Business Studies – 3.2.1 Methods of market research | e-Consult
3.2.1 Methods of market research (1 questions)
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Primary Research involves collecting new data directly from the source. This is data that hasn't been collected before and is specifically tailored to the business's needs. Secondary Research involves analysing existing data that has already been collected by someone else. This data may or may not be directly relevant to the business's needs.
Examples:
- Primary Research Example: A business might conduct a survery of potential customers to gather information about their preferences for a new product. Alternatively, they could conduct focus groups to get in-depth qualitative feedback.
- Secondary Research Example: A business might analyse government statistics on consumer spending in the relevant product category. They could also analyse market reports produced by research firms.
Advantages and Disadvantages of Secondary Research compared to Primary Research:
| Feature | Secondary Research | Primary Research |
| Cost | Generally cheaper | Can be expensive |
| Time | Generally quicker to obtain | Can be time-consuming |
| Relevance | May not be perfectly relevant | Tailored to the business's needs |
| Accuracy | Accuracy depends on the source | Can be controlled |
In summary: Secondary research is a good starting point for gathering information quickly and cheaply. However, it may not be perfectly relevant or accurate. Primary research is more expensive and time-consuming, but it provides more tailored and reliable data.