Primary Market Research | Business Studies for GCSE/IGCSE - Class 10 PDF Download

Primary Research

• Primary market research involves directly obtaining information from consumers within the target market.
  • It focuses on gathering new, tailored data that addresses the specific needs of the business conducting the research.
• Common methods of primary market research include surveys, interviews, and focus groups.
  • These methods often utilize questionnaires to structure research inquiries and gather responses efficiently.
• A business often utilizes multiple methods of primary research to establish a dependable comprehension of the market.
  • The collected data is then scrutinized to draw data-driven conclusions, such as determining pricing strategies for new products and selecting optimal distribution channels.
• Historically, primary research has been challenging and costly for businesses to conduct.
• The emergence of social media platforms like Facebook, Twitter, Instagram, and TikTok offers businesses remarkable opportunities for primary research.
  • Communication between businesses and customers through these platforms is nearly instantaneous.
    • Online surveys or polls enable businesses to gather large volumes of responses quickly at minimal cost.
  • Setting up online polls takes only a few minutes, with software automatically collecting and analyzing results.
    • Electronic means allow online businesses to collect primary market research efficiently.
  • Customers can promptly provide feedback on products or share innovative ideas for product enhancements.
    • Such feedback can aid businesses in developing extension strategies throughout a product's life cycle.

Primary Market Research Methods

Evaluating Primary Market Research

The Purpose of Sampling

• Primary market research typically involves surveying a small yet representative subset of the overall market.
  • Collecting data from the entire market is impractical due to cost and time constraints.
  • Researchers employ carefully crafted sampling techniques to draw accurate conclusions about customer preferences and behaviors.
  • Generally, larger sample sizes yield findings that better reflect the broader market.
• The selection of a sampling method depends on various factors, such as:
  • Available time
  • Familiarity with the target population
  • Expertise of the researcher(s)
• When time is limited, a quota sample may be the most suitable method, as it is quick and easy to organize.
• If a business possesses in-depth knowledge about the target population, a random sample is likely to yield unbiased research data that can be analyzed insightfully.
• In cases where researchers lack market research experience or expertise, a convenience sample can provide valuable data that is easily interpretable.

Comparison of Different Sampling Methods