What is an R&D Center?

Erin J. Hill
Erin J. Hill
Businesswoman talking on a mobile phone
Businesswoman talking on a mobile phone

An R&D center, more commonly known as a research and development center, is an organization that specializes in gaining public opinion about products, companies, and people. These tasks are generally accomplished through consumer polls, surveys and focus groups; after which are performed results are tallies and used for statistical analysis. This data is made available to the organization who hired the R&D center, and sometimes to the public.

Most businesses and organizations benefit from an R&D center at some point and time. Knowing the opinions of current and potential customers allows a business to develop new products and services to that are tailored to the needs of consumers. Take soda manufacturers, for example. If customers report during a focus group or survey that they enjoy the taste of regular soda but do not like weight gain associated with consuming large amounts of it, beverage makers will focus more energy on developing diet sodas that taste as close to the original as possible.

This concept may seem like common sense, but it is how buyers and sellers communicate more effectively. Without the use of an R&D center to generate this information, companies would be forced to take a more hit or miss approach to developing new products, as well as marketing those products to consumers.

Marketing efforts are more effective when they are tailored to a specific audience. For instance, a publisher may conduct a survey through an R&D center to find out what types of books preteen boys are most interested in reading. If the results show that males in this age group primarily read science fiction books, then the publisher knows to create a marketing campaign for their science fiction catalog that will appeal to this group.

Sometimes government agencies and non-profit organizations also enlist the help of an R&D center. This helps them develop new campaigns for political figures by targeting which areas care about which causes; as well as provide information on candidate popularity. Non-profits may benefit by targeting citizens who give the most to charitable causes, who need assistance, or who have dealt with a particular situation.

R&D centers can also prove beneficial for the public. Surveys and statistical data may be taken regarding areas with higher crime rates, the safest vehicles to drive, or the risks of developing a particular disease. This information gives consumers of real estate, automobiles and medical care the right information to make smart buying decisions.

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