Los Angeles, CA (PRWEB) January 22, 2015
Focus group research services have a buyer power score of 3.9 out of 5, reflecting a buyer’s moderate to strong ability to negotiate lower prices due to this market’s large number of suppliers and competitive nature. IBISWorld estimates that there are more than 36,000 vendors of focus group research services, which provides buyers with a substantial number of suppliers from which to choose. Of these, Nielsen Holdings and the Kantar Group are the two largest players. However, recent demand growth has slightly reduced buyer negotiation power.
In the three years to 2014, the average price for focus group research services has been growing slightly as the economy has improved from recessionary lows. “Price growth has been the result of increased demand from rising consumer spending, which has resulted in increased corporate profit, research and development (R&D) expenditure and total advertising expenditure, which all took a hit during the recession,” according to IBISWorld business research analyst Jordan Weinstein. As these factors continue to rise during the next three years, businesses will invest in consumer research again, boosting demand and prices for focus group research services.
Price aside, buyer power remains significant due to low market concentration and a high level of competition among suppliers. “Low concentration ensures buyers have a wide variety of capable suppliers from which to choose no matter the service’s level of specialization, forcing suppliers to lower prices to compete for business,” Weinstein says. However, specialization and complexity greatly affects buyer power; buyers in need of highly complex and specialized research solutions have far less buyer power than those that conduct more standardized research. 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 help buyers of focus group research services make informed purchasing decisions. Focus group research service 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 bringing a new product to market as well as improvements for current products. This report 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
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.