4.1: Primary and secondary research
As briefly mentioned in module 1, there are two main types of market research, primary and secondary research.
Primary research is conducted when new data is gathered for a particular product or hypothesis. This is where information does not exist already or is not accessible, and therefore needs to be specifically collected from consumers or businesses. Surveys, focus groups, research panels and research communities can all be used when conducting primary market research. The two most common primary market research tools, surveys and focus groups, will be covered more in depth in chapters 5 and 6.
Secondary research is also called ‘desk research’ as it can be done by reviewing existing sources typically through online databases and sources. Secondary research uses existing, published data as a source of information. It can be more cost-effective than conducting primary research.
Existing research can be used to establish the context and parameters for primary research, which can help give insights to the research project in its early stages. Secondary research can be useful for identifying problems to be investigated through primary research. Research based on secondary data usually precedes primary research.
Secondary research can:
- provide enough information to solve the problem at hand, thereby negating the need for further research.
- provide sources for hypotheses that can be explored through primary research.
- provide information to inform primary research, such as sample sizes and audience.
- be used as a reference base to measure the accuracy of primary research.
This video from the University of British Columbia demonstrates some commonly used sources for secondary market research.
A number of market research companies exist in Canada who conduct research using a variety of tactics and then sell this data to interested parties. This is why secondary research is often less expensive, as these companies have experts whose job is to collect data, analyze and publish the results instead of embarking on your own journey of conducting your own primary research. Secondary research could have originally been collected for solving problems other than the one at hand, so they may not be sufficiently specific to your research problem.
It is imperative to carefully go through the secondary research to ensure that the methodology is sound and the source is trusted. Sometimes studies are commissioned to produce the result a client wants to hear—or wants the public to hear. Web research can also pose certain hazards. There are many biased sites that try to fool people that they are providing good data. Often the data is favourable to the products they are trying to sell. Beware of product reviews as well, as unscrupulous sellers sometimes get online and create bogus ratings for products.
The following inquiries can be used to evaluate the calibre and reliability of secondary research:
- Who collected the data?
- Why was the data collected?
- What was the motivation of the individual or group collecting the data?
- Was the data collected and reported methodically?
- Is the data’s source regarded as an authority in the field by other experts?
- Does the article offer unbiased proof to back up the claims made?
Ensure that a thorough review of any secondary research is done every time it is being considered to be used as part of a market research project!
The most popular source of secondary research in Canada is Statistics Canada. While exploring the more than 30 subjects of data from Statistics Canada can be overwhelming, it has rich data on Canadians over time. The basis for many Statistics Canada studies is the census, which is a survey in which every member of the population is ideally surveyed, rather than just a sample or portion of it. Currently, Statistics Canada conducts a census every four years, and the data gathered serves as the basis for many of the studies that are used in daily Canadian life. You can access all of Statistics Canada’s data for free, in both English and French, at statcan.gc.ca.
Market Research in Action
Alex owns a small chain of coffee shops, Java Life, in the Montreal, Quebec area. They are interested in ensuring that food produced locally features promimently in the coffee shop menu offerings. Alex is interested in access some data around diet and nutrition and food prices, but is unsure where to start. Alex’s friend works for a marketing company, and suggest that Alex review the Statistics Canada Food Price Data Hub. The information is free to access and includes updated information on the monthly Canadian average retail price of selected food items, food supply chain prices, and the Consumer Price Index (CPI) for food purchased from stores. With this information, Alex can get a better sense of the cost of food and how inflation may be affecting overall supply chain so they can make data-driven decisions about food for their Java Life shops.
Here is a short video from Statistics Canada about why census data is valuable secondary research.
Businesses that have digital properties on the internet have access to a wealth of digitally recorded web analytics data that can be mined for insights. Customer communications, particularly those with the customer service department, are another source of data that can be used. Loyal customers who provide feedback, criticism, or compliments are providing information that can serve as the basis for customer satisfaction research. Social networks, blogs, and other forms of social media have emerged as forums where customers discuss their preferences.
References
Author removed at request of original publisher. (2022). Principles of Marketing – H5P Edition. BC Campus Open Education.CC BY-NC-SA 4.0
Albrecht, M. G., Green, M., & Hoffman, L. (2023). Principles of Marketing. OpenStax. CC BY-NC-SA 4.0
Statistics Canada (2023, November 23). Here’s Why You Should Use Census Data [Video]. YouTube. https://www.youtube.com/watch?v=rhttC8OZl0I
