5.2 - Pros and Cons of Research Methods

It is often the case that data obtained from market research can be inaccurate, misleading and flawed. When this occurs, the business will receive incorrect information and might develop a business plan that isn't suited to the needs of the customer.

• When mistakes are made, it leads to the making of wrong decisions
• The research data is sometimes incomprehensive and doesn't reflect the target group
• The choice of market research  can be completely wrong
• Valuable data can be lost because of poor feedback from respondents
• As markets change quickly, research data may easily become obsolete and irrelevant 

From technique to technique, unique benefits and limitations apply. A business needs to identify the best method for a specific market research, after careful consideration of its advantages and setbacks. 

Activity 17 - Can you think of any primary market research organisations? Several are often mentioned during election times.

Electronic Surveys

These are a relatively cheap and time saving method of collecting market data. Customers and website users participate in surveys and leave their feedback. It's becoming increasingly popular because of its speed. Yougov is an example of an electronic primary market research organisation. 

The major drawback of this method is the lack of control that the business has over selecting the respondents. In other words, the respondents choose themselves online and can provide false or misleading information. 

Focus Groups

Focus groups are not very expensive an they are quick to conduct. Individuals who represent a large market are interviewed and provide valuable information to the business. However, it requires a good moderator to ensure the discussion stays on the right track. 

Observation

This method of market research is very action orientated. Whereas a lot of market research pays attention to what people say when they are consciously interviewed, observation studies the behaviour of people without them knowing it; hence the responses are very reliable. 

Surveys

Surveys are done via telephone, post and face to face.

• Telephone surveys - these have a relatively good rate of response although it can have restrictive questions
• Postal survey - there is no bias from interviewer, it has wide coverage and has no pressure element. It is also cost-effective. However, the percentage response rate is low and slow.