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Primary Market Research

Last updated 7 Aug 2019

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Primary market research is research data that is collected first-hand for a specific research purpose.

Examples of primary research methods

Common methods of obtaining primary market research include:

• Focus groups
• Interviews (online & in-person)
• Surveys & questionnaires
• Mystery shoppers
• Product testing and product trial

Advantages and drawbacks of primary market research

Directly focused on research objectives = fit for purpose

Tends to be more up-to-date than secondary research

Provides more detailed insights – particularly into customer views

Time-consuming and often costly to obtain

Risk of survey bias – research samples may not be representative of the population

• Primary research
• Secondary research
• Quantitative research
• Qualitative research
• Marketing research

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Primary Market Research: Guide & Examples

Primary market research gives you the direct feedback you need, from those who matter most to your business.

By knowing what makes people tick, and what ticks them off – you can tailor your positioning, messaging, and approach.

Ready to find out more about the what, why, when, and how to do primary market research right?

Then let’s begin:

What is primary market research?

Primary market research is direct, first-hand data collection by an individual or organization. The most popular form of primary research is market research surveys .  But, other primary research methods like focus groups, interviews, and observational research deliver vital insights that can shape and determine critical strategies for efficient growth.

Why is primary market research important?

Primary market research helps organizations:

• Predict future trends
• Understand industry challenges
• Optimize offerings
• Create impactful messaging
• Answer specific questions that shape strategies, marketing, products, operations, and more.

Pros and cons of primary market research

As with all types of market research , there are pros and cons to consider before choosing which route is best.

Let’s take a look at them now.

Benefits of primary market research

• Control With primary market research, you control how you collect data and how it will be used.
• Relevance As data is collected first-hand, you can ensure the questions are relevant to your area of interest.
• Ownership The data belongs to you, and it’s information your rivals won’t be able to access.
• Deep insights By listening to the thoughts and opinions of an audience, you obtain a depth of insight that no other form of research alone can uncover.
• Accuracy and timeliness You have confidence that responses are relevant to the present-day consumer and market conditions.

Disadvantages of primary market research

Primary market research does have some limitations. Here are three to consider.

• Cost Most types of primary market research cost more than secondary research methods. From the design and set-up to collating results ready for analysis, it all comes at a cost.
• Time Primary market research takes longer to plan, do, and review than secondary research . If a large sample size is required, this adds to the time needed.
• Bias In some situations, an individual might be biased based on previous experience. Or, they might not fully understand the questions being asked. This can happen a lot with surveys, so consideration should to be given to inaccuracies.

11 Ways to do Primary Research

Knowing which type of primary research is right for you will depend on the problem you’re trying to solve and the questions you want to answer.

Here are 11 of the most popular primary market research methods being used today.

Telephone Interviews

These are useful with customers or prospects, and they’re also fairly easy to arrange and conduct. When creating interview questions, ask open-ended questions to get unrestricted answers.

In-depth Interviews (IDIs)

These are focused interviews with people of strategic importance, and follow a structured or unstructured format. You can either follow a specific set of questions or conduct a free-flowing interview that allows for greater flexibility. An IDI usually lasts for between 20-30 minutes.

Pro Tip: Beware of bias

Ethnographic research

This focuses on following individuals, one at a time. A trained observer will immerse themselves in an environment (think a store or home), and observe how people behave and interact with the things around them. Brand marketers, product developers, and designers then benefit from seeing and understanding these interactions. It requires more time and money compared to other methods.

• Observational research

Observational research is often favored by smaller businesses and startups and monitors numerous people in a single location. Here, one person gathers insights from a large group in a single session or day, making it cost-efficient. The researcher focuses on how people stop outside a store, if there are specific things they seem drawn to in a display, and the direction they take when heading inside.

Minimum Viable Testing (MVP) testing

Involves testing a product or new feature before it’s taken to market. The goal is to gauge a market’s reaction and gain feedback to improve or adapt future features. There are two ways to do this.

• Prototyping – where you create numerous product variants that a smaller group of people evaluate to determine which would best meet their needs.
• Post-product launch – this is designed to measure the general reaction of a target audience and helps organizations know which direction is best to move in.

Product/Field trials

Doing trials is a great way to get feedback about the product or their experiences. This can be particularly useful for product development and marketing. In field trials, variables and hypotheses can be tested in a controlled environment or in the field.

Although lots of companies use free trials as a conversion path, it’s also an incredibly valuable way to get feedback from users about the things they like or dislike, as well as potential features they’d like to see in the future.

• Hypothesis testing

Used with existing products through either multivariate or A/B testing . This type of research can help with things like pricing evaluation across different audiences or markets. It can also look into web page specifics, conversion effectiveness, and more. By taking an experimental approach, it helps organizations establish optimal strategies for product, pricing, positioning, and core messaging.

In a primary market research context, Market research surveys capture numerical data for a relatively low cost. Online surveys are quick to set up and easily sent to both existing and prospective customers. When used in primary market research, it’s important to get the length just right. Go too long; boredom creeps in they’ll give up. Too short, and you risk not getting enough viable data for a complete picture.

Pro Tip: If you’re targeting an important group of people with a survey, consider an incentive.

Why? The National Center for Biotechnology Information ( NCBI ) conducted almost 50 separate studies on the topic; their findings confirmed that monetary incentives doubled the number of completed responses. From charitable donations and gift cards to PayPal credits, people are more likely to complete surveys when there’s something in it for them.

• Intercept surveys

If you’ve ever spotted a tablet asking you to rate the service or experience you had in a store/facility; then you’ve experienced intercept surveys at work!

One of the biggest advantages of intercept surveys is they target all visitors. Unlike traditional survey formats that require an email address, this style of survey can reach all demographics, and give you instant feedback. What’s more, they’re easy to organize and analyze.

• Online focus groups

These days, most organizations tend to favor online focus groups. Organizing and expending is far easier as there’s no need to factor in travel, venue hire, and sustenance costs. It’s also far easier to get people to commit to a quick video focus group compared to in-person set-ups.

• In-person focus groups

Physical focus groups are still strong, and people prefer them for many reasons. Body language is far easier to interpret when people are in the same location, and there’s the added benefit of stronger in-group dynamics too. So, while they cost more, take a little longer to organize, and you have the added burden of knowing whether or not participants will show up, there are still plenty of reasons to use them. Convenience isn’t always king.

The difference between primary and secondary research

3 primary market research examples

There are many methods of primary market research at a company’s disposal. Finding the right type for your research goal, budget, and time considerations is key to unlocking success. Here are three examples of primary market research in action, to give you a touch of inspiration.

1. Ethnographic research

I spoke directly with Umair Syed of Bizitron, he explained how his digital market agency favors ethnographic research for uncovering key consumer insights for big brands.

2. Customer satisfaction survey – low-cost example of primary research

This is a great primary market research example in action using an online survey format. Customers are asked if they’d like a receipt emailed: if they do, they receive a survey after their visit. Key questions provide the organization with clear ratings around their experience. Open-text boxes are also used to gather specifics if a score is particularly good or bad.

3. Focus groups & interviews

Another widely used primary market research method is the interview. Here’s a sample of some of the focus group questions we use at Similarweb. The biggest advantage of using this format is that any audience can be reached and interviewed remotely. Costs are low, and you can reach a wide and varying audience with granular feedback.

While it takes time to conduct this type of primary market research, it gives organizations the ability to pick and choose who they want to speak with and opens up the floor to ask them very specific, open-ended questions that have the power to deliver insights you might not be able to get from other primary research methods.

Primary market research questions

If you run a trial or release an MVP, you can use a survey for primary market research questions like these:

• What was your most favorite feature of the product?
• If you could improve one thing about the product, what would it be and why?
• How much money would you pay for this product?
• How frequently did you use the product during the trial?
• Did you use the product during the morning, afternoon, or evening most?
• Would you recommend this product? If yes or no, why?
• Did anything occur during the trial that would prevent you from using the product in the future?

If you want to conduct an interview, here are some examples of the typical types of primary research questions you might ask.

• Can you tell me your role?
• What are your responsibilities? What are your main challenges?
• Do you have KPIs? If so, what are they?
• Who do you report to?
• How often do you use our product?
• In which context? What are you trying to achieve?
• How do you perceive our product as a tool for market research ?
• Do others in your team use this product? For what reasons? What is the structure of your team?
• What other tools do you use to perform your job? Why?
• Can you explain your main challenges with this product?
• What are the features you use most often? Why?
• Which features do you use least often? Why?
• What would make your workflow easier?
• Is there anything else on your wishlist?

How to do primary market research

• Determine what the subject or aim of the research is.
• Use secondary research first to validate the subject.
• Set out a clear problem statement or research question to be answered.
• Set objectives, and decide what you’d like to achieve.
• Outline timeframes and set relevant deadlines.
• Pick the right primary market research methods to help you get the information you need.
• Decide on your sample size – large or small.
• Consider whether you’ll use qualitative or quantitative research (a little of both is best practice).
• Outline the structure for your plan, then review it to validate if it supports your research question. Consider, whether it will give you the information needed to make decisions about the next steps.
• Test to ensure it works and delivers the right type of insights.
• Collate and analyze the results.

Discover a better way to get similar results in less time

Similarweb Research Intelligence gives you instant access to data that shows you things like audience insights , search interests, overlap , loyalty , and demographics .

Let’s say you’re planning to expand into a new category, and want to research the market to capture a new audience or understand consumer demand before you spend time and resources on product development.

For example, launching a new urban e-bike service. You’ll want to reach a new audience but the problem is you don’t know what their interests are and how to approach them.

You’ll want to find out:

• Who is your target audience?
• How are your competitors approaching them?
• Which channels work best for your audience?
• When is the right time to engage with them?

Step 1: Identify the audience and categorize based on search interests

The first step is to identify the ideal customer profile of your target audience that you want to capture, so this could be various attributes. For the e-bike example, you’ll want to be engaging with people who are fit to cycle or have a need. For instance, they commute to work by bike or enjoy cycling as a hobby outside of work.

• Fit to cycle
• Need to cycle (i.e., cycle to work)
• Like to cycle (outdoors lovers)
• Are interested in a healthy lifestyle (eat well, lose weight, exercise, work-life balance)

Other criteria could be around lifestyle i.e., they want to live a balanced and healthy life. You can identify your audience through different ways, such as what they search for online or what they post on social media. For this example, we’ll dive into the healthy lifestyle audience cohort and build a profile around the search term “healthy snacks”.

Using search terms such as ‘healthy snacks’ you can build a list of keywords. And group these keywords to essentially build a profile of your audience.

With this list, you can identify the types of sites that engage with your target audience, and establish the total addressable market based on search volume and trends over time.

Here we can see the volume of searches for healthy snacks has a monthly average of 77,000 in the UK, along with the key players who capture traffic from this search term.

Step 2: Qualify your audience

The next step is to identify sites and mobile apps targeting your audience i.e., people searching for “healthy snack” and find sites based on relevant criteria such as age, gender, or type of site. Then you can expand your list by identifying other sites visited by the same audience and discover which of your competitors (in this case, similar cycle makers) are working with them.

Here you can qualify the audience based on the sites that also target the “healthy snack” consumers, for example, Women’s Health, and dive into the demographics of that publication to see the gender split and age distribution.

You can also expand this list by looking at Women’s Health readers and seeing which similar sites they cross-browse to build a richer view of their online media consumption and habits.

You can also further deepen your knowledge of each publication that attracts the “healthy snack” audience and see how your competitors, in this case, other cycle makers, work with the publication.

Either by identifying other sports and fitness sites that send traffic to Women’s Health or a list of advertisers that typically promote their products.

Step 3: Monitor your audience to track ongoing changes

The final step is to build a dashboard with key metrics that include all the main audience profiles such as search interests, demographics, other visited sites partners, and advertisers so you can monitor trends and changes over time.

This can be repeated for each audience cohort you create, so you can build a holistic overview of audience behavior online and discover consumer demand within minutes, not weeks or months.

Wrapping up… Primary market research takes time. Once you’ve done the initial planning, coordination, and data collection, only then can you start to collate and analyze your findings. In some cases, it’s exactly what you need to power up your growth. On the other hand, you may need to work faster than primary market research permits. Whether it be to stay ahead of your rivals, keep up with shifting markets, or a change in consumer behavior.

If you need to quickly see what’s happening, Similarweb Digital Research Intelligence is the best tool for the job.

Take it for a trial run (for free) today.

Stop Guessing, Start Analyzing

Get actionable insights for market research here

What is primary market research used for? Primary market research helps organizations obtain direct feedback from a market that’s relevant, up to date, and usually focused on a specific theme or subject. It’s more controlled compared to secondary research and delivers more objective findings.

What is the difference between primary market research and secondary market research? Primary market research is the first-hand collection of data, that’s later analyzed and used to inform strategic decisions. The purpose of secondary research is largely the same, but this type of research takes pre-existing information, which costs less and is usually quicker to obtain.

What are primary market research examples? The most popular primary market research methods include:

• Telephone interviews
• In-depth interviews
• Ethnographical research
• MVP testing
• Product and field trials
• Online surveys

What technology is used in primary market research? Modern primary market research involves using artificial intelligence, machine learning, and data analysis tools to collect and analyze data more quickly and accurately than ever. Automated survey tools and virtual reality simulations may also be employed.

How can Similarweb help with primary market research? Similarweb can provide helpful insights into primary market research. It can provide data on website traffic , user engagement metrics , and competitors’ performance . This data can be used to make more informed decisions about product development and marketing strategies. In addition, Similarweb can provide market insights and help identify potential target audiences.

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What you need to know about primary market research

Last updated

3 April 2024

Reviewed by

Cathy Heath

Market analysis template

Save time, highlight crucial insights, and drive strategic decision-making

• What is primary market research?

Focus groups

Primary market research not only allows you to work out how to sell your product or service more effectively but also helps you see the types of consumers that are not your target market.

It can be qualitative or quantitative data , or a combination of both to help your business gain insight into the market.

These valuable marketing insights will save you time and money and enable you to use your resources much more effectively.

• Why use primary market research?

While secondary research can give you a more generalized look at overall trends and markets, primary research focuses on a specific, customized aspect.

Secondary market research may be easier and faster, but primary research is more tailored, and you get data ownership of the results.

• Primary vs. secondary market research: what's the difference?

Secondary market research has already been gathered and can be used where relevant. Reports and surveys by other businesses or government agencies are a form of secondary market research.

Primary market research is carried out by you with your customers or clients, so it is more focused on your direct business. It may take longer and cost more than secondary research, but it is more targeted.

Secondary market research is more general and may not focus solely on things that affect your business and goals.

• Primary market research: research approaches

There are five main primary market research approaches:

Observational research

Survey research, experimental research.

Observational research is used to watch customers in their natural setting and is used extensively in marketing. There is little control over the components of the research; the aim is to observe the interaction between the consumer and the product or service.

There are two forms of observational research:

Strict observation: the researcher can only watch the consumer and make notes. This is one of the best ways to get raw data without any outside interference.

Slight interaction: the researcher may interact with the customer but not influence or sway the research in any way

Surveys extract data from existing customers or potential customers who have consented to receive marketing material and given their contact information. You can gather feedback , explore customer experience of your service or product, and analyze business hypotheses.

Decide on the target market to give the survey to; the more survey respondents, the more reliable the result.

Surveys are good for getting quantitative data such as:

Household income

Purchasing patterns

Price research

These surveys can be in person or via phone, email, or online questionnaire . Alternatively, you could use the "old-school" method of sending out a direct mail form.

Experimental research, also known as field research , is a quantitative approach to getting consumer information. Experiments are performed in an uncontrolled setting to test certain variables and answer questions on how consumers use your product or service and what their buying habits are.

While conducting these experiments, you can talk with people in the natural retail setting to see their true-to-life interaction with the product or service.

Experimental research provides accurate data without moderation and can give you insight into the product or service, levels of customer satisfaction , and your business and brand in general.

Interviews are more like a one-to-one focus group scenario in which you question one person instead of a group. Structured but open-ended questions are used so you can discover preferences and behavior as well as consumer experience with your product or service. 

Interviews are ideal when testing a soft or new launch or to get customer perceptions of your marketing campaign.

These interviews get high response rates which are more truthful than other methods, as there is no peer pressure or influence from a group setting. Follow-up questions can help refine the data further.

Focus groups are great for discovering a specific demographic's opinions. They are best suited to collecting qualitative research.

This research method allows businesses to obtain data and analyze it from a specific market segment, with in-depth answers. This is helpful for decision-making and fine-tuning a product or service.

Many companies use focus groups to play through "what if" scenarios before implementing them in real life or for A/B testing on marketing material.

• When to use primary vs. secondary market research

The decision of whether to use primary or secondary market research is up to each business. Primary research is mainly done when the business needs recent data for a specific context. They want to look at a particular research aspect.

Secondary research is chosen when existing data can be insightful without the need for customized data or specifics. It can be gathered for the core of research projects .

What are the four types of secondary market research?

The four main types of secondary market research are:

Government or organizational agencies

Commercial and trade reports

Market research intelligence tools

Competitor websites

These all are sources of existing data about target groups that may benefit your business.

Why are interviews used in market research?

A form of primary research, interviews allow direct feedback from customers and clients to help inform a business about its consumers’ needs.

The researcher can use client responses from interviews to come up with more customized questions. They can extract more research information and more comprehensive answers than from other research methods.

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How to Do Market Research: The Complete Guide

Learn how to do market research with this step-by-step guide, complete with templates, tools and real-world examples.

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What are your customers’ needs? How does your product compare to the competition? What are the emerging trends and opportunities in your industry? If these questions keep you up at night, it’s time to conduct market research.

Market research plays a pivotal role in your ability to stay competitive and relevant, helping you anticipate shifts in consumer behavior and industry dynamics. It involves gathering these insights using a wide range of techniques, from surveys and interviews to data analysis and observational studies.

In this guide, we’ll explore why market research is crucial, the various types of market research, the methods used in data collection, and how to effectively conduct market research to drive informed decision-making and success.

What is market research?

Market research is the systematic process of gathering, analyzing and interpreting information about a specific market or industry. The purpose of market research is to offer valuable insight into the preferences and behaviors of your target audience, and anticipate shifts in market trends and the competitive landscape. This information helps you make data-driven decisions, develop effective strategies for your business, and maximize your chances of long-term growth.

Why is market research important? 

By understanding the significance of market research, you can make sure you’re asking the right questions and using the process to your advantage. Some of the benefits of market research include:

• Informed decision-making: Market research provides you with the data and insights you need to make smart decisions for your business. It helps you identify opportunities, assess risks and tailor your strategies to meet the demands of the market. Without market research, decisions are often based on assumptions or guesswork, leading to costly mistakes.
• Customer-centric approach: A cornerstone of market research involves developing a deep understanding of customer needs and preferences. This gives you valuable insights into your target audience, helping you develop products, services and marketing campaigns that resonate with your customers.
• Competitive advantage: By conducting market research, you’ll gain a competitive edge. You’ll be able to identify gaps in the market, analyze competitor strengths and weaknesses, and position your business strategically. This enables you to create unique value propositions, differentiate yourself from competitors, and seize opportunities that others may overlook.
• Risk mitigation: Market research helps you anticipate market shifts and potential challenges. By identifying threats early, you can proactively adjust their strategies to mitigate risks and respond effectively to changing circumstances. This proactive approach is particularly valuable in volatile industries.
• Resource optimization: Conducting market research allows organizations to allocate their time, money and resources more efficiently. It ensures that investments are made in areas with the highest potential return on investment, reducing wasted resources and improving overall business performance.
• Adaptation to market trends: Markets evolve rapidly, driven by technological advancements, cultural shifts and changing consumer attitudes. Market research ensures that you stay ahead of these trends and adapt your offerings accordingly so you can avoid becoming obsolete. 

As you can see, market research empowers businesses to make data-driven decisions, cater to customer needs, outperform competitors, mitigate risks, optimize resources and stay agile in a dynamic marketplace. These benefits make it a huge industry; the global market research services market is expected to grow from $76.37 billion in 2021 to $108.57 billion in 2026 . Now, let’s dig into the different types of market research that can help you achieve these benefits.

Types of market research 

• Qualitative research
• Quantitative research
• Exploratory research
• Descriptive research
• Causal research
• Cross-sectional research
• Longitudinal research

Despite its advantages, 23% of organizations don’t have a clear market research strategy. Part of developing a strategy involves choosing the right type of market research for your business goals. The most commonly used approaches include:

1. Qualitative research

Qualitative research focuses on understanding the underlying motivations, attitudes and perceptions of individuals or groups. It is typically conducted through techniques like in-depth interviews, focus groups and content analysis — methods we’ll discuss further in the sections below. Qualitative research provides rich, nuanced insights that can inform product development, marketing strategies and brand positioning.

2. Quantitative research

Quantitative research, in contrast to qualitative research, involves the collection and analysis of numerical data, often through surveys, experiments and structured questionnaires. This approach allows for statistical analysis and the measurement of trends, making it suitable for large-scale market studies and hypothesis testing. While it’s worthwhile using a mix of qualitative and quantitative research, most businesses prioritize the latter because it is scientific, measurable and easily replicated across different experiments.

3. Exploratory research

Whether you’re conducting qualitative or quantitative research or a mix of both, exploratory research is often the first step. Its primary goal is to help you understand a market or problem so you can gain insights and identify potential issues or opportunities. This type of market research is less structured and is typically conducted through open-ended interviews, focus groups or secondary data analysis. Exploratory research is valuable when entering new markets or exploring new product ideas.

4. Descriptive research

As its name implies, descriptive research seeks to describe a market, population or phenomenon in detail. It involves collecting and summarizing data to answer questions about audience demographics and behaviors, market size, and current trends. Surveys, observational studies and content analysis are common methods used in descriptive research. 

5. Causal research

Causal research aims to establish cause-and-effect relationships between variables. It investigates whether changes in one variable result in changes in another. Experimental designs, A/B testing and regression analysis are common causal research methods. This sheds light on how specific marketing strategies or product changes impact consumer behavior.

6. Cross-sectional research

Cross-sectional market research involves collecting data from a sample of the population at a single point in time. It is used to analyze differences, relationships or trends among various groups within a population. Cross-sectional studies are helpful for market segmentation, identifying target audiences and assessing market trends at a specific moment.

7. Longitudinal research

Longitudinal research, in contrast to cross-sectional research, collects data from the same subjects over an extended period. This allows for the analysis of trends, changes and developments over time. Longitudinal studies are useful for tracking long-term developments in consumer preferences, brand loyalty and market dynamics.

Each type of market research has its strengths and weaknesses, and the method you choose depends on your specific research goals and the depth of understanding you’re aiming to achieve. In the following sections, we’ll delve into primary and secondary research approaches and specific research methods.

Primary vs. secondary market research

Market research of all types can be broadly categorized into two main approaches: primary research and secondary research. By understanding the differences between these approaches, you can better determine the most appropriate research method for your specific goals.

Primary market research 

Primary research involves the collection of original data straight from the source. Typically, this involves communicating directly with your target audience — through surveys, interviews, focus groups and more — to gather information. Here are some key attributes of primary market research:

• Customized data: Primary research provides data that is tailored to your research needs. You design a custom research study and gather information specific to your goals.
• Up-to-date insights: Because primary research involves communicating with customers, the data you collect reflects the most current market conditions and consumer behaviors.
• Time-consuming and resource-intensive: Despite its advantages, primary research can be labor-intensive and costly, especially when dealing with large sample sizes or complex study designs. Whether you hire a market research consultant, agency or use an in-house team, primary research studies consume a large amount of resources and time.

Secondary market research 

Secondary research, on the other hand, involves analyzing data that has already been compiled by third-party sources, such as online research tools, databases, news sites, industry reports and academic studies.

Here are the main characteristics of secondary market research:

• Cost-effective: Secondary research is generally more cost-effective than primary research since it doesn’t require building a research plan from scratch. You and your team can look at databases, websites and publications on an ongoing basis, without needing to design a custom experiment or hire a consultant. 
• Leverages multiple sources: Data tools and software extract data from multiple places across the web, and then consolidate that information within a single platform. This means you’ll get a greater amount of data and a wider scope from secondary research.
• Quick to access: You can access a wide range of information rapidly — often in seconds — if you’re using online research tools and databases. Because of this, you can act on insights sooner, rather than taking the time to develop an experiment. 

So, when should you use primary vs. secondary research? In practice, many market research projects incorporate both primary and secondary research to take advantage of the strengths of each approach.

One rule of thumb is to focus on secondary research to obtain background information, market trends or industry benchmarks. It is especially valuable for conducting preliminary research, competitor analysis, or when time and budget constraints are tight. Then, if you still have knowledge gaps or need to answer specific questions unique to your business model, use primary research to create a custom experiment. 

Market research methods

• Surveys and questionnaires
• Focus groups
• Observational research
• Online research tools
• Experiments
• Content analysis
• Ethnographic research

How do primary and secondary research approaches translate into specific research methods? Let’s take a look at the different ways you can gather data: 

1. Surveys and questionnaires

Surveys and questionnaires are popular methods for collecting structured data from a large number of respondents. They involve a set of predetermined questions that participants answer. Surveys can be conducted through various channels, including online tools, telephone interviews and in-person or online questionnaires. They are useful for gathering quantitative data and assessing customer demographics, opinions, preferences and needs. On average, customer surveys have a 33% response rate , so keep that in mind as you consider your sample size.

2. Interviews

Interviews are in-depth conversations with individuals or groups to gather qualitative insights. They can be structured (with predefined questions) or unstructured (with open-ended discussions). Interviews are valuable for exploring complex topics, uncovering motivations and obtaining detailed feedback. 

3. Focus groups

The most common primary research methods are in-depth webcam interviews and focus groups. Focus groups are a small gathering of participants who discuss a specific topic or product under the guidance of a moderator. These discussions are valuable for primary market research because they reveal insights into consumer attitudes, perceptions and emotions. Focus groups are especially useful for idea generation, concept testing and understanding group dynamics within your target audience.

4. Observational research

Observational research involves observing and recording participant behavior in a natural setting. This method is particularly valuable when studying consumer behavior in physical spaces, such as retail stores or public places. In some types of observational research, participants are aware you’re watching them; in other cases, you discreetly watch consumers without their knowledge, as they use your product. Either way, observational research provides firsthand insights into how people interact with products or environments.

5. Online research tools

You and your team can do your own secondary market research using online tools. These tools include data prospecting platforms and databases, as well as online surveys, social media listening, web analytics and sentiment analysis platforms. They help you gather data from online sources, monitor industry trends, track competitors, understand consumer preferences and keep tabs on online behavior. We’ll talk more about choosing the right market research tools in the sections that follow.

6. Experiments

Market research experiments are controlled tests of variables to determine causal relationships. While experiments are often associated with scientific research, they are also used in market research to assess the impact of specific marketing strategies, product features, or pricing and packaging changes.

7. Content analysis

Content analysis involves the systematic examination of textual, visual or audio content to identify patterns, themes and trends. It’s commonly applied to customer reviews, social media posts and other forms of online content to analyze consumer opinions and sentiments.

8. Ethnographic research

Ethnographic research immerses researchers into the daily lives of consumers to understand their behavior and culture. This method is particularly valuable when studying niche markets or exploring the cultural context of consumer choices.

How to do market research

• Set clear objectives
• Identify your target audience
• Choose your research methods
• Use the right market research tools
• Collect data
• Analyze data 
• Interpret your findings
• Identify opportunities and challenges
• Make informed business decisions
• Monitor and adapt

Now that you have gained insights into the various market research methods at your disposal, let’s delve into the practical aspects of how to conduct market research effectively. Here’s a quick step-by-step overview, from defining objectives to monitoring market shifts.

1. Set clear objectives

When you set clear and specific goals, you’re essentially creating a compass to guide your research questions and methodology. Start by precisely defining what you want to achieve. Are you launching a new product and want to understand its viability in the market? Are you evaluating customer satisfaction with a product redesign? 

Start by creating SMART goals — objectives that are specific, measurable, achievable, relevant and time-bound. Not only will this clarify your research focus from the outset, but it will also help you track progress and benchmark your success throughout the process. 

You should also consult with key stakeholders and team members to ensure alignment on your research objectives before diving into data collecting. This will help you gain diverse perspectives and insights that will shape your research approach.

2. Identify your target audience

Next, you’ll need to pinpoint your target audience to determine who should be included in your research. Begin by creating detailed buyer personas or stakeholder profiles. Consider demographic factors like age, gender, income and location, but also delve into psychographics, such as interests, values and pain points.

The more specific your target audience, the more accurate and actionable your research will be. Additionally, segment your audience if your research objectives involve studying different groups, such as current customers and potential leads.

If you already have existing customers, you can also hold conversations with them to better understand your target market. From there, you can refine your buyer personas and tailor your research methods accordingly.

3. Choose your research methods

Selecting the right research methods is crucial for gathering high-quality data. Start by considering the nature of your research objectives. If you’re exploring consumer preferences, surveys and interviews can provide valuable insights. For in-depth understanding, focus groups or observational research might be suitable. Consider using a mix of quantitative and qualitative methods to gain a well-rounded perspective. 

You’ll also need to consider your budget. Think about what you can realistically achieve using the time and resources available to you. If you have a fairly generous budget, you may want to try a mix of primary and secondary research approaches. If you’re doing market research for a startup , on the other hand, chances are your budget is somewhat limited. If that’s the case, try addressing your goals with secondary research tools before investing time and effort in a primary research study. 

4. Use the right market research tools

Whether you’re conducting primary or secondary research, you’ll need to choose the right tools. These can help you do anything from sending surveys to customers to monitoring trends and analyzing data. Here are some examples of popular market research tools:

• Market research software: Crunchbase is a platform that provides best-in-class company data, making it valuable for market research on growing companies and industries. You can use Crunchbase to access trusted, first-party funding data, revenue data, news and firmographics, enabling you to monitor industry trends and understand customer needs.

• Survey and questionnaire tools: SurveyMonkey is a widely used online survey platform that allows you to create, distribute and analyze surveys. Google Forms is a free tool that lets you create surveys and collect responses through Google Drive.
• Data analysis software: Microsoft Excel and Google Sheets are useful for conducting statistical analyses. SPSS is a powerful statistical analysis software used for data processing, analysis and reporting.
• Social listening tools: Brandwatch is a social listening and analytics platform that helps you monitor social media conversations, track sentiment and analyze trends. Mention is a media monitoring tool that allows you to track mentions of your brand, competitors and keywords across various online sources.
• Data visualization platforms: Tableau is a data visualization tool that helps you create interactive and shareable dashboards and reports. Power BI by Microsoft is a business analytics tool for creating interactive visualizations and reports.

5. Collect data

There’s an infinite amount of data you could be collecting using these tools, so you’ll need to be intentional about going after the data that aligns with your research goals. Implement your chosen research methods, whether it’s distributing surveys, conducting interviews or pulling from secondary research platforms. Pay close attention to data quality and accuracy, and stick to a standardized process to streamline data capture and reduce errors. 

6. Analyze data

Once data is collected, you’ll need to analyze it systematically. Use statistical software or analysis tools to identify patterns, trends and correlations. For qualitative data, employ thematic analysis to extract common themes and insights. Visualize your findings with charts, graphs and tables to make complex data more understandable.

If you’re not proficient in data analysis, consider outsourcing or collaborating with a data analyst who can assist in processing and interpreting your data accurately.

7. Interpret your findings

Interpreting your market research findings involves understanding what the data means in the context of your objectives. Are there significant trends that uncover the answers to your initial research questions? Consider the implications of your findings on your business strategy. It’s essential to move beyond raw data and extract actionable insights that inform decision-making.

Hold a cross-functional meeting or workshop with relevant team members to collectively interpret the findings. Different perspectives can lead to more comprehensive insights and innovative solutions.

8. Identify opportunities and challenges

Use your research findings to identify potential growth opportunities and challenges within your market. What segments of your audience are underserved or overlooked? Are there emerging trends you can capitalize on? Conversely, what obstacles or competitors could hinder your progress?

Lay out this information in a clear and organized way by conducting a SWOT analysis, which stands for strengths, weaknesses, opportunities and threats. Jot down notes for each of these areas to provide a structured overview of gaps and hurdles in the market.

9. Make informed business decisions

Market research is only valuable if it leads to informed decisions for your company. Based on your insights, devise actionable strategies and initiatives that align with your research objectives. Whether it’s refining your product, targeting new customer segments or adjusting pricing, ensure your decisions are rooted in the data.

At this point, it’s also crucial to keep your team aligned and accountable. Create an action plan that outlines specific steps, responsibilities and timelines for implementing the recommendations derived from your research. 

10. Monitor and adapt

Market research isn’t a one-time activity; it’s an ongoing process. Continuously monitor market conditions, customer behaviors and industry trends. Set up mechanisms to collect real-time data and feedback. As you gather new information, be prepared to adapt your strategies and tactics accordingly. Regularly revisiting your research ensures your business remains agile and reflects changing market dynamics and consumer preferences.

Online market research sources

As you go through the steps above, you’ll want to turn to trusted, reputable sources to gather your data. Here’s a list to get you started:

• Crunchbase: As mentioned above, Crunchbase is an online platform with an extensive dataset, allowing you to access in-depth insights on market trends, consumer behavior and competitive analysis. You can also customize your search options to tailor your research to specific industries, geographic regions or customer personas.

• Academic databases: Academic databases, such as ProQuest and JSTOR , are treasure troves of scholarly research papers, studies and academic journals. They offer in-depth analyses of various subjects, including market trends, consumer preferences and industry-specific insights. Researchers can access a wealth of peer-reviewed publications to gain a deeper understanding of their research topics.
• Government and NGO databases: Government agencies, nongovernmental organizations and other institutions frequently maintain databases containing valuable economic, demographic and industry-related data. These sources offer credible statistics and reports on a wide range of topics, making them essential for market researchers. Examples include the U.S. Census Bureau , the Bureau of Labor Statistics and the Pew Research Center .
• Industry reports: Industry reports and market studies are comprehensive documents prepared by research firms, industry associations and consulting companies. They provide in-depth insights into specific markets, including market size, trends, competitive analysis and consumer behavior. You can find this information by looking at relevant industry association databases; examples include the American Marketing Association and the National Retail Federation .
• Social media and online communities: Social media platforms like LinkedIn or Twitter (X) , forums such as Reddit and Quora , and review platforms such as G2 can provide real-time insights into consumer sentiment, opinions and trends. 

Market research examples

At this point, you have market research tools and data sources — but how do you act on the data you gather? Let’s go over some real-world examples that illustrate the practical application of market research across various industries. These examples showcase how market research can lead to smart decision-making and successful business decisions.

Example 1: Apple’s iPhone launch

Apple ’s iconic iPhone launch in 2007 serves as a prime example of market research driving product innovation in tech. Before the iPhone’s release, Apple conducted extensive market research to understand consumer preferences, pain points and unmet needs in the mobile phone industry. This research led to the development of a touchscreen smartphone with a user-friendly interface, addressing consumer demands for a more intuitive and versatile device. The result was a revolutionary product that disrupted the market and redefined the smartphone industry.

Example 2: McDonald’s global expansion

McDonald’s successful global expansion strategy demonstrates the importance of market research when expanding into new territories. Before entering a new market, McDonald’s conducts thorough research to understand local tastes, preferences and cultural nuances. This research informs menu customization, marketing strategies and store design. For instance, in India, McDonald’s offers a menu tailored to local preferences, including vegetarian options. This market-specific approach has enabled McDonald’s to adapt and thrive in diverse global markets.

Example 3: Organic and sustainable farming

The shift toward organic and sustainable farming practices in the food industry is driven by market research that indicates increased consumer demand for healthier and environmentally friendly food options. As a result, food producers and retailers invest in sustainable sourcing and organic product lines — such as with these sustainable seafood startups — to align with this shift in consumer values. 

The bottom line? Market research has multiple use cases and is a critical practice for any industry. Whether it’s launching groundbreaking products, entering new markets or responding to changing consumer preferences, you can use market research to shape successful strategies and outcomes.

Market research templates

You finally have a strong understanding of how to do market research and apply it in the real world. Before we wrap up, here are some market research templates that you can use as a starting point for your projects:

• Smartsheet competitive analysis templates : These spreadsheets can serve as a framework for gathering information about the competitive landscape and obtaining valuable lessons to apply to your business strategy.
• SurveyMonkey product survey template : Customize the questions on this survey based on what you want to learn from your target customers.
• HubSpot templates : HubSpot offers a wide range of free templates you can use for market research, business planning and more.
• SCORE templates : SCORE is a nonprofit organization that provides templates for business plans, market analysis and financial projections.
• SBA.gov : The U.S. Small Business Administration offers templates for every aspect of your business, including market research, and is particularly valuable for new startups. 

Strengthen your business with market research

When conducted effectively, market research is like a guiding star. Equipped with the right tools and techniques, you can uncover valuable insights, stay competitive, foster innovation and navigate the complexities of your industry.

Throughout this guide, we’ve discussed the definition of market research, different research methods, and how to conduct it effectively. We’ve also explored various types of market research and shared practical insights and templates for getting started. 

Now, it’s time to start the research process. Trust in data, listen to the market and make informed decisions that guide your company toward lasting success.

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Primary research: everything you need to know.

19 min read If you want to produce high-quality research, you need to understand what primary research is and how it can benefit your business. Find out how you can use primary research and its various methods to acquire the data you need and create valuable, insightful reports that aid you and your audience.

Market research has quickly become the star player for brands and businesses around the globe, netting them the insights they need, right when they need them.

From understanding industry challenges and future trends to customer satisfaction and product performance, market research is paving the way for organizations and empowering them to create content, products, services, and offers that truly resonate.

And it all starts with one thing: primary research. A research methodology that enables researchers to uncover and answer specific questions about issues, challenges, trends, or otherwise.

In this guide, we’re going to cover everything you need to know about primary research and how you can use it to benefit your business.

What is primary research?

Put simply, primary research is any type of research you collect yourself or commission on your behalf. This could be anything from surveys and interviews to observations and ethnographic research (studying participants in their real-life environment).

Most researchers will use primary research to supplement data from secondary sources, such as journals, magazines, website articles, and books. By using primary research methods alongside secondary research , researchers can validate and support their findings with additional, new data.

You don’t have to be an expert to conduct primary research or collect data from it — chances are you’ve done some of it already. Think back to when you may have been asked to carry out a project at school. If you did the research (or asked mom or dad), e.g. interviewing experts, and using data from journals, you’ve collected and used both primary and secondary data .

That example might be a little simplistic, but the concept still applies. There are, of course, plenty of methods to choose from, so understanding what they are and how they work will help you execute research campaigns.

Now, when you conduct primary research, you typically gather two basic types of information:

• Exploratory.  This research is general and open-ended . It typically involves lengthy interviews with individuals or a specific group.
• Specific . This research is more precise and problem-oriented. It involves structured, formal interviews.

Then there’s the question of qualitative research and quantitative research ; what kind of data do you want to capture? Do you want to understand the emotions and behaviors behind people’s actions or to put precise figures against certain issues? Another thing to consider.

In the next section, we’re going to go through the types of primary research methods, the advantages of primary research, and then how you can do it for your brand or business .

What are the types of primary research methods?

There are lots of different ways to carry out primary research, more notable methods are interviews and surveys — but what about observations, analyses, and focus groups ?

We’re all familiar with interviews. This research method usually involves one-on-one or small group sessions, conducted over the phone or in a face-to-face environment. Interviews are great for collecting large amounts of data from a small sample of subjects, or when specific information needs to be extracted from experts.

For example, for a piece on developing more sustainable energy sources, a journalist would choose to interview a subject matter expert to extract the primary research they need. Not only is the information more authoritative and accurate, but it’s also more compelling.

Be aware though, direct interaction can alter people’s opinions. For interviews and focus groups, it’s best to get an expert to manage and read the room to avoid skewing results.

Another industry staple. Though much more rigid compared to interviews (with predefined questions and themes), surveys are a great way to reach a target market and collect relevant data at scale. Surveys will typically provide a limited amount of information from a large group of people (as there are only so many questions you can ask before respondents get bored).

To get the most value out of surveys, it’s worth defining your audience and questions well in advance. Try to think of key themes that you want to explore and what you want to get out of the data collected.

For example, a supermarket might send out a survey to their customers on customer satisfactio n, asking questions about the overall in-store experience, the online experience, what customers would like to see, and more. Because it’s issued at scale, the supermarket can get a good understanding of what their larger customer base thinks.

Worried about your questions? Here’s how you can write great ones .

Transform your research and gain deeper insight with best-practice surveys

If you want to run world-class research or need help with research questions, look no further than Qualtrics CoreXM .

Designed to eliminate historic research inefficiencies, CoreXM is a single platform designed to get you breakthrough insights faster and more cost-effectively.

It empowers market researchers to centralize insights, leverage advanced analytics and automation to improve research quality, and scale effectiveness with a flexible management model (Research Services).

We can even help you to produce survey templates for free, no matter the type of research. Just check out our library.

Observations

While it might be the most arduous form of field research, observation is arguably the most impartial as there’s no interaction between the researcher and the subject. As such, this approach removes or reduces bias that could be encountered during an interview or survey, as the subject’s actions are not influenced by other factors.

For instance, a sports car manufacturer might want to see how their vehicles are used in real-world scenarios and if there are any limitations on the customer. This could be a case of visiting a race track or car showroom to see how customers use the vehicles.

Focus groups

This method is great for gathering data on particular topic areas. Sitting between interviews and surveys, focus groups allow you to engage a small group of people, e.g. subject matter experts.

More informal than interviews but more professional than surveys, they’re a great way to gain insight and valuable information on customers, pain points, and other areas of interest in your industry.

For example, a technology manufacturer might put together a focus group to discuss technology adoption amongst 24-36-year-olds ahead of a new product launch . Through this focus group, they can learn more about how 24-36-year-olds purchase and engage with new tech solutions .

Research services

While the process of gathering data is relatively straightforward, making sense of it (and having the right skills to turn it into insight) can be tough.

This is precisely why so many brands and businesses turn to research services. According to our data, 97% of market research is outsourced. This allows brands and businesses to gain access to relevant information for truly original research.

Though a more modern form (and approach) to primary research, research services enable brands and businesses to collect data and analyze it very quickly. But the main benefit? Expertise.

With research services you get a team of experts who know exactly what research questions to ask and how to turn survey responses into actionable insight. They know how to get the right respondents and the ideal sample sizes, as well as leverage primary research and secondary research data to build comprehensive, revealing reports.

At Qualtrics, we have a team of experts who can streamline your research process for both primary and secondary research, helping to uncover insights in days, not weeks. L.

What are the advantages of primary research?

Now you know about the main ways to collect data, what are the benefits of these primary research methods?

First and foremost, and perhaps most importantly, primary research delivers accurate, relevant, and up-to-date information, enabling you to identify emerging trends in customer behavior , discover unmet needs, and close gaps across the experience journey . There’s real value in being able to identify what comes next — and only primary research can give you a real-time view of what your prospects and customers need as the world changes around them.

Also, as you have full control of the approach, data collection and analysis, it can be far more efficient and cost-effective than others.

Lastly, the information belongs to you or your organization. You may choose to release the information to enhance your position in your market or industry or keep it private to avoid giving competitors an advantage .

Create better experiences

From a customer perspective, it offers many advantages and provides detailed information on how you can improve products, services, and experiences. By taking their market surveys in-house and using the Qualtrics XM Platform™ , Samsung collects, analyzes, and acts on insights gathered at every touchpoint. The team at Samsung can get studies up and running in an hour and quickly implement findings to transform their product, service, and customer experiences.

Develop engaging content

From a content perspective, this kind of first-hand data offers a plethora of opportunities. You can begin to create trend reports, answer the most pertinent prospect and customer questions, highlight key issues, and much more. Every voice matters and ensuring your research is inclusive is vital.

What are the disadvantages of primary research?

Costs can potentially spiral out of control if you feel that your results are inconclusive or that you want to change the data gathering method.

It can also be time-consuming, especially if you require a large sample size or don’t have the in-house expertise for the analysis. Data gathering is one thing — drawing insights and formulating conclusions is another. The time required to effectively plan, carry out, and scrutinize the data is often greater than the time it takes to conduct secondary research.

Lastly, accuracy. You have to account for potential bias — skewing the results — and poorly worded questions . There are ways to eliminate bias from your surveys, such as:

• including more open-ended questions
• making respondents feel comfortable
• using both qualitative and quantitative techniques
• using an impartial way to gather data

Primary vs secondary market research

The key difference between them is that you collect primary research first hand (often for a specific purpose, e.g. a trends report), while secondary research comes from pre-existing studies, materials, websites, or articles.

Secondary research methods are more about desk research. You scour reputable journals, articles, websites, and studies to find the information you need to either support a point or build your project around.

Most market research will start with secondary research to understand what the issues are or what prospects and customers are searching for online. This could be using Google Analytics to identify the key issues and trends in 2021 and then using primary research to get more information and delve deeper into them.

We would urge you to look at the primary vs secondary research debate a different way: both can be used in conjunction to support and validate points. Incorporating high-quality secondary research data into your reports can provide wider perspectives and show readers that your thoughts don’t exist in a vacuum.

Find out more about the differences between primary and secondary research.

How can businesses use primary research?

Competitor analysis . Trend reporting . Customer satisfaction. There’s no limit to the uses of primary research for businesses, particularly now as it becomes more difficult to gather information from prospects and customers.

One of the most effective ways to use primary research is for industry analysis and content campaigns. Let’s say you produce a report on current trends in automotive. From the data, you find that the key concerns for automotive manufacturers are:

• The skills gap and need for new technologies to support production
• Sustainability and shifting operations rapidly
• Supply chain efficiency and utilizing a dual supply chain (local and global)
• Customer demand and expectations of new-age vehicles

Now not only do these concerns make for great headlines, but you can also build entire campaigns around the data you find. Suddenly, rather than just one report sharing information and not making real use of the insight, you can create blogs, ebooks, webinars, opinion articles, commentary, and much more.

Primary research is the gift that keeps on giving — and that’s precisely why more and more organizations are creating annual reports on the state of their industry or market.

As well as providing unique insight and content campaign opportunities, primary research establishes credibility… and very quickly. If you produce an annual report and none of your competitors are doing the same (or their reports lack the granularity and focus your prospects and customers require), you demonstrate expertise and become the go-to for real insight.

How can primary research support marketing?

As the gift that keeps on giving, primary research lays a foundation for marketing campaigns and long-term strategy.

Most research is top-of-the-funnel (TOFU) — or at least designed to be as such. Market research reports are inherently about raising awareness of an issue or problem — that’s where businesses can extract the most value.

For your marketing team, the issues raised in the report can become the headlines for blogs and commentary. They can then create content to help readers solve those issues, referencing what your business does in the process (but only if it’s relevant). Finally, marketing can steer readers of the report content towards other assets of interest, gradually nurturing readers to a point that they’re sales-ready.

Here are just a few things you can get out of primary research reports:

• Opinion articles
• Sales collateral
• Infographics
• Executive summary reports per industry

Conducting primary research

Getting started with primary research is simple thanks to the tools and software available today, and most of the time it starts with a simple online survey.

No matter what research you want to conduct, there are survey solutions and templates to meet your needs.

But before we go into the technicalities, let’s focus on the fundamentals of conducting research:

• Have a subject in mind. What issues do you want to cover?
• Validate that subject based on secondary research. What are people searching for or need answers to?
• Draft a research question (or problem statement) and revise as necessary. What will be your main question or the purpose of the study?
• Agree on the goals and objectives of the project. What do you hope to achieve?
• Create a timeline and set deadlines. Is everyone aligned?
• Choose your research methods and tools (e.g. face-to-face interviews or online surveys). What’s the best way to get the information you need?
• Work out your ideal sample size (smaller or larger population?). If you need help working out your ideal sample size, check out our calculator!
• Think qualitative or quantitative (a mixture of both generally works well). Do you want to know the reason behind responses or just get conclusive numerical data?
• Develop a questionnaire and have it peer-reviewed. Are your questions as good as they can be and do they support your problem statement?
• Test your questionnaire. What better way to ensure that it works and delivers the right insight?
• Select a delivery method. How do you want to distribute your questionnaire? Online? Offline?
• Analyze the results. Do you have the right tools, skills, and resources to glean insights from the data you receive?

This is certainly a condensed structure for conducting primary research, but it should work nonetheless. The main thing is starting the right way — have the right subject in mind and validate it.

Recent research trumps everything else

When you have the means to conduct research frequently and at scale, the more recent or ‘fresh’ it is, the more valuable the insights.

Of course, not every brand or business is in a position to undertake primary or even secondary market research every year. This could be due to budgetary constraints, poor insights from previous research, or a lack of in-house expertise.

But regardless of the issue, the power of primary research is well-documented and apparent, and it gives you the means to create profound and compelling content for your target audience.

Start your next research project the right way

If any of the above issues sound familiar, we can help. At Qualtrics, we specialize in market research and gleaning insights from data to create breakthrough experiences. From designing your study and finding respondents, to fielding it and reporting the results — we can help you every step of the way.

As well as that, we know how you can get more ROI from your market research and have put together a simple guide to show you.  

In this guide, discover how you can:

• Improve ROI through speed, agility, and consolidation of your research functions
• Get insights faster without sacrificing data quality
• Adjust how you conduct research to be more nimble

Download your copy for free using the button below.

Free eBook: Maximize ROI from your market research with our guide

Related resources

Market intelligence 10 min read, marketing insights 11 min read, ethnographic research 11 min read, qualitative vs quantitative research 13 min read, qualitative research questions 11 min read, qualitative research design 12 min read, primary vs secondary research 14 min read, request demo.

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What Are the Best Primary Market Research Methods? & How to Use Them

Rev › Blog › Marketing › What Are the Best Primary Market Research Methods? & How to Use Them

Want to learn about your customers? Use primary research. Primary research obtains market research data directly from sources, compared to secondary market research that uses data already compiled. Conducting primary research provides insights into how current and potential clients relate to your product or service.

What Are the Types of Primary Market Research?

There are two forms of primary market research techniques: qualitative research and quantitative research. Qualitative research is a research technique that seeks to describe and understand behavior. It uses open-ended questions to collect information. Quantitative research gathers data that can be numerically presented and statistically analyzed.

What is Qualitative Research?

Qualitative research can provide insights into the why behind behaviors. It’s a descriptive form of research that can reveal ideas and perceptions that lead to decision-making. Qualitative research is a less formal research method compared to quantitative research. It can lead to recommendations for what to test with quantitative research. 

What is Quantitative Research?

Quantitative research is a structured research form that quantifies thoughts, opinions and behaviors. It can be used to test and validate hypotheses. Quantitative research results may be used to represent a larger sample size or population.

How to Conduct Primary Market Research

With any type of primary market research, the first critical step is to identify the right target audience and research subjects. You’ll also want to determine how big of a sample size you need to obtain helpful results. Determine the questions and problems you’re trying to address to help you make the right research selections.

Most primary market research techniques can be conducted through virtual means today. Depending on what you want to research and the insights you’re after, virtual primary market research may work for your business. The following are several types of primary market research to consider.

What Are In-Depth Interviews?

In-depth interviews are one-on-one conversations with a primary research target. They can be face-to-face interviews, telephone interviews or virtual interviews. With depth interviews, you can gain rich insights and really understand the needs, wants and desires of the interview subject. That helps you understand how they view your products or services.

Best Practices for In-Depth Interviews

Since in-depth interviews are time-intensive, carefully screen the participants you’ll be interviewing. Identify the characteristics you want a subject to have, then find interview subjects based on those characteristics.

Go into an in-depth interview with pre-planned questions that address the insights you want to glean. But be flexible. Ask follow-up questions if you need clarification or if an answer provides information warranting a new question. Try to ask more important questions earlier on in the interview in case you run out of time.

Virtual Tools for In-Depth Interviews

Video conferencing tools like Skype, Zoom and Google Hangouts make it easy to conduct in-depth interviews online. Using a transcription service like Rev can vastly improve market research efficiency . Rev’s searchable, shareable transcripts allow you to quickly find insights after the interview, so you can pay attention to the interview and focus on your questions instead of trying to take copious notes. After the interview, you’ll have a full, searchable record of everything that was said.

How Do Focus Groups Work?

Focus group research consists of a small group that answers questions and provides feedback during the same interview session. With focus groups, you get insights from individual group participants. You also can see how participants interact with each other during focus group discussions.

Focus Group Pitfalls

Focus groups can present some challenges. One is that one or several participants may dominate the conversation, which can discourage everyone from participating equally. Another challenge might be “groupthink,” when one participant’s views influence the other members to agree or to not state their true opinions.

Focus Group Tips

Focus group success requires a skilled facilitator. A focus group facilitator should encourage every participant to contribute meaningfully. The facilitator needs to pay attention to feedback and ask thoughtful follow-up questions. They should also encourage discussion and keep participants on track to get the insights needed. Focus group facilitators also need to avoid injecting their own bias into discussions.

Similarly to in-depth interviews, focus group interviews should feature the most important questions early on. Use a discussion guide to ensure those questions are answered within the time constraints. The discussion guide should also facilitate a logical discussion to keep focus group participants engaged.

Virtual Tools for Focus Groups

Online video conferencing tools work for focus groups, but there are new challenges to consider when conducting them virtually. Avoid having people talk over each other. Have the facilitator ask that participants only speak once they’re asked. Use a chat feature to facilitate discussion. If a participant wants to add to what someone’s saying, they can send a message in the chat or raise their hand to signal the moderator.

What Is Observational Research?

Observational research is a form of qualitative research that examines how subjects behave. It involves watching, listening and paying attention to that subject’s actions. Observation can happen through information-gathering or by monitoring purchase habits. It can also involve looking at complaints and product returns or watching how consumers behave in a natural or manipulated setting.

Best Practices for Observational Research

To get meaningful insights from observational research, make sure the subjects being observed accurately represent your customer base. Go into research sessions knowing the insights you’re looking for so you know what to pay attention to. Consider whether you need to tell subjects they’re being observed, since knowing they’re under observation could influence their actions.

Virtual Tools for Observational Research

Marketers can use tools like video camera connections or biofeedback systems to observe subjects and collect information. A researcher can use eye tracking software or a heat map to see how participants interact with a website or online environment.

Another way to conduct virtual observations is to let the user give real-time feedback. For example, a marketer may want to test a website experience. The subject could record themselves using it so the researcher can see real-time reactions and feedback.

How Are Surveys Used for Research?

Surveys are a form of quantitative primary market research that ask subjects the same questions across the board. These questions can be close-ended, where the survey taker has set responses like “yes/no,” or they can be multiple choice or evaluated on a scale ranking. Questions may also be open-ended, where the survey taker can write out their thoughts in the answer.

An advantage of large-scale surveys is that the results can be used to create reports for the public. Survey results can be built into a content marketing tool like an ebook to build trust and authority in the industry.

A survey should be a questionnaire that keeps survey takers engaged so they complete the survey. It should be logical and easy to follow, instead of jumping around topics, so survey takers stay on track.

Tips for Conducting Surveys

To get the best survey insights, questions need to be clear so survey takers don’t get confused and respond inaccurately. You also need to target the right sample and screen participants. That ensures they fit the demographic you want to study before you spend time surveying them. Getting results from the wrong demographic can also skew your insights.

Make it easy for the survey taker to complete the survey. Create mostly close-ended questions and just a few open-ended questions. That makes for a more user-friendly survey and also helps researchers gather data to compare trends. Once the results are in, researchers can perform a statistical analysis and determine how accurate of a representation the results provide.

How to Conduct Surveys

Surveys can be done a variety of ways, including by telephone, through online forms, by mail, in person and virtually. Online, you can create a survey using a tool like Google Forms or SurveyMonkey and send it out. If you want to ask someone survey questions face-to-face, you can use video conferencing to conduct the survey.

How is Social Listening Used for Research?

Social media gives marketers direct access to consumer opinions. Free networks like Facebook, Twitter, Instagram, YouTube, and LinkedIn are places where consumers post thoughts on businesses and market trends. Question-and-answer sites and forums like Reddit also offer space for consumers to post public discussions.

Social Listening Techniques

Social listening can be done observationally, where marketers track certain subjects or #hashtags. It can also be more proactive, by targeting certain content creators or influencers to get their opinions on a topic. For example, you could create a private social media group for your target audience. Then, conduct focus group-like interviews or let participants discuss among themselves.

Virtual Tools for Social Listening

There are several social listening tools you can use to aggregate data like mentions and trending topics. A couple to check out are Sprout Social and Brandwatch . You can also create surveys on sites like Facebook and Twitter to poll your social media audiences on various topics.

What is Experimental Research?

Experimental research is a test marketing format. Marketers can conduct A/B tests to manipulate factors and compare results. A common A/B test is showing different versions of landing pages or email campaigns to a similar audience. The researcher would see which version has the most engagement. You can also A/B test digital advertising campaigns to learn insights about leads and customers.

Experimental research can also be used to test physical products. For example, a skincare company might recruit participants to track their skin results. One group would use the company’s product. The other group would use no product or a competitor’s product. These types of results can be used as marketing materials later to promote the product.

Experimental Research Best Practices

When conducting experimental research, use ethical guidelines. Depending on the trial, it may be essential to tell subjects they’re being researched. Online marketing experiments like changing landing pages aren’t a big deal. But trials that can affect someone’s mental or physical health need to be disclosed. Consult with legal counsel before launching experimental research.

How to Do Experimental Research Online

Online marketing tools like HubSpot enable marketers to A/B test campaigns like email and landing pages. Change only one prominent feature in an A/B test. Leave the rest of the elements the same. That way, you can distinguish meaningful results based on that one element’s performance. Change too many elements, and it’s more difficult to pinpoint which one affected results.

Optimize Market Research Interviews with Transcription

When you’re interviewing subjects for primary market research, make the interview more efficient and cost-effective with transcription services. Get fast insights and complete qualitative data using Rev’s transcription service for research like interviews and focus groups. You can get most transcriptions in just 12 hours with at least 99% accuracy.

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What Is Primary Research? Types, Methods, Examples

Appinio Research · 18.09.2023 · 11min read

Have you ever wondered how businesses and researchers gather those fresh insights that drive innovation and decision-making? That's where primary research steps in. In a world where information is gold, primary research acts as a direct channel to tap into the thoughts, behaviors, and preferences of people. Whether you're exploring new market trends, fine-tuning a product, or understanding human behavior, primary research is your compass for navigating the sea of possibilities.

What is Primary Research?

Primary research is the systematic process of gathering original data directly from individuals , sources, or phenomena to address specific research questions or objectives. This firsthand approach involves designing and conducting research methods such as surveys and interviews to generate unique insights and information tailored to the researcher's specific area of inquiry. Primary research enables researchers to collect relevant, accurate, and directly applicable data to their research goals, providing a foundation for deeper understanding and informed decision-making.

Benefits of Primary Research

Primary research offers many advantages that contribute to its effectiveness and relevance. Here are the key benefits that make primary research a powerful tool for generating insights:

• Tailored to Your Objectives: Primary research is custom-designed to address your specific research questions and objectives.
• Fresh and Current Data: Data collected is up-to-date and reflects the current context, ensuring relevance.
• Control over Methodology: You fully control the research design , methods, and data collection process .
• In-depth Exploration: Primary research allows for a thorough investigation of complex topics, uncovering deeper insights.
• Unique Insights: You gain direct access to unique insights, viewpoints, and behaviors from participants.
• Customizable Approach: You can adapt your research approach as new insights emerge, enhancing flexibility.
• High Data Quality: With careful planning and execution, primary research yields accurate, high-quality data.
• Personal Engagement: Engaging directly with participants enables a unique understanding of their experiences.

Primary vs. Secondary Research

While primary research involves collecting new data, secondary research involves analyzing existing data gathered by others. Secondary research is useful for building context, identifying trends, and gaining insights from previous studies. However, primary research provides you with unique insights and a firsthand understanding of your subject.

How to Plan Your Primary Research?

Before embarking on your primary research journey, thorough planning is essential to ensure its success.

1. Define Research Objectives and Questions

Clearly defining your research objectives and questions is the foundation of effective primary research. Ask yourself:

• What information do you seek to uncover?
• What are your goals and expectations from this research?

2. Choose the Research Method

Select a method that aligns with your research objectives. Common methods include surveys, interviews, observations, experiments, case studies, and focus groups, each with strengths and limitations.

3. Select the Target Audience and Participants

Identify the individuals, groups, or subjects you want to study. Your target audience will determine the relevance of your findings. Ensure your sample size is representative of your target population.

Types of Primary Research Methods

Primary research offers a diverse range of methods to gather data directly from sources, enabling you to gain unique insights and answers to your research questions. Each method has its strengths, and the choice of method depends on your research objectives, the nature of your subject, and the available resources.

Surveys and Questionnaires

Surveys and questionnaires are widely used methods to collect data from a large number of participants. You present a series of structured questions, which participants respond to by selecting predefined choices or providing open-ended answers.

Surveys are efficient for obtaining quantitative data and are suitable for studying opinions, preferences, behaviors, and demographics. Online platforms, such as Appinio and Google Forms, facilitate easy distribution and data collection.

Interviews involve direct conversations between the researcher and participants. Interviews can be structured, semi-structured, or unstructured.

• Structured interviews follow a predetermined set of questions, allowing for standardized data collection.
• Semi-structured interviews have a flexible format, allowing for a deeper exploration of responses.
• Unstructured interviews encourage open discussions and follow the natural flow of conversation.

Interviews are valuable for gathering rich qualitative data and insights into participants' experiences, thoughts, and emotions.

Observational Research

Observational research involves systematically observing and recording behaviors, interactions, and occurrences in natural settings. Researchers can be either active participants or passive observers. This method is ideal for studying behavior patterns, social interactions, and environmental influences.

Observational research provides a window into real-world behaviors without the potential bias that can arise from self-reporting. It requires careful planning to ensure data collection is consistent and objective.

Experiments and A/B Testing

Experiments involve manipulating variables to study cause-and-effect relationships. Researchers create controlled environments to test hypotheses and assess how changes in one variable impact another.

In contrast, A/B testing is a specific form of experimentation used in marketing and product development. It compares two versions (A and B) of a variable, such as a website layout or email subject line, to determine which performs better.

Experiments and A/B testing are powerful for establishing causal relationships and measuring the impact of interventions.

Case Studies and In-depth Analysis

Case studies involve an in-depth examination of a single subject, context, or phenomenon.

Researchers gather and analyze various data sources, such as interviews, documents, and observations, to provide a holistic understanding.

Case studies are valuable for exploring complex issues in detail and generating nuanced insights. While they lack generalizability due to their focus on specific instances, case studies contribute rich contextual information to the research landscape.

Focus Groups and Group Discussions

Focus groups gather a small group of participants to discuss specific topics guided by a moderator. These discussions encourage participants to share their opinions, perceptions, and experiences, fostering interaction and generating qualitative data.

Focus groups are valuable for exploring collective perspectives, identifying shared trends, and uncovering diverse viewpoints. The dynamic nature of group interactions can lead to the emergence of unexpected insights.

When selecting a primary research method, consider factors such as the nature of your research question, the level of detail you require, the resources available, and the preferences of your target audience. Combining multiple methods or triangulating data from different sources often enhances the validity and depth of your findings.

By choosing the suitable primary research method for your project, you can gather meaningful insights that contribute to your understanding of the subject at hand.

Primary Research Examples

To better understand how primary research is applied in various fields, let's explore some real-world examples that showcase the diversity and effectiveness of different primary research methods:

Example 1: Consumer Preferences Survey

• Research Objective: A cosmetics company wants to introduce a new skincare product line and wants to understand consumer preferences and needs.
• Method: The company designs an online survey targeting a wide demographic of potential customers. The survey includes questions about preferred skincare ingredients, product formats, packaging design, and price range.
• Outcome: By analyzing the survey responses, the company identifies that a majority of participants prioritize natural ingredients and prefer sustainable packaging. This insight guides the company's product development strategy and marketing messaging.

Example 2: Product Usability Experiment

• Research Objective: A software company wants to improve the user interface of its mobile app to increase user satisfaction and engagement.
• Method: The company conducts an experiment where users are randomly assigned to two groups: one uses the existing app interface (Group A), and the other uses a redesigned interface (Group B). User interactions, time spent on the app, and user feedback are measured.
• Outcome: The experiment reveals that Group B users spend more time on the app, complete tasks faster, and provide more positive feedback. This indicates that the redesigned interface enhances user experience, prompting the company to implement the changes for all users.

Example 3: New Product Concept Exploration

• Research Objective: An electronics company wants to develop a new wearable device and seeks input from potential users.
• Method: Researchers organize focus group sessions with participants who fit the target demographic for the wearable device. Participants are encouraged to share their thoughts, expectations, and concerns regarding the device's features and usability.
• Outcome: Focus group discussions reveal that participants are interested in a device with health monitoring capabilities but are concerned about data privacy. This feedback guides the company in refining the product concept to address user needs and alleviate concerns.

Primary Research Limitations

While primary research offers numerous benefits, it also comes with inherent limitations. Being aware of these limitations is essential for conducting rigorous and well-rounded research:

• Resource Intensity: Primary research can be time-consuming and require significant resources in terms of manpower, budget, and time.
• Cost: The costs associated with participant recruitment, data collection tools, and analysis can be substantial.
• Subjectivity: Researchers' biases can unintentionally influence data collection, analysis, and interpretation.
• Limited Generalization: Findings from primary research might not be easily generalized to larger populations due to sample size limitations.
• Data Collection Challenges: Collecting accurate data can be challenging, particularly in sensitive topics or hard-to-reach populations.
• Potential for Error: Mistakes in survey design, data entry, or analysis can introduce errors in the research findings.
• Ethical Considerations: Ensuring ethical treatment of participants, informed consent, and privacy protection is vital but can be complex.
• Validity and Reliability Concerns: Ensuring the validity and reliability of data requires careful planning and execution.

Primary research is your direct line to understanding your customers, improving products, and making smarter decisions. It's like having a conversation with your audience, getting insights straight from the source. Whether you're asking them questions, watching their behaviors, or testing new ideas, primary research gives you the real-deal information you need to stay competitive and relevant.

Remember, primary research isn't just for big corporations – even small businesses can tap into its power. By listening to your customers and adapting based on their input, you're not only meeting their needs but also building a stronger, customer-focused brand.

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• Real-Time Insights: Instantly tap into a wealth of real-time consumer insights that propel your strategies forward.
• Seamless Integration: Appinio seamlessly merges into your decision-making processes, ensuring research is a natural part of your business rhythm.
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Why Is Primary Research Important for Understanding a Market?

by Sarah Schmidt , on March 2, 2021

• Primary market research solicits new information from sources directly — such as customers in a specific target market — through interviews or consumer surveys.  
• Secondary market research includes previously published information that has been compiled by outside organizations such as government agencies, industry associations, and trade publications.

Both types of market research are valuable, but primary research is often veiled in a deeper sense of mystery. How is primary data collected? Why is it necessary to carry out primary market research, and what expertise is required?

A quick web search may not provide concrete answers for these questions. Many top-ranking articles on primary market research are vague, focus on broad definitions , and are not written by professional market researchers.

For a deeper dive into this subject, I turned to Jennifer Christ, a long-time analyst and manager at The Freedonia Group, a leading market research firm and division of MarketResearch.com. As part of her job, Jennifer trains analysts to gather and evaluate primary data — such as consumer surveys and phone interviews — for use in industry studies.

The Key Advantages of Primary Research

According to Jennifer, secondary research provides a solid foundation for understanding a market at a high level, but primary research can help fill in the gaps and offer a richer, more nuanced perspective. Primary data allows analysts to validate market size estimates and growth outlooks and gain targeted insights into specific industry developments or drivers.

“We really seek to evaluate a market from multiple angles, and primary research helps us better explore other viewpoints that might get less coverage in industry, business, or the general media,” Jennifer explains. “It also lets us ask questions and talk about trends and issues that might not be mentioned in other sources.”

In addition, primary research enables analysts to see beyond the hype and get a reality check on hot trends. “For instance, a supplier of an innovation or technology may think it’s going to be market changing, but checking in with potential end users, we might learn that they are satisfied with what they are using, the new tech doesn’t solve an existing problem, or they think the cost to change outweighs potential benefits, so they are far less enthused,” Jennifer says.  

Primary research based on consumer survey data can also shed light on consumer attitudes, their decision-making process, and the reasons why they make certain purchases. Analysts can break down this data based on demographic information such as age, region, gender, income levels, family size, living situation, whether they work from home, and other relevant attributes.

Using survey data to understand different types of consumers and the motivations that drive them can help companies build more effective marketing and product development strategies.

Primary Market Research Methods: A Brief Overview

Primary research can be conducted through a variety of methods, but these approaches often require a high level of expertise to produce accurate, meaningful results.

For example, consumer survey data can be gathered through online and booklet-based surveys, but it’s important to screen for quality and use an appropriate sample size that is representative of the overall target population. Once the data is collected, the information must be put into context and evaluated based on historical trends and other key factors.

Phone interviews are also more complex than they may first appear. To conduct interviews with industry participants, analysts need a strong network of contacts within specific industry sectors that allows them to see a product or market category from many different angles. For example, Jennifer often targets end-users, manufacturers, retailers and distributors, or material suppliers for individual or group interviews. She recommends speaking with up-and-coming participants, as well as established players and market leaders.

Research analysts must also engage the right people within an organization. “We reach as broadly as we can, but we find that people in positions working in marketing or sales (at a manager or VP level) tend to be aware of a company’s performance and pain points and trends and positioning for the industry in general,” Jennifer explains. “Anyone who works in a company’s internal insights or customer analysis team is also often quite helpful. Obviously, if our questions are more technical, we seek out people in research and development areas.”

To engage busy senior-level managers in primary research, it's also crucial to build strong rapport and strive for a mutually beneficial conversation. “I like to keep it as conversational as much as possible,” Jennifer says. “Not only are people more comfortable in that mode, but it is more likely to bring up things I might not have thought of. Also, I think it’s important for the person I’m talking to to feel like they learned something from our chat as well. They are more likely to think that talking with us is worth their valuable time.”

There's no doubt primary market research involves extra legwork, skill, and dedication, but it also provides a "boots on the ground" level of industry knowledge that's difficult to achieve through any other approach.

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Primary Market Research - Explained

What is Primary Market Research

Written by Jason Gordon

Updated at April 17th, 2024

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What is Market Research?

You now understand the litany of information that is important in determining whether a business idea is a feasible opportunity. The information you acquire when conducting the feasibility analysis is not lost at the time you decide to undertake your business. Rest assured that all of the information will be used in various ways in planning and carrying out your business operations.

Now that you understand the need for information, we turn to the methods or techniques for collecting information. Below we introduce the first of two main categories of market research (primary and secondary research) and provide you resources to carry out the activity.

Effective market research requires the ability to identify and locate necessary information. That is, you need to know what information is valuable, be able to locate the information, understand the significance of the information, and employ the information in your planning process.

What is Primary Research?

Primary research involves the first-hand collection of information by the entrepreneur. That is, the entrepreneur observes or actively tests a given situation to derive information. Common methods for conducting primary research include:

How to Conduct Personal Interviews?

Personal interviews with individuals who you assume to be part of a larger consumer group.

• Benefits : Personal interviews are the most accurate, yet time-consuming and costly manners of conducting marker research. They are more efficient because they allow follow-up and clarifying questions as well as the use of multiple methods of extracting information. They also allow the greatest flexibility in choosing the representative individual or group to study. Remember, the purpose is to identify the wants and needs of various groups and to associate those wants or needs with other members who possess certain like characteristics or preferences.
• Face-to-Face : This method provide the greatest benefit. There is little to no distortion in the lines of communication. The researcher can judge body language and expressions, as well as the answers to the questions.
• Telephone : Telephone interviews are the next best method. They allow for the greatest customization of questioning and answer follow-up. It does, however, lack the person-to-person contact benefits of a face-to-face meeting. Further, people can get anxious or frustrated by long or drawn-out interviews. It is easier for the responder to dissociate from the questions and put less effort into answering sincerely.
• Survey : A survey is generally done as a mail interview. For this reason it allows for the greatest reach. You can send interview questions to large numbers of individuals quickly and at low cost. Further, it generally allows for very thoroughly written and explained questions and may also present sufficient time and context for equivalent answers. However, the technique lacks the benefits of spontaneity of response that telephone and face-to-face interviews possess. Also, it is often difficult to get respondents to participate. Those who do respond may no longer be representative of the overall market.

How to Conduct Focus Groups?

A focus group allows you to test an idea (product or service) on a particular group and receive their feedback.

• Note: When developing a new product or idea, the focus group is one of the most effective primary research methods. It has many of the benefits of a face-to-face meeting, while allowing you to conduct research on multiple individuals at the same time. The most difficult part about using a focus group is to attract participants who are representative of the market. Using students at a university is generally the best manner of attracting representative participants. As with brainstorming, the two keys to running a successful focus group is participation and having a skilled facilitator or moderator. Both allow for the free flow of ideas while maintaining focus on the topic at hand.

How to Use Public Observation?

Public observation allows the entrepreneur to glean information from the general habits of individual in a given situation (such as the buying trends of teenagers in the mall).

Who Should be the Focus of Primary Research?

Primary research is used to determine who is your target market, as well as determining the preferences and characteristics of those who may or may not be part of the target market.

• Situation 1 : If you need to determine who would be interested in your product or service, you will likely address members of the public at random. You will design your research technique (questions) to identify the reason that they want or need your product or service and their level of priority.
• Situation 2 : Once you identify individuals who are part of your target market, you will want to identify the characteristics that allow them to be grouped with other similar consumers.

What is Relevant Information in Research?

You will customize your questions to the information you seek from the participants. Below are examples of the type of information you may seek from your research subjects:

• Gender, race, ethnicity, age
• Martial Status
• Financial Status
• Physical Status
• Activities and Hobbies

Designing Research Questions

Any type of primary research requires preliminary planning. Particularly, the entrepreneur must work to develop questions that solicit the type of information desired. This task is far more difficult than it sounds. Below are some tips for drafting a questionnaire that serves to promote effectiveness:

• Be short and concise.
• Make certain the question is easily understandable upon reading.
• Always ask questions directly and in the affirmative?
• Don't ask why they didn't do something; rather, ask why did you do A?
• Make questions easy to answer. (Yes/No, with a Why option)
• Don't attempt to be coercive of the reader.
• Don't make questions offensive.
• Be truthful about the intentions of the questionnaire.
• Provide sufficient time to answer the question.
• Don't show emotional reaction to the answers.

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• Marketing Research Overview
• Quantitative and Qualitative Research
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• Secondary Research
• Determining the Right Marketing Strategy
• What is a Marketing Information System?
• What are Decision Support Systems?
• What are Marketing Models?
• What is a Marketing Dashboard?
• What Kinds of Data can we Use?
• Methods of Collecting Data
• What are Focus Groups?
• What is Group Think?
• What are Scanner Data?
• What is Web Tracking?
• What is Ethnography?
• What is Experimental` Research?
• What is Use of Statistics
• What Distorts the Results of Marketing Research?
• Challenges of International Market Research?

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The Bottom Line

Primary market: definition, types, examples, and secondary.

James Chen, CMT is an expert trader, investment adviser, and global market strategist.

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University.

Investopedia / Ryan Oakley

A primary market is a source of new securities. Often on an exchange, it's where companies, governments, and other groups go to obtain financing through debt-based or equity-based securities. Primary markets are facilitated by underwriting groups consisting of investment banks that set a beginning price range for a given security and oversee its sale to investors.

Once the initial sale is complete, further trading is conducted on the secondary market , where the bulk of exchange trading occurs each day.

Key Takeaways

• In the primary market, new stocks and bonds are sold to the public for the first time.
• In a primary market, investors are able to purchase securities directly from the issuer.
• Types of primary market issues include an initial public offering (IPO), a private placement, a rights issue, and a preferred allotment.
• Stock exchanges instead represent secondary markets, where investors buy and sell from one another.
• After they’ve been issued on the primary market, securities are traded between investors on what is called the secondary market—essentially, the familiar stock exchanges.

The primary market is where securities are created. It's in this market that firms sell or float (in finance lingo) new stocks and bonds to the public for the first time during the primary distribution . These stocks and bonds—also called primary instruments —trade on mainstream exchanges with prices based on their market value.

Companies and government entities sell new issues of common and preferred stock, corporate bonds, and government bonds, notes, and bills on the primary market to fund business improvements or expand operations. Although an investment bank may set the securities' initial price and receive a fee for facilitating sales, most of the money raised from the sales goes to the issuer.

The primary market isn't a physical place; it reflects more the nature of the goods. The key defining characteristic of a primary market is that securities on it are purchased directly from an  issuer —as opposed to being bought from a previous purchaser or investor, "second-hand" so to speak.

Investors typically pay less for securities on the primary market than on the secondary market.

All issues on the primary market are subject to strict regulation. Companies must file statements with the  Securities and Exchange Commission (SEC) and other securities agencies and must wait until their filings are approved before they can offer them for sale to investors.

After the initial offering is completed—that is, all the stock shares or bonds are sold—that primary market closes. Those securities then start trading on the secondary market.

An  initial public offering , or IPO, is an example of a security issued on a primary market. An IPO occurs when a private company sells shares of stock to the public for the first time, a process known as " going public ." The process, including the original price of the new shares, is set by a designated investment bank, hired by the company to do the initial underwriting for a particular stock. 

For example, company ABCWXYZ Inc. hires five underwriting firms to determine the financial details of its IPO. The underwriters detail that the issue price of the stock will be $15. Investors can then buy the IPO at this price directly from the issuing company. This is the first opportunity that investors have to contribute capital to a company through the purchase of its stock. A company's equity capital is comprised of the funds generated by the sale of stock on the primary market.

A  rights offering (issue)   permits companies to raise additional equity through the primary market after already having securities enter the secondary market. Current investors are offered prorated rights based on the shares they currently own, and others can invest anew in newly minted shares.

Private Placement and Primary Market

Other types of primary market offerings for stocks include private placement and preferential allotment. Private placement allows companies to sell directly to more significant investors such as hedge funds and banks without making shares publicly available. Preferential allotment offers shares to select investors (usually hedge funds, banks, and mutual funds) at a special price not available to the general public.

Similarly, businesses and governments that want to generate debt capital can choose to issue new short- and long-term bonds on the primary market. New bonds are issued with coupon rates that correspond to the current interest rates at the time of issuance, which may be higher or lower than those offered by pre-existing bonds.

Primary Market vs. Secondary Market

The primary market refers to the market where securities are created and first issued, while the secondary market is one in which they are traded afterward among investors.

Primary Market

Take, for example, U.S. Treasuries—the bonds, bills, and notes issued by the U.S. government. The Dept. of the Treasury announces new issues  of these debt securities at periodic intervals and sells them at auctions , which are held multiple times throughout the year. This is an example of the primary market in action.

Individual investors can buy newly issued U.S. Treasuries directly from the government via TreasuryDirect , an electronic marketplace and online account system. This can save them money on brokerage commissions and other middleman fees.

Secondary Market

Now, let's say some of the investors who bought some of the government's bonds or bills at these auctions—they're usually institutional investors, like brokerages, banks, pension funds, or investment funds—want to sell them. They offer them on stock exchanges or markets like the NYSE, Nasdaq, or over-the-counter (OTC), where other investors can buy them. These U.S. Treasuries are now on the secondary market.

With equities, the distinction between primary and secondary markets can seem a little cloudier. Essentially, the secondary market is what's commonly referred to as "the stock market," the stock exchanges where investors buy and sell shares from one another. But in fact, a stock exchange can be the site of both a primary and secondary market.

For example, when a company makes its public debut on the New York Stock Exchange (NYSE), the first offering of its new shares constitutes a primary market. The shares that trade afterward, with their prices daily listed on the NYSE, are part of the secondary market.

Secondary markets are further divided into two types:

• An auction market, an open outcry system where buyers and sellers congregate in one location and announce the prices at which they are willing to buy and sell their securities
• A dealer market, in which participants in the market are joined through electronic networks. The dealers hold an inventory of security, then stand ready to buy or sell with market participants.

The key distinction between primary and secondary markets: the seller or source of the securities. In a primary market, it's the issuer of the shares or bonds or whatever the asset is. In a secondary market, it's another investor or owner. When you buy a security on the primary market, you're buying a new issue directly from the issuer, and it's a one-time transaction. When you buy a security on the secondary market, the original issuer of that security—be it a company or a government—doesn't take any part and doesn't share in the proceeds.

In short, securities are bought on the primary market. They trade on the secondary market.

In June 2017, the Republic of Argentina announced it was selling $2.75 billion worth of debt in a two-part U.S. dollar bond sale. Funding was going toward liability management purposes. Joint underwriters included Morgan Stanley, Bank of America, Merrill Lynch, Deutsche Bank, and Credit Suisse. It marked the first time a junk-rated government—Argentina had only returned to the debt markets the previous year after massive defaults had barred it for a while—offered century bonds (which mature in 100 years).

Facebook’s Initial Public Offering

Facebook's ( META ), now Meta, initial public offering in 2012 was, at the time, the largest IPO of an online company and the largest IPOs in the technology sector in US history. Expectations were high: Many investors believed the stock's value would very quickly increase on the secondary market due to the company's popularity and rapid success. Because of high demand in the primary market, underwriters priced the stock at $38 per share, at the top of the targeted $35-38 range, and raised the stock offering level by 25% to 421 million shares. The stock valuation became $104 billion, the largest of any newly public company.

Although Facebook raised $16 billion through the primary market, the stock did not greatly increase in value the day of the IPO: It closed at $38.23 after 460 million shares were sold and turnover exceeded 100%. Facebook actually went significantly lower later in 2012, hitting an all-time low of $17.73 on Sept. 4, 2012.

But it recovered, thanks partly to the company's heavy focus on its mobile platform.

If you invested $10,000 in the company at its IPO, you would have received 263 shares of Facebook  common stock . As of February 23 , 2024, those shares were selling for $484 a piece, making your investment worth $127,292. In retrospect, that primary market purchase of $38 per share seems like quite a discount.

What Is the Primary Market and Secondary Market?

Both the primary market and the secondary market are aspects of a capitalist financial system, in which money is raised by the buying and selling of securities—financial assets like stocks and bonds. New securities are issued (created) and sold to investors for the first time in the primary market. Thereafter, investors trade these securities on the secondary market.

The primary market is also known as the new issues market. The secondary market is what we commonly think of as the stock market or stock exchange.

What Are the Types of Primary Markets?

There's a primary market for just about every sort of financial asset out there. The biggest ones are the primary stock market, the primary bond market, and the primary mortgage market.

The most common type of primary market issues include:

• Initial public offering (IPO): when a company issues shares of stock to the public for the first time
• Rights issue/offering: an offer to the company’s current stockholders to buy additional new shares at a discount.
• Private placement: an issue of company stock shares to an individual person, corporate entity, or a small group of investors—usually institutional or accredited ones—as opposed to being issued in the public marketplace.
• Preferential allotment: shares offered to a particular group at a special or discounted price, different from the publicly traded share price

What Is the Role of the Primary Market?

The primary market is like a debutante ball or a wedding: It marks the launch of a new security—a corporate stock shares or a bond—into the financial marketplace. Primary markets enable companies and governments to attract investors and raise money—to pay debts or to expand. They also enable investors with assets to put their money into, to generate income, or get in on the ground floor of a promising young venture.

What Is the Primary Market and Secondary Market in India?

The primary and secondary markets in India function as they do anywhere:   In the primary market, the investor purchases shares or bonds directly from a company in a one-time transaction; in the Secondary Market, investors buy and sell the stocks and bonds among themselves, and can do so an infinite number of times.

In India, when companies wish to go public and establish a primary market for their shares, they must get approval from the Securities and Exchange Board of India (SEBI), the equivalent of the SEC in the U.S.

The secondary market in India includes the BSE Limited (BSE), and the National Stock Exchange (NSE)—the Subcontinent's two most widely traded exchanges.

A primary market is a figurative place where securities make their debut—where new bonds and shares of corporate stock are issued to be sold to investors for the first time. They are sold by the companies, governments, or other entities issuing them, often with the help of investment banks, who underwrite the new issues, setting their price and overseeing their launch.

There is a primary market for most types of assets, with equities (stocks) and bonds being the most common. And there are several different types of primary market issues. The most familiar are IPOs. Others include private placements and rights offerings.

Most primary market buyers are institutional investors, though individual investors can get easily get in on certain offerings, like new US Treasury bonds.

After they’ve been issued on the primary market, existing shares of stock, bonds, and other securities are traded between investors on what is called the secondary market—essentially, the familiar stock exchanges and stock markets.

TreasuryDirect. " Treasury Bonds ."

The Wall Street Journal. " Argentina Sells $2.75 Billion of 100-Year Bonds ."

U.S. Security and Exchange Commission. " Prospectus-Facebook-Class A Common Stock ."

History. " Facebook Launches ."

Nasdaq. " FB Historical Data ."

Securities and Exchange Board of India. " Home Page ."

National Stock Exchange of India Ltd. " Home Page ."

BSE Limited. " Home Page ."

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Table of Content

A guide to primary market research: what is it, and why is it important.

Conducting primary market research can help you get customer insights right from the source. Here's all you need to know about it.

In the ever-evolving world of business, understanding the intricacies of your target audience is paramount. It's not enough to skim the surface; you need to dive deep and discover the hidden insights that can propel your business to new heights. Welcome to the realm of primary market research, where data becomes your ally and insights become the catalyst for success.

What is primary market research?

Primary market research refers to the process of gathering first-hand information directly from the source. It involves collecting fresh data specifically for your research objectives, rather than relying on existing data or secondary sources. The primary research methods can vary, including surveys, interviews, observations, experiments, and focus groups.

The purpose of primary market research is to gain a deep understanding of your target audience, their preferences, opinions, behaviors, and needs. It allows you to gather specific and relevant data that is tailored to your business or research goals. By engaging directly with your target audience, you can uncover valuable insights that provide a solid foundation for informed decision-making, product development, marketing strategies, and overall business success.

One example of a brand that used primary market research to improve its offerings is LEGO. In one study, they discovered that only nine percent of their users were female. To address this, LEGO first embarked on a comprehensive market research effort, studying the play habits of 3,500 girls and their mothers over a four-year period. The research findings guided LEGO in developing a new product line called "Friends," featuring vibrant and diverse colors, appealing packaging, and modified figures with accessories like hairbrushes and purses.

Since the launch of Lego Friends in 2012, Lego's market share among girls has significantly increased, and the introduction of the line is also credited with tripling the sales of girls' construction toys in the U.S. and major European countries. The success of Lego's primary market research and subsequent product development demonstrates the value of understanding and catering to the specific needs and preferences of target audiences.

Why is primary market research important?

Tailored insights.

Primary research allows researchers to gather data directly from the target audience, providing unique and customized insights specific to their research objectives. It enables a deeper understanding of consumer preferences, behaviors, needs, and opinions. For example, a clothing retailer conducting primary research may conduct focus groups and interviews with their target customers to understand their preferences in terms of styles, colors, and pricing, allowing them to tailor their product offerings accordingly.

Current and relevant data

Primary research captures real-time data, reflecting the current market conditions and consumer dynamics. It ensures that the findings are up-to-date and align with the latest trends and changes in consumer behavior. For instance, a technology company conducting primary research may conduct surveys or interviews regularly to gather insights on the latest trends and preferences in smartphone features, ensuring that their product development aligns with the ever-evolving consumer demands.

Accuracy and reliability

Since primary research involves collecting data directly from the source, it is generally considered more accurate and reliable. Researchers have control over the data collection process, ensuring that it aligns with their research objectives and quality standards. For example, a healthcare organization conducting primary research may conduct clinical trials or surveys to gather firsthand data on the effectiveness and side effects of a new medication, ensuring accurate information for regulatory approvals and patient safety.

Specific research objectives

Primary research allows researchers to address specific research questions and objectives. They can design surveys, interviews, or experiments tailored to their needs, ensuring that the collected data provides insights directly relevant to their study. For instance, a market researcher investigating consumer buying behavior may design a survey specifically tailored to understand the factors influencing purchase decisions, such as price, product quality, or brand reputation, providing precise insights directly relevant to their study.

Unique and unexplored insights

Primary research can uncover new insights and untapped areas of research. It allows researchers to explore uncharted territories, discover emerging trends, and gain a competitive edge by identifying opportunities not previously explored by secondary research. For example, a food manufacturer conducting primary research may conduct taste tests and surveys to explore consumers' preferences for innovative flavors, enabling them to develop unique products that stand out in the market and cater to changing consumer tastes.

Decision-making support

Primary research provides a solid foundation for decision-making. The insights gained from primary research can inform strategic planning, product development, marketing strategies, and other key business decisions. It helps organizations make informed choices based on concrete data and understanding of their target audience.

Competitive advantage

By conducting primary research, organizations can gain a competitive advantage by understanding their customers better than their competitors. It enables them to develop targeted products, services, and marketing campaigns that resonate with the specific needs and preferences of their target audience. For example, a hospitality chain conducting primary research may conduct guest satisfaction surveys to identify areas for improvement and provide a superior customer experience, giving them an edge over their rivals in terms of customer loyalty and positive reviews.

Innovation and product development

Primary research plays a crucial role in innovation and product development. By gathering direct feedback from consumers, researchers can identify areas for improvement, uncover unmet needs, and generate ideas for new products or services that meet customer demands. For example, a cosmetics company conducting primary research may organize focus groups and online communities to gather feedback on existing products and understand customers' skincare concerns and preferences. This insight can help the company develop new formulations, identify gaps in the market, and create innovative beauty products that address specific customer needs and trends.

Market validation

Primary research helps validate and complement findings from secondary research. It allows researchers to confirm or challenge existing theories, hypotheses, or market assumptions. It provides a firsthand perspective that adds depth and credibility to the overall research findings. For instance, a market researcher studying consumer preferences for eco-friendly products may conduct surveys to verify the demand and willingness to pay for sustainable alternatives, supporting or challenging the existing market assumptions and guiding business strategies.

Long-term strategic insights

Primary research can provide long-term strategic insights by establishing ongoing relationships with the target audience. Researchers can conduct longitudinal studies, track changes in consumer behavior over time, and adapt strategies accordingly. For example, a bank conducting primary research may conduct annual customer satisfaction surveys to track changes in customer needs and expectations over time, enabling them to adjust their services and offerings to maintain customer loyalty and competitiveness in the long run.

Pricing and revenue optimization

Primary market research is important for pricing and revenue optimization strategies. It allows businesses to gather direct insights from their target audience regarding their pricing preferences, perceptions of value, and willingness to pay. This data helps organizations optimize their pricing structure, set competitive prices, and maximize revenue by aligning their offerings with customer expectations. For instance, a software company conducting primary research may conduct price sensitivity surveys and conjoint analysis to understand how customers perceive the value of different pricing tiers and features. This data can help the company optimize their pricing structure, maximize revenue, and identify opportunities for upselling or cross-selling.

Customer service improvements

Primary market research enables organizations to gather feedback directly from customers to identify areas for improvement in their customer service processes. By conducting surveys, interviews, or focus groups, businesses can understand customer satisfaction levels, pain points, and expectations. This data allows them to make informed decisions on enhancing customer service, streamlining support channels, improving response times, and developing training programs to deliver a superior customer experience. For example, a telecommunications provider conducting primary research may conduct customer satisfaction surveys and in-depth interviews to identify pain points in their customer service processes. This information can help them improve response times, streamline support channels, and develop training programs for their customer service representatives, resulting in a better overall customer experience and increased customer loyalty.

What are the pros and cons of primary market research?

Pros of primary market research:, customized and relevant data.

Primary research allows researchers to collect data specifically tailored to their research objectives and target audience. This customized approach ensures that the data collected is directly relevant to the research questions and provides specific insights.

Control over data collection

With primary research, researchers have control over the data collection process, including the choice of research methods, survey design, sample selection, and data collection techniques. This control helps maintain data quality and reliability.

Real-time and current insights

Primary research captures data in real-time, providing up-to-date insights into consumer behavior, market trends, and preferences. This current information enables researchers and businesses to make informed decisions based on the latest data.

Greater depth and detail

Primary research allows researchers to delve deeper into the subject matter, uncovering nuances and obtaining more detailed information. It provides a comprehensive understanding of consumer behaviors, motivations, and preferences.

Uncovering new insights

Primary research can uncover new insights that may not be available through secondary research. It allows researchers to explore uncharted areas, discover emerging trends, and generate unique findings that can lead to innovation and competitive advantage.

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Cons of Primary Market Research:

Time-consuming and costly.

Primary research can be time-consuming and expensive compared to secondary research. It requires resources for designing research instruments, data collection, data analysis, and report generation. The costs associated with primary research can be a significant constraint, especially for small businesses or research projects with limited budgets.

Potential sampling bias

The accuracy and reliability of primary research findings can be influenced by sampling bias. If the sample selected for data collection is not representative of the target population, it can lead to skewed results and affect the generalizability of the findings.

Limited scope and sample size

Primary research typically involves a smaller sample size compared to secondary research, which may limit the generalizability of the findings. The data collected may not represent the entire population or market, and researchers need to carefully consider the sample's representativeness.

Data collection challenges

Primary research may face challenges during data collection, such as low response rates, participant bias, or difficulties in recruiting participants. These challenges can impact the quality and reliability of the collected data.

Researcher bias and influence

Researchers conducting primary research may introduce bias consciously or unconsciously. Biases can arise from question wording, interviewers' behavior, or researcher interpretations, potentially influencing the findings and compromising objectivity.

Limited historical data

Unlike secondary research, which can analyze historical data, primary research primarily focuses on current information. This limitation restricts the ability to study long-term trends or make historical comparisons.

Ethical considerations

Primary research involves interacting directly with participants, and ethical considerations, such as informed consent, privacy, and confidentiality, need to be carefully addressed to protect participants' rights and ensure ethical research practices.

Ways to do primary market research

Surveys are a popular method for collecting data from consumers. They involve structured questionnaires that can be administered through online platforms, email, or in-person interviews. Surveys allow researchers to gather quantitative data on consumer preferences, behaviors, satisfaction levels, and demographic information. They can be used to measure brand awareness, gather feedback on products or services, or assess consumer attitudes towards specific topics.

Interviews provide an opportunity for in-depth conversations with consumers. They can be conducted in-person, over the phone, or through video calls. Interviews allow researchers to explore consumer motivations, perceptions, and experiences in more detail. This method is particularly useful for qualitative research, where open-ended questions can elicit rich insights and uncover underlying factors that drive consumer behavior.

Focus groups

Focus groups bring together a small group of consumers (typically 6-10) to discuss specific topics under the guidance of a moderator. This method encourages group interaction, allowing participants to share their opinions, ideas, and experiences. Focus groups can provide deeper insights into consumer preferences, attitudes, and perceptions. They are often used to explore new product concepts, evaluate advertising campaigns, or test reactions to prototypes.

Observational research

Observational research involves directly observing and documenting consumer behavior in real-world settings. This method allows researchers to study consumers in their natural environments, such as retail stores, websites, or public spaces. Observations can be done discreetly or with the participant's knowledge, depending on the research goals. This approach provides valuable insights into actual consumer behaviors, decision-making processes, and interactions with products or services.

Online communities and social media listening

Online communities and social media platforms offer opportunities for consumer research. Online communities allow researchers to engage with consumers in a virtual space, where they can share opinions, participate in discussions, and provide feedback on specific topics. Social media listening involves monitoring and analyzing conversations happening on social media platforms. By tapping into online communities and social media, researchers can gather real-time insights, track consumer sentiment, and identify emerging trends.

Experiments and A/B testing

Experiments involve manipulating variables to test hypotheses and measure the impact on consumer behavior. A/B testing, also known as split testing, is a method where two or more versions of a product, advertisement, or website are presented to different groups of consumers to determine which performs better. Experiments and A/B testing provide quantitative data and help researchers understand cause-and-effect relationships, optimize designs, and evaluate the effectiveness of marketing strategies.

Product testing

Product testing is a method of primary research where consumers are given the opportunity to try out new products and provide feedback on their performance, features, and preferences. It is a valuable approach for consumer research companies to gather insights on product usability, functionality, desirability, and overall satisfaction. It typically involves selecting a group of participants who represent the target market for the product. These participants are provided with the product, often before its official launch, and are instructed to use it in their daily lives or according to specific usage scenarios. They may be asked to provide feedback through surveys, interviews, or online platforms, sharing their experiences, likes, dislikes, and suggestions for improvement.

In conclusion

By leveraging primary research effectively, consumer research companies can unlock the secrets of their target audience, develop products and services that resonate with customers, and create exceptional customer experiences. With the help of tools like Decode, you can conduct primary research even more efficiently, thanks to our qual and quant research methods help you collect consumer insights directly from the source, with a pool of 60 million respondents to choose from.

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Primary Research: What It Is, Purpose & Methods + Examples

As we continue exploring the exciting research world, we’ll come across two primary and secondary data approaches. This article will focus on primary research – what it is, how it’s done, and why it’s essential. 

We’ll discuss the methods used to gather first-hand data and examples of how it’s applied in various fields. Get ready to discover how this research can be used to solve research problems , answer questions, and drive innovation.

What is Primary Research: Definition

Primary research is a methodology researchers use to collect data directly rather than depending on data collected from previously done research. Technically, they “own” the data. Primary research is solely carried out to address a certain problem, which requires in-depth analysis .

There are two forms of research:

• Primary Research
• Secondary Research

Businesses or organizations can conduct primary research or employ a third party to conduct research. One major advantage of primary research is this type of research is “pinpointed.” Research only focuses on a specific issue or problem and on obtaining related solutions.

For example, a brand is about to launch a new mobile phone model and wants to research the looks and features they will soon introduce. 

Organizations can select a qualified sample of respondents closely resembling the population and conduct primary research with them to know their opinions. Based on this research, the brand can now think of probable solutions to make necessary changes in the looks and features of the mobile phone.

Primary Research Methods with Examples

In this technology-driven world, meaningful data is more valuable than gold. Organizations or businesses need highly validated data to make informed decisions. This is the very reason why many companies are proactive in gathering their own data so that the authenticity of data is maintained and they get first-hand data without any alterations.

Here are some of the primary research methods organizations or businesses use to collect data:

1. Interviews (telephonic or face-to-face)

Conducting interviews is a qualitative research method to collect data and has been a popular method for ages. These interviews can be conducted in person (face-to-face) or over the telephone. Interviews are an open-ended method that involves dialogues or interaction between the interviewer (researcher) and the interviewee (respondent).

Conducting a face-to-face interview method is said to generate a better response from respondents as it is a more personal approach. However, the success of face-to-face interviews depends heavily on the researcher’s ability to ask questions and his/her experience related to conducting such interviews in the past. The types of questions that are used in this type of research are mostly open-ended questions . These questions help to gain in-depth insights into the opinions and perceptions of respondents.

Personal interviews usually last up to 30 minutes or even longer, depending on the subject of research. If a researcher is running short of time conducting telephonic interviews can also be helpful to collect data.

2. Online surveys

Once conducted with pen and paper, surveys have come a long way since then. Today, most researchers use online surveys to send to respondents to gather information from them. Online surveys are convenient and can be sent by email or can be filled out online. These can be accessed on handheld devices like smartphones, tablets, iPads, and similar devices.

Once a survey is deployed, a certain amount of stipulated time is given to respondents to answer survey questions and send them back to the researcher. In order to get maximum information from respondents, surveys should have a good mix of open-ended questions and close-ended questions . The survey should not be lengthy. Respondents lose interest and tend to leave it half-done.

It is a good practice to reward respondents for successfully filling out surveys for their time and efforts and valuable information. Most organizations or businesses usually give away gift cards from reputed brands that respondents can redeem later.

3. Focus groups

This popular research technique is used to collect data from a small group of people, usually restricted to 6-10. Focus group brings together people who are experts in the subject matter for which research is being conducted.

Focus group has a moderator who stimulates discussions among the members to get greater insights. Organizations and businesses can make use of this method, especially to identify niche markets to learn about a specific group of consumers.

4. Observations

In this primary research method, there is no direct interaction between the researcher and the person/consumer being observed. The researcher observes the reactions of a subject and makes notes.

Trained observers or cameras are used to record reactions. Observations are noted in a predetermined situation. For example, a bakery brand wants to know how people react to its new biscuits, observes notes on consumers’ first reactions, and evaluates collective data to draw inferences .

Primary Research vs Secondary Research – The Differences

Primary and secondary research are two distinct approaches to gathering information, each with its own characteristics and advantages. 

While primary research involves conducting surveys to gather firsthand data from potential customers, secondary market research is utilized to analyze existing industry reports and competitor data, providing valuable context and benchmarks for the survey findings.

Find out more details about the differences: 

1. Definition

• Primary Research: Involves the direct collection of original data specifically for the research project at hand. Examples include surveys, interviews, observations, and experiments.
• Secondary Research: Involves analyzing and interpreting existing data, literature, or information. This can include sources like books, articles, databases, and reports.

2. Data Source

• Primary Research: Data is collected directly from individuals, experiments, or observations.
• Secondary Research: Data is gathered from already existing sources.

3. Time and Cost

• Primary Research: Often time-consuming and can be costly due to the need for designing and implementing research instruments and collecting new data.
• Secondary Research: Generally more time and cost-effective, as it relies on readily available data.

4. Customization

• Primary Research: Provides tailored and specific information, allowing researchers to address unique research questions.
• Secondary Research: Offers information that is pre-existing and may not be as customized to the specific needs of the researcher.
• Primary Research: Researchers have control over the research process, including study design, data collection methods , and participant selection.
• Secondary Research: Limited control, as researchers rely on data collected by others.

6. Originality

• Primary Research: Generates original data that hasn’t been analyzed before.
• Secondary Research: Involves the analysis of data that has been previously collected and analyzed.

7. Relevance and Timeliness

• Primary Research: Often provides more up-to-date and relevant data or information.
• Secondary Research: This may involve data that is outdated, but it can still be valuable for historical context or broad trends.

Advantages of Primary Research

Primary research has several advantages over other research methods, making it an indispensable tool for anyone seeking to understand their target market, improve their products or services, and stay ahead of the competition. So let’s dive in and explore the many benefits of primary research.

• One of the most important advantages is data collected is first-hand and accurate. In other words, there is no dilution of data. Also, this research method can be customized to suit organizations’ or businesses’ personal requirements and needs .
• I t focuses mainly on the problem at hand, which means entire attention is directed to finding probable solutions to a pinpointed subject matter. Primary research allows researchers to go in-depth about a matter and study all foreseeable options.
• Data collected can be controlled. I T gives a means to control how data is collected and used. It’s up to the discretion of businesses or organizations who are collecting data how to best make use of data to get meaningful research insights.
• I t is a time-tested method, therefore, one can rely on the results that are obtained from conducting this type of research.

Disadvantages of Primary Research

While primary research is a powerful tool for gathering unique and firsthand data, it also has its limitations. As we explore the drawbacks, we’ll gain a deeper understanding of when primary research may not be the best option and how to work around its challenges.

• One of the major disadvantages of primary research is it can be quite expensive to conduct. One may be required to spend a huge sum of money depending on the setup or primary research method used. Not all businesses or organizations may be able to spend a considerable amount of money.
• This type of research can be time-consuming. Conducting interviews and sending and receiving online surveys can be quite an exhaustive process and require investing time and patience for the process to work. Moreover, evaluating results and applying the findings to improve a product or service will need additional time.
• Sometimes, just using one primary research method may not be enough. In such cases, the use of more than one method is required, and this might increase both the time required to conduct research and the cost associated with it.

Every research is conducted with a purpose. Primary research is conducted by organizations or businesses to stay informed of the ever-changing market conditions and consumer perception. Excellent customer satisfaction (CSAT) has become a key goal and objective of many organizations.

A customer-centric organization knows the importance of providing exceptional products and services to its customers to increase customer loyalty and decrease customer churn. Organizations collect data and analyze it by conducting primary research to draw highly evaluated results and conclusions. Using this information, organizations are able to make informed decisions based on real data-oriented insights.

QuestionPro is a comprehensive survey platform that can be used to conduct primary research. Users can create custom surveys and distribute them to their target audience , whether it be through email, social media, or a website.

QuestionPro also offers advanced features such as skip logic, branching, and data analysis tools, making collecting and analyzing data easier. With QuestionPro, you can gather valuable insights and make informed decisions based on the results of your primary research. Start today for free!

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Marketing91

What is Primary Market Research? Types & Examples

September 18, 2023 | By Hitesh Bhasin | Filed Under: Marketing

When it comes to marketing a business , understanding your target audience is essential. However, the only way to truly understand who your audience is and what they are looking for is by conducting primary market research. Through this research, you can uncover the habits and preferences of your target audience to help inform your marketing decisions .

An example of primary market research can be a situation where a company wants to launch a new product and needs to know how its target market would react to it. In this case, the company could ask potential customers about their reactions to the product using surveys & focus groups , and also get feedback on what could be improved or changed.

The research uses various techniques such as surveys , phone calls, field tests, interviews, focus groups, in-person and observation to gather information. With primary market research, the goal is to obtain customer feedback from different perspectives including social, emotional, cultural, rational, and economic aspects.

Table of Contents

What is Primary Market Research?

Primary market research is the process of gathering data directly from individuals or organizations. The most common method used for primary research is conducting market research surveys. However, primary research methods such as focus groups, interviews, and observational research provide essential insights that can influence and establish crucial strategies for effective growth.

It refers to collecting information directly from sources such as prospective customers, and it involves collecting new data that has not been previously compiled. It involves conducting a study to understand the needs and preferences of your target consumers. This form of exploratory research is done by directly approaching your target audience and asking them specific questions about your product or service.

It is an effective way of gathering information by directly interacting with the source, which could be your customers or potential customers in your target market. This could be done by asking them questions and conducting surveys yourself or by hiring someone to do it for you.

Primary Market Research Examples

• ABC is planning to launch a new product and wants to ensure that it meets customer needs. To gather information, ABC can conduct primary market research by surveying its current customers or other potential buyers in the target market.
• An instance is where company XYZ seeks to gain insights into its competitors in the market. To achieve this, XYZ can hold focus groups comprising prospective customers and ask questions about their familiarity with rival brands , their level of satisfaction with them, and their perceptions of XYZ’s product offerings. This exemplifies primary market research.
• LMN, a company, can gather feedback about the effectiveness of its advertising campaign by conducting a survey among the targeted demographic and asking questions related to the campaign.

Why is Primary Market Research Important?

Businesses can benefit from using primary market research as it allows them to gain insight into their target customers and make informed decisions. Although primary research may require more time and money than secondary research , it provides more conclusive findings. Organizations can benefit from primary market research in several ways such as –

• Gathering Accurate Results
• Identifying Unmet Needs
• Understanding Industry Challenges
• Enhancing Product Quality and Design
• Understanding Customer Habits and Preferences
• Improving Services
• Predicting future trends, etc

Types of Primary Market Research

While conducting primary market research, you usually collect two fundamental types of information –

• Exploratory research – Typically, this type of research is broad and exploratory and involves conducting long interviews with one person or a few people. The language used for output is English.
• Specific research – The purpose of this research is to address a specific issue identified through exploratory research by conducting more rigid and organized interviews.

4 Methods of Primary Market Research

Four primary market research methods are:

1) Interviews

An effective primary market research method to conduct research and develop new ideas for your product or service is by conducting in-depth interviews. These interviews involve asking and answering questions and can be conducted either in person or over the phone.

To conduct a more effective interview, it is recommended that you prepare your questions beforehand and limit the interview duration to 20-30 minutes. If you need to understand body language , conducting in-person interviews will be better but if you want interviewees to be more open and honest in their responses then phone interviews can help them be more at ease.

2) Online surveys

Online surveys refer to questionnaires that are sent to people through email invitations, websites, or social media. For optimal response rates, it’s important to ensure that the online surveys are mobile-friendly so that respondents can easily answer the questions using their smartphones or tablets.

Completing the survey will require more than just accessibility. To keep respondents engaged, the questions should be a mix of well-crafted closed and open-ended questions. Additionally, each question should offer the choice not to answer to prevent respondents from exiting the survey.

3) Focus groups

Focus groups are a type of qualitative marketing research that involves 4-12 people led by a trained moderator. They are used to discuss and provide feedback on a product, service, or concept. Think of them as a broader and more relaxed version of an in-person interview.

Before taking part in the focus group , potential participants are assessed to ensure they match the criteria of the target audience. During the session, the moderator will have a set of prepared questions to ask, similar to an interview, to gather feedback on the participants’ opinions, thoughts, interests, and preferences. Focus groups aim to gain valuable insights that may not have been previously considered.

4) Observational research

Observational research is a type of primary market research that involves a distant approach. It involves a trained observer who does not directly interact with the consumer . A technique that involves observing a consumer’s response to a product or service, sometimes through camera footage, is commonly regarded as the most genuine approach to obtaining insights.

Best Ways To Do Primary Market Research

1) in-depth interviews (idis).

In-depth Interviews (IDIs) are a qualitative research technique where a single respondent is interviewed at length.

They are structured and led by a trained interviewer who is well-versed in the discussion guide, enabling them to probe deeper into the respondent’s thoughts, perceptions, and attitudes .

2) Minimum Viable Product (MVP) Testing

In MVP testing, a basic version of a product that has enough features to capture the attention of prospective customers is released.

Feedback is then collected from early users to make improvements. It’s a cost-effective way to understand market needs and validate a product idea before investing heavily in product development .

3) Product/Field Trials

Product or field trials involve giving a product to a select group of users for a certain period and collecting their feedback.

These trials offer an understanding of real-world usage and acceptance, helping businesses identify any changes that need to be made before a full-scale launch.

4) Hypothesis Testing

Hypothesis testing is a statistical method used in market research to test assumptions about a population based on sample data.

It can help organizations make informed decisions by validating or invalidating their assumptions about their market.

5) Online focus groups

Similar to traditional focus groups, online focus groups involve a moderated discussion with a small group of participants.

However, the discussion takes place in a virtual environment, which can allow for a broader geographical reach and greater scheduling flexibility.

6) Intercept Surveys

Intercept surveys are conducted in person, usually in a location where the product or service is used.

Researchers “intercept” consumers to ask about their experience immediately after use, ensuring the feedback is fresh.

7) In-person focus groups

In-person focus groups, like their online counterparts, involve guided discussions led by a moderator.

However, these discussions occur face-to-face, allowing for more direct interaction and observation of body language and non-verbal cues. This can provide rich, nuanced insights that may not be captured in an online environment.

Primary vs. Secondary Market Research

The difference between primary and secondary research is associated with the way of collecting data.

Primary market research involves collecting data to fulfill your business requirements while secondary market research is information that has been previously gathered (existing data) for different purposes but is still useful for your business. Primary research is focused on answering your specific business questions and aims to gather information from a group of people who have similar characteristics to your potential customers.

While secondary research data can be useful in addressing business queries, it has limitations. The information gathered from a particular audience may not represent your intended audience, leading to biased findings. When it comes to deciding between primary or secondary research processes, data collected firsthand through primary research is more reliable than secondhand information that someone else collected by conducting secondary research methods.

Qualitative and Quantitative Research

Primary research can be classified as either qualitative or quantitative.

Qualitative research involves analyzing information that is not presented in numerical form. This type of research yields results that are explanatory and are obtained through methods such as observation, interviews, record reviews, surveys, and focus groups. Quantitative research , on the other hand, involves collecting data that is presented in numerical forms, such as percentages and statistics.

Therefore, various collection methods are needed for this type of research. Quantitative research involves gathering data through online surveys, questionnaires, and secondary sources such as database reports. Primary market research typically produces conclusive data that is a combination of qualitative and quantitative information.

Benefits of Conducting Primary Market Research

1) data ownership and quality.

If you conduct primary market research, the data collected belongs exclusively to you and it will be of top-notch quality. Although accessing secondary market research data may be difficult, conducting your primary research gives you and your company full control over the collected data.

2) Relevancy

Primary market research can quickly and accurately uncover the most relevant insights to inform your business decisions. Data from primary market research studies are collected in real-time and can be used to guide your business decisions.

3) Answers Specific Questions

If you have particular questions about your industry, customers, or market, primary market research can provide answers. This research allows you to ask tailored questions that focus on a specific group of people, which can lead to obtaining more pertinent information.

4) Targeted approach

Conducting primary market research can assist you in concentrating on a particular group or audience by narrowing your scope. Unlike secondary research, which collects data from large populations, primary research is more targeted and specific.

Primary Data Collection Disadvantages

The drawbacks of primary data collection include:

1) Implementation could have a high cost

Collecting primary data involves obtaining information directly, which may require specialized equipment and visiting specific sources of information .

2) The process is tedious

Collecting new data through surveys, questionnaires, and interviews is a time-consuming process. On the other hand, researchers can use existing sources to conclude secondary data , which requires less planning.

3) More people are involved in primary market research

When it comes to research, primary research involves more people than secondary research. These individuals perform different tasks such as designing the survey, conducting customer interviews, and analyzing the outcomes.

4) Observers are needed to make sure that research is well-implemented

Professionals who have had extensive experience dealing with people should be the ones to conduct interviews and observe the proceedings.

5) Responses may be unreliable

Customers may not always provide completely truthful answers in questionnaires and surveys, as they may want to seem knowledgeable or may not remember their actions accurately.

6) May cause misleading results

If the research process is not conducted properly, it can lead to biased research results. Factors that contribute to this may include misinterpreting results, analyzing data based on personal opinions, and inaccuracies.

Finding A Primary Market Research Vendor

Using primary research data is a great way to gain valuable insights into your customers’ needs. However, the process of researching and interviewing potential vendors can be lengthy and overwhelming.

To find the right vendor for your primary research process , it’s essential to be prepared and know which questions to ask. Here are some tips to help you get started.

• Determine Your Research Objectives
• Define Your Budget
• Research Vendors Thoroughly
• Ask About Their Experience And Credentials
• Evaluate Vendor Costing
• Assess The Quality Of Their Data And Reports
• Focus On Client Satisfaction
• Check References And Testimonials

Using an independent, third-party research firm is a highly effective method while conducting primary research. To ensure that you get the best vendor for your research needs, it’s important to carefully evaluate potential providers.

Key Primary Market Research Considerations

For beginners in primary market research, it is useful to have an idea of what to anticipate. The following is a brief list of some of those factors to take into account –

• Cost – It is recommended to allocate a budget for primary market research. The information obtained from the research will be exclusive to you and can be utilized for a considerable amount of time. Paying for valuable market insights is a wise investment.
• Time – Planning the execution of various primary research methods is a time-consuming task that requires careful consideration. However, you can save time on primary research by utilizing appropriate resources.
• Use of multiple methods – For effective results, it’s advisable to use more than one primary research method in marketing research . It’s best to strategize and use at least 2 or 3 different methods.

1) How to conduct primary research?

Conducting primary research involves identifying your research objectives , selecting your research methods (such as surveys, interviews, or observations), using valid and reliable sources, and finally analyzing and interpreting your data in a clear, understandable manner.

2) What are the characteristics of primary market research?

Primary market research is characterized by its direct approach, as information is gathered firsthand from potential or existing customers. It is tailored to specific research questions , making the data collected highly relevant and exclusive to the researcher.

3) What is primary and secondary research?

Primary research is used to collect data that is new and directly from the source, while secondary research collects and analyzes previously published data or secondary data . Primary research provides exclusive insights but can be time-consuming and expensive, whereas secondary research is usually quicker and less expensive, but not as specific to your needs.

4) What are primary research examples?

Examples of primary research include conducting surveys, performing interviews, or carrying out observations. These methods facilitate direct interaction with potential or existing customers, allowing researchers to collect specific, tailored data.

Liked this post? Check out the complete series on Market research

Related posts:

• How to collect primary data for Market research?
• Primary Research – Meaning, Process and Advantages
• What is Primary sales, Secondary sales and Tertiary sales and what factors determine them?
• What is Research Design? Type of Research Designs
• How to Write Research Proposal? Research Proposal Format
• 7 Key Differences between Research Method and Research Methodology
• Qualitative Research: Meaning, and Features of Qualitative Research
• Research Ethics – Importance and Principles of Ethics in Research
• 11 Types Of Quantitative Research options that exist for Market Researchers
• What are the Types of Market Research?

About Hitesh Bhasin

Hitesh Bhasin is the CEO of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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Primary Market Research: Definition, Advantages, and Disadvantages

Before developing a product or service, businesses know they need to conduct marketing research first. And when the industry wants to gain insight directly from their target audience, they go straight ahead with the primary research method of data collection.

What Is Primary Market Research?

Primary market research is the original form of research used to help gather new information about customers and manufacture products or services tailored to their wants and needs.

This type of research also plays an important role in identifying trends before they become popular, thus giving brands a competitive edge. In this post, we'll go through the following concepts:

• Definition of Primary Market Research ( and other terms used )
• Methods Used in Conducting Primary Market Research ( with examples )
• Advantages and Disadvantages of Primary Market Research
• Application of Primary Market Research to Your Business

Primary Market Research: An Overview

Primary market research ( also known as primary research, primary data, and field research ) has been around for centuries. People have been using it for acquiring data and discovering more about a certain industry and its general characteristics to better understand the needs and wants of a prospect.

But unlike secondary research analysis , primary research uses new data collected directly from the primary sources specifically customized to the current project.

Thus, we can see that primary research focuses more on qualitative observations where the research is exclusive and original.

Two Types of Primary Market Research

Primary research can be broken down into two categories: Exploratory research and Specific research . Let's take a closer look at each of these categories:

Exploratory Research

Primary research methods are often used for exploratory research (or initial market research ), where the researcher aims to identify themes and patterns in what they hear from respondents.

This involves the process of surveying or conducting extensive interviews in order to learn more about a new product or service idea and discover people's attitudes and behaviour towards certain topics.

Specific Research

Specific research aims to find out what your target audience thinks about a particular product or service. It is usually done by asking a more precise and detailed question through a structured and formal interview.

Specific research is also frequently used during new brand launches when marketers need to collect information that will help them improve their existing offerings.

For instance, you can run experiments or testing methods to obtain feedback from your prospects on how well the product fits their certain needs and requirements.

Primary Market Research Methods

There are many ways an organization can collect information from its potential and existing customers. The most common types of primary research methods include:

• In-depth interviews ( one-on-one or in small groups )
• Surveys ( online, telephone, or through the mail )

Questionnaires

• Focus groups

Observations

Let's take a look at each one of them and see more real-life examples.

One of the most popular primary research methods of gathering information, interviews are carried out by searching for customers in person, phone interviews, or online surveys where respondents are invited to share their opinions on the company's products or services.

This method enables businesses to easily personalize their message and engage more deeply with potential customers through one-on-one or small group interviews.

When businesses have a highly specialized product or service that they want to evaluate with individuals, they normally conduct surveys . As a result, marketers can gather primary data from a large number of people all at once.

It can be conducted through online, paper-based questionnaires, interviews, and focus groups.

Questionnaires are frequently distributed via email, in-person, or postal.

This method of primary data collection works well when marketers are trying to find out more about a particular target market segment that they already have some knowledge on ( and they might want to explore further ) or they want to ask a more specific set of questions.

They could ask open-ended questions which allow customers to express their thorough ideas or closed questions that are questions with limited answers .

Focus Groups

The less common method marketers use is where small groups meet and discuss a topic in an informal setting. Focus groups can also be likened to a group interview where one person leads the meeting, and a few people are allowed to express their thoughts and opinions openly.

By collecting information from a diverse range of people who have different backgrounds and experiences, marketers can get deep insight into why people feel the way they do about their products.

What sets this approach apart from other primary data collection techniques is that marketers don't actually ask questions themselves; they just observe what's going on around them.

Observations can be done by watching people while they use the product or service, speaking with them about their experiences, or conducting interviews to obtain more relevant data.

Advantages of Primary Research

No matter how valuable a piece of information may be, it's not going to make any difference if you don't know what you're doing with it or implement its findings successfully.

But when done effectively, primary research can have some significant benefits for everyone involved! Some of these include:

Up-to-date information with relevancy

As the world is constantly changing, so does the need for updated information. Primary research ensures timely and reliable data about your sector, allowing you to make informed decisions based on current marketing conditions.

Acquire detailed insight from prospects and customers

When you conduct a primary research study, you can customize the objective, methodology and choose the number of audiences you'd like to partake in your research.

In other words, you can now have complete control over the entire process of the research and how it will fit your company's needs.

Complete Data Ownership

As you directly collect data from your target audience, the company holds every right towards the data collected. It will help avoid any misunderstanding or ownership claim in the future.

Moreover, this will allow you to look back and compare pre-existing and fresh data from previous years to assess how your organization is doing.

Disadvantages of Primary Market Research

Primary market research is an effective way to gather feedback from a targeted group of consumers, but it also has disadvantages.

It's time-consuming and costly.

Instead of simply going to the library or searching for information online, primary research requires contacting prospects or customers and asking specific questions tailored to their needs. This can take a lot of time on your end.

And unlike secondary market research, primary research is often conducted at an expensive cost, making it difficult for small companies with tight budgets to conduct the necessary research.

Risky of survey bias

Don't assume that customer's feedback is always reliable. Some respondents may be biased towards their previous experiences from a particular business.

This could make it difficult for them to provide accurate responses, which can adversely affect your company's strategy or marketing tactics.

Should You Conduct Primary Marketing Research?

Primary market research is an essential component of any marketing campaign. It offers several benefits that show how businesses can yield more in-depth information about a specific topic or create products or services aimed directly at the target audience.

The primary research also provides valuable customer insights in determining the needs and wants of your target audience. As a result, you can use these as references and comparisons for your company's success over time.

But without an experienced and influential group of researchers, chances are, you cannot make the most out of primary research.

The good news is that our team at Appointment Setting UK has worked with incredible organizations that provide well-known market research services to produce a strategic methodology that is most suitable to your needs as well as your prospects.

At Appointment Setting UK , it is our goal to helping you reach your business goals by assisting you in collecting and analyzing data and making better brand decisions for the success of your business!

Contact our support today and get a free quote!

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