U.S. Geological Survey
To obtain the information about a market, primary market research is performed. Primary market research involves information collection techniques such as questionnaires, telephone interviews, and focus groups. Since primary research can be expensive, secondary research may be conducted as a starting point. Secondary research is market research that already exists and was conducted by someone else. Though this research was conducted for different objectives, some of the information available as secondary research can be helpful as a foundation for primary research. Some examples of secondary research include prior market surveys, information available through Federal Advisory Committee Act (FACA) groups, and census information.
Primary research methods are divided into two categories: qualitative and quantitative. Qualitative research methods, such as focus groups, are generally used to gain insights and obtain a frame of reference from smaller groups of consumers within a given market segment in order to prepare for and complement quantitative research. This type of research can often give us general information about how our customers are thinking and feeling about a product or service. Qualitative research does not statistically represent a target market so its results are not considered statistically valid. However, qualitative research can be useful:
Quantitative research methods are used to obtain data from a representative random sample of a target market universe. Usually questionnaires and formalized surveying methods are used to obtain this information. The samples are large enough to make inferences that are statistically valid. Quantitative research can be useful: