A database is an organized collection of data that is typically organized to model relevant aspects of reality (for example, the availability of rooms in hotels) in a way that supports the processes that require this information (for example, finding a hotel with vacancies). In market research, a database contains information that is collected, aggregated, and used to define segments of homogeneous consumers.
Consumer Databases in Market Research
Researchers keep consumer databases up-to-date with as much available data as possible regarding consumer behavior and product consumption. This customer information oftentimes includes, but is not limited to, a variety of data, including name and address, history of shopping and purchases, demographics, and brand and product consumption. When companies want to conduct consumer market research, they call on these research facilities to request consumers who fit a specific demographic and behavioral profile so that these prospective respondents can then be contacted to participate in research studies.
Companies may also acquire prospect data directly through the use of sweepstakes, contests, online registrations, and other lead generation activities.
Database Research
Database research provides the raw data that has already been contributed by the purchaser when they complete brief surveys that ask for their contact and demographic information during or after a product purchase . Marketers can use database research to identify common buying patterns among consumers. Lists that can be found in existing databases include: credit card holders, smokers, drinkers, car buyers, video buyers.
Customers asked for information at counter
Retail outlets such as pharmacies can request customer's contact information at check-out for specific products as a way to help build a consumer database.
Database research is considered an extremely helpful tool in market segmentation research. For example, from zip code lists, marketers may determine where the wealthy consumers live in a city. That list can be merged with a list of moms of children 0-5 years old. The resulting list can be merged with another list of women who are Hispanic and African American to further target this niche demographic. The final list will deliver a potential market for a new baby product to be introduced and profiled in Hispanic and African American women's magazines. The people on the potential buyers' list could then be mailed an invitation to come test this new baby product.