Procurement – Virtual Fuzion

Los Angeles, CA (PRWEB) January 22, 2015

Focus group research services have a buyer power score of 3.9 out of 5, reflecting a buyer’s moderate to strong ability to negotiate lower prices due to this market’s large number of suppliers and competitive nature. IBISWorld estimates that there are more than 36,000 vendors of focus group research services, which provides buyers with a substantial number of suppliers from which to choose. Of these, Nielsen Holdings and the Kantar Group are the two largest players. However, recent demand growth has slightly reduced buyer negotiation power.

In the three years to 2014, the average price for focus group research services has been growing slightly as the economy has improved from recessionary lows. “Price growth has been the result of increased demand from rising consumer spending, which has resulted in increased corporate profit, research and development (R&D) expenditure and total advertising expenditure, which all took a hit during the recession,” according to IBISWorld business research analyst Jordan Weinstein. As these factors continue to rise during the next three years, businesses will invest in consumer research again, boosting demand and prices for focus group research services.

Price aside, buyer power remains significant due to low market concentration and a high level of competition among suppliers. “Low concentration ensures buyers have a wide variety of capable suppliers from which to choose no matter the service’s level of specialization, forcing suppliers to lower prices to compete for business,” Weinstein says. However, specialization and complexity greatly affects buyer power; buyers in need of highly complex and specialized research solutions have far less buyer power than those that conduct more standardized research. For more information, visit IBISWorld’s Focus Group Research Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of focus group research services make informed purchasing decisions. Focus group research service providers engage in qualitative research from a diverse set of individuals and gather information on opinions and attitudes about a product. This market focuses on face-to-face market research and testing, as well as market research by phone and mail. Focus groups are often used to determine the viability of bringing a new product to market as well as improvements for current products. This report does not include internet-based market research.

Executive Summary

Pricing Environment

Price Fundamentals

Benchmark Price

Pricing Model

Price Drivers

Recent Price Trend

Price Forecast

Product Characteristics

Product Life Cycle

Total Cost of Ownership

Product Specialization

Substitute Goods

Regulation

Quality Control

Supply Chain & Vendors

Supply Chain Dynamics

Supply Chain Risk

Imports

Competitive Environment

Market Share Concentration

Market Profitability

Switching Costs

Purchasing Process

Buying Basics

Buying Lead Time

Selection Process

Key RFP Elements

Negotiation Questions

Buyer Power Factors

Key Statistics

About IBISWorld Inc.

IBISWorld is one of the world’s leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Los Angeles, CA (PRWEB) November 02, 2014

Landscape architecture and design services have a buyer power score of 2.4 out of 5. This score reflects moderately poor negotiation conditions for buyers resulting from high demand, a low availability of substitutes and high product specialization within the market. Demand for landscape architecture and design services dropped during the recession, but it has been rising steadily during the three years to 2014, driving up prices for buyers. As demand is restored, buyers continue to lose negotiating power, even though prices are still below prerecession levels. Landscape architecture and design services provide buyers with customized solutions that untrained suppliers cannot easily produce. This limits the number of suppliers capable of offering the service, which, in turn, limits the number of vendors that buyers have to choose from and the extent to which supply can keep pace with demand. “Consequently, buyers are facing suppliers with limited incentive to negotiate or maintain lower prices,” according to IBISWorld business research analyst Daniel Krohn.

Buyer leverage is projected to continue to shrink during the next three years as demand drivers such as business growth, the value of residential construction and government funding for universities rise and apply additional upward pressure on demand. Rising demand will offset competitor growth forecast for the next three years and further limit the amount of suppliers available to the buyer. “Buyer power is, consequently, projected to continue to be strained,” says Krohn.

Nonetheless, buyers maintain some leverage in the market thanks to low market concentration. Low market concentration increases the viability of top-tier suppliers and keeps barriers to entry in the market at bay. The landscape architecture and design market has, as a result, remained somewhat competitive despite recent surges in demand.

The complexity and size of the buyer’s project will impact the amount of negotiating power it has. Buyers with larger, more complex facilities will be better able to attract both large and small service providers, increasing the number of suppliers available to them, the value that suppliers are likely to put on their business and their buyer power. Major vendors include Hammel, Green & Abrahamson Inc., AECOM and Belt Collins. For more information, visit IBISWorld’s Landscape Architecture & Design Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of landscape architecture and design services. Landscape architecture and design service suppliers prepare drawings and specifications for the development of land areas. They use their in-depth knowledge of grading, drainage and horticultural and structural spacing to plan and create useful, attractive arrangements of natural and constructed elements that conform to governing codes and regulations. This report excludes landscape construction services and maintenance services like installing and caring for trees, lawns and gardens.