4.1.2 - Primary and secondary market research

Primary and secondary evidence

The distinction between primary and secondary research depends on why the data was originally collected.

An illustrative café asks nearby workers which breakfast items they want. That is primary research because the café obtains new responses for its current decision. Reading an existing report on breakfast spending is secondary research. A business's own past sales records can also be secondary data when reused for a new investigation; secondary does not mean only information from outsiders.

Primary research can closely match the product, customers and location in question and be up to date. Designing questions, recruiting participants and analysing responses can take time and money. Secondary information can give a quick, cheaper starting point, but it may concern another country, customer group, time period or product. Paid market reports can be expensive, so secondary is not always free or cheaper.

The two approaches often work together. A large retailer might use existing population figures to shortlist regions, then conduct new customer research in those regions. A small shop might examine its sales records before asking customers why some products sell poorly. Choosing a method means considering the information needed, budget, time and quality, rather than declaring one approach always best.

Surveys and questionnaires

A survey gathers responses from a group of people, often using a questionnaire as its question tool.

A questionnaire is a set of questions used to collect information. A survey is the wider investigation that asks respondents for information; it may be online, by telephone or face to face. These terms overlap in practice, but a questionnaire describes the instrument rather than every part of the investigation.

Closed questions offer set responses, such as selecting a preferred opening time, making answers easier to count and compare. Open questions let respondents explain their reasons, which can reveal needs the researcher had not anticipated, but take longer to interpret. A short online questionnaire can reach many customers at relatively low cost; an interviewer can clarify misunderstandings but requires staff time and may influence responses.

For an illustrative bookshop, “Which day would you attend an evening reading?” produces more usable scheduling evidence than “Wouldn't an exciting Friday reading be wonderful?” The second wording encourages agreement. Questions should be clear and neutral, ask one thing at a time and use response choices that fit the decision. A trial with a few respondents can reveal confusing questions before the full survey.

Low response rates and the people who choose to respond can distort findings. Asking only current loyal customers may miss why non-customers avoid the business. A large response count helps with chance variation, but does not correct biased selection or leading questions.

Focus groups and observation

Discussion and watching behaviour can reveal different aspects of customer choices.

A focus group is a moderated discussion with a small group of relevant people. Participants can explain reactions to an idea and build on one another's comments. An illustrative games company could explore why players find a proposed game confusing. The discussion gives detailed reasons that a simple vote may miss. However, dominant participants may influence others, moderation costs money and a small group may not represent the whole market.