Market Research Methods

Primary research can address the business’s exact question and provide current information that competitors do not automatically have. However, designing the research, finding respondents and collecting answers takes time and may be expensive. Secondary research is often quicker and cheaper, but its information may be out of date or poorly matched to the business’s customers.

Questionnaires and surveys: asking a consistent set of questions

A questionnaire is a set of questions. A survey is the process of collecting answers from respondents, usually using a questionnaire. Businesses can conduct surveys online, by telephone or face-to-face.

A business normally questions a sample rather than every potential customer. The sample should reflect the target market: the particular group of customers the business aims to sell to. For example, a business selling school bags would need views from relevant buyers and users, rather than an unrelated group of adults.

Questionnaires allow many people to answer the same questions, making their responses easier to compare. An online survey can reach customers across a wide area without paying interviewers to travel. This makes it useful when a business wants to find out which product option is most popular.

However, a questionnaire is only useful if its questions and respondents are suitable. Unclear questions can produce misleading answers, while fixed answer choices may miss important reasons behind a preference. People may not respond, leaving the business with too few answers or views mainly from those especially keen to participate.

Interviews: exploring individual views

An interview involves a researcher asking a respondent questions directly. Unlike a fixed, self-completed questionnaire, an interview can allow the researcher to clarify an answer and ask follow-up questions.

For example, if a customer says a proposed product is inconvenient, the interviewer can ask what makes it inconvenient. That detail could help the business change the product rather than simply record dissatisfaction.

Interviews are useful when the business needs to understand customers’ reasons and experiences. Their main drawback is that individual conversations take time, so reaching many customers can be costly. The interviewer’s wording or reactions may also influence the answers, creating bias.

Focus groups: gathering feedback through discussion

A focus group is a guided discussion with a small group drawn from the target market. A discussion leader encourages participants to explain their reactions to ideas such as a product design, packaging or an advertisement.

Participants can respond to one another’s ideas, helping the business uncover opinions it might not have anticipated in a questionnaire. A focus group is therefore useful for detailed feedback before a product or marketing decision is finalised.

However, participants may follow other people’s opinions rather than express their own. A confident participant can influence the discussion, and a small group may not reflect the wider market. Organising the session, paying a discussion leader and rewarding participants can also increase costs.

Internet research and the printed press

Internet research involves examining existing online information. Businesses might use government statistics, industry reports, competitors’ websites or online news articles. It can provide a wide range of information quickly, often at little cost.

The business must check who produced the information, when it was published and whether it applies to the relevant market. A national report may not describe customers in one local area. Some websites contain inaccurate or promotional information, and specialist reports may require payment.

The internet is a channel, not a guarantee that research is secondary. Reading an existing report online is secondary research; collecting new answers through an online survey is primary research.

Printed press research uses existing material in newspapers and magazines. Articles can reveal developments in an industry, changing consumer interests or competitors’ activities. A local newspaper may offer useful background for a local business, while a trade magazine may focus on its particular industry.

This information is already available and can be inexpensive to obtain. However, it was written for readers rather than the business’s precise research question. An article may contain opinion rather than verified facts, offer little detail about the target customers or become outdated.

Qualitative and quantitative: two different types of information

The distinction between primary and secondary research concerns where information comes from. The distinction between qualitative and quantitative research concerns what form the information takes.

Qualitative information describes opinions, preferences and reasons. An open question such as ‘What would you change about this bag?’ allows respondents to explain their views in their own words. Such answers can reveal why customers like or dislike a product, but they take time to interpret and are harder to compare across many people.

Quantitative information is expressed numerically. A closed question such as ‘Which bag colour would you choose: blue, black or green?’ gives a limited choice of answers that can be counted. Numerical findings make it easier to compare preferences, but they may not explain the reasons behind them.

One questionnaire can collect both types. Interviews and focus groups often produce qualitative information, while surveys often produce quantitative information. Existing reports and newspaper articles can also contain either type.

Choosing a method for the business

There is no method that is best for every business. The choice depends on the research question, the detail required, the customers the business needs to reach, and its available money, staff and time.

Consider a small bakery deciding which new lunch option to offer. A short questionnaire given to relevant local customers could collect comparable preferences at relatively low cost. Interviews could explain those preferences in greater depth, but would take more staff time. National newspaper articles about food trends might provide useful background, but would not establish what this bakery’s customers want. For this decision, a local survey would be a sensible main method.

By contrast, a manufacturer trying to understand reactions to new packaging could choose a focus group. Participants could examine the design and explain what appeals to them or causes confusion. That depth may justify the expense, although the manufacturer should not assume that a small group represents every potential customer.

Businesses can combine methods: secondary research can establish background trends, followed by primary research to answer a specific question. Whatever the method, the business should consider whether the respondents are representative and whether bias could affect the results. More responses can help, but simply asking more of the wrong people will not make the findings reliable.