Market Survey in Market Research: Process and Costing

Market surveys are an essential tool for businesses looking to understand customer preferences, gauge product success, or assess market conditions. A market survey collects data from a target audience through questionnaires, interviews, or feedback forms to gain insights into consumer behavior, industry trends, and competitor strategies.

In India, market surveys help businesses tailor their products or services to meet the demands of local markets. The following is an easy-to-understand breakdown of the process and costs involved in conducting a market survey in India.

1.    Process of Conducting a Market Survey

Step 1: Define Objectives

• Purpose: Identify the reason for conducting the survey. Is it to understand customer satisfaction, product viability, or market trends?
  • Example Objective: A company might want to know customer preferences regarding a new smartphone model.

Step 2: Select Survey Method

Choose the appropriate method based on objectives:

• Online Surveys: Easy and cost-effective, using tools like Google Forms, SurveyMonkey, or Typeform.
  • Face-to-Face Surveys: Conducted in public places or within target

markets (e.g., shopping malls, trade events).

• Telephonic Surveys: Common in rural or semi-urban areas where internet penetration may be low.
  • Focus Groups: Small group discussions to dive deeper into opinions and feedback.

Step 3: Design the Questionnaire

• Prepare clear and concise questions to gather relevant data. Keep the language simple, especially for diverse populations in India with varying literacy levels.
  • Use both open-ended and closed-ended questions.
  • Example Question: “How satisfied are you with the smartphone camera features? (Very satisfied, Satisfied, Neutral, Dissatisfied, Very Dissatisfied)”

Step 4: Sampling

• Target Audience: Define the sample size and demographic group (e.g., age, income level, location).
  • Sample Size: Larger sample sizes (around 500-1,000 people) are usually more reliable for accurate insights.

Step 5: Data Collection

• Distribute surveys using selected methods (online, telephonic, face-to-face).
  • Ensure the collection of responses from diverse regions and groups to get a holistic view.

Step 6: Data Analysis

• After collecting responses, analyze the data to extract meaningful insights.
  • Use tools like Excel, SPSS, or Google Analytics to identify trends, preferences, and patterns.
  • Example: You might find that 70% of your respondents prefer

feature-rich smartphones over budget models.

Step 7: Report Findings & Actionable Insights

• Compile the findings into a report and suggest actionable insights for business strategy.
  • Example Insight: If most respondents say they value long battery life, businesses may consider focusing on improving battery life in their products.

2.    Cost of Conducting a Market Survey

The cost of conducting a market survey in India varies based on factors such as the survey method, sample size, and complexity of the data collection process. Here’s an overview of the typical costs involved:

Online Surveys

• Free Tools: Google Forms, Typeform (basic versions).
  • Paid Tools: ₹8,000 – ₹1,00,000+ per month (SurveyMonkey, Qualtrics, depending on the features and sample size).

Face-to-Face Surveys

• Cost: ₹20,000 – ₹1,50,000+ for organizing surveys in public places or conducting field interviews.

• Factors Affecting Cost: Travel expenses, compensating field surveyors, and data collection logistics.

Telephonic Surveys

• Cost: ₹10,000 – ₹50,000+ depending on the number of respondents and duration.
  • Factors Affecting Cost: Telecalling services, duration of survey,

and geographic area (rural vs. urban).

Focus Groups

• Cost: ₹30,000 – ₹2,00,000+ for organizing a focus group (including participant incentives, venue, and facilitator fees).
  • Factors Affecting Cost: Number of focus group sessions, compensation for participants, and logistical support.

Survey Data Analysis Tools

• Basic Tools: Google Analytics, Excel – Free or minimal cost.
  • Advanced Tools: SPSS, Qualtrics – ₹25,000 – ₹1,00,000+ per month depending on complexity.

Incentives for Respondents

• Cost: ₹100 – ₹1,000 per respondent (incentives such as gift cards, discounts, or vouchers to encourage participation).

Example Breakdown of Costs for a Market Survey in India

Method Estimated Cost Description Online Survey     ₹0 – ₹50,000+    Free tools (Google Forms) versions (Survey Monkey).

to paid

Face-to-Face      ₹20,000 –            Includes logistics, travel, and field

Method	Estimated Cost	Description
Survey                  ₹1,50,000+          surveyor expenses.

Telephonic Survey

₹10,000 –

₹50,000+

Includes call charges, telecaller fees, and duration.

Focus Groups      ₹30,000 –

₹2,00,000+

Survey Data

Venue, compensation, facilitator, and logistics.

Based on the tools used for analyzing

Analysis                ₹0 – ₹1,00,000+ data.

Conclusion

Market surveys are a powerful tool for gathering insights into consumer preferences, industry trends, and business opportunities in India. By understanding the survey process and estimating costs, businesses can make informed decisions on how to allocate their resources effectively.