Introduction A successful company considers the customer in every business decision it makes (Baron & Shane, 2012). This requires the company to get to know the customer in intimate ways. The company must understand all there is to know about the customer. This includes having comprehensive knowledge about the customer’s wants, needs, values, habits, attitudes, cultures, and traditions (Kotler & Keller, 2012). Unfortunately, most of this information is not readily available and can vary from one market to another. Therefore, a company must perform extensive market research to discover and unmask the intimate details. This includes learning about overall market conditions, customer attitudes, and product and/or service sustainability. Market research is the “systematic collection and interpretation of data to support future marketing decisions” (Katz & Green, 2014, p. 382). Most companies collect and analyze data in one of three ways (Baron & Shane, 2008). First, a company can hire an outside research firm to collect and analyze the data and then report the findings back to the company (Boone & Kurtz, 2014). Second, a company can rely on secondary sources, such as census reports, population studies, and other governmental reports, to provide the necessary market information (Boone & Kurtz, 2014). Lastly, companies can do their own research to discover the necessary information to make successful business and marketing decisions (Boone & Kurtz, 2014). This type of research is primary research and most likely provides the most accurate depiction of the market and the customer as it relates specifically to the company doing the primary research (Kotler & Keller, 2012). This essay will provide more information about primary research and compare three methods of primary research, while highlighting the benefits and/or shortcomings of each. Primary Research Primary research involves collecting data that is not readily available from other sources (Boone & Kurtz, 2014).
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Companies use primary research to discover the answer to very specific marketing questions (Katz & Green, 2014). Primary research relates directly to the company performing the research and seeks to gain a customer’s perspective on the company’s product and/or service offering, pricing, and/or positioning (Baron & Shane, 2008). Most primary research methods are qualitative or subjective rather than objective (Katz & Green, 2014). This means, the results of primary research are not numerical or statistical. Instead, the results of primary research data require personal interpretation. According to Baron and Shane, when a situation requires personal interpretation, there is always the possibility of confirmation bias, which is “a powerful tendency to notice and collect information that confirms our beliefs and preferences” (2008, p. 456). Therefore, personal interpretation may distort or slant the research findings in the company’s desired direction, when in fact the true results indicate otherwise. There are several primary research tools available for collecting information. Each research tool is unique and has the ability to provide a company with valuable information about the consumer and his/her purchasing needs, wants, and habits. This is particularly true when the company pays attention to ensuring there is no confirmation bias is occurring. Additionally, because a company collects primary research data internally, it is the most up-to-date, relevant, and reliable information available on the study subject (Katz & Green, 2014). Although there are many methods of collecting primary research data, Boone and Kurtz (2012) identify three main methodologies; observation, surveys, and controlled experiments. Observation Method The observational method of primary research comes in many forms. Observation can be as simple as standing on a street corner and counting cars, watching people in their natural setting, or as detailed as interacting with people in the actual market (Katz & Green, 2014). Baron & Shane (2008) describe A.G. Lafley, the …show more content…
The process occurs just as it does in science. Researchers from a hypothesis design an experiment or set of experiments with a control group and a test group, and then record and interpret the outcomes. According to Boone & Kurtz (2014), test marketing is the most common form of a controlled experiment. However, test marketing is very expensive, compromises a company’s intellectual property, and some products are unsuitable for test market capabilities (Boone & Kurtz, 2014). As a result, some companies simulate test marketing through computer simulation, test products in small geographic locales, and/or limit product introduction to just one store (Boone & Kurtz,
Companies use primary research to discover the answer to very specific marketing questions (Katz & Green, 2014). Primary research relates directly to the company performing the research and seeks to gain a customer’s perspective on the company’s product and/or service offering, pricing, and/or positioning (Baron & Shane, 2008). Most primary research methods are qualitative or subjective rather than objective (Katz & Green, 2014). This means, the results of primary research are not numerical or statistical. Instead, the results of primary research data require personal interpretation. According to Baron and Shane, when a situation requires personal interpretation, there is always the possibility of confirmation bias, which is “a powerful tendency to notice and collect information that confirms our beliefs and preferences” (2008, p. 456). Therefore, personal interpretation may distort or slant the research findings in the company’s desired direction, when in fact the true results indicate otherwise. There are several primary research tools available for collecting information. Each research tool is unique and has the ability to provide a company with valuable information about the consumer and his/her purchasing needs, wants, and habits. This is particularly true when the company pays attention to ensuring there is no confirmation bias is occurring. Additionally, because a company collects primary research data internally, it is the most up-to-date, relevant, and reliable information available on the study subject (Katz & Green, 2014). Although there are many methods of collecting primary research data, Boone and Kurtz (2012) identify three main methodologies; observation, surveys, and controlled experiments. Observation Method The observational method of primary research comes in many forms. Observation can be as simple as standing on a street corner and counting cars, watching people in their natural setting, or as detailed as interacting with people in the actual market (Katz & Green, 2014). Baron & Shane (2008) describe A.G. Lafley, the …show more content…
The process occurs just as it does in science. Researchers from a hypothesis design an experiment or set of experiments with a control group and a test group, and then record and interpret the outcomes. According to Boone & Kurtz (2014), test marketing is the most common form of a controlled experiment. However, test marketing is very expensive, compromises a company’s intellectual property, and some products are unsuitable for test market capabilities (Boone & Kurtz, 2014). As a result, some companies simulate test marketing through computer simulation, test products in small geographic locales, and/or limit product introduction to just one store (Boone & Kurtz,