Primary market research methods

Primary market research is first-hand information that you collect yourself for a specific purpose, such as testing whether your own product idea appeals to your target customers. Secondary market research is information that already exists because someone else collected it for a different purpose, such as published sales figures or an industry report.

Primary methods include observation, asking people directly through questionnaires, surveys and interviews, gathering a small group for a focus group, running a consumer trial, and test marketing (sometimes called a pilot). You choose the method, and any questions, so the evidence is aimed at your research purpose, not someone else's.

Weighing up the two types

Imagine you are planning to sell a small batch of your own phone case designs at a school summer fair. A published report on how much people spend on phone cases is secondary research: it is quick to find, but it will not tell you which of your designs pupils at your own school would actually buy. Test marketing a small batch of your designs at the fair is primary research: it shows which designs sell and which are left on the table, but it uses up materials and takes up your Saturday. Neither type is automatically better; each suits a different question.

Primary research is first-hand information you collect yourself; secondary research already exists because someone else collected it. Either can be carried out physically, such as face to face or on paper, or digitally using a phone, tablet or computer. Physical or digital describes how a method is carried out, not which method it is.

A paper questionnaire and an online questionnaire are both questionnaires, so both are primary research.

The internet is a tool, not a method

The internet is a tool used to carry out research, like a pen or clipboard. It is not a stand-alone research method or source. Saying "the internet" does not tell the reader where information came from or how it was gathered.

For example, a youth theatre wants to choose workshop times. Its members could complete an online questionnaire sent by message; this is a digital questionnaire, which is primary research. The organiser could also read the council's online list of other youth groups to see when they meet; this is a secondary source found online. In both cases the internet is only the tool.

Market research can collect two types of data: quantitative data and qualitative data. Both are useful, but they answer different questions.

Quantitative data

Quantitative data is numerical or levels-based. Examples include the number of people who visit an indoor climbing wall each week, or a satisfaction score out of 10. Because it uses numbers or ordered levels, it is easier to analyse statistically, compare between groups and use to make factual conclusions. For example, if 60 out of 100 people give a score of 8 or more, you can compare that result with another group.

However, numbers can miss real-world issues. A high score does not tell you why someone was happy or what problem they noticed. Large volumes of quantitative data can also be costly to analyse, because someone must enter, check and process it.

Qualitative data

Qualitative data is based on people's feelings, judgements and opinions. Examples include answers such as 'the music is too loud' or 'I would come more often if there were more seats'. This type of data helps you understand general opinion and what people like, dislike or want changed.

Qualitative data is limited by how much information can reasonably be analysed. Long written answers and comments take time to read, group into themes and compare.

Comparing the two

Neither type is always more useful than the other; each has different strengths and limitations, so the better choice depends on what you need to find out.

Observations are a primary research method where you watch and record what people do, or note the conditions of a place, instead of asking questions. You can observe people, such as customers, employees or competitors, or you can observe a location, such as a shop entrance, a market square or a car park.

What observations are good for

Observations help you spot patterns of behaviour. Imagine you run a small gift shop. You stand back and record which way customers turn when they come in, where they pause, and how long they stay. After a week you notice most people turn right and stop at the window display, then leave without walking to the back. That pattern tells you the back of the shop is being missed. You can observe customers, employees or competitors in the same way — for example, noting where staff spend most of their time or which part of a rival's stall attracts a crowd.

Observations are also useful for evaluating a location. By tallying how many people pass a spot at different times of day, you can judge whether a stall there would be busy enough. Because people often do not know they are being watched, observation can give a true behavioural response rather than an answer they think you want to hear.

Limits of observations

Observations are time-consuming and costly, because someone has to watch and record for hours. They show what people do but cannot reveal the reasons behind it: you might see shoppers ignore a display without learning that the prices were too high or the labels were unclear. One session is rarely enough, so observations usually need repeating at different times or on different days to be reliable.

A questionnaire is a set of questions used to collect information. A survey is the process of collecting that information from a sample of people using the questionnaire — so the questionnaire is the tool, and the survey is the activity of handing it out, gathering the answers and looking at what they show.

For example, the owner of a new indoor climbing wall wants to know whether teenagers and parents in the town would pay to use it. They write a questionnaire, then survey 60 people leaving the local leisure centre.

Types of question

The type of question you choose decides what kind of answers come back.

Question wording matters too. Asking “Don't you agree the wall should open late?” pushes people towards yes, so the answers become unreliable. A questionnaire can mix open and closed questions to gather numbers and opinions together.

Advantages

• Low cost, and one questionnaire can gather and combine answers from many people.
• When done online there is no printing or distribution cost, responses arrive immediately, known customers can be targeted (for example by emailing a mailing list) and results are collated and analysed automatically.

Disadvantages

• People may skip questions, or give inaccurate answers to look good or to finish quickly.
• Questionnaires are often ignored, so response rates are low.
• Answers come from a sample, so a small or poorly chosen group can give results that do not represent the wider market — 60 answers from one leisure centre will not tell the owner about the whole town.

Surveys can be carried out in person, such as at a weekend sports event, or remotely through digital channels such as a QR code printed on a poster.

An interview is a conversation where you talk to someone first-hand to find out their views and experiences. It can be a formal interview, with planned questions asked in a set order, or an informal chat, where the conversation flows more freely. Either can happen face to face or remotely, such as over a video call or by phone.

Why interviews are useful

Interviews let you adapt your questions as you go. If someone's answer is unclear or surprising, you can ask a probing follow-up question to dig deeper, which gives you richer detail than a fixed set of questions can.

In person, you can also read body language — a pause, a frown or a shrug can show that an answer needs exploring. People can also give more open, honest answers when they are talking to someone rather than typing into a form, because they can explain themselves and check that they have been understood.

For example, imagine you are testing a weekend dog-walking service. You interview six dog owners in a park. One says, "I'd want updates while you're out." You follow up: "Would a text when you arrive help, and would you pay extra for it?" That quick change of direction is only possible in a live conversation.

Drawbacks of interviews

Interviews are time-consuming: each one may take 20 minutes or more, plus arranging it and writing up what was said. They can also be costly, particularly if you pay for travel, a room or staff time. Because you can only speak to a small number of people, their views may not represent the wider market — six dog owners in one park are not all dog owners in your town.

A focus group is a form of primary market research: a selected group of people who meet to discuss a particular topic so their behaviour and ideas can inform or improve a product or research. The people are chosen because they match the customers a business wants to reach, and a facilitator leads the discussion and keeps it on track.

For example, a youth volunteering charity that wants more 14 to 16 year olds to help out could invite eight teenage volunteers to discuss why they joined and what nearly put them off. The facilitator might ask how they first heard about the charity and which parts of the application form were confusing. Because the group talks together, one person's comment can spark ideas from others that a written answer would never capture.

Advantages

• Deeper insight into opinions, because people explain what they think rather than just ticking a box.
• Debate lets different views be heard, so the business sees where customers disagree.
• The facilitator can explain a confusing question and ask follow-up questions straight away.
• Participants can be targeted, so everyone invited is part of the market the business cares about.
• A variety of people come together, and the facilitator can read body language as well as words.
• Information is up to date, reflecting what customers think right now.

Disadvantages

• Organising is difficult, time-consuming and expensive: a venue, a skilled facilitator and a reward for participants all cost money, and finding a time everyone can attend is a struggle.
• Only a small number of participants take part, so their views may not represent the wider market.
• Some members may not contribute fairly or honestly: a loud person can dominate, and a quiet one may just agree with the group instead of saying what they think.
• The facilitator may direct the conversation with leading questions, which can steer answers towards the result they hoped for.

Focus groups are not cheap or quick, but they are strong where a business needs opinions explained in detail rather than counted. Choosing a research method explains how to weigh them up against other methods.

A consumer trial means giving a product or service to a chosen group of people from the public before it goes on general release. The business watches how the group reacts, and uses what it learns to improve the product or its branding before everyone else can buy it.

For example, a small business that makes phone cases from recycled plastic might give free cases to members of a local youth drama group for a month. The group use them on their own phones every day and report back on how the case feels to hold, how well it protects the phone, the choice of colours and the recyclable packaging.

Advantages

• Encouraging early adopters: the people chosen are often keen to try new things, so they get excited about the product and may recommend it to friends before it is even on sale.
• Honest feedback and opinions: trialists use the real product in real situations, so their comments are based on actual experience rather than guesses.
• Improving the product before release: the business can change the colour, the packaging or the branding while changes are still cheap, instead of fixing a product that has already failed with the public.

Disadvantages

• Competitors becoming prematurely aware: trialists may post photos online or talk about the product, so rival businesses learn about a new idea before launch and can react first.
• The cost of giving away free products: every sample costs money to make, pack and hand out, and the business earns nothing from them.
• Feedback being difficult to analyse: comments such as “the case feels a bit slippery” are opinions, and a small trial group may not reflect what the wider market will think.

A consumer trial gives selected consumers early experience of a product, which is not the same as test marketing, where a product or campaign is tried in a limited area or group of stores.

Test marketing, also called a pilot, means offering a new good, service or marketing campaign to a small set of customers, a single area or selected outlets before a full launch. You run the idea on a small scale, watch how people react, then decide whether to roll it out everywhere. A drinks firm might, for example, sell a new low-sugar fizzy drink in 15 shops in one city for two months before trying to supply supermarkets across the country.

Why a business runs a pilot

• Measuring popularity before a wider launch: the business finds out whether people actually buy and re-buy the product, or respond to the campaign, before paying for full production, packaging and national advertising. If the pilot flops, far less money has been risked.
• Predicting stock and supply needs: a pilot shows how quickly stock sells out and which sizes or flavours people choose. The business can then order sensible quantities for the wider launch instead of over-ordering and being left with unsold stock, or under-ordering and disappointing customers.
• Gaining testimonials from early adopters: customers who try the product first can give quotes and reviews. These genuine opinions can be used in later advertising, which is more convincing than a business simply saying its own product is good.

The drawbacks

• Results may not be representative: one town or one small group of people may have different tastes, incomes and ages from the whole market, so a hit in the pilot does not guarantee a hit nationally, and a flop may wrongly persuade the business to give up.
• Competitors find out earlier: a pilot is visible, so rivals can see the idea, copy it or bring out their own version before the full launch.
• Delays reduce potential revenue: running a pilot for weeks pushes the national launch back, so money comes in later and a competitor may reach customers first.

Keep test marketing separate from a consumer trial: a trial gives selected people the product to experience, while a pilot tests the product or campaign in a limited area or group.

Choosing a research method means deciding how to collect primary market research so the results are fit for your purpose. The best method is not always the most detailed one; it is the one that gives useful evidence within your limits.

Start with the information needed. If you need to know how many customers would pay £5 for a product, you need a method that collects numbers from enough people. If you need to understand why customers prefer one design, a method that allows longer answers is more useful.

Budget and time limit what you can do. A large focus group may need a venue, a facilitator and prizes to attract people, so it costs more and takes longer to organise than a short online questionnaire sent to known customers. With a small budget and a tight deadline, choose a method you can actually complete.

Decide whether you need current data, collected now, or detailed data. Checking present behaviour, such as how shoppers move around a market stall, may need observation now. Understanding the reasons behind a choice needs detailed answers, which can take longer to collect and analyse.

Finally, match the method to quantitative or qualitative evidence. Numbers are easier to compare and count; opinions help explain feelings and ideas. A mixed approach can work: a questionnaire with closed and open questions gives counts plus reasons.

For example, a teenager planning a weekend craft workshop for 11 to 14 year olds has £40 and two weeks. A short questionnaire to 40 local pupils can quickly show how many would attend and which activities they want. A focus group would give deeper ideas, but the venue and time may not fit the budget.