Types of market and customer research
Clarke Ricks
School of Business, Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
April 6, 2021
Types of market and customer research
Market and customer research methods you can use for your own business fall into 2
main categories.
Primary research is focused on your business, gathering information from your own
customers or potential customers (e.g. surveying or interviewing them).
Secondary research is about finding and analysing other existing information sources
(e.g. looking at industry reports and online research results).
The type of information gathered is also categorised into 2 types of research.
Quantitative research involves gathering data that can be measured, such as
number of sales or visitors to an expo. It is about understanding the 'what' (e.g. how many,
how often, how much, what colour, price or preference).
Qualitative research helps you understand the 'why' (e.g. why do the customers feel
a certain way about you, your products, prices or competitors?). For example, your
qualitative research could be using focus groups to answer questions and give feedback
about your products and services, or when you visit a competitor to see how they do
business.
Common customer research methods and activities
You should use various research methods to get accurate and reliable data. The
following is a list of methods and activities you could try, the research type and the benefits.
Primary research
Consider using the following primary research methods to understand your customers
and your business's place in the market
Analysing and reaching conclusions
As you conduct your primary and secondary research, you should prepare a document
or spreadsheet to capture your data. This document can keep all findings in 1 place and
allow you to see data correlations.
Your research on the objectives should be used as part of your business plan.
Research and analysis example
This is an example of using both primary and secondary research.
You have secondary research in a local government area profile report that identifies
the number of new houses and increasing numbers of parents with children.
Your primary research survey (undertaken at a local shopping centre) finds that this
demographic group of new parents cannot get the children's play facilities they need and
want in the new housing area.
You see this correlation in your spreadsheet and conclude there may be a market
opportunity for your children's play centre business in this area.
You then do more research around the location, competition and household incomes to
identify the best types of play centre activities for these customers.
You prepare interview questions and invite parents to focus groups where you ask:
about the specific type of play centre activities their children would prefer (e.g.
painting and craft workshops, indoor rock climbing, Lego club)
how often they would use the service
how much they would be willing to pay.
Research resources for business
Visit the following resources and learn about how they might be useful for your
research.
Australian Bureau of Statistics—access results of ABS surveys sent to every
household across Australia that record incomes, ages, cultural backgrounds and household
types in your current or proposed business location.
State Library of Queensland—State Library research services helps you access
databases on specific industry information.
Chamber of Commerce and Industry Queensland—access free resources and find a
local chamber of commerce to help with understanding the business potential of certain
areas.
Reserve Bank of Australia—access useful economic and financial statistics.
Melbourne Institute—get data on various social indicators.
Parliamentary Library—read the latest budget reports, forecasts, and reviews.
Queensland Government Statistician's Office—review social and economic data to
understand your market.
Online Population Resource (geografia.com.au)—get data on demographic, cultural
and socioeconomic characteristics of people living across Queensland.
Competitor profile chart—evaluate your competitors against key factors to find gaps
in the market.
Customer profile chart—create customer profiles to help segment your market and
better understand your target market.
Industry-specific research resources
Clean technology and science
oAustralian Cleantech
oQueensland Science Capability Directory
oCSIRO Data61
Australian Industry Group
Creative industries
AgriFutures Australia
Industry associations
Most industries in Australia are represented by industry associations, which are
typically not-for-profit organisations that provide member services and lobby on their
behalf.
Industry associations can help with your research by:
giving you information about your industry (e.g. how changes to legislation will affect
your business)
providing information and programs to help you meet industry standards
delivering training and education programs
managing mentoring programs.
They may offer some information and services for free, but it's possible you will need to
become a member and pay a fee to access their full range of information, resources and
services.
Search online to find industry associations relevant to your business.
Learn more about industry associations from the Australian Competition and Consumer
Commission.
