Shrinking Budgets and Falling Response Rates

Sound familiar? The latest State of the Market Research Industry study from RSM finds more UK research professionals reporting decreased budgets (26%) than increased budgets (20%) in the last six months. The study also highlights concerns about falling response rates and a lack of business focus.

The study, based on an online survey of 259 research suppliers and 40 clients, indicates that research budgets grew less in the last six months than in the previous six- month period - the first reduction in two years. Only 20% of researchers reported increased budgets in the last six months, compared with 33% in the previous six months.

Expectations for the next six months' budgets have also fallen - to the levels expressed 18-24 months ago. Only one in six researchers expect budgets to increase over the next six months, compared with one in three in the previous wave of the survey.





Despite the lack of confidence in budgets, respondents expect research activity to increase across most types of research and most industry sectors. 60% predict an increase in research in the Media sector, compared with just 33% for IT/telecoms. A third of those who expressed an opinion predict reduced research in the Automotive sector, while only 8% predict decreased research in Finance and 9% in the FMCG sector.

There is widespread concern about declining response rates. In the last wave of the study, 58% agreed that 'response rates in consumer research are in serious decline' (only 17% disagreed). In this wave, 32% say the same about B2B rates. However, researchers do not yet feel it is time to pay business respondents: half (52%) disagree that 'it is time to start paying all business respondents for surveys, even quantitative ones', while only 36% agree.





Clients tend to believe research would benefit from more commercial focus: 35% agree (20% disagree) that 'research recommendations are not commercially focused due to a shortage of business educated researchers', but often clients themselves do not help. 45% of all respondents agree (28% disagree) that 'research findings err on the side of caution as researchers are not encouraged to be bold by client boardrooms'.

The figures come from a self-completed online survey, which took place in April and May 2005. The sample list was drawn from RSM's database. Respondents were invited to take part by email (with one reminder sent), and were offered a charity donation for completion. Respondents had spent an average of 11 years in MR. The previous wave of the study was based on the responses of 260 suppliers and 46 clients.

RSM is online at www.rsm1.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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