Primary Market Research (CIE IGCSE Business)

Surveys

• 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

Observation

• 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

Interviews

• 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

Test marketing

• 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

Focus groups

• 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

Method

Explanation

Advantages

Disadvantages

Quota

• 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

Random

• 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

Convenience 

• 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