Common Mistakes Businesses Make with Market Research (and How to Avoid Them)
After working with hundreds of businesses across the GCC, we've seen the same market research mistakes happen over and over again. The frustrating part? Most of these mistakes are completely avoidable, yet they cost companies thousands of dirhams and months of wasted effort. Let's see what these market research mistakes are and how you can avoid them.
Mistake #1. The "We Know Our Customers" Trap
Business owners think they know exactly what their customers want because they've been in the industry for years. We've watched established companies launch products that completely flopped because they never bothered to actually ask their customers what they needed.
A classic example: A Dubai-based furniture company assumed their customers wanted more modern designs. They spent a fortune redesigning their showroom and inventory, only to discover through proper research (after the fact) that their customers actually valued durability and affordability over trendy looks.
How to avoid it: Never assume. Always validate your assumptions with real data, even if you think you know the answer.
Mistake #2. Asking the Wrong Questions
When businesses do conduct research, they often ask leading questions that basically guarantee the answers they want to hear. Questions like "Don't you think our new product is amazing?" or "How much do you love our customer service?" are useless.
We've seen market research companies waste months on research that told them nothing because their questions were biased. A market research agency worth its value will always design neutral questions that uncover real insights, not just confirm existing beliefs.
Better approach:
- Ask open-ended questions first
- Use neutral language
- Let customers explain their problems in their own words
- Ask "why" multiple times to dig deeper
Mistake #3. Surveying the Wrong People
Companies survey their existing customers and think they understand the entire market. But what about the people who chose your competitors? What about those who haven't bought anything in your category yet?
Take a restaurant chain, for example, that kept surveying their loyal customers and getting great feedback. Meanwhile, their sales were dropping because they never talked to the people who stopped coming or never tried them in the first place.
The Sample Size Problem
Some businesses think talking to 10-20 people gives them solid insights about their entire market. Others go overboard and survey thousands when a few hundred would do just fine.
Right sizing your research:
- For basic insights: 100-300 responses usually work
- For detailed segmentation: 500-1000 responses
- For niche markets: Even 50-100 can be valuable
- Focus on quality over quantity
Mistake #4. Ignoring Cultural Nuances in the GCC
The GCC has people from over 200 nationalities, and what works for Emiratis might not work for Indian expats or Western professionals. Yet many companies treat the entire market as one homogeneous group.
A market research agency that understands the local market will always account for these cultural differences. We've seen global brands fail in the GCC because they copied research findings from other markets without considering local preferences.
Not Acting on the Research
Here's a painful one - companies spend good money on research, get valuable insights, then do absolutely nothing with the findings. The research report sits in someone's email folder while business continues as usual.
Mistake #5. Making Research Too Complicated
Some businesses think market research needs to be super complex with fancy statistical models and hundred-page reports. Most of the time, simple research done well beats complicated research done poorly.
The Timing Mistake
Many companies do research after they've already made major decisions. Research should inform your strategy, not validate decisions you've already committed to.
Market research doesn't have to be perfect, but it needs to be actionable. The best market research gives you clear direction on what to do next. Whether you work with a market research agency or do it in-house, focus on getting reliable insights that actually help you make better business decisions.
Remember, good research saves you from expensive mistakes and helps you spot opportunities your competitors miss.