Primary Market Research (Cambridge (CIE) O Level Business Studies)

Surveys are the most widely used tool to gather primary research

Surveys may be face-to-face, online, carried out by telephone or by post

A series of questions are posed to a defined number of people (respondents)

A wide range of respondents can be reached using online survey tools such as Survey Monkey

A market researcher studies consumer behaviour during their interaction with a business

E.g. Shoppers may be accompanied as they shop in a store or consumer traffic is measured at a particular location and time

Common focuses for observation include

• The impact of packaging on the products consumers select

• The impact that the placement of a product in a store may have on consumer choice

A more formal meeting than a survey between a researcher and a customer

Questions may be similar to those in a survey but the interviewee may be asked follow-up questions to gather detailed information as well as cues such as body language

Free samples are provided for a limited period to the target market to gauge their response to the product

Recipients of samples are asked to review products and provide detailed feedback to allow changes to be made before the product is formally launched

Free-range discussions led by a marketing specialist collect detailed feedback on all aspects of the marketing mix from the target market

Usually limited to a small group of 12-15 people who may meet more than once

Group members are usually rewarded for attendance 

Information gathering is focused on the needs of the business and will not be available to its rivals

The sample size may be too small and unrepresentative of target customers, leading to unreliable results

Some primary research methods allow  in-depth information to be gathered from respondents, such as reasons for certain behaviours or choices

Bias may mean that researchers guide respondents to answer questions in a particular way

• Similarly respondents may be influenced by the responses of others or provide inaccurate information

Primary market research is up-to-date and can be used to ask specific questions and so will be more relevant to business decisions

A business may need to hire a specialist market research agency to help making the process expensive and time-consuming

Specific proportions of each group of the population are selected to participate in research

• E.g. a focus group for a car manufacturer may include a sample of 25% respondents between the ages of 18-24, 50% between the ages of 25-45 and 25% aged 46+

Suitable for research where there is a time limit to conduct the study

Relatively easy and low cost

Not random so there is some risk of bias

Need to understand the population to be able to apply results to the market as a whole

This method makes sure that every member of the population has an equal chance of being selected

• E.g. a survey of gym members may be sent to a random selection of clients in its membership database

Simple to design and interpret 

As anyone in the population can be asked to participate, bias should be avoided

As anyone may be selected, the sample may not be representative of the market as a whole

A complete and accurate list of all consumers in the target market would eliminate bias, but is unlikely to be available

This method uses those who are willing to volunteer and are easiest to access in the study

• E.g. a cafe owner may ask regular customers to fill out a written survey during a quiet period regarding their experiences of the menu and customer service
   

Respondents taking part in research are readily available

Large amounts of information can be gathered quickly

The sample is likely to be biased if those known to the researcher are chosen

The sample is unlikely to be representative of the market as a whole