1.1.2 Market Research - (4/4) Qualitative + quantitative research Flashcards
Quantitative data
Research based on numerical data which can be measured
Quantitative data benefits - 2
3
1) Straightforward analysis - unlikely to be open to interpretation
2) Produces data which can be statiscally analysed - makes analysis quicker and easier
Quantitative data drawbacks (1)
1) Solely focuses on numbers instead of opinions which can benefit a business
Qualitative data
data that gathers opinions and views about a product from consumers
Qualitative data benefits - 2
2
1) Can get valuable insights as understanding of customer wants
2) Has flexibility - can get respondent to elaborate on their answer if unclear + clarify
Qualitative data drawbacks
3
1) Its open to interpretation meaning there can be there can be disagreements about data (difficult to make decisions from) within the business about the importance of the qualitative data
2) Time consuming and costly ( collected and analysed by specialist researcher)
ICT meaning
Information and communications technology
ICT can support what for businesses
ICT can support the collection and analysis of market research data
3 ways in which businesses can use ICT to support the collection and analysis of Market Research data
1) Company websites
2) Review systems
3) Comparison websites
How can company websites be used to obtain data
2 advantages of this
Company websites can be used to provide access to online surveys
e. g respondents maybe directed to a questionnaire after receiving an email confirming an online transaction
- cheap to set up
- available 24/7
A business can also carry out secondary research by gathering data from the websites of rivals
T/F?
How?
T
analysing websites of competitors provides insights into info e.g prices, product ranges, special offers , store location
Review systems allows customers to do what?
‘write’
allows customers to write up accounts on their business
Businesses might also use comparison websites to identify the cheapest suppliers in the market
T/F?
T
Market segmentation
An identifiable group of individuals where consumers share one or more characteristic or need
Markets can be divided into…
Segments
Each segment is made up of consumers who share the same what?
similar needs
4 types of market segmentation
- geographic
- demographic
- psychographic
- behavioural
Geographic segmentation
depending on where you live different customer groups are most likely to have different needs
e.g hot climates like Africa to UK - completely different needs
Demographic segmentation
A, G , I , SC , E , R
Age, gender, Income, social class , ethnicity , religion
Psychographic segmentation
Customers that are grouped according to their attitudes , opinions , lifestyles and personality
Behavioural segmentation
?
Advantages of Market segmentation (3)
1) Identified + satisfied the needs of a specific group of customers (leads to increased sales)
2) Customers maybe more loyal to a business that provides products that are tailored specifically to them
3) Because you’re focused on specific target market groups this avoids wasting money on people who have no intention on people who have no intention of buying the product - ( market strategy is differentiated)
Disadvantages of market segmentation
1) Extensive market research is needed - have to get the needs the specific needs of customers spot on otherwise money + time wasted
2) consumers habits/tastes may change over time so if your businesses focuses on one or two segments this is risky
3) R+D and production costs may be high as a result of marketing several different product variations
4) Promotional costs - high as different advertisements and promotions might be needed for different segments- marketing economies of scale may not be fully exploited.
