Sources Of Research In Establishing A Business

Dwayne

Businesses attempt research to reveal information about consumer tastes, the level of rivalry in the market, reactions to advertisement etc.

Sources of Information

Data may be collected from primary or secondary sources.

(a)Primary Data

Primary data is formerly collected data. This data will be attained by interviewing, observing and or distributing questionnaires to the sample or model population.

Primary data or field research is research that gathers first hand or new data using various methods or techniques. These methods or techniques include:

  • Questionnaires. The questionnaire is the most regular survey technique. It may be written or orally given. It is usually done face to face, by phone, post or email.
  • Observation. The process of looking at people’s reactions while doing a task for example shopping and noting it. This gives information about the market.
  • Interviews. These may be formal or informal. They may be done on a personal or a collective manner.
  • Test marketing. A possible original product is marketed on a small degree to measure people’s response to it, before allowing the business to produce more and launching the product.
  • Consumer panels. A group comprising of a small number of consumers is created. They get the product and give feedback about it.

Sampling in primary or field research

Note primary research is to supply significant information, hence it must use a representative sample, and that is, consumers making up the sample must symbolize the market all together. The investigator must also consider how the respondent will be selected and the size of the sample.

Sampling methods

(a) Random – In this case everyone in the population has an identical chance being chosen, note; no particular criteria for choosing are used.

(b) Stratified – A smaller group of the population is chosen, for instance using age, sex, occupation, nationality, income level etc. Only those in this group will be in the sample.

(c) Where a quota is put in place. Data is gathered until the aim or target allocation is met.

 

 

 

(b) Secondary Data

Secondary data is information that has already been gathered by someone else at first. This data will be as a result obtained from newspapers, books, magazines and publications of various establishments.

 

Desk or secondary research

This type of research uses accessible information, such as information in the firm’s own records. This may include:

  • official publications
  • statistical and newspaper reports
  • government publications
  • university journals
  • Textbooks
  • sales records
  • trade association studies
  • Websites etc…

The main benefit of this type of research is that the information is easily on hand and can be stored for later. However in looking at the disadvantages one can note that it can be out of date and the research is more time wasting than the primary type of research.

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