Market research is the process of determining the viability of a new service or product through research conducted directly with potential customers. Market research allows a company to discover the target market and get opinions and other feedback from consumers about their interest in the product or service.

Companies use market research to test the viability of a new product or service by communicating directly with a potential customer. With market research, companies can figure out their target market and get opinions and feedback from consumers in real time. This type of research can be conducted in house, by the company itself, or by an outside company that specializes in market research. The research includes surveys, product testing, and focus groups.

Market research consists of a combination of primary information, or what has been gathered by the company or by a person hired by the company, and secondary information, or what has been gathered by an outside source. Primary information is the data that the company has collected directly or that has been collected by a person or business hired to conduct the research. This type of information generally falls into two categories: exploratory and specific research. Exploratory research is a less structured option and functions via more open-ended questions, and it results in questions or issues being presented that the company may need to address. Specific research finds answers to previously identified issues that are often brought to attention through exploratory research. Secondary information is data that an outside entity has already gathered. This can include population information from government census data, trade association reports, or presented research from another business operating within the same market sector.