Quantitative and Qualitative Research: Cost-Reduction Methods and Their Implications

This is the second of two eTips! examining the financial implications of research design. January's issue focused on the costs of qualitative versus quantitative research and the unique values derived from each. Here we explore some ways to potentially reduce costs of market research while achieving overall objectives.

Several opportunities exist within qualitative and quantitative methodologies to control costs. However, the achievement of project objectives should remain paramount and the implications of cost-reduction methods should be considered before committing to such measures.

Qualitative: Traditionally, qualitative research necessitates the use of on-site facilities in one or more markets. This leads to higher moderator fees, travel costs, and honoraria charges to persuade participants to travel to the facility and participate. A cost-reduction option that can be exercised is using remote technology such as telephone-based interviews and Internet or teleconference focus groups. In addition to eliminating travel expenses and on-site rental fees, honoraria costs are lowered because of the shorter time commitment required. Trade-offs of conducting remote qualitative research can include:

• Inability to present advertising or marketing concepts in a controlled environment;
• Decreased "synergy" between focus group participants due to multiple locations; and
• Significant limitations on modifications of discussion materials during the research process.

Quantitative: There are various ways to reduce the costs of quantitative research, including:

• Consider alternative administration methods, such as Internet or interactive voice response (IVR), for those surveys that do not require personal interaction with the participant;
• Limit questionnaire length to enhance participation and decrease honoraria costs;
• Refine overall marketing and project objectives so that survey content addresses the most important issues; and
• Identify total "universe" and required statistical precision (level of confidence and error rate) so that appropriate quotas can be developed.

Some potential drawbacks of these cost-saving measures include:

• Inability to achieve all project objectives due to limited questionnaire length and/or question composition;
• Reduced "projectability" due to smaller quotas (higher error rate and reduced confidence level); and
• Increased brevity and decreased clarity of open-end responses when using Internet and IVR technology.

In conclusion, while there are often opportunities to reduce costs during the design of a research project, they may carry consequences that adversely affect the ability to meet the project's objectives. These potential trade-offs should be evaluated prior to recommending a course of action.