Market research: primary and secondary research, quantitative and qualitative data, methods of collecting data, the use of market research, and sample size and reliability.

A 3-mark AO1 question. Primary research (field research) is collecting new, first-hand data directly for the business's own purpose, for example through surveys, interviews, observation or focus groups. Secondary research (desk research) is using data that already exists, collected by someone else for another purpose, such as government statistics, market reports, competitor websites or internal sales records. One mark for defining primary as new first-hand data, one for defining secondary as existing data, and one for the key contrast (collected new for this purpose versus already existing). A common error is to confuse the two or to think secondary research means second-rate; it simply means data that already exists.

A 6-mark Evaluate question needing both sides and a judgement applied to the start-up. Primary research: it gives data specific to the start-up's exact product and target customers, which is more relevant and up to date, but it is expensive and time-consuming to collect, a problem on a limited budget, and a small sample can be unreliable. Secondary research: it is cheap and quick (much is free, such as government data and competitor sites), good for understanding the market size and trends, but it is not specific to the start-up's product, may be out of date, and was gathered for someone else's purpose. Judgement: on a limited budget the start-up should begin with cheap secondary research to size the market and spot trends, then do a small, focused amount of primary research to test its specific product idea with target customers; relying on only one is weaker than combining them. Markers reward two-sided analysis of both types against the budget and a supported, practical conclusion.