The Research and Advisory Model Mirrors Turbulent Economy

This report analyzes data from Outsell's latest annual end-user study gauging budgets, value proposition, and comparative value of the products that fall under the research and advisory business model. This model is essentially a subscription that includes written materials, databases, and maybe an event seat, but its primary differentiator is that subscribers have direct access to communicate with analysts. In 2006 and 2007, the model was doing well in spite of competition from free sources on the web. However, this year 44% of buyers indicated an average budget reduction of 25% for research and advisory services, and there is a perception that their value has diminished. It is too soon to tell whether this is just an ebbing tide that will pick up again or whether fundamental structural issues are surfacing. This report contains:

- A market overview, including Outsell data on market research spending patterns by job function and research vendor;
- Outsell data on research and advisory budgets and vendors used by respondents;
- Analysis of perceived and comparative value of research and advisory services, including Outsell data on perceived value for money and value compared to other types of research offerings;
- A look at what products respondents are planning to use to replace research and advisory services;
- Essential actions for vendors of research and advisory products.