How to conduct *Market Research*?

Why Market Research is Essential for Startups

Startups most often fail for one reason: no one needs what they built. A CB Insights analysis found 42% of failed startups blame “no market need" for their failure. That’s not a marketing problem. That’s a research problem.

Good research helps you:

1. Test your assumptions – Who needs this? Why? What would they replace?
2. Pick what matters – Which features? Which users?
3. Check the opportunity size – Is this a small niche or a real opportunity?
4. Shape your go-to-market – What channels, messaging, and positioning actually work?

It’s also how you win investor trust. Founders who bring data—not just vision—get taken seriously.

Food for thought​
‍Estonia’s ride-hailing company Bolt began with scrappy customer discovery – 19-year-old founder Markus Villig literally walked to every taxi rank in Tallinn to interview cab drivers and persuade them to try his app. Hundreds of conversations later, he finally recruited 30 drivers who became the platform’s launch base.

Start with what you think is true

Start your market research by writing down what you think is true. These are your hypotheses about your customer, your product, or the market. Your job now is to test them.

We recommend formulating your hypotheses as “We think that..." statements, that is: “We think [X] will happen if [Y users] can [do Z]. This way of writing helps you explain:

• V who the user is,
• V what they need, and
• V what you expect to happen.

What are common early-stage hypotheses that need testing?

• Customer Segments: Who do you think your target users are?
  • For example: We think that busy young people in cities want help cooking dinner.
• Value Proposition: What special thing or feature do you think will make customers want to buy from you?
  • For example: We think fast, local-ingredient meal kits will appeal to them.
• Price: What do you think people will pay?
  • For example: We think they’ll pay around 20 EUR /week.
• Channel What marketing or distribution channels do you think will connect with your audience well?
  • For example: We think we can reach them with Instagram and TikTok ads.

Each one should be simple, specific, and testable. Once you have a set of hypotheses, prioritize them by risk. What assumption, if false, would kill the idea? Test that one first.

Exercise: Research Hypothesis Canvas

Primary vs. Secondary Research: How and when to use each?

Market research comes in two forms: primary and secondary. You’ll likely need both.

Primary research means going straight to the source—your potential users. You collect new data through interviews, surveys, focus groups, or direct observation. Use it to learn what your target customers think, feel, and do. It’s best for testing specific ideas: Why do users behave a certain way? What do they think of your solution? What needs remain unmet? It also helps you build personas and refine your product. The downside is that primary research can be time-intensive and sometimes costly.

Secondary research is faster. You analyze existing data—industry reports, academic studies, government stats, or competitor analyses. It helps you understand the bigger picture: market size, trends, benchmarks, and more. It’s ideal when asking: How large is this market? Who are the top players? What are spending patterns?

Use both. Start with secondary research to frame your problem and sharpen your hypotheses. Then do primary research to dig deeper into user needs and validate your solution.

Overview of Primary Research Methods

You do primary research when you collect new data directly from your users. It helps you understand what they think, how they act, and what they need, based on their own words and behavior. Below are the most common methods and how to use them.

User Interviews (One-on-One Interviews)

What it is: A one-on-one conversation with a potential user. You ask open-ended questions about their problems, habits, and workarounds. It’s a deep dive into their life—not a pitch.

When to use: At early stages, to learn what users truly need, how they behave today, and how they react to your idea or prototype. Interviews help uncover surprises you didn’t think to ask about.

How to do it well:

• Ask about their life, not your idea.
• Focus on the past: “What did you do last week?” not “Would you use this?”
• Ask open questions, like “How do you currently handle [the problem]?”
• Avoid leading questions like “Would you buy this?”
• Let them do most of the talking (~80%).
• Record the session (with consent) or take good notes.

Surveys and Questionnaires

What it is: A structured set of questions sent to a larger group—often online. Surveys can include multiple choice, rating scales, and open-text fields.

When to use: To validate earlier insights at scale. After interviews, use surveys to quantify how common those views are across a bigger group.

What you learn:

• How widespread a problem is
• Which segments care most
• Preferences between options or features

Tips for better surveys:

• Keep them short—10–15 questions max.
• Use simple, neutral wording (e.g. How much do you hate cooking on weeknights?” is leading; “How do you feel about cooking on weeknights? ☐ Love it ☐ It’s okay ☐ Don’t like it ☐ Never do it” is more neutral).
• Focus on 1–3 key hypotheses.
• Mix formats: ratings, rankings, and a few open-ended questions.
• Don't overload on open-ends - too many will reduce completion!
• Test it on a few people before launching.

Tools: Typeform (user-friendly), Google Forms (quick and free), SurveyMonkey or Qualtrics (advanced features).

Focus Groups

What it is: A live group discussion (5–10 people) led by a moderator. Participants share opinions, react to each other’s views, and discuss freely.

When to use: To explore group dynamics, shared language, or reactions to concepts. Useful for brainstorming, messaging feedback, UX research or testing value props.

What you learn:

• Common themes and objections
• Vocabulary people naturally use
• How social influence may affect opinions

How to moderate well:

• Make sure all voices are heard.
• Ask quieter participants directly.
• Avoid leading the group with your own opinions.
• Record the session if possible.

Guerrilla Research

What it is: Quick, scrappy testing in public or online spaces. You ask a few fast questions or run a basic test with little setup.

When to use: When you need quick feedback on an idea, message, or prototype—before spending more time or money.

Examples:

• Intercepting people outside a store with a one-liner pitch
• Running a cheap landing page ad (“smoke test”)
• Showing your homepage for 5 seconds and asking what they recall

Strengths:

• Fast, low-cost, and easy to do
• Helpful for early-stage signal checking and UI/UX testing
• Avoids bias from friends/family

Limits:

• Not statistically sound
• Not suitable for sensitive topics
• Results are directional only

How to do it well:

• Aim for 5 minutes per person or less
• Have a concise question or task
• Use simple yes/no, multiple-choice or max one open ended question

Usability Testing

What it is: You watch someone try to use your product to complete real tasks. They talk through what they’re doing and thinking. You note where they struggle.

When to use: Whenever you have a prototype / product. Even simple tests with 5 users can reveal major usability flaws.

What you test:

• Can users sign up?
• Do they understand key flows?
• Where do they get stuck or confused?

How to do it:

• Pick 3–5 core tasks (e.g. “Find a recipe and order ingredients”).
• Create a test plan: list tasks in the form of scenarios (“You want to cook a vegetarian meal on Friday and need a recipe – how would you use this app to find one?”).
• Ask users to speak aloud.
• Don’t help—every hesitation is a clue.
• Use tools like Maze, UserTesting, Lookback, or just Zoom with screen-share.
• Afterwad, analyze the findings: which tasks had high success vs failure?

Overview of Secondary Research Methods

Primary research gives you first-hand insight from customers. But secondary research shows the broader landscape—market size, growth, competition, and trends. It saves time, helps sharpen your hypotheses, and adds credibility to your story.

Start broad: Use secondary research to map the market before diving into interviews or surveys.

Keep a research log: Track what you find, when, and where.

Cite sources: You’ll need them for investor decks, grant apps, or business plans.

Below are the key sources every founder should know.

Industry Reports

Use global databases to get reliable stats on industry size, customer trends, and competitive dynamics.

Top sources:

• Euromonitor – Paid reports, often available via libraries or accelerators
• NielsenIQ – Consumer goods and retail data
• Gartner – Tech sector forecasts (great for B2B founders)

Use for:

• Market sizing and forecasts (e.g. meal kits in Eastern Europe)
• Consumer adoption patterns
• Backing up claims with credible data

Government and Public Data

Free, official sources help you understand demographics, household budgets, and macroeconomic trends.

Top sources:

• Eurostat – EU-wide data on spending, income, population
• National stat offices:
  • Statistics Poland (GUS)
  • Czech Statistical Office
  • Hungarian Central Statistical Office
  • Romanian National Institute of Statistics

Use for:

• Estimating your total addressable market (TAM)
• Identifying key segments (e.g. urban singles, young professionals)
• Understanding regional patterns

Competitive Intelligence

Track who’s in the space, how they’re growing, and what users say about them.

Top sources:

• Crunchbase – Company funding, founders, acquisitions
• PitchBook – Paid, detailed startup and VC data
• App Stores (Google Play / Apple) – Read user reviews of direct or adjacent products
• Google News – Search for press releases, pivots, or shutdowns
• Google Trends – Check interest over time for your category or keywords

Use for:

• Benchmarking competitors
• Spotting product gaps through reviews
• Learning from failed startups or pivots

Academic Research and Whitepapers

University research often digs deep into consumer behavior, tech adoption, and business models.

Top sources:

• Google Scholar – Search for theses and peer-reviewed articles
• ResearchGate – Direct contact with authors for access
• SSRN – Working papers and management research

Use for:

• Understanding psychological drivers or risk perception
• Finding tested survey models
• Learning best practices in pricing, messaging, or product design

Local Startup Reports and Regional Insights

CEE startup ecosystems often publish their own research. These are your best lens into local market behavior, funding, and regulatory context.

Top sources:

• PFR Ventures – VC market data in Poland
• EIT Food Reports – CEE foodtech and agritech ecosystem data
• Dealroom CEE dashboards – Funding, top startups, ecosystem maps
• Estonian Startup Database
• Unicorns Lithuania
• Startup Hungary

Use for:

• Local insights that global reports miss
• Public funding opportunities
• Case studies from nearby markets

Online Communities and Reviews

Real users share real problems in forums, review sites, and product comments. These are rich sources of unfiltered, qualitative feedback.

Top places to search:

• Reddit – r/startups, r/entrepreneur, local subs (e.g. r/poland, r/hungary)
• Quora – User behavior, purchasing decisions
• Facebook groups – Search local buy/sell, startup, or expat communities
• G2 / Capterra – Software reviews, especially for B2B
• YouTube, TikTok – Product test videos and reviews from local influencers

Use for:

• Finding unmet needs in user language
• Identifying what customers love/hate
• Testing reactions to your messaging or idea

Market Research Methodology: Step-by-Step

A structured process helps you run smarter, faster research. Follow these eight steps to stay focused and generate useful, actionable insights.

Step 1: Define Objectives & Hypotheses

• List the top 3–5 questions that will move your business forward.
• Example: “What’s stopping local salons from using online booking tools?”
• Turn each into a testable hypothesis.
• Example: “We believe 70% of local salon owners see subscription costs as the main barrier.”
• Use the Research Hypothesis Canvas to structure your thinking and define success/failure criteria.

Step 2: Choose Research Methods

• Primary methods (interviews, surveys, tests): Use when exploring needs, behaviors, or willingness to pay.
• Secondary sources (reports, databases, public data): Use to estimate market size, spot trends, or map competition.
• Match each hypothesis to the right method — qualitative for “why,” quantitative for “how many.”

Step 3: Identify Target Profiles

• Build or refine 2–3 user personas.
• Focus on who matters most:
• B2C: Age, location, income, habits.
• B2B: Role, company size, industry, budget.
• Use Jobs To Be Done to group by need, not just demographics.

Step 4: Recruit Participants

• B2C: Try Facebook groups, Reddit, Instagram, or parenting/fitness forums.
• B2B: Use LinkedIn, cold outreach, referrals, or startup networks.
• Use a screener to qualify fit.
• Offer something in return: a gift card, early access, or even just a thank-you.

Step 5: Conduct the Research

• Interviews: 30–60 mins, record with consent. Use open-ended questions.
• Surveys: Use tools like Google Forms or Typeform. Keep it <3 mins. Avoid leading questions.
• Focus Groups: Encourage discussion, but manage group dynamics.
• Secondary Research: Save links, sources, stats in one place (e.g., shared doc or Airtable).

Step 6: Analyze & Synthesize Findings

• Identify patterns.
• Example: “12 of 15 salon owners mentioned cost.”
• Segment differences.
• Example: “Urban respondents were 2x more likely to pay monthly.”
• Cluster insights by theme and tie them back to your hypotheses.

Step 7: Draw Conclusions & Decide Next Steps

• Mark each hypothesis as validated, rejected, or unclear.
• Decide what changes are needed: new segment, price point, features, etc.
• Translate insights into action.
• Example: “Remove complex analytics from MVP. Focus on easy booking.”

Step 8: Iterate

• Research is never done.
• Each insight leads to better questions.
• Repeat the cycle as your product evolves — especially before new launches or go-to-market pushes.

If you want to get a better grasp on how this works in practice, make sure to check out our Market Research Case Study.

Common Pitfalls in Market Research (And How to Avoid Them)

Chasing Confirmation

• X  The mistake: You only hear what you want to hear. You explain away negative feedback as “just one opinion.”‍

• V  Fix it: Ask open, neutral questions. Listen for things that challenge your idea. Invite pushback. For example:
  
  • “What might stop you from using this?”
  • “Why wouldn’t this work for you?”

Don’t research to get a “yes.” Research to find the truth.

Asking the Wrong Questions

• X  The mistake: You ask vague or leading questions like:
  
  • “What do you think of this idea?” (Which part? Think how?)
  • “You would use a cheaper, healthier meal service, right?” (Most will say “Sure,” but that’s meaningless).‍
• V  Fix it: Focus on what people do, not what they say they’d do.
  
  • “How did you solve this last time?”
  • “What else have you tried?”
  • “What’s frustrating about your current solution?”

Follow The Mom Test: no pitching, no hypotheticals, no fluff.

Talking to the Wrong People

• X  The mistake: You interview people outside your target segment (e.g. friends, family, people who are not representative).‍
• V  Fix it: Define your core user. Only include people with the problem you’re solving. Don’t just take whoever is easiest to get.

Ignoring the Market

• X  The mistake: You don’t check who else is already solving this problem—or how the market is shifting.‍
• V  Fix it: Do your secondary research. Use a competitive matrix. Read reviews of competitors. Scan for industry reports or relevant trends. If users mention other tools, look them up. Context matters. Don’t build in a vacuum.

Overgeneralizing from a Few Conversations

• X  The mistake: You talk to 5 people and assume you’ve found the truth.‍
• V  Fix it: Use interviews to discover insights. Use surveys to test how common those insights are.

Let qualitative data guide what questions to ask and why things happen, but use statistically meaningful data to measure how many and how much. Avoid extrapolating numeric claims from tiny samples (don’t say “80% of customers want X” if that was 4 out of 5 interviewees – that’s not statistically sound).

Drowning in Data, No Action

• X  The mistake: You collect too much info and don’t know what to do with it.‍
• V  Fix it: Stay close to your original goals. Ask:
  
  • “What did we learn that affects our strategy?”
  • “What will we change based on this?”

Prioritize insights – which 2-3 findings are most critical to address? What are the decisions we are taking as a result?

For instance: “Key Insights: 1) Problem validated – lack of time is huge. 2) Price needs to be lower. 3) Feature X wasn’t as important as we thought.” Then derive actions: “Thus, we will focus on marketing convenience, adjust pricing model, and deprioritize feature X in MVP.”

Stopping After Round One

• X  The mistake: You do one round of research, build your MVP, and never talk to users again.‍
• V  Fix it: Keep a regular research rhythm. Do short user interviews. Test new features. Check in when things change. Make learning a habit.

Markets evolve. Your product must too.

Trusting the Numbers Without the “Why”

• X  The mistake: You run a survey, see the numbers—but don’t know what they mean.‍
• V  Fix it: Always pair data with real conversations. If 30% of users churn, ask some of them why. Numbers show what, but only users can tell you why.

Also, sanity check your survey questions. Bad wording = misleading data.

Bottom line: Don’t search for proof. Search for truth. Talk to real users. Ask real questions. Act on what you learn. Repeat.

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