Less costly online market research will continue to lure business away from telephone research, resulting in downward pressure on prices.
Los Angeles, California (PRWEB) December 12, 2013
Telephone market research services have a buyer power score of 4.1 out of 5. This score reflects positive market conditions that result in strong buyer negotiation power. “During the past three years, the average price of telephone market research services has declined,” says IBISWorld procurement analyst Aerich Abellera. Prices are projected to decline further during the next three years. Therefore, buyers do not need to lock in prices early or form long-term contracts to avoid potential price increases.
The decline in prices for telephone market research services is due in large part to the high levels of competition among suppliers. Major vendors include GfK SE, ICF International Inc., Ipsos SA and Nielsen Holdings NV. Despite the presence of large global market research firms, the overall level of market share concentration is low. “The majority of suppliers are small firms and nonemployers, and the highly fragmented market encourages price-based competition among suppliers,” says Abellera. In addition, suppliers have been willing to sacrifice profit margins; falling demand as a result of the recent recession led suppliers to reduce prices to retain clients. Competition from overseas suppliers that offer lower prices has also increased, though the threat to domestic suppliers is limited due to quality concerns with outsourcing market research overseas.
The price of telephone market research services has experienced a low level of volatility; buyers face little risk of prices increasing suddenly. Suppliers do not depend on critical inputs that could disrupt services, and upstream suppliers do not fluctuate significantly in price.
Although market conditions are positive overall for buyers, some factors limit negotiation power. For example, telephone market research has a lack of substitutes. While other forms of market research are possible, such as online surveys and focus groups, telephone research has certain advantages over other methods, and there are no substitutes for market research as a whole. Market research helps businesses understand consumer trends, target markets, advertising effectiveness and other issues that can help businesses improve their products and branding.
For more information, visit IBISWorld’s telephone market research services procurement research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of telephone market research services. Telephone market research groups engage in quantitative and qualitative research from a diverse set of individuals over the phone and gather information on opinions and attitudes about a product, person or service.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.