Primary market research is an ongoing process of gathering data from consumers or potential consumers, with the purpose of analyzing data and putting together insights that businesses use to create successful products. If you’re looking for primary market research methods, this page will give you information on what to look for in a primary research company. You’ll also find information on primary market research advantages and disadvantages if you’re still learning about the process.
Primary market research can provide valuable data about your business and its environment. However, there are a number of advantages and disadvantages that should be considered before embarking on any primary market research program. This article provides information about primary market research methods, its advantages and disadvantages
Definition
Primary research is defined as a methodology used by researchers to collect data directly, rather than depending on data collected from previously done research. Technically, they “own” the data. Primary research is solely carried out to address a certain problem, which requires in-depth analysis.
There are two forms of research:
- Primary Research
- Secondary Research
Businesses or organizations can themselves conduct primary research or can employ a third party to conduct research on their behalf. One major advantage of primary research is, this type of research is “pinpointed”, research is carried around only a specific issue or problem and all the focus is directed to obtain related solutions.
For example, a brand is about to launch a new model of mobile phone and wants to conduct a research about the looks and features mobile phone they are soon going to introduce. Organizations can select a qualified sample of respondents that closely resembles population and conduct primary research with them, to know their opinions. Based on this research, the brand can now think of probable solutions to make necessary changes in looks and features of mobile phone.
When conducting primary research using your own resources, first decide how you’ll question your targeted group: by direct mail, telephone, or personal interviews. If you choose a direct-mail questionnaire, the following guidelines will increase your response rate:
- Questions that are short and to the point;
- A questionnaire that is addressed to specific individuals and is of interest to the respondent;
- A questionnaire of no more than two pages;
- A professionally-prepared cover letter that adequately explains why you’re doing this questionnaire;
- A postage-paid, self-addressed envelope to return the questionnaire in. Postage-paid envelopes are available from the post office;
- An incentive, such as “10 percent off your next purchase,” to complete the questionnaire.
Even following these guidelines, mail response is typically low. A return rate of 3 percent is typical; 5 percent is considered very good. Phone surveys are generally the most cost-effective. Some telephone survey guidelines include:
- Have a script and memorize it-don’t read it.
- Confirm the name of the respondent at the beginning of the conversation.
- Avoid pauses because a respondent’s interest can quickly drop.
- Ask if a follow-up call is possible in case you require additional information.
In addition to being cost-effective, speed is another advantage of telephone interviews. A rate of five or six interviews per hour is typical, but experienced interviewers may be able to conduct more. Phone interviews also can cover a wide geographic range relatively inexpensively. Phone costs can be reduced by taking advantage of less-expensive rates during certain hours.
One of the most effective forms of marketing research is the personal interview. They can be either of these types:
- A group survey. Used mostly by big business, group interviews or focus groups are useful brainstorming tools for getting information on product ideas, buying preferences, and purchasing decisions among certain populations.
- The in-depth interview. These one-on-one interviews are either focused or nondirective. Focused interviews are based on questions selected ahead of time, while nondirective interviews encourage respondents to address certain topics with minimal questioning.
Common methods of obtaining primary market research include:
- Focus groups
- Interviews (online & in-person)
- Surveys & questionnaires
- Mystery shoppers
- Product testing and product trial
Examples
In this technology-driven world, meaningful data is more valuable than gold. Organizations or businesses need highly validated data to make informed decisions. This is the very reason why many companies are proactive to gather their own data so that the authenticity of data is maintained and they get first-hand data without any alterations.
Here are some of the primary research methods organizations or businesses use to collect data:
1. Interviews (telephonic or face-to-face): Conducting interviews is a qualitative research method to collect data and has been a popular method for ages. These interviews can be conducted in person (face-to-face) or over the telephone. Interviews are open-ended method which involves dialogues or interaction between interviewer (researcher) and interviewee (respondent).
Conducting face-to-face interview is said to generate a better response from respondents as it is a more personal approach. However, the success of face-to-face interview depends heavily on researcher’s ability to ask questions and his/her experience related to conducting such interviews in the past. The types of questions that are used in this type of research are mostly open ended questions. These questions help to gain in-depth insights into opinions and perceptions of respondents.
Personal interviews usually last up to 30 minutes or even longer depending on the subject of research. If a researcher is running short of time conducting telephonic interviews can also be helpful to collect data.
2. Online surveys: Once conducted with pen and paper, surveys have come a long way since then. Today, most researchers use online surveys to send it to respondents to gather information from them. Online surveys are convenient and can be sent on emails or can be filled out online. These can be accessed on handheld devices like smartphone, tablets, Ipads and similar devices.
Once a survey is deployed, a certain amount of stipulated time is given to respondents to answer survey questions and send it back to researcher. In order to get maximum information from respondents, surveys should have a good mix or open ended questions and close ended questions. Survey should not be lengthy, else respondents lose interest and tend to leave it half done.
It is a good practice to reward respondents on successfully filling out surveys for their time and efforts and valuable information. Most organizations or businesses usually giveaway gift cards from reputed brands that respondents can redeem later.
3. Focus groups: This popular research technique is used to collect data from a small group of people, usually restricted to 6-10. Focus group brings together people who are experts in subject matter, for which research is being conducted.
Focus group has a moderator who stimulates discussions among the members to get greater insights. Organizations and businesses can make use of this method especially to identify niche market to learn about a specific group of consumers.
4. Observations: In this primary research method, there is no direct interaction between researcher and person/consumer being observed. Researcher observes the reactions of a subject and makes notes.
Trained observers or cameras are used to record reactions. Observations are noted in a predetermined situation. For example, a bakery brand wants to know how people react its new biscuits, observer notes the first reaction of consumers and evaluates collective data to draw inference.
Benefit #1: Data ownership
Access to secondary market research data may be limited. With primary research however, you and your company have complete ownership of the data that you collect.
Ownership of research data is important.
With an initial round of primary research under your belt, you and your company have the ability to look back and compare future waves of data to see how your company fared previously.
The most important benchmark in market research is you! With data ownership, you have the ability to see how you and your company have done within a certain time frame.
Benefit #2: Relevancy
You’ve searched tirelessly for information on your target audience, and you’ve finally come across a data set from a relevant study!
There’s just one problem: the study was conducted five years ago.
If there’s one thing we can all agree on, it’s that in this day and age the world is constantly changing.
Consumer attitudes and market trends change regularly, and data from a study conducted last year may not apply to today’s market conditions.
With primary research conducted now, you can guarantee data that is timely and relevant.
Benefit #3: Targeted approach
When conducting a primary market research study, you have complete control over how it is carried out. You can tailor the entire study to fit the needs of your company.
Often times, when searching for secondary research data, you may have a hard time finding information that aligns with your company, your goals and objectives, and your preferred target audience.
When you have the ability to execute a fully custom research study, you get to set the objectives, you get to choose the methodology used, and you get to choose the audience that you sample.
At the end of the study, you have data relative to your specific, targeted audience rather than the mass market to which most secondary research applies.
Disadvantages of Primary Research
- One of the major disadvantages of primary research is, it can be quite expensive to conduct. One may be required to spend a huge sum of money depending on the setup or primary research method used. Not all businesses or organizations may be able to spend a considerable amount of money.
- This type of research can be time-consuming. Conducting interviews, sending and receiving online surveys can be quite an exhaustive process and need investing time and patience for the process to work. Moreover, evaluating results and applying the findings to improve product or service will need additional time.
- Sometimes just using one primary research method may not be enough. In such cases, use of more than one method is required and this might increase both times required to conduct research and the cost associated with it.
Conclusion:
Primary market research methods are the most common methods used to carry out primary research. With growing competition across various sectors, firms are trying to come up with new ideas that will help them gain an advantage over their rivals. Primary research is an integral part of this entire process and is critical for businesses to be able to assess market potential, derive useful insights and form effective strategies.