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

Secondary Market Research

• Secondary research involves the collection, compilation, and analysis of data that already exists

Diagram: secondary research sources

• Government Publications: National governments and trading blocs such as the EU publish reports and statistics on topics such as the economy, demographics, industry trends and consumer behaviour

• Academic Institutions: Universities and research institutions conduct studies and publish research papers which provide valuable insights and data on specific industries, consumer behaviour and market trends

  • E.g. Stanford University is a globally significant research centre for engineering and medicine

• Industry Associations: Trade associations and industry-specific organisations provide detailed information about specific sectors, including market size, growth rates and industry benchmarks

  • E.g. The International Organisation of Motor Vehicle Manufacturers conducts and collates research on production and sales statistics

• Specialist Market Research Reports: Companies specialising in market research produce and sell in-depth reports on various industries, markets and consumer trends

  • E.g. Mintel is one of the leading private companies supplying market research information

• Financial Reports: Public limited companies are required to publish annual reports which can provide valuable information about a company's performance, market position and future plans

• Online Databases: There are various online databases and research platforms that provide access to a wide range of secondary market research 

  • E.g. Statista and Euromonitor International make a large volume of data on international commerce available

• Media Sources: Newspapers, magazines and online publications often contain articles, opinion pieces and investigative reports that can offer insights into market trends, consumer behaviour and industry developments

  • E.g. The Financial Times and the Wall Street Journal

Choosing the most appropriate sources 

• Businesses must weigh up the reliability of secondary market research and aspects such as cost, relevance and availability of data when making a decision on which secondary data to use

Advantages & Disadvantages of Secondary Market Research

The Accuracy of Market Research Data

• Gathering and analysing reliable data is critical to a business

  • It supports decision-making and reduces risk

  • It helps businesses to set realistic objectives and manage performance 

• The reliability and accuracy of market research depend upon a large number of factors, including

  • How questions are phrased in questionnaires or other tools used to conduct surveys

  • How carefully the sample is selected

    • Including its size, types of respondent chosen and how closely these reflect the intended target market

  • Who conducts the research including their experience, research skills and source (primary or secondary?)

  • Potential for Bias when conducting research or analysing results

  • When and where the research is conducted

    • Customer tastes, fashions, economic conditions and technology change, giving data a relatively short period of usefulness 

    • Customers in different geographic areas can have very different opinions