Page 157 - Cambridge IGCSE Business Studies

11: Market research

■ Internet – data and information about almost any topic are available on the
internet and can easily be found using search engines such as Google. Many
businesses have their own websites which may also be a useful source of
information. However, care must be taken to make sure that the data obtained is
valid and not out-of-date.
■ Government publications – most governments publish data and information
related to their own country, for example population statistics and the support
available for businesses. Increasingly this information is available from
official government websites such as the Kenyan government’s website

www.e-government.go.ke.
■ Newspaper and magazines – these report information about the local, national
and international economies. Most newspapers have a business section and many
magazines are specific to a particular industry, for example the Oil and Gas Journal.
■ Libraries – large towns and cities in many countries have public libraries giving free

access to printed materials and often internet access.
■ Market research agencies – these are companies whose business is the collection
and analysis of market data which they sell to other businesses, for example RNB
Research which has Pan-Asia coverage including China, India and the UAE.
■ Business records – businesses collect information about their customers,
which they might keep on a computer database. These records might include
TOP TIP
information such as the customer’s name, address, what they purchased and
Do not confuse primary and
secondary research with primary when they last made a purchase from the business. Past financial records might
and secondary sectors. also be a useful source of secondary information, for example for comparing
profit trends over the past few years of trading. 155

Benefits and limitations of primary and secondary research

Table 11.1 considers the benefits and limitations of primary and secondary
research.

Benefits Limitations

Primary research Data is up-to-date. It is costly to collect.
Data is collected for a specific purpose which It is time-consuming.
is directly relevant to the business.

It is not available to other businesses. There is a risk of the data being inaccurate or
This may provide a competitive advantage. containing bias, for example if the interviewer asks
a question that leads the interviewee to give an
answer which they might not have intended. Also, if
the sample chosen to be surveyed does not represent
the whole population then the results will not reflect
everyone’s opinion.
Secondary research It is fairly cheap to obtain. It may have been collected some time ago, so is not
up-to-date.
It is easier and quicker to obtain than primary It has not been collected for the specific purpose
research data. required by the business so may not be as reliable or
as useful as primary data.
Table 11.1 Benefits and limitations of primary and secondary research