`Reasons market research is used:

To identify and understand customer needs - Businesses must understand consumer needs and preferences in order to understand what to produce and how to set factors such as price.
To identify gaps in the market - Market research helps businesses identify gaps in the market and unmet consumer needs. Businesses can focus on fulfilling these needs by producing certain products.
To reduce risk — Market research can reduce risks when launching new products or entering new markets, as businesses can test ideas and make more informed decisions.
To inform business decisions - Market research can provide data including trends and consumer behavior that can help businesses make more informed decisions and ensure success.

Primary Research

Definition: Primary Research is the process of collecting first-hand data directly from sources for a specific purpose.

Primary methods:

Survey - Collecting data by asking a set of questions to a group of people, this may be in person or online.
Questionnaire - A written set of questions which aim to gather relevant information from respondents.
Focus group - A small group of people, who are representative of the target market, brought together to discuss a product or service.
Observation - A way to gather data by watching people and events or noting physical characteristics in their natural setting.
Test marketing - A small-scale trial of a product or service to assess customer reactions before fully launching the product or service.

Secondary Research

Definition: Secondary Research is the collection of existing data that has already been gathered and published by others.

Secondary methods:

Internet - Collecting data by using existing websites and other digital sources.
Market reports - Documents that analyze market trends, competitor performance and customer behaviour. They are often produced by research companies.
Government reports - Official data and statistics published by government bodies, such as population demographics, economic indicators, and industry performance.

Qualitative and Quantitative Data

Qualitative Data

Definition: Non-numerical data that gives insight into reasons and opinions.

Quantitative Data

Definition: Numerical data that can be measured and analyzed statistically.

The Role of Social Media in Collecting Market Research Data

Social media can be used when collecting data as businesses may access many consumers.
Gathering data through social media can be cost-effective as it is often free.
Through social media, businesses are able to identify trends and consumer preferences.

The Importance of The Reliability of Market Research Data

Reliable market research data is important for several reasons, these include:

Without reliable market research, businesses risk not having enough information to make informed decisions, which may compromise their success.