What Do You Spend on Market Research?
Some CEOs take time on market research (see "On-the-Road Research," No. 07921151, July 1992), but many more spend just a few months gathering information before launching a product. Most CEOs we surveyed spend $5,000 or less on it; they listen to customers and colleagues before consultants.* * *
Time spent on market research before launching most recent new product or service: One month to six months, 49%; less than one month, 24%; seven to 12 months, 14%; more than one year, 13%
Out-of-pocket money spent on market research: Less than $1,000, 36%; $1,000 to $5,000, 32%; $6,000 to $10,000, 17%; $11,000 to $25,000, 5%; more than $25,000, 10%.
Source: Survey of 173 CEOs, 57% from companies with sales of $10 million or less, by Inc. and The Executive Committee, San Diego, 1992.