Virtual Reality & Market Research

Market research is often used by companies during the development phase of highly design-oriented products to understand whether the concepts being defined can gain favor in the target market. Many sectors rely on market research methodologies. Concepts for cars, vans, motorcycles, and trains, as well as detailed components such as dashboards, fabrics, headlights, and front grilles, are tested. These are products where design elements such as shapes, volumes, finishes, and colors are factors on which the company asks selected samples of customers (representing the target market) to express their opinions. Market research is used to determine whether the design is appealing or not, in order to make strategic decisions for the development of the product.

In the automotive sector, these tests are oftenly referred to as known as Clinic Design Tests and involve setting up specifically designed areas to facilitate a neutral and objective evaluation of the concepts being developed, in direct comparison with existing models on the market. These tests can easily cost tens of thousands of Euros due to factors such as location, setup, lighting, security operations, and all the necessary logistics.

Market research has a long-standing traditional context. For several years, physical prototypes made of wood or clay, finished externally like actual products on the market, have been tested. Alternatively, when testing is done in the early stages of development, designs, sketches, and projects presented on screens or paper are used. Over the past few decades, almost all companies have increased their use of CAD software, which has become a key tool in designing and developing new products. It’s easier to make accurate virtual representations of things now because of the availability of design files and a general increase in digital literacy.. This has paved the way for the use of Virtual Reality. Some companies, such as Toyota, Audi, and Bentley, have been experimenting with VR for the early stages of design for quite some time.

The greater ease of integrating VR into digital and corporate processes compared to the past has made VR an operational and concrete tool for supporting marketing knowledge and market research processes.

Virtual Reality (VR) offers numerous strengths and advantages when applied to market research. Here are some key benefits:

• Enhanced immersion:

VR creates a highly immersive environment that allows participants to engage with products or concepts in a realistic and interactive way. This heightened level of immersion can elicit more authentic and insightful responses, providing a deeper understanding of consumer preferences and behaviors.

• Contextualization of data:

By simulating real-world scenarios, VR enables researchers to collect data within a contextually relevant setting. This contextualization enhances the accuracy and reliability of the information obtained, as participants can evaluate products or experiences in a more natural and meaningful context.

• Controlled and standardized stimuli:

VR allows for precise control over stimuli, ensuring consistency across research participants. Researchers can manipulate variables such as product features, environments, or branding elements, providing a standardized experience for all participants. This control minimizes potential biases and enables accurate comparisons between different stimuli.

• Flexibility in research design:

VR offers flexibility in research design by allowing researchers to create customizable and adaptive experiences. Researchers can tailor the VR environment and tasks based on specific research objectives, accommodating diverse study designs and methodologies.

• Cost and time efficiency:

VR can offer cost and time savings compared to traditional research methods. It eliminates the need for physical prototypes or in-person testing, reducing production costs and logistical complexities. Additionally, data collection and analysis processes can be streamlined, enabling faster insights and decision-making.

• Access to remote participants:

VR enables remote participation in research studies, eliminating geographical constraints. Researchers can reach a broader and more diverse pool of participants without requiring them to be physically present, expanding the potential sample size and improving the representativeness of the data.

• Longitudinal and iterative research:

VR facilitates longitudinal studies and iterative research by capturing participants’ responses and behaviors over time. Researchers can track changes in preferences, perceptions, or usage patterns across multiple sessions, providing valuable insights into consumer dynamics and market trends.

The advantages derived from multimedia, active and passive sensors, and device connectivity (IoT) allow VR to interface with a range of tools that now cover many, if not all, the research methodologies required by market research. VR technologies, in terms of hardware and software, are becoming increasingly accessible, as are the skills required to develop applications. From a methodological perspective, using VR is effective for both quantitative and qualitative research.

In the case of quantitative interviews, we are able to allow the person to independently manage the questionnaire within the headset, thus being able to answer on their own using visual pointing (pointer controlled by gaze) or a manual controller. It is also possible to use an assisted mode, where the interviewee can “dictate” their answers to an interviewer, who can ask questions in perfect synchrony with what the interviewee is seeing in the headset. This allows for perfect contextualization of the information gathered from the research. In this case, interaction simply occurs verbally. The options are virtually limitless. VR greatly expands the field of possibilities.

Based on the experiences currently developed in market research, we find that VR not only effectively engages the interviewee but also allows for full control of the experience by the interviewer/research supervisor. The perfect synchronization between question and answer is one of the major achievements in market research and is far from guaranteed. One of the major concerns when using VR is the potential loss of control over the flow, which includes what the person is doing during their experience, at what point of the experience they are, and how they are responding. The quality of the experience and, consequently, the reliability of the research depend on these variables.

Providing a systematic overview of the adoption of VR in market research is highly complex. One evident aspect is that we are currently in an early adopter phase of the technology. The use of VR techniques for market research is still sporadic, even in contexts where this technology is already known. We have observed several manufacturing companies employing VR for internal processes, such as design creation and marketing/communication initiatives, but not for market research purposes.

Another variable to consider is understanding who actually develops these experiences and whether there is an adequate context of cross-disciplinary expertise. For instance, some companies overcome privacy concerns by setting up VR for market research using internal competencies within the department where designers operate (usually the New Product Development department). Other companies involve internal teams of software developers and engineers. In both scenarios, company specialists skilled in utilizing 3D/CAD digital techniques are involved.

Some companies further utilize internal VR processes not only to support designers but also to conduct micro internal research during sharing idea sessions. In short, there is a great variety, and digital tools are proving effective in integrating multiple processes, significantly enhancing their efficiency. It is a clear transitional phase where, as mentioned earlier, there are hybridizations between traditional solutions and immersive 3D technologies. A noteworthy example is the use of VR in actual market research moments, combining this technique with physical prototype testing. The objective is to leverage the strengths of both methods, benefiting from the added value that VR provides in terms of visualizing alternatives based on the physical product.

The most important aspect, regarding the widespread adoption of VR in market research, is not to view it as an alternative reality at all costs, but rather to recognize it as a tool capable of integrating at various levels to address specific needs.

The adoption of VR in market research is still in its early stages, with sporadic usage observed even in contexts where the technology is known. Companies in various industries are utilizing VR for internal processes, design creation, and marketing initiatives, but its application in market research remains limited.

One crucial consideration is the identification of expertise and interdisciplinary skills required to develop VR experiences. Some companies rely on internal competencies within departments like New Product Development, while others involve dedicated teams of software developers and engineers. The integration of 3D/CAD digital techniques plays a significant role in these processes.

Additionally, some companies are using VR internally for micro-research and idea sharing sessions, enhancing the effectiveness of their operations. This demonstrates the digital tool’s capacity to integrate multiple processes and improve overall efficiency. Hybridizations between traditional solutions and immersive 3D technologies are also observed, such as combining VR with physical prototype testing to leverage the strengths of both methods.

To foster the widespread adoption of VR in market research, it is essential to view it not as an alternative reality but as a tool capable of integrating at various levels to address specific needs. Recognizing the potential of VR to enhance visualization, provide context, and facilitate data collection can lead to more innovative and effective research practices.

Overall, while the current usage of VR in market research is still limited, its potential is vast. As the technology becomes more accessible and expertise continues to grow, we can expect VR to play a more significant role in market research methodologies, enabling new possibilities for immersive and insightful data collection.