There are two main methods of collecting information:
- Primary research (field research) involves gathering new data that has not been collected before. For example, surveys using questionnaires or interviews with groups of people in a focus group.
- Secondary research (desk research) involves gathering existing data that has already been produced. For example, researching the internet, newspapers and company reports.
Factual information is called quantitative data. Information collected about opinions and views is called qualitative data.
Accurate market research helps to reduce the risk of launching new or improved products.
Some businesses opt out of field research and rely instead on the know-how and instincts of the entrepreneur to ‘guess’ customer requirements. They do this because market research costs time and money. Existing business can make use of direct customer contact to help them identify changing fashion and market trends.
