessarily accurate or perfect. Such predictions should be taken in the right spirit by the management. It offers information and guidance to marketing managers but not the final decisions, which are to be taken by managers themselves.

 

MR does not provide readymade solutions to marketing problems. It only provides indicators. It may not provide conclusive information on marketing problems. The marketing managers have to use available information properly and take appropriate marketing decisions.

 

The effectiveness of MR depends on the skill of the decision-maker. For this/ various marketing forces need careful consideration. However all such forces are not covered by research project undertaken. MR aids managerial decision-making but it cannot replace judgment and experience of marketing executives/managers.

 

(2)   Marketing research cannot predict accurately: In MR, efforts are being made to estimate or predict the possible future situation. For this/ certain research studies are undertaken. However, the results/ conclusions arrived at may not be complete, perfect or accurate. They predict possible tendencies but not certainties. Future is always uncertain and exact prediction about the future is just not possible through marketing research. This is because market environment is ever changing consumer behavior is difficult to estimate correctly and reliable data for research purpose may not be available. As a result, the decisions taken and policies framed on the basis of such research studies may not be accurate and useful for solving current marketing problems.

 

Marketing research gives guidance to marketing managers through information and conclusions drawn but such guidance may not be accurate as it is based on the predictions about future situation. The guidance offered through research activities may prove to be out-dated at the time of taking current marketing decisions.

 

 

(3)   MR conclusions are not always dependable: There are many who are skeptics of MR. Their criticism is that MR conclusions are not dependable. There are examples where the research failed to deliver desired results or a product failed even when the research had shown promising market demand and consumer support. The classical example is that of Coke. Its MR showed that 68% customers in US liked the taste of the new formula developed by the Coca-Cola Corporation. However, the New Coke failed and in less than six months of its launch, the Coke management had to re-launch old Coke under the brand name Coke Classic. However, this failure of MR was mainly due to conventional approach of researchers.

 

(4)   Not an exact science: Since marketing research plates to consumers, it cannot be accepted as an exact science. Both quantifiable and non-quantifiable factors have to be assessed with the help of various techniques available to formulate marketing policies that will help to achieve maximum sales. The technical part of marketing research comes into operation particularly while collecting, analyzing, interpreting facts and figures. No amount of sophistication makes the subject an exact science. Because, as stated earlier, it concerns primarily the consumer as a human being Study of human behavior precludes absolute mathematical accuracy   Probable trends, at the most can be indicated within pre­determined limits. This sets a basic limitation to marketing research. At the same time, it necessitates a creative and skilled approach to the conduct of research. In this way, marketing re­search can contribute immensely to decision-making in a dynamic market. For accurate judgment, the marketer must be fully aware of the nature of limitations of marketing research.

 

(5)   Time lag in presentation and implementation: There are other constraints as well that make for qualified utility of marketing research in decision-making. For example, there is the limitation of time. Collection of data, their checking as to accu­racy and analysis and presentation often involve considerable time. The formulation of policies and their implementation as also their subsequent evaluation, which are a necessary follow-up, also take time. People’s tastes and preferences are subject to frequent changes. It is, therefore necessary, keeping in mind the scope and nature of marketing research, that the projects should be completed in time to ensure their utility. In this process, at times, as a compro­mise some accuracy may have to be sacrificed, but the degree of it can be decided in relation to the specific circumstances.

 

(6)   Limitations of personnel: Another constraint that is experienced pertains to personnel and its quality. Trained, well-equipped and well-directed research personnel can improve the quality and utility of marketing research. In the absence of this, research is likely to be costly and unreliable. Correct and complete information has to be collected from the respondents tactfully. The interviewer has to be reasonably aware of the psychological make-up of the persons that are being interviewed and should be able to analyze their thoughts and reactions. Apart from this, interviewers may have their own failings   and weaknesses. Hence the training interviewers and investigators is a must. These limitations and constraints can be overcome or at least their impact can be minimized. To the extent a market researcher is successful in his task, the value of the findings can be improved. What is most important is that reliable data should be available on the basis of which production and marketing plans and programmers can be formulated with a fair degree of accuracy. It is better to be certain about 50 percent reliable information than do a guesswork, which has more chances of going wrong.

 

(7)   Difficult to ascribe results: It is also difficult to as­cribe results as a direct consequence of market research. The rupee value received by a firm from marketing research, therefore, cannot be measured accurately and completely. This has contributed to an element of hesitation on the part of organizations to undertake marketing research in many cases, especially in the developing countries.

 

(8)   A cost-generating operation: Marketing research is expensive. The existence of sellers’ market or a sheltered market in many developing countries in particular has also been responsible for an apathetic approach to marketing research. However, with the growth and development of their economies, the marketing conditions are changing in favor of buyers and the need for and the value of marketing research are being increasingly recognized by the enterprises in these countries also. With the communication between the purchaser and the manufacturer becoming indirect, meagre and unsatisfactory and as a result of competition, the manufacturer is increasingly becoming anxious to know the magnitude of his sales to consumers, where they are being effected, the kinds of people buying his goods and their reactions and responses. All this information is essential to the manufacturer, as this decides ultimately whether he will survive in the market or not. He can improve his product and marketing strategy to secure consumer satisfaction and logically profit from these changes.

 

(9)   Marketing research cannot study all marketing problems: Marketing research is rather very wide in scope. However, it cannot study all marketing problems particularly where it is difficult to collect relevant data. Similarly, research study is not possible where value judgments are involved. Even it is not useful for dealing with urgent marketing problems where quick decisions and follow-up actions are necessary.Thus, all marketing problems are not researchable and all research problems are not answerable.

 

MR cannot provide answer to each and every marketing problem. A problem like Profitability Vs. Consumer satisfaction is difficult to answer with complete accuracy. The present marketing research techniques have certain limitations. MR fails to offer guidance to managers while dealing with specific problems. Thus, marketing research cannot study all marketing problems and do not offer ready-made solutions to all marketing problems faced by a business unit. It is also argued that very many times, marketing research tends to be fragmentary in its approach. As a result, it becomes difficult to have an overall perspective in which a marketing problem is to be viewed and studied.

 

(10)     Resistance by marketing executives: Researchers study marketing problems and offer information and guidance to marketing executives in their decision-making process. However, some executives are reluctant to use the solutions suggested by the researchers. They feel that such extensive use will act as a threat to their personal status. Findings of the research work may bring them in difficulties if the policy-decisions taken accordingly prove to be wrong.

 

Marketing executives may also feel that researchers suggest solutions that are academic in character and lack practical utility. They use guidance and suggestions given by the researched only when they are compelled to do so. There is absence ofmeaningful dialogue between the marketing managers and the marketing research team. As a result/ marketing researchers get divorced from the main stream of marketing. Such attitude of indifference on the part of researchers and marketing executives makes marketing research meaningless.

 

It is necessary to have effective communication between researchers and marketing executives. Secondly, researchers should try to act as friend and guide of marketing executives. Marketing executives should also consider the findings of researchers in an impartial manner. Such attitude of mutual confidence and understanding is useful for co­operation between researchers and marketing executives. Conflict between researchers and executives is always undesirable but do exist in many companies. It is treated as one limitation of MR activity.

 

(11)     Lengthy and time-consuming activity: MR is a lengthy and time-consuming activity. It involves various stages/steps, which need to be completed in an orderly manner. It is not desirable to conduct research work in a haphazard manner. Naturally, the research work takes longer period for completion and the findings when available may prove to be old and outdated. Even data collected very soon become old or historical due to fast changing market environment. As a result, research findings based on them become irrelevant in the changed situation.

 

MR is not useful for dealing with urgent marketing problems. Moreover,research work cannot be conducted overnight and marketing decisions cannot be postponed till the research work is completed. Thus, urgent/pressing marketing decisions arc usually taken without the support of research work. In brief, lengthy and time consuming aspect of marketing research reduces its practical utility and is rightly treated as one limitation of marketing research technique.

 

(12)     Non-availability of qualified staff: For scientific MR, professional marketing researchers with proper qualifications, training and experience are necessary. Research work is likely to be incomplete/ unreliable in the absence of such expert staff. Companies find it difficult to have the services of such expert staff. They find it difficult to pay high salary to professional consultants. Research activities are conducted in limited areas due to non-availability of properly qualified staff. Such staff includes statisticians, psychologists, sociologists, economists and computer experts.

 

(13)     Complexity of the subject: Marketing research fails to give complete and full proof solutions to management.This is because marketingresearch itself is not an exact science. It is concerned with the study of human beings and human behavior is always difficult to predict, errors in drawing conclusions are possible due to this human element in marketing research activities. Errors in the research studies are also possible due to uncertainty of human behavior and also because of non-availability of reliable data.

 

(14)     Changing behavior of consumers: Consumer is the focal point in marketing research. However, his buying motives are difficult to judge precisely and accurately. This brings some sort of uncertainty in the conclusions drawn from the research activity. The findings of the research work (particularly in the case of consumer research) may not prove to be accurate.

 

(15)     Limited practical utility: MR is regarded as an academic exercise. It is often been delinked from the business strategy. As a result many research reports become “academic” in nature and are ‘filed’. Researchers take more interest in conducting research work rather than in supplying information and guidance to marketing managers in the decision-making process. Many research reports are rather bulky and unintelligible due to the use of technical language and unnecessary details. Such reports are rejected or are not used meaningfully b) marketing managers. This brings down the practical utility of MR.

 

(16)     Passive nature: MR is passive by its nature. Sometimes, it becomes too superficial and faulty in business management. Man) conclusions drawn from the marketing research activities may be imaginary or not based on realities. Its use and effectiveness largely depend on the ability of marketing executives to get the most promising results out of it. Marketing research by itself may not give any benefit. It only shows the way to executives in the decision-making process.

 

(17)     Fragmentary approach: On many occasions, marketing research tends to be fragmentary in its approach. It suggests solutions that may be difficult to put into operation. This is because overall marketing environment is not given adequate attention while suggesting the solution. Such fragmentary approach is not useful for solving marketing problems in an integrated manner.

(18)     Absence of effective communication: The research activity will be useful and result-oriented only when there is meaningful dialogue between the marketing management and marketing research team. However, such dialogue is ineffective in many organizations. This make’ research activity ineffective.

 

Inspite of the limitations noted above, MR is necessary and useful in marketing management.


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