Entrepreneurship
Market Validation
Market validation is the process of determining whether or not an opportunity exists in the market for your product of service. This usually involves talking to potential customers to determine whether there is a need or want for your product or service.
This is called primary research and there are important considerations to ensure this research is conducted effectively and ethically.
Entrepreneurship research requires both primary and secondary research. Start with secondary research - see what information is already available - then, use primary research to fill in the gaps and answer the questions you still have. You can do this by conducting market research in the form of surveys, focus groups, etc. Marketing resources are very helpful here as well.
Research Methods & Sample Size
For market validation research, three common research methods are surveys, interviews, and focus groups. For more information on these, and other research methods, see Questionnaire design: How to plan, structure and write survey material for effective market research
| Method | Definition | Pros | Cons |
| Surveys | Participants are asked to respond to a pre-defined series of questions. Can include both open- and closed-ended questions. Can yield a mix of quantitative and qualitative feedback, depending on how the survey is designed. Can be conducted in-person, by telephone or mail, or online. |
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| Interviews | One-on-one conversation between the researcher and the participant. Usually involve open-ended questions. Yields mostly qualitative responses. Can be conducted in-person or virtually. Option for audio/video recording of responses. |
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| Focus Groups | Discussion of a topic amongst a small group of participants. The researcher facilitates the groups’ discussion by asking questions and observing responses. Yields mostly qualitative responses. Can be conducted in-person or virtually. Option for audio/video recording of responses. |
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What should my sample size be?
A sample is a portion of the larger population that you are researching. There is not one, “standard” sample size that applies to all primary research projects. A sample size that is too large may present issues regarding time and money, while a sample size that is too small may invalidate your results. Consider the size of your market and use your best judgment when determining your sample size.
Top 5 Survey Tips
Consider these tips to avoid common pitfalls and design a survey that increases the response rate:
1. Limit the number of questions.
- Ask only what is absolutely necessary – the shorter, the better!
2. Ensure that the survey can be completed in under 10 minutes (less is better!).
- Inform participants upfront about the time involved and, if using an online survey, include a progress bar.
3. Consider the ratio of closed- to open-ended questions.
- Closed-ended questions are quicker to answer and participants are more likely to skip open-ended questions if there are too many.
4. Consider mode of delivery.
- Online surveys are easier to complete than paper-based surveys and more efficient for the researcher (most online survey tools offer report generation and analysis features).
5. Don't ask for personal information.
- If necessary, allow participants to "opt-in" for a follow-up by providing the opportunity to share their contact information.
For more information, see:Questionnaire design: How to plan, structure and write survey material for effective market research
Survey Tools
- QualtricsThe University of Lethbridge has a site license for the Qualtrics Research Suite survey platform. ULethbridge users have free access to this survey tool by logging in at this link.
- Survey MonkeyA free, "Basic" plan features allow you to create an unlimited number of surveys with up to 10 questions and 100 responses per survey. Choose from 13 different formats for your survey questions, including multiple choice, text box, matrix, NPS, and A/B comparisons.
- Google FormsIncluded in the Google Drive suite, Google Forms features all of the collaboration and sharing features found in Docs, Sheets, and Slides. Choose from a range of question options, from multiple choice to drop-downs to a linear scale. Add images and YouTube videos, or page branching and question skip logic.
Ethical Considerations
1. Think from the participant's perspective.
- What information would you be willing to share, and under what circumstances?
- What would make you feel comfortable answering the questions that the researcher is asking?
- How would you feel if you work at Company X, and you learn that the information being gathered will benefit your competitor, Company Y?
2. Introduce yourself and the research.
- Identify yourself honestly, and explain your objectives for conducting the research, including:
- how the information collected will be used.
- who will benefit from the information.
- whether or not participants and their responses will remain anonymous. If not, why?
- Do not misrepresent yourself as a customer or client, especially if seeking information from a competitor company.
3. Consider confidentiality and data security.
- Protect participants’ responses and personal information (talk to IT for best practices in data security)
- Only collect Personally Identifiable Information (PII) if it is absolutely necessary.
- PII refers to “information which can be used to distinguish or trace an individual’s identity, such as their name, social security number, biometric records, etc. alone, or when combined with other personal or identifying information which is linked or linkable to a specific individual, such as date and place of birth, mother’s maiden name, etc." (Source)
- PII refers to “information which can be used to distinguish or trace an individual’s identity, such as their name, social security number, biometric records, etc. alone, or when combined with other personal or identifying information which is linked or linkable to a specific individual, such as date and place of birth, mother’s maiden name, etc." (Source)
4. Be careful with personal health questions!
- Avoid asking directly about a person's physical or mental health status.
- Avoid asking directly about a person's health condition(s), medication(s), etc.
- Avoid combining health questions and questions that ask for personally identifiable information.
5. You might need Ethics approval.
- The research ethics office is responsible for reviewing human subject research and ensuring compliance to protect the safety and welfare of human subjects.
- If you are doing primary research for a class assignment or an entrepreneurial project, you probably don't need ethics approval. If you plan to publish your research, talk with your professor(s)/advisors.
Attribution
Credit for this page goes to Sara Heimann, Innovation and Entrepreneurship Librarian at University of California, Irvine (UCI) Libraries https://guides.lib.uci.edu/entrepreneurship/market_validation
Librarian
Additional Resources
Questionnaire Design by
Questionnaires are vital for the market researcher: they draw accurate information from respondents, give structure to interviews, provide a standard form on which facts, comments and attitudes can be recorded and facilitate data processing. Questionnaire Design explains the role of questionnaires in market research and looks at different types of questionnaire, examining when and how they should be deployed. The book explains how to plan, structure and compose the right questionnaire for the research being undertaken. Fully updated with new content on encouraging respondent involvement through the gamification of questionnaires, this third edition of Questionnaire Design also includes the latest information on online and mobile questionnaires, their problems and potential. This book will be a useful addition to the bookshelf of every student or practitioner of market research.
Call Number: onlineISBN: 9780749467807Publication Date: 2014
Designing Quality Survey Questions by
Surveys are a cornerstone of social and behavioral research, and with the use of web-based tools, surveys have become an easy and inexpensive means of gathering data. But how researchers ask a question can dramatically influence the answers they receive. Sheila B. Robinson and Kimberly Firth Leonard's Designing Quality Survey Questions shows readers how to craft high quality, precisely-worded survey questions that will elicit rich, nuanced, and ultimately useful data to help answer their research or evaluation questions. The authors address challenges such as crafting demographic questions, designing questions that keep respondents engaged and avoid survey fatigue, web-based survey formats, culturally-responsive survey design, and factors that influence survey responses. Additionally, "Stories from the Field" features provide real world experiences from practitioners who share lessons learned about survey design, and end-of-chapter exercises and discussion questions allow readers to apply the information they've learned.
Call Number: HM 538 R63 2019ISBN: 9781506330549Publication Date: 2019
Basic and Advanced Focus Groups by
Basic and Advanced Focus Groups illustrates both the different types of focus groups and how to decide among those options in order to produce the most effective focus groups possible. A variety of approaches to doing research with focus groups gives readers the tools to develop and examine their research designs, starting with the basics. Advanced coverage in each chapter takes an in-depth look at topics such as moderating focus groups, using mixed methods, and working with different sizes of groups. By taking a practical, applied approach, the author gives even novice students the knowledge and confidence to design and conduct effective focus group research, while simultaneously providing more advanced researchers with the tools and knowledge to refine their current practices.
Call Number: H 61.28 M668 2019ISBN: 9781506327112Publication Date: 2019
Cognitive Interviewing by
The design and evaluation of questionnaires--and of other written and oral materials--is a challenging endeavor, fraught with potential pitfalls. Cognitive Interviewing: A Tool for Improving Questionnaire Design describes a means of systematically developing survey questions through investigations that intensively probe the thought processes of individuals who are presented with those inquiries. The work provides general guidance about questionnaire design, development, and pre-testing sequence, with an emphasis on the cognitive interview. In particular, the book gives detailed instructions about the use of verbal probing techniques, and how one can elicit additional information from subjects about their thinking and about the manner in which they react to tested questions. These tools help researchers discover how well their questions are working, where they are failing, and determine what they can do to rectify the wide variety of problems that may surface while working with questionnaires.
Call Number: H 61.28 W55 2005ISBN: 0761928049Publication Date: 2005
