Editor's note: Richard Snyder is president/CEO of The Research Spectrum, San Francisco.

In today's fiscal environment, selecting the right research vendor is more critical than ever. Because of the uncertain economy, there is even more pressure to reduce research budgets, as well as internal research staff resources. More and more, non-research professionals, e.g., brand managers and engineers, must select research vendors because there are no, or limited, in-house research personnel. The result has been an increased dependence on external marketing research vendors. Since this increased reliance on outside vendors is likely to continue, the following guidelines are offered to assist in the selection process:

  • Determine your requirements. Prior to contacting potential vendors, it is worth the time and effort to assess your requirements. For example, are you merely looking for a vendor to supply the data collection or do you need a firm that can assist you in designing the project, writing the survey instrument, executing the data collection, analyzing the results and recommending a course of action?

Research firms can usually be classified into three broad categories: field services, consultants, and full-service.

Field services traditionally offer only data collection. They do not assist with study design, questionnaire development, tabulation or analysis. However, if your project does not require assistance with design and/or analysis, field services tend to be the most economical choice.

Consultants usually offer project design and analytical services, but normally have to subcontract the data collection and tabulation portions of the project. Although the cost for a consultant is generally more than a field service, in many cases it is less than a full service firm.

Full-service firms combine design and analytical services with data collection and tabulation. These firms provide more services and can exert more control over the execution of the project. However, they tend to be somewhat more expensive than field services or consultants.

If there is any doubt at all about your internal resources and capabilities to tabulate and analyze the data to be collected, look for a firm that offers more than data collection. All to often, companies fall into the "do-it-yourself" trap in an attempt to save money, only to find that they are ill-equipped to derive anything meaningful from the data collected.

  • Assess the areas of expertise of the potential firms. Some research vendors have a particular area of specialization. There are firms that specialize in advertising or customer satisfaction research, while there are others who are devoted to a particular technique (e.g., conjoint analysis or market segmentation) or data collection method (e.g., mall intercepts, mail surveys, Web surveys, etc.).

Beware of firms that are committed to a particular technique and/or data collection method, as they are more likely to "force" your research project into their particular model, rather than tailor the research to fit the specific needs of your project.

  • Consider the size of the firms in your decision. The size of the vendor is an extremely important decision criterion. It is important not to overwhelm a small firm with an enormous project, and, conversely, a small project may not get the proper attention at a large firm.

The general rule is to favor the smallest firm consistent with the scope of the project. However, any project that is 30 percent or more of a vendor's annual revenues may be too large for them to handle effectively. It is also important to bear in mind the eventual scope of the project. If there is some likelihood of a small inquiry expanding later on, it may be better to retain a larger vendor.

  • Establish, up front, the individual who will be managing your project. You should determine, in advance, who would be responsible for the day-to-day management of your project, i.e., will it be the person who "sold" the project or a project director hundreds of miles away. If your contact becomes unavailable, will competent support staff be available?
  • Become acquainted with the backgrounds of the potential vendors. There are some general questions that every potential vendor should be asked to determine the stability of the company and their qualifications to complete the project in a satisfactory manner. These questions would include:

    - How long has the vendor been in business?

    - For what other companies has the vendor conducted research projects? Remember it is imperative to request references and check them for each firm.

    - What are the academic backgrounds and experience of those persons who will be working on your project, i.e., the project director, field director, data processing manager, etc.? Does the composition of the project team strike the right balance between top-level management and technical researchers and analysts?

    - Does the success of the project depend on the capabilities of a subcontractor? If your vendor will be subcontracting any elements of your project, be sure that the subcontractor and their qualifications are identified.

  • Review the quality control standards of each potential vendor. The reliability of the results of any research project is dependent on the quality control measures practiced by the vendor. For example, on telephone studies, what are the procedures with respect to callbacks, monitoring and validation? It is prudent to avoid firms who do not practice generally accepted practices in their operations.
  • Factor the reputations of the firms into your decision. Reputation is important, but you shouldn't pay a premium for it. However, there may be situations that require the services of a prestigious research firm because you plan to publicize the results, or use them as selling "ammunition," so having the best reputation available may actually be a good investment.
  • Avoid letting price be the sole determining factor in your selection. When reviewing proposals, price should be the last item to be considered.

The margin for error in selecting research vendors has never been tighter, while the need to rely outside vendors is at an all-time high. Following the above guidelines can reduce the decision-making risk and thereby maximize the value of your research efforts.