O'Level  &

Primary Market Research is collecting original data which may require direct contact with customers. Primary Market Research allows the collection of in-depth information on customer opinions, consumer spending habits, as well as details about the product, helping in understanding the demand of a product in a market and improving decision making to reduce risk of business failure. It also ensures that the information provided is up-to-date, accurate and specific, allowing start-ups to identify exactly what their potential customers want and making sure the products or services with little-to-no demand are not provided, ensuring effective decision making and business success. Because the research is unique to the business, it can pinpoint gaps in the market that competitors might have missed, giving her an advantage over other businesses in the market which can lead to higher customer satisfaction and brand loyalty as well as higher profit in the long-run.

Secondary Market Research is taking information that has already been collected. Primary Research can expensive for a start-up as well as time consuming and biased. Since start-ups have limited capital and sources of finance available, spending a large portion of Beena's working capital on research might reduce her essential funds to run the shop. Secondary Research is often less expensive or even free which allows start-ups to preserve their capital and invest it in the business instead. Secondary Research can also be conducted quickly and easily, allowing for faster decision making and a more flexible adaptation to market and consumer demands, increasing sales and customer satisfaction.

While primary research provides more accurate and specific data, it is not always better for start-ups with limited funds available when making decisions. A start-up could begin with secondary research to understand the market and consumer demands and later on add low-cost primary research to further refine their research if needed. This allows the business to adapt to customer demand whilst saving on costs and investing that money to improve efficiency and maintaining customer loyalty and satisfaction in the long term.