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The outbreak of COVID‐19 pandemic and its impact on stock market volatility: Evidence from a worst‐affected economy

Debakshi bora.

1 Department of Economics, Assam Women's University, Jorhat India

Daisy Basistha

2 Department of Economics, Bihpuria College, Lakhimpur India

Associated Data

The data set is available on request.

This paper empirically investigates the impact of COVID‐19 on the volatility of stock prices in India with the help of a generalized autoregressive conditional heteroscedasticity model. Daily closing prices of stock indices, Nifty and Sensex from September 3, 2019 to July 10, 2020 has been used for the analysis. Further, the study has been attempted to make a comparison of stock price return in pre‐COVID‐19 and during COVID‐19 situation. Findings reveal that the stock market in India has experienced volatility during the pandemic period. While comparing the result during COVID period with that of the pre‐COVID, we found that the return on the indices is higher in the pre‐COVID‐19 period than during COVID‐19.

1. INTRODUCTION

The rapid spread of the unprecedented COVID‐19 pandemic has put the world in jeopardy and changed the global outlook unexpectedly. Initially, the SARS‐CoV‐2 virus, which caused the COVID‐19 outbreak triggered in Wuhan city, Hubei province of China in December 2019, and with time it spread all over the globe. This pandemic is not only a global health emergency but also a significant global economic downturn too. As many countries adopt strict quarantine policies to fight the unseen pandemic, their economic activities are suddenly shut down. Transports being limited and even restricted among countries have slowed down global economic activities. Most importantly, consumers and firms have prevented their usual consumption patterns due to the creation of panic among them and created market abnormality. Uncertainty and risk created due to this pandemic, causing significant economic impact all over the globe affecting both advanced and emerging economies such as the United States, Spain, Italy, Brazil, and India. In this context, the financial market has responded with dramatic movement and adversely affected. Economic turmoil associated with COVID‐19 has affected the financial market severely which includes both stock and bond markets. Due to this pandemic, there is a large fall in the price of oil and a large increase in the price of gold. Firzli ( 2020 ), refers to this pandemic as “the greater financial crisis.” In many countries, businesses are highly indebted, weak companies are further destabilized, and corporate debt stands at a very high level. The global financial market risk has increased substantially in response to the pandemic (Zhang et al.,  2020 ). Investors are suffering sufficient losses due to fear and uncertainty. For example, due to the impact of this pandemic, the global stock market has struck out about US$6 trillion in 1 week from 24 to 28 February (Ozili & Arun,  2020 ). The market value of standard & poor (S&P) 500 indexes declined to 30% since the COVID‐19 outbreak. According to Azimili ( 2020 ) increased uncertainty affects the required rate of return and thus the current market value of stocks.

Although there is limited current literature related to the impact of COVID‐19 on the financial market, the existing empirical studies have provided an exciting result. Baret et al. ( 2020 ), in their research on financial markets and banks, have found that there is a fall in the share of oil, equity, and bonds throughout the world as a result of the COVID‐19 pandemic. Social distancing measures adversely affected the productivity of the companies and brought about a decrease in revenue, higher operating cost, and also cash flow challenges to the companies. In Europe, the Financial Times Stock Exchange 100 index witnessed a sharp 1‐day fall since 1987 (BBC News, 2020). Igwe ( 2020 ) is of the view that the shock from this pandemic can increase the volatility that can negatively affect the economic and financial system of every country. Most of the developed and developing countries' financial markets are adversely affected by this unexpected pandemic. The leading economy of the world, the US stock market hit the circuit breaker mechanism four times in 10 days in March 2020 (Zhang et al.,  2020 ). The stock market of Europe and Asia has also jumped. United Kingdom's leading index FTSE has fallen more than 10% on March 12, 2020 (Zhang et al.,  2020 ). Vishnoi and Mookerjee ( 2020 ) observed that the stock market in Japan had dropped more than 20% in December 2019. The stock market of Spain, Hong Kong, and China also declined to 25.1, 14.75, and 12.1% in their price from March 8, 2020 to March 18, 2020 (Shehzad et al.,  2020 ). In his study, also found a harmful impact of the COVID‐19 on stock returns of the S&P 500 and an inconsequential impact on the Nasdaq composite index. Georgieva ( 2020 ) pointed out that the COVID‐19 pandemic brought the entire globe near to financial crises more hazardous than Global Crises 2007–2008.

Gradually the worst effect of the pandemic spread to the emerging economy too. If we consider the financial market of the emerging economy a gloomy picture caught our eyes as this economy is worst‐hit by the collapse of oil prices. The outbreak of the COVID‐19 pandemic makes this picture more critical. The top leading emerging economies such as Brazil, Russia, and Mexico gradually moved toward hard mobility restrictions that will bring down the emerging economies to a recession of 1% in 2020 (Herfero, ). In South Korea, the Coronavirus disease caused KOSPI to drop below 1,600 in their history after 10 years (So,  2020 ). In China, higher uncertainty due to COVID‐19 results in greater volatility of stock return (Leduc & Liu,  2020 ). The government of India announced Janata Curfew on March 22, 2020 and lockdown policy to maintain social distancing practice to slow down the outbreaks from March 24, 2020. As the government announced such a lockdown policy, various economic activities have been stopped suddenly. The financial market of India is witnessed sharp volatility as a result of the disruption of the global market (Raja Ram,  2020 ). As a result of the fall out in the global financial market, the Indian stock market also witnesses sharp volatility. It has also borne the brunt of the COVID‐19 pandemic.

There are two major stock indices in India—Bombay Stock Exchange (BSE), Sensex, and National Stock Exchange (NSE), Nifty. If we look at the Bombay Stock Exchange there is a drop in the Sensex index to 13.2% on March 23, 2020. It was the highest single they fall after the news of the Harshad Mehta Scam, April 28, 1991 (Mandal,  2020 ). Similarly, Nifty has also declined to almost 29% during this period. Some economists have considered the impact of COVID‐19 on the Indian stock market as a “black swan event,” that is, the occurrence of a highly unanticipated event with an extremely bad impact. Due to the lockdown policy adopted by the government, the factories have reduced the size of their labor force as well as production level which disrupted the supply chain. Again, because of the uncertainty prevailing among mankind, people also reduce their consumption habits leading to demand‐side shock. Studies have also found that the entire previous pandemic had affected only the demand chain. But this COVID‐19 pandemic has affected both the demand chain and supply chain.

Despite the several literatures on the impact of COVID‐19 on the stock market of the entire economy, there is limited study on it especially in the case of an emerging economy. To shed light on this aspect, this paper attempts to investigate the impact of COVID‐19 on the two important stock market of India. Glosten–Jagannathan–Runkle (GJR) generalized autoregressive conditional heteroscedasticity (GJR GARCH) model is used to make the study more significant in terms of volatility in stock index prices due to the outbreak of the pandemic and lockdown policy adopted by the Indian Government. Major findings of the study reveal the volatile nature of BSE Sensex and NSE Nifty, the two prominent stock market of India.

This paper is organized as follows. Section  1 starts with an introduction, Section  2 represents a literature review, Section  3 describes the sources of data and methodology, Section  4 shows results and discussion, and Section  5 ends with the conclusion.

2. LITERATURE REVIEW

The impact of COVID‐19 on the financial market as well as the stock market has been subject to many empirical studies both in advanced and emerging economies. Existing literature found diverse results in these regards. Ozili and Arun ( 2020 ) have conducted an empirical study on the effect of social distancing policy that was adopted to prevent the spread of the Coronavirus, based on four continents: North America, Africa, Asia, and Europe. The study found that 30 days of social distancing policy or lockdown hurts the economy through its negative impact on stock prices. Azimili ( 2020 ), also researched on understanding the impact of coronavirus on the degree and structure of risk‐return dependence in the United States using quantile regression. The results indicate that following the COVID‐19 outbreak the degree of dependence between returns and market portfolio has raised in the higher quantiles that lowering the benefits of diversification. The author also studied the GSIC and stock return relationship and found that the GSIC return relationship revealed an asymmetric pattern, lower tails influenced negatively almost twice as compared to the upper tails. Shehzad et al. ( 2020 ) conducted a study to analyze the nonlinear behavior of the financial market of the United States, Italy, Japan, and China market return by applying the asymmetric power GARCH model. The study confirmed that COVID‐19 harm the stock returns of the S&P 500. However, it revealed an inconsequential impact on the Nasdaq composite index. An empirical study conducted by Cepoi ( 2020 ) on the relationship between COVID‐19 related news and stock market returns across the topmost affected countries. By employing a panel quantile regression this study found that the stock market presents asymmetry dependence on COVID‐19 related information. Osagie et al. ( 2020 ) by applying quadratic GARCH and exponential GARCH models with dummy variables found that the COVID‐19 hurts the stock returns in Nigeria and recommended that a stable political environment, incentive to indigenous companies, diversification of economy, and flexible exchange rate regime be implemented to improve the financial market. Baker (2020), in his study, found that there is a dramatic fall in oil prices by 70–80%. It is severe than the financial crisis of 2008/2009. This is a serious issue for the economy as the country is highly dependent on oil revenue. There is a huge gap between the depreciated exchange rate, that is, 20% and the fall in oil prices, that is, 70–80%. According to  Herrero (2020), the third wave of the COVID‐19 pandemic has hit the emerging economy worst resulting decrease in business activities. This unprecedented shock increases the risk‐averse nature which increases the financial cost. Latin America is affected worst because of its much dependency on external financing. Due to the restriction on transport, export has declined. Restriction in the international movement has hampered the tourism sector leading to a fall in revenue. Hyun‐Jung ( 2020 ) has made a study on the stock market of South Korea, another leading country of the emerging economies. In his analysis, it was found that the economy has shown a roller‐coaster ride. The monthly export shows a downtrend in January, improved in February, then again dipped down in March and June. The country's export volume has come down to 11.2% point in comparison to the previous year. Topcu and Gulal ( 2020 ) have made regional classification of the impact of COVID‐19 on the stock market of emerging economy. Their findings reveal that the impact of the outbreak has been the highest in Asian emerging markets whereas European emerging markets have experienced the lowest. The emerging market economies face a credit crunch, also referred to as capital flows (Ahmed et al.,  2020 ). Goldberg and Reed ( 2020 ) discussed the negative effect of COVID‐19 on the trade of emerging economy. Consequently, the interest rate on emerging market sovereign debt spiked. Frankel ( 2020 ) analyzed the economic effect of the pandemic on the emerging economy. COVID‐19 has reduced the revenue of those economies by restricting export, tourism receipts, and remittances of migrant workers. Raja Ram ( 2020 ) in his study has found that COVID‐19 crashes the entire global share. Indian stock market also experienced sharp volatility due to the collapse of the global financial market. Again fall in foreign portfolio investments also reduces the return of the Indian stock market. By analyzing the history of all unexpected events the author has considered COVID‐19 also a “black swan” event. He has further analyzed the history of the crash and recovery of the Indian stock market and concluded that the economist cannot predict the recovery of the economy until a stable public health system. Ravi ( 2020 ) has compared the pre‐COVID‐19 and during COVID‐19 situation of the Indian stock market. His findings revealed that before COVID‐19, that is, at the beginning of January, trade of NSE and BSE were at their highest levels hitting peaks of 12,362 and 42,273, respectively showing favorable stock market conditions. After the outbreak of the COVID‐19, the stock market came under fear as BSE Sensex and NSE Nifty fell by 38%. It leads to a 27.31% loss of the total stock market from the beginning of this year. The stock of some other sectors such as hospitality, tourism, and entertainment has been dropped by more than 40% due to transport restrictions. Mandal ( 2020 ) has rigorously analyzed the agony of the deadly pandemic on the Indian stock market. Findings reveal that BSE Sensex has witnessed the biggest single‐day fall of 13.2% that has surpassed the infamous fall of April 28, 1992. Nifty also has a steep dive of 29%, overtaking the disaster of 1992. As people have compressed their consumption only to necessary products only the FMCG Company has shown a positive return whereas other companies face a sharp decline (Rakshit & Basistha,  2020 ).

There is various literature available on the impact of COVID‐19 on different sectors such as health, agriculture, industry, trade, and commerce, but a limited specific study has been conducted on its impact on the stock market of the emerging economy. The stock market plays an important role in the economy. As India is one of the dominant parts of the emerging economy, this paper tries to interpret the impact of COVID‐19 on the Indian stock market. GJR GARCH is an efficient model to test the volatility of BSE and NSE, the two major stock market of India. Besides, there are very few literature that compares the return of the stock market before and during the COVID‐19 situation. Accordingly, our study has also made an attempt to compare the returns of both the stock market considering those two mentioned time frames.

3. DATA AND METHODOLOGY

The study is based on secondary sources of data. Data on daily closing prices of indices Nifty and Sensex have been collected from the official site of BSE and NSE (https://in.finance.yahoo.com/). Data are collected from September 3, 2019 to July 10, 2020 including both the period before and during COVID‐19. The time period from September 3, 2019 to January 29, 2020 is considered as before the COVID‐19 phase and January 30, 2020 to October 6, 2020 as during COVID‐19, that is, the first 5 months are taken as before COVID‐19 and the next 5 months as during COVID‐19 time frame for the study (https://www.statista.com/). The first positive case of India was found on January 30, 2020. Data on COVID‐19 positive cases are collected from the report of the Ministry of Health and Family Welfare, Government of India (https://www.mohfw.gov.in/). Hence, for this study, the period before this date is considered as the pre‐COVID‐19 era and the period after this date is considered as during the COVID‐19 era.

In this paper, the closing price of BSE and NSE has been considered for analyzing the volatility of the stock market. In the estimations, we take the natural logarithm of each price data to reduce the observed skewness in the stock price data distribution.

The return of both BSE and NSE has been also calculated to investigate the scenario of change in stock price return during pre‐COVID and the COVID period. To calculate the return, the following formula has been used (Osagie et al.,  2020 ):

Here, R t , P t , and P t  − 1 represent the day‐wise return, the closing price of the stock at time t , and the previous day's closing price at time t  − 1, respectively, while ln symbolizes the natural log.

To check whether a time series is stationary or nonstationary, augmented Dickey–Fuller (ADF) and Phillips and Perron (PP) unit root test have been used. We use the PP unit root test also to estimate the proper result because it does heteroscedasticity and autocorrelation consistency correction to ADF test statistics. To test heteroscedasticity errors PP test is preferred the most. The ADF test is based on the estimate of the following regression:

Here, ∆ represents first difference operator, p symbolized lag, α 0 represents constant, γ 1 and β i are parameters, and ℇ t denotes a stochastic error term. If γ  = 0, then the series is said that it is a unit root and nonstationary.

ADF test add lagged difference term of the regression to take care of possible serial correlation in the error term. On the other hand, PP use nonparametric serial correlation method to take care of serial correlation in the error term without adding lagged difference term (Gujrati, 2016). For this reason, PP test can be considered more advantageous than ADF test.

The PP test is based on the estimate of the following regression:

Here, α symbolizes constant, ρ represents parameter, and ℇ t denotes residual.

To analyze the effect of COVID‐19 on the stock market volatility GJR GARCH model is used. The GJR GARCH model developed by Glosten et al. ( 1993 ) and Zakoian (1994) is used to capture asymmetric in terms of negative and positive shocks in the financial decision. One of the limitations of the GARCH model is that this model imposes a symmetric volatility response to positive and negative shocks (Sakthivel et al., 2014). This is due to the reason that conditional variance in Equation  (4 ) is the magnitude of the lagged residuals and therefore does not account for their sign.

This asymmetric response of conditional volatility to information can be captured by including, along with the standard GARCH variables, squared values of ε t  − 1 when ε t  − 1 negative (Glosten et al.,  1993 ). The GJR GARCH model is estimated as follows:

where I t  − 1  = 1 if ℇ t  − 1 < 0; =0 otherwise.

γ is known as asymmetry or leverage term. If γ  > 0 represents asymmetry while γ  = 0 represents symmetry. The condition for nonnegativity would now be α 0  ≥ 0, α 1  ≥ 0, β 1  ≥ 0, and α 1  +  γ 1  ≥ 0. In the model, the good news ( ε t  − 1  > 0) and bad news ( ε t  − 1  < 0) have contrasting impacts on the conditional variance, good news has an effect of β 1 , while bad news has an effect of α 1  +  γ 1 . If γ 1  > 0, negative shocks tend to have more volatility and is known as the leverage effect of the ith order. If γ 1  = 0, the news effect is symmetric.

A dummy variable is introduced in the conditional mean and variance equation to investigate the impact of the COVID‐19 outbreak on the volatility of NSE and BSE. The model modified as per the GJR GARCH approach is specified as:

The dummy variable D 1 assumes the value 0 for the pre‐COVID‐19 era and 1 for the during COVID‐19 era. A negative and statistically significant coefficient for the dummy variable implies that the COVID‐19 pandemic caused a reduction in the volatility of the Indian stock market. A positive and statistically significant coefficient for the dummy variable implies that the COVID‐19 crisis has caused an increase in the volatility of the Indian stock market.

4. DISCUSSION AND ANALYSIS

This paper uses the daily price and return of two stock indices of India, BSE, and NSE. First and foremost, we calculate the descriptive statistics of the price and return of the BSE and NSE series. In Table  1 , the mean return which is a major indicator of profit shows a negative value, indicating a loss in stock. Negatively skewed return with higher kurtosis value indicates chances of high losses in both the stock markets. Likewise, the return of pre‐COVID‐19 and during COVID‐19 is presented in Table  2 . As India reported the first case of COVID‐19 on January 30, 2020, before this period is considered to be as the pre‐COVID‐19 era and the period after January 30, 2020 is considered as the during COVID‐19 period for the study. In Table  2 , it is observed that the mean return of both the indices is positive in the pre‐COVID‐19 era but daily mean returns are negative during the COVID‐19 era, implying an adverse impact on stock returns. The SD of the indices has increased during the COVID‐19 era which implies that the volatility of the indices has increased during the COVID‐19 time frame.

Descriptive statistics of the entire sample

Abbreviations: BSE, Bombay Stock Exchange; NSE, National Stock Exchange.

Descriptive statistics of stock return of pre‐COVID‐19 and during COVID‐19 period

Figures  1 and ​ and2 2 represent the time plot of BSE and NSE stock prices respectively over the examined period. Before February 2020 (pre‐COVID‐19 period) the prices of both the indices are positive and show almost a smooth line in the figure. But after reporting the first case in India as well as the declaration of the first lockdown, it moves down to the bottom of the steep at the end of March 2020. From April 2020, it again shows a positive trend. This is because relaxation has been adopted in the case of a lockdown policy from April by the government.

Time plot of Bombay Stock Exchange (BSE) stock price

Time plot of National Stock Exchange (NSE) stock price

Figures  3 and ​ and4 4 present the log return of BSE and NSE from the period September 3, 2019 to July 10, 2020 and evidence of volatility is shown with the help of these two diagrams. The result depicts that BSE is more volatile than NSE. As we all know that BSE is the largest stock exchange in India, a huge number of investors from different parts of the world make investment in this market. So in terms of volatility BSE is more sensitive in comparison to NSE.

Log return of Bombay Stock Exchange (BSE)

Log return of National Stock Exchange (NSE)

To check the stationarity of two indices, BSE and NSE, we perform ADF and PP stationarity tests. The result presented in Table  3 revealed that most of the log indices are nonstationary in level form, hence the null hypothesis is accepted. Although, log indices have been found stationary in the first difference in both ADF and PP tests. Consequently, the indices are found stationary in first deference. Therefore, the unit root tests justify the existence of stationarity at the first difference.

Result of unit root statistics

Abbreviations: ADF, augmented Dickey–Fuller; BSE, Bombay Stock Exchange; NSE, National Stock Exchange; PP, Phillips and Perron.

Table  4 presents the estimated results on the GJR GARCH (1,1) model with BSE Sensex and from this table, it has been observed that the coefficient of asymmetric ( λ 1 ) and GARCH ( β 1 ) are significant. The coefficient of ARCH ( α 1 ) is found negative but significant; this particular finding indicates the existence of the ARCH effect in the BSE Sensex series. Further, the coefficient of GARCH was appeared positive and significant, which implies that volatility clustering was present in the BSE index. The positive and significant asymmetric effect also indicate the presence of asymmetric effect and this implies that negative shocks news tend to increase volatility more than positive shocks. To capture volatility, a dummy variable ( D 1 ) has been added in both mean and variance equation; D 1 takes the value of 0 and 1 for the pre and during the COVID‐19 era, respectively. The result exhibits that the coefficient of the dummy variable for BSE Sensex in the mean equation is negative but not significant. Conversely, in the variance equation, it is positive and significant. This inferred that the spot market volatility in the BSE stock market has increased during the COVID‐19 period.

Result of GJR GARCH model with BSE Sensex

Abbreviations: BSE, Bombay Stock Exchange; GJR GARCH, Glosten–Jagannathan–Runkle generalized autoregressive conditional heteroscedasticity.

Table  5 presents the result of GJR GARCH with NSE Nifty. The table reveals that the coefficient of asymmetric ( λ 1 ) and GARCH ( β 1 ) are significant and positive, which entailed that volatility is present in NSE Nifty. The positive and significant value of the asymmetric term ( λ 1 ) represent that negative shocks have a larger effect than the positive shock to the volatility of the NSE stock exchange. However, the coefficient of ARCH is positive but insignificant; indicating that past news does not impact current volatility. On the other hand, it can be noticed that the coefficient of dummy variable ( D 1 ) in the mean equation is negative but in variance, it is positive and insignificant. In both equations the coefficient of the dummy is insignificant, implying no significant impact of the COVID‐19 period on the volatility of NSE stock price.

Result of GJR GARCH model with NSE Nifty

Abbreviations: GJR GARCH, Glosten–Jagannathan–Runkle generalized autoregressive conditional heteroscedasticity; NSE, National Stock Exchange.

4.1. Diagnostic measure

Ljung‐Box Q and ARCH LM test is used to check the serial correlation and heteroscedasticity in the square of standardized residuals of the model. The result indicates that there is an absence of serial correlation and heteroscedasticity which is shown in Table  6 . All the models performed correctly in this study.

Diagnostic parameters

5. CONCLUSION AND POLICY SUGGESTION

In this study, we investigate the effect of COVID‐19 on the performance of BSE and NSE; the two stock markets of India. GJH GARCH model is used to test the volatility in the stock market by taking the two time periods, before and after the first positive COVID‐19 cases in India. These two periods are taken as the dependent variable and per day closing price of BSE and NSE indices are considered as the independent variable. The result shows that the stock market especially the BSE Sensex become volatile during the pandemic period. In case of another stock index, NSE Nifty, it is found that there is no such significant impact of the COVID‐19 period on the volatility of NSE stock prices. The mean return in pre‐COVID‐19 and during the COVID‐19 period is calculated separately. The result revealed that with negative mean returns, the stock market faces losses during the pandemic, whereas return is shown positive in the pre‐COVID‐19 phase. By comparing the SD , it is noticed that the deviation is large during the COVID‐19 era than the pre‐COVID‐19 time. Similarly, the price of the stock indices also shows a significant change. In the pre‐COVID‐19 period, the price was high but during the COVID‐19 period it shows a declining trend up to the first lockdown period, that is, to the end of March but after this, it again takes an upward movement gradually. It is on account of the relaxation added to the lockdown policy by the Indian government. The unprecedented pandemic has already brought challenges to almost all countries. Not a single sector is left unaffected because of COVID‐19. In brief, the results conclude that the Coronavirus outbreak has affected the stock price and increased the volatility in the Indian stock markets, and affect the financial system. Accordingly, this paper tries to provide a very simple but original statistical analysis of the COVID‐19 pandemic by taking the case of the Indian stock market.

COVID‐19 has collapsed the backbone of the financial market. To boost up the stock market proper policy measures must have to be adopted by the government. Without some extraordinary policy support, the crisis would have been the worst. Accordingly, liquidity injection measures need to be taken. Reserve bank of India (RBI), the central monetary authority has cut its key policy rate by 115 basis points over the last 3 months. It also announced a liquidity injection of around Rs 8 lakh crore in the financial markets since its first announcement on March 27, 2020. Although this pandemic brings the entire world to lockdown trauma, the fatality rate is very low. Many investors can feel that this will be a short‐run phenomenon and when the economy recovers it will be difficult for them to buy stocks at the current prices. According to George ( 2020 ), during this recovery period liquidity will push stock prices up. This turmoil is a good opportunity for long term investors. For debt markets, RBI must have to cut the rate. There prevails uncertainty in the market at this time. So the investors must have to shift their investment from a bleak prospect to the bright one to balance their work and avoid risk. In this aspect, the pharma sector is looking attractive at this time. To maintain inclusive and sustainable growth domestic policies will need to be designed. Financial assistance must have to be provided by the supreme authority to the destroyed required sectors.

Biographies

Debakshi Bora is currently working as an Assistant Professor in the Department of Economics, Assam Women's University, Jorhat, Assam. She is also pursuing PhD in Economics from Dibrugarh University, Assam. Her area of interest includes study of livelihood diversification and human development among various tribes of Assam as well as North East. Bora has published various research paper in peer‐reviewed and scopus indexed journals.

Daisy Basistha is currently working as an assistant professor in the department of Economics, Bihpuria College, Bihpuria. She is also a doctoral student in the Department of Economics at Dibrugarh University, Assam. Her research interest includes rural–urban migration issues and growth convergence in the North–Eastern region of India. She has published different papers in UGC care listed and scopus indexed journals.

Bora D, Basistha D. The outbreak of COVID‐19 pandemic and its impact on stock market volatility: Evidence from a worst‐affected economy . J Public Affairs . 2021; 21 :e2623. 10.1002/pa.2623 [ PMC free article ] [ PubMed ] [ CrossRef ] [ Google Scholar ]

Contributor Information

Debakshi Bora, Email: ni.ca.urbid@arobihskabed_sr .

Daisy Basistha, Email: ni.ca.urbid@ahtsisabysiad_sr .

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Short-term impact of covid-19 on indian stock market.

1. Introduction

2. literature review, 3. data and methodology, 3.2. methodology, 3.2.1. constant mean return model, 3.2.2. market model, 3.2.3. market adjusted model, 4. results and discussions, 4.1. average abnormal returns from nifty50 index components, 4.2. impact of the pandemic in different sectors of the nifty50 index, 5. conclusions, author contributions, data availability statement, conflicts of interest.

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Varma, Y.; Venkataramani, R.; Kayal, P.; Maiti, M. Short-Term Impact of COVID-19 on Indian Stock Market. J. Risk Financial Manag. 2021 , 14 , 558. https://doi.org/10.3390/jrfm14110558

Varma Y, Venkataramani R, Kayal P, Maiti M. Short-Term Impact of COVID-19 on Indian Stock Market. Journal of Risk and Financial Management . 2021; 14(11):558. https://doi.org/10.3390/jrfm14110558

Varma, Yashraj, Renuka Venkataramani, Parthajit Kayal, and Moinak Maiti. 2021. "Short-Term Impact of COVID-19 on Indian Stock Market" Journal of Risk and Financial Management 14, no. 11: 558. https://doi.org/10.3390/jrfm14110558

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A Study on the Investors Awareness Level on Share Market Investment

History Research Journal, ISSN: 0976-5425, Vol. 5, Issue 4, July-August 2019

19 Pages Posted: 1 Apr 2021

Sree Narayana College Kollam - Department of Commerce

Date Written: August 01, 19

In India investment decisions of an individual depends upon his compensation and the proportion of risk the individual being referred to is anxious to take. Along with risk and return, the income plays an important role to take a decision. The present study is looking to primarily analyses the awareness level of investors about the various share market investment avenues and factors influencing share market investments. For the purpose of the study, 100 samples were collected from Kerala, by using convenient sampling technique. ANOVA, Weighted average score, Post Hoc Analysis, Factor Analysis were used to analyses the samples. Peoples having greater awareness towards equity investments while compare with other investment options in share market. Most of the people are considering share market investment options are more useful in diversification of their investments. The level of income is an important factor deciding which investment mode is applicable to the people. The SEBI and other regulatory authorities include government can take adequate measures to give level of awareness to the people. Providing adequate share market information to the youngsters is very helpful to generate investment oriented generation in future.

Keywords: Investment, stock exchange, investment avenues

Suggested Citation: Suggested Citation

ANU G.S (Contact Author)

Sree narayana college kollam - department of commerce ( email ).

Kerala, 691 001 India

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EXPLORING THE RISE OF STOCK MARKET AWARENESS IN INDIA A POST- PANDEMIC PERSPECTIVE

• Juni Khyat Journal 13(7 (4)):76-83
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• DOI: 10.32038/mbrq.2022.21.02
• Corpus ID: 253503644

Market Share as a Performance Measure: A Conceptual Framework

• Published in European Journal of Studies… 1 May 2022
• Business, Economics
• European Journal of Studies in Management and Business

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An analysis of the market share-profitability relationship.

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Market Share, Scale, and Market Value: An Empirical Study of Small Closely Held Manufacturing Firms

Profitability and market share: a reflection on the functional relationship, market share performance of foreign and domestic brands in china, market share: key to profitability.

• 11 Excerpts

When Does Market Share Matter? New Empirical Generalizations from a Meta-Analysis of the Market Share–Performance Relationship

The market share‐profitability relationship: an empirical assessment of major assertions and contradictions, effect of strategy, structure and performance variables on store brand market share, examining why and when market share drives firm profit, a note on the market share-profitability relationship, related papers.

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How To Present Your Market Research Results And Reports In An Efficient Way

Table of Contents

1) What Is A Market Research Report?

2) Market Research Reports Examples

3) Why Do You Need Market Research Reports

4) How To Make A Market Research Report?

5) Types Of Market Research Reports

6) Challenges & Mistakes Market Research Reports

Market research analyses are the go-to solution for many professionals, and for good reason: they save time, offer fresh insights, and provide clarity on your business. In turn, market research reports will help you to refine and polish your strategy. Plus, a well-crafted report will give your work more credibility while adding weight to any marketing recommendations you offer a client or executive.

But, while this is the case, today’s business world still lacks a way to present market-based research results efficiently. The static, antiquated nature of PowerPoint makes it a bad choice for presenting research discoveries, yet it is still widely used to present results. 

Fortunately, things are moving in the right direction. There are online data visualization tools that make it easy and fast to build powerful market research dashboards. They come in handy to manage the outcomes, but also the most important aspect of any analysis: the presentation of said outcomes, without which it becomes hard to make accurate, sound decisions. 

Here, we consider the benefits of conducting research analyses while looking at how to write and present market research reports, exploring their value, and, ultimately, getting the very most from your research results by using professional market research software .

Let’s get started.

What Is a Market Research Report?

A market research report is an online reporting tool used to analyze the public perception or viability of a company, product, or service. These reports contain valuable and digestible information like customer survey responses and social, economic, and geographical insights.

On a typical market research results example, you can interact with valuable trends and gain insight into consumer behavior and visualizations that will empower you to conduct effective competitor analysis. Rather than adding streams of tenuous data to a static spreadsheet, a full market research report template brings the outcomes of market-driven research to life, giving users a data analysis tool to create actionable strategies from a range of consumer-driven insights.

With digital market analysis reports, you can make your business more intelligent more efficient, and, ultimately, meet the needs of your target audience head-on. This, in turn, will accelerate your commercial success significantly.

Your Chance: Want to test a market research reporting software? Explore our 14-day free trial & benefit from interactive research reports!

How To Present Your Results: 4 Essential Market Research Report Templates

When it comes to sharing rafts of invaluable information, research dashboards are invaluable.

Any market analysis report example worth its salt will allow everyone to get a firm grip on their results and discoveries on a single page with ease. These dynamic online dashboards also boast interactive features that empower the user to drill down deep into specific pockets of information while changing demographic parameters, including gender, age, and region, filtering the results swiftly to focus on the most relevant insights for the task at hand.

These four market research report examples are different but equally essential and cover key elements required for market survey report success. You can also modify each and use it as a client dashboard .

While there are numerous types of dashboards that you can choose from to adjust and optimize your results, we have selected the top 3 that will tell you more about the story behind them. Let’s take a closer look.

1. Market Research Report: Brand Analysis

Our first example shares the results of a brand study. To do so, a survey has been performed on a sample of 1333 people, information that we can see in detail on the left side of the board, summarizing the gender, age groups, and geolocation.

**click to enlarge**

At the dashboard's center, we can see the market-driven research discoveries concerning first brand awareness with and without help, as well as themes and celebrity suggestions, to know which image the audience associates with the brand.

Such dashboards are extremely convenient to share the most important information in a snapshot. Besides being interactive (but it cannot be seen on an image), it is even easier to filter the results according to certain criteria without producing dozens of PowerPoint slides. For instance, I could easily filter the report by choosing only the female answers, only the people aged between 25 and 34, or only the 25-34 males if that is my target audience.

Primary KPIs:

a) Unaided Brand Awareness

The first market research KPI in this most powerful report example comes in the form of unaided brand awareness. Presented in a logical line-style chart, this particular market study report sample KPI is invaluable, as it will give you a clear-cut insight into how people affiliate your brand within their niche.

As you can see from our example, based on a specific survey question, you can see how your brand stacks up against your competitors regarding awareness. Based on these outcomes, you can formulate strategies to help you stand out more in your sector and, ultimately, expand your audience.

b) Aided Brand Awareness

This market survey report sample KPI focuses on aided brand awareness. A visualization that offers a great deal of insight into which brands come to mind in certain niches or categories, here, you will find out which campaigns and messaging your target consumers are paying attention to and engaging with.

By gaining access to this level of insight, you can conduct effective competitor research and gain valuable inspiration for your products, promotional campaigns, and marketing messages.

c) Brand image

When it comes to research reporting, understanding how others perceive your brand is one of the most golden pieces of information you could acquire. If you know how people feel about your brand image, you can take informed and very specific actions that will enhance the way people view and interact with your business.

By asking a focused question, this visual of KPIs will give you a definitive idea of whether respondents agree, disagree, or are undecided on particular descriptions or perceptions related to your brand image. If you’re looking to present yourself and your message in a certain way (reliable, charming, spirited, etc.), you can see how you stack up against the competition and find out if you need to tweak your imagery or tone of voice - invaluable information for any modern business.

d) Celebrity analysis

This indicator is a powerful part of our research KPI dashboard on top, as it will give you a direct insight into the celebrities, influencers, or public figures that your most valued consumers consider when thinking about (or interacting with) your brand.

Displayed in a digestible bar chart-style format, this useful metric will not only give you a solid idea of how your brand messaging is perceived by consumers (depending on the type of celebrity they associate with your brand) but also guide you on which celebrities or influencers you should contact.

By working with the right influencers in your niche, you will boost the impact and reach of your marketing campaigns significantly, improving your commercial awareness in the process. And this is the KPI that will make it happen.

2. Market Research Results On Customer Satisfaction

Here, we have some of the most important data a company should care about: their already-existing customers and their perception of their relationship with the brand. It is crucial when we know that it is five times more expensive to acquire a new consumer than to retain one.

This is why tracking metrics like the customer effort score or the net promoter score (how likely consumers are to recommend your products and services) is essential, especially over time. You need to improve these scores to have happy customers who will always have a much bigger impact on their friends and relatives than any of your amazing ad campaigns. Looking at other satisfaction indicators like the quality, pricing, and design, or the service they received is also a best practice: you want a global view of your performance regarding customer satisfaction metrics .

Such research results reports are a great tool for managers who do not have much time and hence need to use them effectively. Thanks to these dashboards, they can control data for long-running projects anytime.

Primary KPIs :

a) Net Promoter Score (NPS)

Another pivotal part of any informative research presentation is your NPS score, which will tell you how likely a customer is to recommend your brand to their peers.

Centered on overall customer satisfaction, your NPS Score can cover the functions and output of many departments, including marketing, sales, and customer service, but also serve as a building block for a call center dashboard . When you’re considering how to present your research effectively, this balanced KPI offers a masterclass. It’s logical, it has a cohesive color scheme, and it offers access to vital information at a swift glance. With an NPS Score, customers are split into three categories: promoters (those scoring your service 9 or 10), passives (those scoring your service 7 or 8), and detractors (those scoring your service 0 to 6). The aim of the game is to gain more promoters. By gaining an accurate snapshot of your NPS Score, you can create intelligent strategies that will boost your results over time.

b) Customer Satisfaction Score (CSAT)

The next in our examples of market research reports KPIs comes in the form of the CSAT. The vast majority of consumers that have a bad experience will not return. Honing in on your CSAT is essential if you want to keep your audience happy and encourage long-term consumer loyalty.

This magnificent, full report KPI will show how satisfied customers are with specific elements of your products or services. Getting to grips with these scores will allow you to pinpoint very specific issues while capitalizing on your existing strengths. As a result, you can take measures to improve your CSAT score while sharing positive testimonials on your social media platforms and website to build trust.

c) Customer Effort Score (CES)

When it comes to presenting research findings, keeping track of your CES Score is essential. The CES Score KPI will give you instant access to information on how easy or difficult your audience can interact with or discover your company based on a simple scale of one to ten.

By getting a clear-cut gauge of how your customers find engagement with your brand, you can iron out any weaknesses in your user experience (UX) offerings while spotting any friction, bottlenecks, or misleading messaging. In doing so, you can boost your CES score, satisfy your audience, and boost your bottom line.

3. Market Research Results On Product Innovation

This final market-driven research example report focuses on the product itself and its innovation. It is a useful report for future product development and market potential, as well as pricing decisions.

Using the same sample of surveyed people as for the first market-focused analytical report , they answer questions about their potential usage and purchase of the said product. It is good primary feedback on how the market would receive the new product you would launch. Then comes the willingness to pay, which helps set a price range that will not be too cheap to be trusted nor too expensive for what it is. That will be the main information for your pricing strategy.

a) Usage Intention

The first of our product innovation KPI-based examples comes in the form of usage intention. When you’re considering how to write a market research report, including metrics centered on consumer intent is critical.

This simple yet effective visualization will allow you to understand not only how users see your product but also whether they prefer previous models or competitor versions . While you shouldn’t base all of your product-based research on this KPI, it is very valuable, and you should use it to your advantage frequently.

b) Purchase Intention

Another aspect to consider when looking at how to present market research data is your audience’s willingness or motivation to purchase your product. Offering percentage-based information, this effective KPI provides a wealth of at-a-glance information to help you make accurate forecasts centered on your product and service offerings.

Analyzing this information regularly will give you the confidence and direction to develop strategies that will steer you to a more prosperous future, meeting the ever-changing needs of your audience on an ongoing basis.

c) Willingness To Pay (WPS)

Our final market research example KPI is based on how willing customers are to pay for a particular service or product based on a specific set of parameters. This dynamic visualization, represented in an easy-to-follow pie chart, will allow you to realign the value of your product (USPs, functions, etc.) while setting price points that are most likely to result in conversions. This is a market research presentation template that every modern organization should use to its advantage.

4. Market Research Report On Customer Demographics 

This particular example of market research report, generated with a modern dashboard creator , is a powerful tool, as it displays a cohesive mix of key demographic information in one intuitive space.

By breaking down these deep pockets of consumer-centric information, you can gain the power to develop more impactful customer communications while personalizing every aspect of your target audience’s journey across every channel or touchpoint. As a result, you can transform theoretical insights into actionable strategies that will result in significant commercial growth. 

Every section of this responsive marketing research report works in unison to build a profile of your core audience in a way that will guide your company’s consumer-facing strategies with confidence. With in-depth visuals based on gender, education level, and tech adoption, you have everything you need to speak directly to your audience at your fingertips.

Let’s look at the key performance indicators (KPIs) of this invaluable market research report example in more detail.

a) Customer By Gender

This KPI is highly visual and offers a clear-cut representation of your company’s gender share over time. By gaining access to this vital information, you can deliver a more personalized experience to specific audience segments while ensuring your messaging is fair, engaging, and inclusive.

b) Customers by education level

The next market analysis report template is a KPI that provides a logical breakdown of your customers’ level of education. By using this as a demographic marker, you can refine your products to suit the needs of your audience while crafting your content in a way that truly resonates with different customer groups.

c) Customers by technology adoption

Particularly valuable if you’re a company that sells tech goods or services, this linear KPI will show you where your customers are in terms of technological know-how or usage. By getting to grips with this information over time, you can develop your products or services in a way that offers direct value to your consumers while making your launches or promotions as successful as possible.

d) Customer age groups

By understanding your customers’ age distribution in detail, you can gain a deep understanding of their preferences. And that’s exactly what this market research report sample KPI does. Presented in a bar chart format, this KPI will give you a full breakdown of your customers’ age ranges, allowing you to build detailed buyer personas and segment your audience effectively.

Why Do You Need Market Research Reports?

As the adage goes, “Look before you leap“ – which is exactly what a research report is here for. As the headlights of a car, they will show you the pitfalls and fast lanes on your road to success: likes and dislikes of a specific market segment in a certain geographical area, their expectations, and readiness. Among other things, a research report will let you:

• Get a holistic view of the market : learn more about the target market and understand the various factors involved in the buying decisions. A broader view of the market lets you benchmark other companies you do not focus on. This, in turn, will empower you to gather the industry data that counts most. This brings us to our next point.
• Curate industry information with momentum: Whether you’re looking to rebrand, improve on an existing service, or launch a new product, time is of the essence. By working with the best market research reports created with modern BI reporting tools , you can visualize your discoveries and data, formatting them in a way that not only unearths hidden insights but also tells a story - a narrative that will gain a deeper level of understanding into your niche or industry. The features and functionality of a market analysis report will help you grasp the information that is most valuable to your organization, pushing you ahead of the pack in the process.
• Validate internal research: Doing the internal analysis is one thing, but double-checking with a third party also greatly helps avoid getting blinded by your own data.
• Use actionable data and make informed decisions: Once you understand consumer behavior as well as the market, your competitors, and the issues that will affect the industry in the future, you are better armed to position your brand. Combining all of it with the quantitative data collected will allow you to more successful product development. To learn more about different methods, we suggest you read our guide on data analysis techniques .
• Strategic planning: When you want to map out big-picture organizational goals, launch a new product development, plan a geographic market expansion, or even a merger and acquisition – all of this strategic thinking needs solid foundations to fulfill the variety of challenges that come along.
• Consistency across the board: Collecting, presenting, and analyzing your results in a way that’s smarter, more interactive, and more cohesive will ensure your customer communications, marketing campaigns, user journey, and offerings meet your audience’s needs consistently across the board. The result? Faster growth, increased customer loyalty, and more profit.
• Better communication: The right market research analysis template (or templates) will empower everyone in the company with access to valuable information - the kind that is relevant and comprehensible. When everyone is moving to the beat of the same drum, they will collaborate more effectively and, ultimately, push the venture forward thanks to powerful online data analysis techniques.
• Centralization: Building on the last point, using a powerful market research report template in the form of a business intelligence dashboard will make presenting your findings to external stakeholders and clients far more effective, as you can showcase a wealth of metrics, information, insights, and invaluable feedback from one centralized, highly visual interactive screen. 
• Brand reputation: In the digital age, brand reputation is everything. By making vital improvements in all of the key areas above, you will meet your customers’ needs head-on with consistency while finding innovative ways to stand out from your competitors. These are the key ingredients of long-term success.

How To Present Market Research Analysis Results?

Here we look at how you should present your research reports, considering the steps it takes to connect with the outcomes you need to succeed:

• Collect your data 

As with any reporting process, you first and foremost need to collect the data you’ll use to conduct your studies. Businesses conduct research studies to analyze their brand awareness, identity, and influence in the market. For product development and pricing decisions, among many others. That said, there are many ways to collect information for a market research report. Among some of the most popular ones, we find: 

• Surveys: Probably the most common way to collect research data, surveys can come in the form of open or closed questions that can be answered anonymously. They are the cheapest and fastest way to collect insights about your customers and business. 
• Interviews : These are face-to-face discussions that allow the researcher to analyze responses as well as the body language of the interviewees. This method is often used to define buyer personas by analyzing the subject's budget, job title, lifestyle, wants, and needs, among other things. 
• Focus groups : This method involves a group of people discussing a topic with a mediator. It is often used to evaluate a new product or new feature or to answer a specific question that the researcher might have. 
• Observation-based research : In this type of research, the researcher or business sits back and watches customers interact with the product without any instructions or help. It allows us to identify pain points as well as strong features. 
• Market segmentation : This study allows you to identify and analyze potential market segments to target. Businesses use it to expand into new markets and audiences. 

These are just a few of the many ways in which you can gather your information. The important point is to keep the research objective as straightforward as possible. Supporting yourself with professional BI solutions to clean, manage, and present your insights is probably the smartest choice.

2. Hone in on your research:

When looking at how to source consumer research in a presentation, you should focus on two areas: primary and secondary research. Primary research comes from your internal data, monitoring existing organizational practices, the effectiveness of sales, and the tools used for communication, for instance. Primary research also assesses market competition by evaluating the company plans of the competitors. Secondary research focuses on existing data collected by a third party, information used to perform benchmarking and market analysis. Such metrics help in deciding which market segments are the ones the company should focus its efforts on or where the brand is standing in the minds of consumers. Before you start the reporting process, you should set your goals, segmenting your research into primary and secondary segments to get to grips with the kind of information you need to work with to achieve effective results.

3. Segment your customers:

To give your market research efforts more context, you should segment your customers into different groups according to the preferences outlined in the survey or feedback results or by examining behavioral or demographic data.

If you segment your customers, you can tailor your market research and analysis reports to display only the information, charts, or graphics that will provide actionable insights into their wants, needs, or industry-based pain points. 

• Identify your stakeholders:

Once you’ve drilled down into your results and segmented your consumer groups, it’s important to consider the key stakeholders within the organization that will benefit from your information the most. 

By looking at both internal and external stakeholders, you will give your results a path to effective presentation, gaining the tools to understand which areas of feedback or data are most valuable, as well as most redundant. As a consequence, you will ensure your results are concise and meet the exact information needs of every stakeholder involved in the process.

• Set your KPIs:

First, remember that your reports should be concise and accurate - straight to the point without omitting any essential information. Work to ensure your insights are clean and organized, with participants grouped into relevant categories (demographics, profession, industry, education, etc.). Once you’ve organized your research, set your goals, and cleaned your data, you should set your KPIs to ensure your report is populated with the right visualizations to get the job done. Explore our full library of interactive KPI examples for inspiration.

• Include competitor’s analysis 

Whether you are doing product innovation research, customer demographics, pricing, or any other, including some level of insights about competitors in your reports is always recommended as it can help your business or client better understand where they stand in the market. That being said, competitor analysis is not as easy as picking a list of companies in the same industry and listing them. Your main competitor can be just a company's division in an entirely different industry. For example, Apple Music competes with Spotify even though Apple is a technology company. Therefore, it is important to carefully analyze competitors from a general but detailed level. 

Providing this kind of information in your reports can also help you find areas that competitors are not exploiting or that are weaker and use them to your advantage to become a market leader. 

• Produce your summary:

To complement your previous efforts, writing an executive summary of one or two pages that will explain the general idea of the report is advisable. Then come the usual body parts:

• An introduction providing background information, target audience, and objectives;
• The qualitative research describes the participants in the research and why they are relevant to the business;
• The survey research outlines the questions asked and answered;
• A summary of the insights and metrics used to draw the conclusions, the research methods chosen, and why;
• A presentation of the findings based on your research and an in-depth explanation of these conclusions.
• Use a mix of visualizations:

When presenting your results and discoveries, you should aim to use a balanced mix of text, graphs, charts, and interactive visualizations.

Using your summary as a guide, you should decide which type of visualization will present each specific piece of market research data most effectively (often, the easier to understand and more accessible, the better).

Doing so will allow you to create a story that will put your research information into a living, breathing context, providing a level of insight you need to transform industry, competitor, or consumer info or feedback into actionable strategies and initiatives.

• Be careful not to mislead 

Expanding on the point above, using a mix of visuals can prove highly valuable in presenting your results in an engaging and understandable way. That being said, when not used correctly, graphs and charts can also become misleading. This is a popular practice in the media, news, and politics, where designers tweak the visuals to manipulate the masses into believing a certain conclusion. This is a very unethical practice that can also happen by mistake when you don’t pick the right chart or are not using it in the correct way. Therefore, it is important to outline the message you are trying to convey and pick the chart type that will best suit those needs. 

Additionally, you should also be careful with the data you choose to display, as it can also become misleading. This can happen if you, for example, cherry-pick data, which means only showing insights that prove a conclusion instead of the bigger picture. Or confusing correlation with causation, which means assuming that because two events happened simultaneously, one caused the other. 

Being aware of these practices is of utmost importance as objectivity is crucial when it comes to dealing with data analytics, especially if you are presenting results to clients. Our guides on misleading statistics and misleading data visualizations can help you learn more about this important topic. 

• Use professional dashboards:

To optimize your market research discoveries, you must work with a dynamic business dashboard . Not only are modern dashboards presentable and customizable, but they will offer you past, predictive, and real-time insights that are accurate, interactive, and yield long-lasting results.

All market research reports companies or businesses gathering industry or consumer-based information will benefit from professional dashboards, as they offer a highly powerful means of presenting your data in a way everyone can understand. And when that happens, everyone wins.

Did you know? The interactive nature of modern dashboards like datapine also offers the ability to quickly filter specific pockets of information with ease, offering swift access to invaluable insights.

• Prioritize interactivity 

The times when reports were static are long gone. Today, to extract the maximum value out of your research data, you need to be able to explore the information and answer any critical questions that arise during the presentation of results. To do so, modern reporting tools provide multiple interactivity features to help you bring your research results to life. 

For instance, a drill-down filter lets you go into lower levels of hierarchical data without generating another graph. For example, imagine you surveyed customers from 10 different countries. In your report, you have a chart displaying the number of customers by country, but you want to analyze a specific country in detail. A drill down filter would enable you to click on a specific country and display data by city on that same chart. Even better, a global filter would allow you to filter the entire report to show only results for that specific country. 

Through the use of interactive filters, such as the one we just mentioned, you’ll not only make the presentation of results more efficient and profound, but you’ll also avoid generating pages-long reports to display static results. All your information will be displayed in a single interactive page that can be filtered and explored upon need.  

• Customize the reports 

This is a tip that is valuable for any kind of research report, especially when it comes to agencies that are reporting to external clients. Customizing the report to match your client’s colors, logo, font, and overall branding will help them grasp the data better, thanks to a familiar environment. This is an invaluable tip as often your audience will not feel comfortable dealing with data and might find it hard to understand or intimidating. Therefore, providing a familiar look that is also interactive and easier to understand will keep them engaged and collaborative throughout the process. 

Plus, customizing the overall appearance of the report will also make your agency look more professional, adding extra value to your service. 

• Know your design essentials 

When you’re presenting your market research reports sample to internal or external stakeholders, having a firm grasp on fundamental design principles will make your metrics and insights far more persuasive and compelling.

By arranging your metrics in a balanced and logical format, you can guide users toward key pockets of information exactly when needed. In turn, this will improve decision-making and navigation, making your reports as impactful as possible.

For essential tips, read our 23 dashboard design principles & best practices to enhance your analytics process.

• Think of security and privacy 

Cyberattacks are increasing at a concerning pace, making security a huge priority for organizations of all sizes today. The costs of having your sensitive information leaked are not only financial but also reputational, as customers might not trust you again if their data ends up in the wrong hands. Given that market research analysis is often performed by agencies that handle data from clients, security and privacy should be a top priority.  

To ensure the required security and privacy, it is necessary to invest in the right tools to present your research results. For instance, tools such as datapine offer enterprise-level security protocols that ensure your information is encrypted and protected at all times. Plus, the tool also offers additional security features, such as being able to share your reports through a password-protected URL or to set viewer rights to ensure only the right people can access and manipulate the data. 

• Keep on improving & evolving

Each time you gather or gain new marketing research reports or market research analysis report intel, you should aim to refine your existing dashboards to reflect the ever-changing landscape around you.

If you update your reports and dashboards according to the new research you conduct and new insights you connect with, you will squeeze maximum value from your metrics, enjoying consistent development in the process.

Types of Market Research Reports: Primary & Secondary Research

With so many market research examples and such little time, knowing how to best present your insights under pressure can prove tricky.

To squeeze every last drop of value from your market research efforts and empower everyone with access to the right information, you should arrange your information into two main groups: primary research and secondary research.

A. Primary research

Primary research is based on acquiring direct or first-hand information related to your industry or sector and the customers linked to it.

Exploratory primary research is an initial form of information collection where your team might set out to identify potential issues, opportunities, and pain points related to your business or industry. This type of research is usually carried out in the form of general surveys or open-ended consumer Q&As, which nowadays are often performed online rather than offline . 

Specific primary research is definitive, with information gathered based on the issues, information, opportunities, or pain points your business has already uncovered. When doing this kind of research, you can drill down into a specific segment of your customers and seek answers to the opportunities, issues, or pain points in question.

When you’re conducting primary research to feed into your market research reporting efforts, it’s important to find reliable information sources. The most effective primary research sources include:

• Consumer-based statistical data
• Social media content
• Polls and Q&A
• Trend-based insights
• Competitor research
• First-hand interviews

B. Secondary research

Secondary research refers to every strand of relevant data or public records you have to gain a deeper insight into your market and target consumers. These sources include trend reports, market stats, industry-centric content, and sales insights you have at your disposal.  Secondary research is an effective way of gathering valuable intelligence about your competitors. 

You can gather very precise, insightful secondary market research insights from:

• Public records and resources like Census data, governmental reports, or labor stats
• Commercial resources like Gartner, Statista, or Forrester
• Articles, documentaries, and interview transcripts

Another essential branch of both primary and secondary research is internal intelligence. When it comes to efficient market research reporting examples that will benefit your organization, looking inward is a powerful move. 

Existing sales, demographic, or marketing performance insights will lead you to valuable conclusions. Curating internal information will ensure your market research discoveries are well-rounded while helping you connect with the information that will ultimately give you a panoramic view of your target market. 

By understanding both types of research and how they can offer value to your business, you can carefully choose the right informational sources, gather a wide range of intelligence related to your specific niche, and, ultimately, choose the right market research report sample for your specific needs.

If you tailor your market research report format to the type of research you conduct, you will present your visualizations in a way that provides the right people with the right insights, rather than throwing bundles of facts and figures on the wall, hoping that some of them stick.

Taking ample time to explore a range of primary and secondary sources will give your discoveries genuine context. By doing so, you will have a wealth of actionable consumer and competitor insights at your disposal at every stage of your organization’s development (a priceless weapon in an increasingly competitive digital age). 

Dynamic market research is the cornerstone of business development, and a dashboard builder is the vessel that brings these all-important insights to life. Once you get into that mindset, you will ensure that your research results always deliver maximum value.

Common Challenges & Mistakes Of Market Research Reporting & Analysis

We’ve explored different types of market research analysis examples and considered how to conduct effective research. Now, it’s time to look at the key mistakes of market research reporting.  Let’s start with the mistakes.

The mistakes

One of the biggest mistakes that stunt the success of a company’s market research efforts is strategy. Without taking the time to gather an adequate mix of insights from various sources and define your key aims or goals, your processes will become disjointed. You will also suffer from a severe lack of organizational vision.

For your market research-centric strategy to work, everyone within the company must be on the same page. Your core aims and objectives must align throughout the business, and everyone must be clear on their specific role. If you try to craft a collaborative strategy and decide on your informational sources from the very start of your journey, your strategy will deliver true growth and intelligence.

• Measurement

Another classic market research mistake is measurement – or, more accurately, a lack of precise measurement. When embarking on market intelligence gathering processes, many companies fail to select the right KPIs and set the correct benchmarks for the task at hand. Without clearly defined goals, many organizations end up with a market analysis report format that offers little or no value in terms of decision-making or market insights.

To drive growth with your market research efforts, you must set clearly defined KPIs that align with your specific goals, aims, and desired outcomes.

• Competition

A common mistake among many new or scaling companies is failing to explore and examine the competition. This will leave you with gaping informational blindspots. To truly benefit from market research, you must gather valuable nuggets of information from every key source available. Rather than solely looking at your consumers and the wider market (which is incredibly important), you should take the time to see what approach your direct competitors have adopted while getting to grips with the content and communications.

One of the most effective ways of doing so (and avoiding such a monumental market research mistake) is by signing up for your competitors’ mailing lists, downloading their apps, and examining their social media content. This will give you inspiration for your own efforts while allowing you to exploit any gaps in the market that your competitors are failing to fill.

The challenges

• Informational quality

We may have an almost infinite wealth of informational insights at our fingertips, but when it comes to market research, knowing which information to trust can prove an uphill struggle.

When working with metrics, many companies risk connecting with inaccurate insights or leading to a fruitless informational rabbit hole, wasting valuable time and resources in the process. To avoid such a mishap, working with a trusted modern market research and analysis sample is the only way forward.

• Senior buy-in

Another pressing market research challenge that stunts organizational growth is the simple case of senior buy-in. While almost every senior decision-maker knows that market research is an essential component of a successful commercial strategy, many are reluctant to invest an ample amount of time or money in the pursuit.

The best way to overcome such a challenge is by building a case that defines exactly how your market research strategies will offer a healthy ROI to every key aspect of the organization, from marketing and sales to customer experience (CX) and beyond.

• Response rates

Low interview, focus group, or poll response rates can have a serious impact on the success and value of your market research strategy. Even with adequate senior buy-in, you can’t always guarantee that you will get enough responses from early-round interviews or poll requests. If you don’t, your market research discoveries run the risk of being shallow or offering little in the way of actionable insight.

To overcome this common challenge, you can improve the incentive you offer your market research prospects while networking across various platforms to discover new contact opportunities. Changing the tone of voice of your ads or emails will also help boost your consumer or client response rates.

Bringing Your Reports a Step Further

Even if it is still widespread for market-style research results presentation, using PowerPoint at this stage is a hassle and presents many downsides and complications. When busy managers or short-on-time top executives grab a report, they want a quick overview that gives them an idea of the results and the big picture that addresses the objectives: they need a dashboard. This can be applied to all areas of a business that need fast and interactive data visualizations to support their decision-making.

We all know that a picture conveys more information than simple text or figures, so managing to bring it all together on an actionable dashboard will convey your message more efficiently. Besides, market research dashboards have the incredible advantage of always being up-to-date since they work with real-time insights: the synchronization/updating nightmare of dozens of PowerPoint slides doesn’t exist for you anymore. This is particularly helpful for tracking studies performed over time that recurrently need their data to be updated with more recent ones.

In today’s fast-paced business environment, companies must identify and grab new opportunities as they arise while staying away from threats and adapting quickly. In order to always be a step further and make the right decisions, it is critical to perform market research studies to get the information needed and make important decisions with confidence.

We’ve asked the question, “What is a market research report?”, and examined the dynamics of a modern market research report example, and one thing’s for sure: a visual market research report is the best way to understand your customer and thus increase their satisfaction by meeting their expectations head-on. 

From looking at a sample of a market research report, it’s also clear that modern dashboards help you see what is influencing your business with clarity, understand where your brand is situated in the market, and gauge the temperature of your niche or industry before a product or service launch. Once all the studies are done, you must present them efficiently to ensure everyone in the business can make the right decisions that result in real progress. Market research reports are your key allies in the matter.

To start presenting your results with efficient, interactive, dynamic research reports and win on tomorrow’s commercial battlefield, try our dashboard reporting software and test every feature with our 14-day free trial !

State of the Consumer 2024: What’s now and what’s next

If you think you know consumer behavior, think again. Middle-income consumers are feeling the squeeze and worrying about inflation but aren’t holding back on splurges. Rather than sticking to tight budgets in retirement, aging consumers are splurging too. Speaking of older shoppers, it turns out that the brand loyalty they’ve long been known for is a thing of the past. And young consumers in Asia and the Middle East are more likely than those in Western markets to switch to higher-priced brands.

These are just some of the large-scale shifts taking place in the global consumer landscape. Consumers have continued to defy expectations and behave in atypical ways , keeping consumer goods manufacturers and retailers on their toes. More than ever, companies that cultivate a detailed, up-to-date understanding of today’s and tomorrow’s consumers—who they are, what they want, and where and how they shop—will be best positioned to succeed.

You’re invited

Join us for a discussion of our report, Rescuing the decade: A dual agenda for the consumer goods industry , on June 26 at 10:00 a.m. ET | 4:00 p.m. CET.

In this article, we draw on our ConsumerWise  research to delve into nine trends shaping the global consumer sector and four imperatives to help consumer businesses move from “now” to “next.”

Nine trends defining the global consumer market

To forecast where the global consumer landscape is heading, we surveyed more than 15,000 consumers in 18 markets that together make up 90 percent of global GDP. Their answers revealed surprising nuances about demographic groups, seemingly contradictory consumer behaviors, and categories poised for growth.

Who is the future consumer?

Consumers no longer fit into traditional archetypes. Some of the most influential consumers of tomorrow are currently underserved.

1. Young people in emerging markets. By 2030, 75 percent of consumers in emerging markets will be between the ages of 15 and 34. Our data indicates these consumers may be optimistic about the economy and willing to spend.

Among this group, young consumers aged 18 to 24 in Asian and Middle Eastern nations, such as India and Saudi Arabia, will be particularly important to consumer businesses, given their pent-up demand and willingness to spend. These consumers indicate a strong desire to spend on premium products, so much so that they are up to two times more likely to trade up—meaning opt for higher-priced brands and retailers—than young consumers in advanced economies. They are also up to three times more optimistic about their respective economies (Exhibit 1). This optimism could translate into higher levels of future consumption. It’s worth noting that young consumers in Latin America are actually less likely to trade up than young consumers in other emerging economies.

2. Retired and ready to spend. Longer life expectancies and declining birth rates, particularly in advanced economies, are pushing the global population of people older than 65 to increase at a quicker rate than the population of people younger than that age. 1 “Ageing,” United Nations, accessed May 29, 2024. Yet for all the data relating to aging populations, older consumers are often misunderstood.

Despite the financial constraints that may accompany retirement, aging consumers across all income levels are willing to spend on discretionary items. In experiential categories such as travel, older consumers’ intent to splurge is even higher than that of millennials, who have historically been big travel spenders. High-income baby boomer and Silent Generation consumers (those whose household incomes exceed $100,000) are a sizable cohort in the United States, making up 30 percent of the market—and they’re more likely to spend on discretionary purchases, such as home improvement and gardening, compared with lower-income consumers their age.

In emerging markets, it’s not just younger consumers who are ready to spend but their parents, too. Wealthy aging consumers in emerging markets are more optimistic, expect to spend more on discretionary items, and plan on treating themselves more than wealthy aging consumers in advanced markets. In one of the starkest examples, 42 percent of wealthy aging consumers in emerging markets 2 Forty-two percent of consumers in Brazil, China, India, Mexico, and Saudi Arabia. said they expect to spend more on entertainment, compared with 7 percent of comparable consumers in Europe 3 Throughout this article, we will refer to “Europe” to indicate France, Germany, Italy, Spain, and the United Kingdom. and 11 percent in the United States. We see a similar willingness to spend in categories such as home improvement, airline flights, and hotel stays. Consumer businesses that market exclusively to younger consumers are thus missing out; they ignore wealthy aging consumers at their own risk.

3. The squeezed-but-splurging middle. We expect that cost-of-living increases in advanced economies will continue to put pressure on middle-income consumers. While conventional wisdom would suggest that these consumers will clamp down on discretionary spending as a result, our data reveals something different: instead, middle-income consumers in Europe and the United States say they plan to splurge on discretionary items at a rate that is comparable with that of high-income consumers.

This intent to splurge appears across various categories, including experience-based categories such as travel and dining out, as well as groceries and discretionary goods. Middle-income consumers might typically be expected to delay purchases during economically challenging times, but our research shows that they’re only slightly more inclined to delay purchases than wealthier consumers. They’re also not much more likely to trade down than higher-income consumers.

What will consumers want?

What consumers want is changing too. Weakened brand loyalty, affordability over sustainability, and heightened interest in wellness products and services reflect the preferences and priorities of consumers across ages and geographies.

4. Brand exploration. When they couldn’t find exactly what they needed because of pandemic-era supply chain disruptions, roughly half of consumers  switched products or brands. That behavioral change has proved quite sticky: consumers continue to be open to exploring alternatives, and brand loyalty is fading across demographic groups.

In advanced markets, over a third of consumers have tried different brands, and approximately 40 percent have switched retailers in search of better prices and discounts (Exhibit 2). Inflation and economic uncertainty are almost certainly inducing this behavior.

This weakening of brand loyalty is not limited to a specific age group. In the past, older consumers remained consistently loyal to their preferred brands, but today, they’re just as likely to embrace new brands and retailers. In Europe and the United States, Gen Zers and millennials are only slightly more likely than older consumers to trade down to lower-priced brands and retailers.

One beneficiary of this rampant downtrading is private labels. Thirty-six percent of consumers plan to purchase private-label products more frequently, and 60 percent believe private brands offer equal or better quality.

5. Sustainability: Value upstages values. In recent years, young consumers in our survey data said they prioritized sustainability considerations when making purchases. It wasn’t all talk: in the United States, sales of products with sustainability-related claims  outpaced sales of products without such claims.

While young consumers still say they care about sustainability, they are now making clear trade-offs in the face of economic uncertainty and inflation. In Europe and the United States, fewer Gen Zers and millennials ranked sustainability claims as an important purchasing factor at the beginning of 2024 than in 2023 (Exhibit 3).

Younger consumers aren’t just deprioritizing sustainability in their purchase decisions; they’ve also become less willing to pay a premium for sustainable products. In Europe and the United States, the percentage of young consumers willing to pay a premium for products with sustainability claims declined by up to four percentage points across product categories. Among these consumers, only a very small percentage were willing to pay a premium for personal care and apparel products with sustainability claims.

6. The worldwide wellness wave. We estimate the global wellness market to be worth more than $1.8 trillion , growing 5 to 10 percent annually. 4 “ The trends defining the $1.8 trillion global wellness market in 2024 ,” McKinsey, January 16, 2024. In advanced economies, health and wellness products and services have been in high demand over the past several years. Today, these categories are also growing quickly in emerging markets, and in some cases, growth in intent to spend on health and wellness products in emerging markets is outpacing growth in advanced markets.

In emerging markets such as China, India, and the Middle East, the percentage of consumers who intend to increase their spending on wellness products and services is two to three times higher than in advanced markets such as Canada and the United States (Exhibit 4).

It’s not only Gen Zers and millennials who are propelling growth in this space, but also Gen Xers and baby boomers. To be sure, regional variations appear. According to our research, for example, 63 percent of baby boomers in China intend to spend more on fitness in the near future, while only 4 percent of the same cohort in India plan to do so.

Weight management products and services, in particular, could help induce growth in the wellness sector over the next several years.

By 2035, just over half of the world’s population is projected to be overweight or obese. At the same time, the availability of weight management drugs is expected to grow as more health plans approve coverage, doctors are able to prescribe them for more uses, and doses are made available in pill form. Adoption of these drugs, compared with other weight management solutions (such as dieting or exercise), will depend on cultural norms and beliefs, too. Less than 30 percent of Chinese and UK consumers consider weight loss drugs to be very effective . 5 “ The trends defining the $1.8 trillion global wellness market in 2024 ,” McKinsey, January 16, 2024.

7. Wellness for women. Investments in women’s wellness are also growing . Consumers in both advanced and emerging markets are indicating a greater interest in spending on women’s wellness products and services, as well as on adjacent personal-care categories. We estimate that closing the women’s health gap could be worth $1 trillion annually  by 2040. 6 Kweilin Ellingrud, Lucy Pérez, Anouk Petersen, and Valentina Sartori, Closing the women’s health gap: A $1 trillion opportunity to improve lives and economies , McKinsey Health Institute, January 17, 2024.

A higher percentage of women in emerging markets (48 percent), in fact, indicate an intent to splurge on beauty and personal-care products and fitness, compared with women in advanced markets (27 percent). And young women are especially interested in wellness: Gen Z women across both emerging and advanced markets said they expect to spend more on personal-care goods and services, compared with Gen Xers and baby boomers. As innovation in women’s health continues to push the sector forward, we expect spending to increase as well.

Where will consumers shop?

Knowing what consumers want means little if businesses do not meet consumers where they are. Global migration patterns—both to and from major urban hubs—are changing where consumers spend their time and money in the physical world, while growth in social commerce accounts for new movement in the digital world.

8. The new urban hot spots. In both advanced and emerging markets, people are moving to seek out new opportunities and a better quality of life. In advanced markets like the United States, consumers are moving away from larger cities in the Pacific Northwest and the Northeast to “secondary cities,” or those with populations between 50,000 and 500,000 people. Two-thirds of the fastest-growing US cities are in the South and West. In these cities, the cost of living is lower than in larger cities, and remote work opportunities are plentiful. Millennials, Gen Xers, and boomers are propelling this trend.

Just because US consumers are moving to scaled-down versions of metropolises does not mean they are curtailing their spending: just as many consumers in secondary cities say they plan to splurge as do consumers in the largest American cities. Meanwhile, 1.3 times more consumers in secondary cities say they plan to splurge, compared with US consumers in rural areas.

Emerging markets will continue to see urban-population growth in both megacities and secondary cities as consumers move in search of better economic opportunities and improved well-being. By 2035, for example, 43 percent of the Indian population may reside in urban areas, up from 35 percent in 2018. In China, the percentage of middle-class households is expected to increase in both tier-one and tier-two cities as well as in tier-three and tier-four cities by 2030. And by 2040, there will be 537 million people in African urban centers, making the African urban population the largest in the world.

9. Social commerce takes flight. For several years, China has led the world in the adoption of social commerce, in which consumers browse and buy directly through social media and content creation platforms. Today, social-commerce markets in both China and India continue to mature, while those in other emerging-market countries—such as Brazil, Saudi Arabia, and the United Arab Emirates—are close behind (Exhibit 5). Consumers in these countries consistently spend more on purchases made through social media platforms, compared with consumers in Europe and the United States.

Attempts to grow the social-commerce market  in the West have had limited success. Companies simply may have been too early to embrace this opportunity. We expect social commerce in the United States to expand to $145 billion by 2027, up from $67 billion today. 7 “ Social commerce: The future of how consumers interact with brands ,” McKinsey, October 19, 2022. Gen Zers and millennials are propelling this growth: they make purchases on social media four times more often than older generations do. More than a third of Gen Z and millennial survey respondents said they had made a purchase on social media in the prior three months.

Four imperatives to win the consumer of the future

In light of these nine forward-looking themes, what should consumer companies do? The most successful ones will be those that act on four imperatives:

Build microtargeting capabilities

About quantumblack, ai by mckinsey.

QuantumBlack, McKinsey’s AI arm, helps companies transform using the power of technology, technical expertise, and industry experts. With thousands of practitioners at QuantumBlack (data engineers, data scientists, product managers, designers, and software engineers) and McKinsey (industry and domain experts), we are working to solve the world’s most important AI challenges. QuantumBlack Labs is our center of technology development and client innovation, which has been driving cutting-edge advancements and developments in AI through locations across the globe.

Rather than putting consumers in predefined—and often outdated—boxes, companies should focus on microtargeting to build a richer understanding of consumer preferences. This involves taking a “smart reach” approach , whereby consumer businesses use their consumer data to target specific microsegments of consumers who may demonstrate particular shopping behaviors or preferences. Generative AI can help consumer businesses reach these microsegments  at scale by increasing creative output and automating marketing outreach. Through microtargeting, companies can engage high-potential consumer groups—for example, younger people in emerging markets or wealthy aging individuals—and provide personalized experiences that build brand love and loyalty and propel future purchases.

Invest in wellness

A rise in both consumer interest and purchasing power presents tremendous opportunities in the $1.8 trillion global-consumer-wellness space. Consumer goods leaders have a chance to reevaluate their product development road maps and consider whether they have more opportunities to introduce personalized-wellness products to priority consumer groups. Consumers across the globe want data- and science-backed health and wellness solutions. Best-in-class companies should evaluate opportunities to lean into these offerings and other wellness growth areas (such as women’s health and healthy aging).

Propel the social–digital experience

Companies should take steps to engage with consumers on social media and other digital platforms. This involves identifying the right channels and platforms, creating attractive content, and tailoring strategies to meet evolving consumer needs. This is especially important as industry lines blur (for example, as consumer companies enter the healthcare space and vice versa) and as ecosystems (networks or partnerships that cut across different industries)  become more important.

We see innovative, international companies testing new approaches to social commerce to connect with consumers on a local level. Some are mobilizing local key opinion leaders to precisely target consumers and create viral digital campaigns that resonate with them. Social media and private chats through platforms such as WeChat help to continually engage consumers.

Offer premium products where they matter

Offering premium products in relevant categories can help improve brand loyalty. Consumer brands should identify which categories are ripe for this, such as experiential travel—where splurge activity is common even across middle-income and aging consumers. Conversely, some categories are more suitable for value plays based on trade-down behavior or frequent brand exploration. Integrating loyalty and pricing strategies , instituting pricing tiers, and tailoring product assortments at the local and channel levels are ways that consumer businesses can provide value to consumers, while also managing economic pressures.

In this consumer landscape—one in which standards, complexity, and stakes are all higher—leaders should understand the new nuances that define who the “next” shoppers are, what they care about, and how they shop. These insights, which should then inform strategic category and channel investments, can lead to long-term, profitable growth and sustained competitive advantage.

The authors wish to thank Cait Pearson, Heather Gouinlock, and Keir Sullivan for their contributions to this article.

This article was edited by Alexandra Mondalek, an editor in the New York office.

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