Why might firms choose to undertake both primary and secondary market research before entering a new market?
I kinda feel like I am doing your homework for you! 😉 Secondary research is usually the first step in a marketing assessment. It involves reviewing and understanding the results from previously completed studies on the market. An example might be reviewing the information available on the Internet on the number of school-age children in Chicago for a market assessment for a new after-school program. Primary market research is often more expensive and more involved than the secondary market research. It involves developing SPECIFIC marketing initiatives to address the potential market for your precise offering. An example might be commissioning a phone survey of 1,000 parents in Chicago as to whether they might pay for an after-school program that costs $100 per week. So you do the secondary research – if it still looks like a valid market opportunity, then you complete the primary research and assess it again.
