There are some interesting ways in which marketing research is used in a socialist country. First, the information obtained from consumers may be used in normative as well as descriptive ways. For instance, if it is determined from a consumer panel that a specific family’s income has reached the proper level and, if from its inventory of durable goods, it is evident that this family could use, say a television set. The authority would organize television production in such a way that the family could obtain a television. Even if that particular family wanted a washing machine more than a television (provided that washing machines are not manufactured in sufficient quantities), it becomes difficult for the family to obtain one. Therefore, it is quite likely that the television purchase planned for the family become a real purchase by the family.
Marketing research is especially important in a socialist country because the system is less flexible in adapting to wrong market estimates. If, in fact, a plan has been drawn which required the manufacture of a specific number of frying pans, the system is not sufficiently sensitive that frying pan production could be halted prior to the fulfillment of the plan. Accordingly, the cost of a wrong decision is high and the amount of shortages or excess inventory is significant when the research is wrong.