Compare and contrast the importance of using primary and secondary Essay

Compare and contrast the importance of using primary and secondary methods when conducting market research. Are secondary methods more advantageous when analysing results for a new product - Essay Example Significantly, each business venture at least has an organization it looks up to in terms of strategies; it also has a vision that acts as a guiding principle. Entrepreneurs conduct market research so that they can reduce the risks associated with their business, indentify more opportunities and predict current and potentially future problems. Such information will aid in making decision on whether to execute the new product or shelve for another time. The research also enables individuals to establish benchmarks that will assist the business not to collapse when they encounter uncertainties along the way. Methods of data collection when carrying out market research influence the end result. While both primary and secondary methods hugely contribute to informed data, one overrides the other one. This paper will focus on establishing the comparison and contrast of primary and secondary methods of market research. It will also determine whether secondary methods are more advantageous when analysis the market situation of a new product. Primary research methods refer to the original research carried out by the owner of the business or by a contracted company (Sumathi & Saravanavel, 2003, p. 154). The main aim of this research is to answer a specific objective. Before going into the field, a set of objectives and research questions are outlined. In addition, a clear hypothesis may be set so that at least the data obtained will measure it. With primary method, information compilation is done from scratch since it bases on what the respondents give. Despite the fact that the information provided by the respondents play a critical role, the researcher must have a set of expectation. In essence, the desired goal and the vision of the business inform the whole idea of market research. Primary research could lead to quantitative or qualitative data. This depends on the format