Primary market research is known as field research, and this is because it involves gathering data through new research. In addition, this data can be collected in either a quantitative or qualitative format.
While secondary market research is known as desk research, and this research draws on material that has been collected by another organization to provide market information. In addition, this research provides a fact based overview of the market.
From the case, we know the purpose of marketing research is to provide a business with a comprehensive view of consumers in order to develop products and services that satisfy their needs better than the competition. From the JD company, the company uses market research to assess more accurately the level of demand for its products. In addition, with the consumer feedback, JD can obtain the dialogue with the consumer to gain insight into what they think about its range of products, brands and services. Hence, the market research can give the company a comprehensive view of consumers needs.
In addition, JD employed the check-out survey, and it is a simple but highly effective survey that is carried out with customers at the till.
According to the JD case, we know, JD employed the check-out survey, in order to build up the detailed consumer profiles. In addition, JD also asks a further question: has the item been purchased for yourself or for another person? This helps JD to understand the difference between customers and the consumers.
This survey is carried out annually over a two-week period and involves over 350000 customers for JD. This provides a robust sample from which to extract invaluable insights into consumer buying behavior. From the depth analysis of survey results helps the company: understand how far customers travel to stores; build consumer profiles by gender, age, brand and lifestyle; identify and quantify new store location opportunities; influence product ranges to meet the buying habits of customers in different locations; assist with marketing strategies to target the consumer more effectively. Hence, only the company carries out the survey annually, then it can helps the company update the information about consumers, competitors, and market.
Decisions need to be informed and market research helps to support this process, significantly reducing the level of financial risk attached with investment decisions.
Firstly, market research involves the capture and analysis of consumer, competitor and market trend data. And it also influences decisions to target capital investment on projects that will offer the best return on that investment, such as opening a new store or entering a new market.
Secondly, market research provides consumer feedback. This enables the business develop a clear and informed strategic business plan which all business colleagues can work towards fulfilling.
Thirdly, market research can also provide information about the size and performance of markets. I t can inform a business about who the key competitors are, what they are doing, and their market share.
Hence, if undertake the market research…