what is market research?
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| what is market research? |
Market research is a process that aids business decisions. It involves systematically gathering, recording and analysing data and information about customers, competitors and the market.
Research can be based on primary data and information, or secondary data and information. Primary research is conducted when data or information are gathered for a particular product or hypothesis. This is where information does not exist already or is not accessible, and so needs to be specifically collected from consumers or businesses. Surveys, focus groups, research panels and research communities can all be used when conducting primary market research.
Secondary research uses existing, published data and research as a source of research.
It can be more cost effective than conducting primary research, and the Internet opens a wealth of resources for conducting this research. However, the data would have originally been collected for solving problems other than the one at hand, so might not be sufficiently specific. That being said, secondary research can be useful in identifying problems to be investigated through primary research.
Research can also be classified as qualitative or quantitative. Qualitative research can be classified as exploratory. Qualitative research aids in identifying potential hypotheses, whereas quantitative research puts hard numbers behind these hypotheses. Qualitative research seeks to find out what potential consumer perceptions and feelings exist around a given subject. This research can often be used to advise the design of quantitative research, which relies on numerical data to demonstrate statistically significant outcomes.
The Internet is a useful tool for both primary and secondary research, and can be used to gather both qualitative and quantitative data. In fact the communities on the Web can be viewed as one large focus group, regularly and willingly sharing their opinions on products, markets and companies. Today, organisations transacting online have a wealth of research information freely available to them, and sophisticated tools for gathering further data.
Market research should produce information that leads to actions.
Research can be based on primary data and information, or secondary data and information. Primary research is conducted when data or information are gathered for a particular product or hypothesis. This is where information does not exist already or is not accessible, and so needs to be specifically collected from consumers or businesses. Surveys, focus groups, research panels and research communities can all be used when conducting primary market research.
Secondary research uses existing, published data and research as a source of research.
It can be more cost effective than conducting primary research, and the Internet opens a wealth of resources for conducting this research. However, the data would have originally been collected for solving problems other than the one at hand, so might not be sufficiently specific. That being said, secondary research can be useful in identifying problems to be investigated through primary research.
Research can also be classified as qualitative or quantitative. Qualitative research can be classified as exploratory. Qualitative research aids in identifying potential hypotheses, whereas quantitative research puts hard numbers behind these hypotheses. Qualitative research seeks to find out what potential consumer perceptions and feelings exist around a given subject. This research can often be used to advise the design of quantitative research, which relies on numerical data to demonstrate statistically significant outcomes.
The Internet is a useful tool for both primary and secondary research, and can be used to gather both qualitative and quantitative data. In fact the communities on the Web can be viewed as one large focus group, regularly and willingly sharing their opinions on products, markets and companies. Today, organisations transacting online have a wealth of research information freely available to them, and sophisticated tools for gathering further data.
Market research should produce information that leads to actions.
