Which type of psychologist would most likely work for market research organizations?

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Unknown to many psychologists, market research has made substantial use of psychology and psychological developments (including statistical techniques). Of course, the reverse is also true in that a large number of market researchers are probably unaware of the source of many of the approaches they apply (and in some cases, misapply). Some of the psychology-based approaches commonly used by market researchers include:

• interviewing techniques (including group interviews, such as focus groups)
• statistical applications (e.g., factor analysis, choice modelling techniques)
• questionnaire design (including the use of scales developed by psychologists such as Likert-type scales – some psychologists would be critical of some market researchers’ use of some scales)
• research design approaches (which probably are not used as extensively as they could be in market research)
• application of various models and theories developed by psychologists (not all such theories are likely to be acceptable to many psychologists, for example some market researchers continue to use techniques based on projective applications)
• concepts developed by psychologists such as those suggested in Daniel Kahneman’s book Thinking, Fast and Slow and Robert Cialdini’s Influence: The Psychology of Persuasion and Pre-Suasion
• an amalgamation of economics and psychology called ‘behavioural economics’.

In addition, a number of well-known psychologists have had a significant impact on market research (e.g., Hugh Mackay, Barry Elliott and Vicki Arbes, all Fellows of the Australian Market & Social Research Society – AMSRS).

Thus, psychology has had an unquestionably large influence on market research both in Australia and overseas. It could, however, be strongly argued that the involvement of psychology with market research is not well-recognised in Australia. Many psychologists working in market research are of the view that psychology, as the scientific study of human behaviour in all its manifestations, is not reflected in the psychology landscape in Australia, for example, in what the APS offers in its courses and publications.

Psychologists working in market research often find it difficult to find continuing professional development programs of relevance which can make it extremely difficult for psychologists in these fields to maintain their registration as a practising psychologist. In addition, few psychologists working in market research see the relevance of the Australian Health Practitioner Regulatory Authority, which focuses on the provision of a health service, to their professional career as market researchers.

So, what are the opportunities for psychologists in market research? The simple answer is that there are many, particularly in the following broad areas of research and employment.

Potential employment

In terms of opportunities, there are many organisations with an interest in employing psychologists. For example, the European Society for Opinion and Marketing Research (ESOMAR) lists more than 250 market research companies that specialise in psychological/motivational research. And this list does not cover all organisations offering opportunities to psychologists. A large proportion of Australian market research companies are not members of ESOMAR. Similarly, many overseas market research organisations (for example many in the US) do not belong to ESOMAR. The list is therefore much longer.

In addition, many other organisations involved in marketing offer opportunities for psychologists including marketing consultancies, management consulting organisations and advertising agencies. Many large organisations have their own market research departments which manage both the activities of external market research agencies, as well as conduct research projects internally.

High-involvement activities

The types of projects that psychologists are likely to engage with when working with these organisations can prove extremely stimulating. The following are some examples of activities in which my organisation has been involved.

Culture improvement: We assisted one of Australia’s largest financial services organisations to gain a detailed understanding of its culture and help to identify and implement approaches designed to improving employee engagement, and thus customer satisfaction and profitability. This project involved conducting a large number of in-depth interviews and some group discussions with a cross-section of the organisation’s staff over a number of years. The key outcomes were significant improvements to employee engagement, coupled with significant improvements in customer satisfaction.

Pharmaceutical product research: The organisation conducted in-depth interviews with a large sample of Australian psychiatrists in order to gain a greater understanding of their reactions, and likely future prescribing behaviour, regarding a new treatment for depression.

Experimental design: We constructed and implemented an experimental design to determine what effects the presence of music in bank branches had on customer attitudes and behaviour. This project involved comparing a control group of bank branches with an experimental group using a before-and-after design. Both qualitative and quantitative approaches were used to collect the relevant data. The researchers found that not only did the presence of music have a number of positive effects on customers, surprisingly, the majority of customers did not appear to be consciously aware of the presence of the music.

Researching gender imbalance: The organisation examined the drivers and effects of a major imbalance of gender diversity in one of Australia’s largest organisations. This involved conducting in-depth interviews at all levels within the organisation, along with ongoing feedback and decision sessions with senior management. The objective was to implement strategies that would overcome both the gender imbalance and the various negative attitudes that had contributed to the situation.

Observational research: We conducted a large-scale observational study designed to ascertain the incidence of handwashing (after contact with patients) in one of Australia’s largest hospitals. The project was commissioned by a pharmaceutical organisation interested in marketing more effective handwashing systems to hospitals. This study clearly demonstrated a relatively low incidence of handwashing after patient contact amongst many medical staff, and especially doctors. More recent research publicised during 2017 arrived at very similar conclusions.

Decision-making and segmentation research: During a large-scale project, the organisation implemented both qualitative and quantitative techniques designed to develop decision models (using multivariate modelling techniques) of how consumers make decisions when selecting a banking provider. In addition, this project generated a segmentation of the marketplace that provided information on the characteristics of the key groups of consumers from the perspective of their decision-making approaches. Overall, the client received insight about the most effective strategies to use when developing advertising and other marketing campaigns to effectively promote their brand.

Charitable research: We wanted to understand the impact of a savings and support program provided by a large banking organisation in conjunction with a major Australian charity. Our organisation undertook a project aimed at understanding the reactions that a very low-income group of people had to a savings program that provided a donation of $1,000 to people who could demonstrate they were able to save for an educational cause. The aim was to identify the drivers of successful outcomes for those who were able to save the goal amount, and thus achieve the donation. The project involved in-home interviews with members of this low-income group to understand their approaches to achieving their saving goals. The project resulted in the bank and charitable organisation developing a better understanding of how to maximise the positive outcomes of this program.

These projects represent only a small fraction of the types of projects that psychologists working in market research can become involved in. Other areas to consider are:

• A large amount of market research aims to gain an understanding of how consumers make their decisions regarding a very broad range of products and services including fast-moving consumer goods, various high-involvement products and services (e.g., vehicles), various electronic applications and services.
• Research is also conducted on behalf of advertising agencies aiming to help in the development of advertising and promotional campaigns.
• Most large government agencies also commission market research organisations to conduct research projects.

Career and income opportunities

While the proportion of Australian psychologists involved in market research is unlikely to be high, some of those who have embarked on a market research career have been very successful. Indeed, around 10 psychologists are currently the principals of their own market research companies and a substantial number of psychologists hold senior positions in large market research organisations.

The starting salary for a research consultant with psychological qualifications is between $70,000 and $90,000 (as suggested by recent salary surveys). However, as experience and skills increase, remuneration levels can be quite high, especially if the psychologist achieves a senior management role and/or equity in the organisation.

In conclusion, market research, either in organisations providing this service or organisations that use the services of market research consultancies, provides an interesting opportunity for psychologists to become involved in a stimulating and rewarding array of projects. Perhaps the most exciting part of working in the market research industry is that it provides psychologists with the opportunity to interact with large numbers of people from all walks of life and gain detailed insights into their decision-making processes.

The author can be contacted at [email protected]

Disclaimer: Published in InPsych on June 2017. The APS aims to ensure that information published in InPsych is current and accurate at the time of publication. Changes after publication may affect the accuracy of this information. Readers are responsible for ascertaining the currency and completeness of information they rely on, which is particularly important for government initiatives, legislation or best-practice principles which are open to amendment. The information provided in InPsych does not replace obtaining appropriate professional and/or legal advice.

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