Page 3: Types of market research
Barclays began a process that involved both primary and secondary research.
Primary research involves finding out new information. It finds the answers to specific questions for a particular purpose. These enquiries may take the form of direct questioning. For example, it may include face-to-face surveys, postal or online questionnaires, telephone interviews or focus groups. This type of direct contact with people is valuable as it gives specific feedback to the questions asked.
However, it is important that the questions are clear and that the researcher is trained. This will ensure that the results are not influenced. Although primary research can be expensive and time-consuming, the up-to-date and relevant data collected can give organisations a competitive advantage. This is because their rivals will not have had access to it.
Barclays' primary research process began internally with two key questions:
- Who should our key customers be?
- What are their needs?
The insights from these questions provided a factual basis to work from.
Qualitative and quantitative research
After this an external agency was employed to carry out an opinion panel. This took the form of an online questionnaire. The results of this delivered data about the market itself, as well as Barclays' market share among this target audience.
Quantitative research presents information in a numeric way, such as graphs, tables or charts that can be used to analyse the information.
For example, Barclays found from the questionnaire that 81% of students surveyed held a savings account and 32% an investment savings account (ISA). The opinion panel also provided qualitative feedback on what was of interest to students and what they wanted from an account.
Qualitative research provides information on consumer perceptions, such as:
- how they feel about products and services
- what they like or do not like
- what they would want from a new product.
The panel produced valuable insights which Barclays used to help re-evaluate its existing student account. It then used the information to develop new features and benefits to meet the established needs.
The enhanced student account proposition was then tested directly with 100 existing and new Barclays Student Additions account holders. This was carried out through bank branches and an online questionnaire. The sample group provided more qualitative feedback about what motivated students to choose a particular bank.
Although small, the sample allowed Barclays to get a feeling for how students would respond to the proposition. For Barclays, it was important to know what motivated a student to choose a bank. Using existing students meant the bank was able to assess if the new offer would meet their needs. The expectation was that new and future students would also find it attractive.
Secondary research focuses on existing information. It uses published data that previous research has already discovered. This covers a wide range of materials, such as:
- market research reports
- sales figures
- competitor marketing literature
- government publications, e.g. national statistics.
Secondary research may be quicker to carry out but may give less specific outcomes for the topic in question. This part of Barclays research revealed that student accounts in 2009 amounted to 0.4 million out of a total market of 5.4 million new accounts.