Primary Market Research
Primary market research is market research that is done by a firm for its own use. A business can tailor this research to their own exact needs.
Examples of primary market research
- For example, a firm may use questionnaires, surveys or interviews to carry out primary research.
- Firms often do this without the customer thinking about it.
- A key benefit of primary research is that it is tailored exactly to the needs of the business.
- Focus groups: small groups of customers discuss products or services to give detailed opinions.
- Observation: businesses can watch customer behavior directly to gain insights without asking questions.
The likert scale
- At airports, firms like Ferrovial, which owns Heathrow often ask what your service was like at security clearance queues.
- This is known as a likert scale, which is a form of market research that firms use to try to understand and gauge what customers think of their product or service.
Sampling
- Sampling involves selecting a smaller group from the target market to represent the entire market.
- It is useful because it reduces costs and saves time compared to asking every customer.
Disadvantages of primary market research
- It can be expensive to carry out surveys, interviews, or focus groups.
- It can take a long time to collect and analyze data.
- Bias can occur if the sample is not representative or questions are poorly designed