1 Main types of market research There are 2 main types of market research, these are primary and secondary research, and they are used to gather information for decision making.
1.1 Primary research
This type of research involves gathering data first-hand. It should provide information that is better suited to the specific needs of a business. There are a few methods that can be used to carry out primary research, these are:
• Observation
• Surveys
• E-marketing research
• Focus groups
• Panels
• Field trials
• Piloting
1.1.1 Observation
This is a cost effective way of collecting data that involves simply watching and recording what happens. The amount of time required to collect data using this method depends on what needs to be done to set up the observation, as well as carry it out and analyse the results. Observation is more suitable for collecting quantitative data rather than qualitative data, this is because this type of method is usually undetected, it records what people actually do. If people are aware that their views and behaviour are being noted, they may be encouraged to act differently and in a certain way, this can then create a more favourable impression of themselves. Observation can only help to reveal what people do, the lack of interaction means that it cannot establish reasons for their reactions or actions.
1.1.2 Surveys
Surveys are used to gather primary date either qualitative date or quantitative data. These are often based on a representative group or sample of people, if the number of potential respondents is very large. There are different ways of conducting a survey, the method chosen depends on the type and amount of information needed, as well as the cost and ease of obtaining it.
1.1.2.1 Face-to-face surveys
These involve using trained interviewers to question people face-to-face and are usually based one