As online market research continues to lure business away from telephone research vendors and software prices continue to fall, telephone market research services will decrease further in price
Los Angeles, California (PRWEB) September 07, 2014
Telephone market research services have a buyer power score of 4.4 out of 5. IBISWorld market research analyst Daniel Krohn says, “During the past three years, the average price of telephone market research services has declined and prices are projected to decline further during the next three years.” Therefore, buyers do not need to lock in prices early or forge long-term contracts to avoid potential price increases. Major vendors in the market include WPP PLC, Nielsen Holdings NV and GfK SE.
The decline in prices is due in large part to the high levels of competition among suppliers. 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 that must engage in price-based competition rather than rely on brand name appeal to make sales,” says Krohn. Additionally, online market research has become an increasingly more effective alternative to telephone market research services, thereby posing an additional competitive threat.
Buyers have also benefited from low price volatility in the market. Suppliers do not depend on critical inputs, which could disrupt services, and upstream supplier prices do not fluctuate significantly. In turn, buyers face little risk of prices increasing suddenly, allowing them to effectively budget their research expenses. Low price volatility has also helped boost buyer power.
Although market conditions are generally positive for buyers, some factors hamper negotiation power. For example, the average vendor's profit margin is low, limiting their price flexibility and ability to offer substantial discounts. Further, low profit margins increase vendor financial risk. Buyers face some risk of service disruptions resulting from vendor bankruptcy. Also, corporate profit, advertising and research and development expenditure have been rising over the past three years, generating strong demand for market research services. This demand growth has had a negative effect on buyer negotiation power by keeping prices from falling more significantly. For more information, visit IBISWorld’s Telephone Market Research Services category market research report page.
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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. This report excludes market research conducted in person, online or through the mail.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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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.