- Market research involves gathering, recording and analysing information about a market.
The information gathered during market research could include:
- How much the consumer would be willing to pay for the new product or service.
- What they like or what they do not like about the new product or service.
- What products or services they consumer currently uses.
The information that is gathered during market research helps a business to improve its product or service to meet consumer needs and wants. This means that the product or service has a good chance of selling well.
There are 2 types of market research:
- Desk research.
- Field research.
Desk research, also know as secondary research, involves looking at information that is already available from other sources, such as the internet, libraries or government agencies. For example the census could provide information that would be useful in understanding the market of the product or service.
Field research, also known as primary research, involves going into the market and collecting new information, using methods such as interviews and surveys. The advantage of field research over desk research is that it allows a business to gather information that is more specific and up to date to a new product or service and its target market.