Prices are forecast to rise minimally, aided by the recovering economy.
Los Angeles, CA (PRWEB) February 11, 2014
Consumer based research and focus group services have a buyer power score of 3.8 out of 5. Scores closer to 5 represent stronger negotiation conditions for buyers. According to IBISWorld procurement analyst Jordan Weinstein, “this service's high score reflects a buyer's ability to negotiate lower prices due partly to the high number of suppliers and overall market conditions”. In the three years to 2013, the slight growth in price is largely due to rising consumer spending, which results in increases in corporate profit, research and development expenditure, and total advertising expenditure. As these factors continue to increase, over the next three years, businesses will invest in consumer research again, which promotes both demand and revenue for the consumer based research and focus group market.
Fortunately for buyers, the increases of consumer spending, corporate, R&D and advertising expenditures have not caused a substantial price increase. Many suppliers faced great losses following the recession and were forced to lower the price of their service to retain as many clients as possible. Growth due to the economic recovery has pushed up prices; however, prices are projected to increase at a low rate in the three years to 2016. “Consequently, buyers still have negotiation power when selecting a supplier that meets their budget and needs,” says Weinstein.
Price aside, buyer power remains significant because of the low market concentration and high level of competition among consumer based research and focus group suppliers. The large number of suppliers provides buyers a wide variety of capable suppliers to choose from no matter the level of specialization, forcing suppliers to compete with lower prices. However, the level of specialization and complexity greatly affects buying power; buyers in need of highly complex and specialized research solutions can expect far less buying power than those that require a more standardized approach to conducting research. Overall, the high competition among suppliers increases buying power for all levels of specialization and the conditions for consumer based research and focus group service buyers are very favorable. The top four vendors in the market are Nielson Company, Kantar Group, Ipsos SA, and Westat Inc.
For more information, visit IBISWorld’s Focus Group Research Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of consumer based research and focus groups. Consumer based research and focus group providers engage in qualitative research from a diverse set of individuals and gather information on opinions and attitudes about a product. This market focuses on face-to-face market research and testing, as well as market research by phone and mail. Focus groups are often used to determine the viability of a new product intended to be brought to market as well as improvements for current products. This does not include internet-based market research.
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.