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Home >> Capital Market >> Primary >> Research

Primary Market Research

Updated product and company information can be best received by undertaking primary market research. The techniques of primary market research are instrumental in making available required information. Primary market research can be done on an individual basis, or the services of a research agency can be availed of. Primary market research can be quite a time consuming affair. The marketing decisions of a company are heavily dependent on primary market research. The attitude and behavior of customers with respect the present and potential products of a company can be assessed by undertaking primary market research.

The types of primary market research are as follows:

  • Surveys
  • Observation
  • Focus Groups



    The reason for which the research would be undertaken should be ascertained in the beginning in order to avoid confusions later. The techniques mentioned above produce different results. The required informations about customers and the extent to which the information would be used to align the products with the targeted clients should be well chalked out.

    Primary market research should be conducted only when the sources of secondary market research have been exhausted because it can be both expensive and time consuming. The incentives for the research participants include sweepstakes entries, gifts and cash among others.

    Observation involves observation of product shopping and usage by customers and interacting with the company's customer service organization. Structured observation involves carrying out research in a controlled environment. The participants involved in the research project are informed about their being a part of the project. In the blind observation, the customers are watched without their knowing about it.

    Surveys are another technique of primary market research. Here, a number of predetermined questions are asked to customers individually. The attitudes and reactions of customers to the products and services of the concerned company can be known from this. The types of surveys are as follows:
    • Mailed questions
    • Questions distributed at shops or other places
    • Online or E-mailed questions
    • Interviews over the telephone
    • In-person interviews
    By focus groups are meant the meetings that are structured with potential and existing customers of a company where a collective response to questions asked to them is sought. Such focus groups normally are held for one to three hours and involve five to twenty people. The extent to which a new product will go down with the customers can be measured by conducting focus groups.

    Primary market research must be carried out with a lot of prudence. Time should be dedicated to planning for such researches. The priorities and need for carrying out such researches should always be clearly prioritized and chalked out.

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