Primary market research (or field research) is the gathering of first-hand data, custom-made to an organization’s specific needs. It is essentially about the collection of new data because the information does not currently exist. Organizations are increasingly using online tools (e.g. SurveyMonkey and Zoomerang) and social media (e.g. Facebook, Instagram, Twitter, LinkedIn, and WhatsApp) to collect and collate data faster, cheaper, and more frequently.

Primary market research involves fieldwork and may be carried out using any of these methods:

1.  Surveys

A survey is a data collection tool used to gather primary market research about individuals or their opinions, using a series of standardised questions. Standardised questions ensure that surveys are more reliable and so that the results can be generalised to represent the larger population. It can be used to gather qualitative information, although is best suited to collect quantitative data from a sample of individuals in a particular market. However, to be of real use, surveys needs to have a large enough sample size to ensure the responses are statistically valid.

Surveys are typically used to gain opinions and feedback. For example, the IBO uses online surveys for participants (teachers) who have recently attended one of their Workshops. Variations of surveys include postal surveys, personal surveys, self-completed surveys, telephone surveys and online surveys.

Advantages of using surveys

• They can enable researchers to gather a large amount of data relatively quickly.

• With online surveys, it is also relatively cheap to collect and collate data over a short period of time.

• Surveys are less expensive and time consuming than other methods of data collection, such as interviews and observations.

• They can be used to collect data and information for a broad range of research purposes.

 Disadvantages of using surveys

• Surveys conducted face-to-face can be expensive and time consuming, especially when trying to obtain a large sample that is representative of a target market.

• They can suffer from selection or interviewer bias and/or poorly worded questions, thus generating unrepresentative results.

• Questions in a survey can be poorly worded, so the results are inaccurate or misleading.

• As surveys can be time-consuming to complete, participants may be reluctant to fill out questionnaires or they might do so in a hurry, without giving considered responses to questions (especially if they are open-ended questions).

• Answer choices (options) used in closed questions on a survey may not represent how the survey participants actually feel.

• Even with well-designed surveys and questions, participants may not be entirely truthful due to strategic reasons.

2.  Interviews

Interviews involve dialogue between the interviewer (the market researcher) and the interviewees (respondents to the market research). The interviewer asks the interviewees a set of questions in order to gain feedback and opinions of the respondents. They are similar to surveys but tend to be much more detailed. Interviews are usually conducted face-to-face, online technologies (such as Skype) or using the telephone.

 Advantages of interviews

• Interviews are specifically designed to meet the needs of the individual organization.

• They can help the business to gain large amounts of qualitative data.

• Clarification of questions or responses can take place as the researcher can ask follow-up questions. This helps to resolve potential biases in the answers.

 Disadvantages of interviews

• As only a small number of respondents are involved, the findings might not be representative of the opinions of the market.

• Potential interviewer bias might occur, thereby distorting the findings or analysis of the responses.

• Interviews can be very time-consuming and are therefore a costly method of market research. Interviews may take a large amount of time to complete, so interviewees may be offered a financial incentive to take part.

3.  Focus groups

The term focus group was coined by Ernest Dichter, an Austrian-born American psychologist and marketing expert. Focus groups consist of small groups of targeted customers with similar characteristics (e.g. male, female, or children) and/or similar interests (e.g. gamers, skateboarders or food critics). The focus group members are assembled together so that researchers can ask and discuss questions about a specific product with this group.

A consumer panel refers to a focus group comprised of people who belong to the firm’s target segment(s). For example, a motorcycle manufacturer is likely to include (loyal) motorcycle riders and enthusiasts in the group, to provide expert feedback. Typically, the researcher will observe, record and analyse the behaviour or responses of the members of the focus group.

 Advantages of focus groups

• They help the business to identify the desires and preferences of different segments of the market. This helps the organization to improve its marketing mix and strategy.

• They enable market researchers to gather the opinions and attitudes of customers, and what appeals to them as consumers of the particular product.

 Disadvantages of focus groups

• They can be time consuming and expensive, as the participants of a focus group are usually paid for their time.

• Views and feedback are not always representative of the entire market, especially if there are a few individuals who dominate the discussions.

• Similarly, peer pressure and courtesy may force participants to give more polite or somewhat unreliable answers.

 Watch this two-minute video clip from the popular cartoon series The Simpsons, which shows how market research is used to get feedback for the “Itchy & Scratchy” show:

 This is a great, short TED Ed video about how focus groups work – definitely worth watching:

 Watch this fascinating (or rather hilarious) market research video clip featuring the “diamond” shaped Shreddies breakfast cereal:

4.  Observations

Observations are a form of primary market research that involve researchers watching, monitoring and recording how customers behave or react to certain situations. For example:

• a theme park operator might want to monitor the average queueing time for its rides

• restaurant owners might want to observe the how long it takes, on average, for diners to be served their meals

• supermarkets might want to determine which isles or areas of the store are the most popular with their customers

• companies gather data on the number of visitors to their website, which pages they visit and how long the average customer spends on the website.

 Advantages of observations

• Observations are not reliant on the willingness of people to participate in market research, unlike with surveys and interviews.

• Results are likely to be accurate, realistic and representative as behaviours are monitored. In any case, observations tend to be more objective than interviews or surveys as bias is largely removed.

 Disadvantages of observations

• Observations are very time consuming, and interpretation of the findings can be highly labour-intensive.

• Research subjects may act differently if they know they are being monitored.

In summary, the generic advantages and disadvantages of primary market research are outlined in the table below.