B1 Primary Sources
Unit 7: Business Decision Making
Primary research refers to first hand data collected for a specific purpose. This gives much more specific data of which the reliability and validity can be checked and can be kept confidential from competitors. However it can be expensive and time consuming to collect.
Questionnaires are sets of written questions with optional answers completed by the respondent checking a box. Good questionnaires are easy to complete which increases the response rate and allows for easy quantifiable analysis. Questionnaires were traditionally printed and handed out or mailed in the post but are increasingly being sent out electronically due to developments in software such as Surveymonkey and Google Forms. Benefits include the ease of analysing results, ability to gather feedback from large numbers of respondents and fast results. However there is no guarantee that respondents are honest, it is hard to get feedback on feelings and there is no development in answers.
Interviews are face to face discussions in this case between marketers and consumers. Consumers may be invited to a meeting to discuss their opinions on product developments or new product ideas. Benefits include being able to ask follow up questions to establish reasons behind responses and being able to read non-verbal cues. However interviews can be costly and time consuming due to the time spent with each respondent and analysis of findings can be difficult to analyse due to not being standardised.
Focus Groups are groups of people who are brought together to discuss potential marketing strategies before they are launched such as new products or promotional campaigns. The conversations are observed by marketers and opinions and feelings towards an idea can be observed through informal conversation. Benefits include being able to observe body language and more in depth responses that may result from informal conversation with peers. However some people in the group may dominate and the real opinions of other members may be masked and there can be inaccuracies when interpreting body language.
Observation is when trained marketers watch how consumers behave naturally. This may include the routes they naturally take around a store, where their eyes are drawn to on the shelves and how they respond to store displays. This may happen with or without the consumer being aware. There are improvements to technology allowing trained observers to see exactly where a customer looks using specially designed glasses. Benefits include the removal of bias that can occur with other methods and it can uncover behaviors that consumers may not be aware of themselves. However observer bias could affect the results and they are making a subjective interpretation of behaviors and consumers may unconsciously adapt their behavior if they know they are being observed.
E-marketing in terms of research in gathering information from online sources to find out about customer wants and needs, spending patterns and data on engagement with a brand. Data could be gathered through online questionnaires, interviews or focus groups or statistics available online. Examples of online data could include popular search terms, social media, competitors websites or statistics on industry trends.
Pilot research involves gathering feedback on a prototype before completing the development stage and launching the product. This may involve gathering a group of potential customers together to test the product and give feedback.
Benefits and Limitations of Primary Research
Benefits
A firm can control who has access to findings.
The collection of data is targeted for its intended purpose.
Limitations
Can be expensive.
Can be time-consuming.
Need for specialist skills to design research.