2.2 Market Research

Why businesses do market research

Market research is the process of gathering, analyzing, and interpreting information about a market, customers, and competitors. Businesses use it to identify customer needs, test product ideas, and reduce risk before launching a product or making decisions. Good research helps target the right target market with the right offer.

Primary vs. secondary research

Primary research is data collected firsthand for a specific purpose — surveys, interviews, focus groups, and observation. Secondary research uses existing data already collected by others, like government reports, industry studies, or competitor websites. Primary research is more tailored but costs more time and money; secondary research is cheaper and faster but may be less specific.

Qualitative vs. quantitative data

Qualitative data describes opinions, feelings, and motivations (e.g., focus group comments) and is harder to measure numerically. Quantitative data is numerical and measurable (e.g., survey ratings, sales figures), allowing statistical analysis. Businesses often combine both types to get a full picture of consumer behavior and market trends.

Key terms

Market research

The process of gathering, analyzing, and interpreting information about a market, customers, and competitors.

Primary research

Firsthand data collected for a specific purpose, such as surveys, interviews, or focus groups.

Secondary research

Existing data collected by others, such as government reports or industry studies.

Qualitative data

Descriptive, non-numerical data about opinions, feelings, and motivations.

Quantitative data

Numerical, measurable data that can be statistically analyzed, like ratings or sales figures.

Try an AP-style question

Primary research is data that…

1. comes from government reports
2. a company collects firsthand
3. was gathered by someone else
4. is found in published articles