The purpose and methods of market research: internet research

The idea

Internet research is a secondary market research method that uses online sources to gather existing data. A business can search competitor websites, read industry reports, use government statistics, or analyse social media and review sites. For example, a start-up planning a delivery service might check local council population data, competitor pricing pages and customer reviews to estimate demand and set prices. Internet research is often quick, low-cost and provides a wide range of data, but its quality varies, it may be out of date, and competitors' information can be biased or incomplete. It is assessed through your ability to explain how online sources are used, apply them to a business context, and evaluate their reliability and usefulness.

What earns the marks

• Defines internet research as secondary market research using online sources to collect existing data.
• Identifies common online sources, such as competitor websites, industry reports, government statistics, social media and review sites.
• Explains how a business uses internet research to learn about customers, competitors, market trends or prices.
• Applies internet research to a business context, showing what specific data would be collected and why it is useful.
• Evaluates strengths, including speed, low cost, wide reach and access to large amounts of data.
• Evaluates limitations, including variable quality, possible bias, outdated information and difficulty verifying accuracy.

Common mistakes and how to put them right

• Treating all internet research as primary research.

  Put it right: Internet research is usually secondary because it uses data that already exists, even if the business collects it online.

• Assuming online data is always reliable.

  Put it right: Sources may be biased, out of date or inaccurate, so businesses should cross-check information from several sources.

• Confusing internet research with a survey conducted online.

  Put it right: An online survey is primary research because the business collects new data directly from respondents, whereas internet research uses existing data.

• Ignoring the cost of paid reports or subscriptions.

  Put it right: Some internet research is free, but industry reports and databases may require payment, so it is not always cost-free.

Exam tips

• When applying internet research, name specific sources such as competitor websites or government statistics and explain what the business would learn from them.
• For evaluation, consider reliability and relevance as well as speed and cost; a quick source is not useful if the data is outdated or biased.
• Use accurate terminology, such as secondary research, existing data, reliability and bias, to show understanding.
• If comparing with primary research, explain why internet research might be chosen, for example when time or budget is limited.