How organizations create value from their use of outsourced market research information

Abstract

Purpose: The creation of value from the use of market research (MR) information is a phenomenon that has received some attention. While existing literature relates to the outcomes arising from the use of MR information, the organisation’s processes of using such information is only partially explained by organizational learning and knowledge process literature. This paper proposes a conceptualization and empirical investigation of how organizations create value from their use of MR information. Framework: We draw from a review of organisational learning and knowledge process literature to propose an initial seven-stage process of MR information use. Value emerges from the individuals’ use of MR information as a net improvement in an organization’s situation and occurs at each stage of the use process, starting from the integration of MR information with other “big data” information from different sources (internal and external) to the application of customer insight in marketing decisions. Design/methodology/approach: Observations from exploratory interviews in three UK based organizations provide initial support for the proposed framework. Further research involves a quasi-ethnographic inquiry assessing the perceived value emerging at each step of the usage process among individuals in organizations. Findings: Initial results suggest that users aggregate in groups to apply insights generated into shorter-term (instrumental) or longer-term (conceptual) use, and claim that others in their organisation apply MR information for symbolic purposes, including power-seeking and legitimising. These results also suggest that a MR supplier’s engagement is not complete until customer organizations have exhausted all knowledge possibilities from MR information supplied. Research limitations/implications: The study takes a processual approach in understanding how users engage in groups during the use of MR information and how perceived value evolves throughout the process and across individuals. This understanding helps MR suppliers bolster their relationship with their customer organizations by harnessing group dynamics involved in organizations’ use of MR information, addressing better client organization decision support needs.