1.1.2 Market Research - (4/4) Qualitative + quantitative research

Question 1

Quantitative data

Answer 1

Research based on numerical data which can be measured

Question 2

Quantitative data benefits - 2

3

Answer 2

1) Straightforward analysis - unlikely to be open to interpretation

2) Produces data which can be statiscally analysed - makes analysis quicker and easier

Question 3

Quantitative data drawbacks (1)

Answer 3

1) Solely focuses on numbers instead of opinions which can benefit a business

Question 4

Qualitative data

Answer 4

data that gathers opinions and views about a product from consumers

Question 5

Qualitative data benefits - 2

2

Answer 5

1) Can get valuable insights as understanding of customer wants

2) Has flexibility - can get respondent to elaborate on their answer if unclear + clarify

Question 6

Qualitative data drawbacks

3

Answer 6

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)

Question 7

ICT meaning

Answer 7

Information and communications technology

Question 8

ICT can support what for businesses

Answer 8

ICT can support the collection and analysis of market research data

Question 9

3 ways in which businesses can use ICT to support the collection and analysis of Market Research data

Answer 9

1) Company websites
2) Review systems
3) Comparison websites

Question 10

How can company websites be used to obtain data

2 advantages of this

Answer 10

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

Question 11

A business can also carry out secondary research by gathering data from the websites of rivals

T/F?

How?

Answer 11

T

analysing websites of competitors provides insights into info e.g prices, product ranges, special offers , store location

Question 12

Review systems allows customers to do what?

‘write’

Answer 12

allows customers to write up accounts on their business

Question 13

Businesses might also use comparison websites to identify the cheapest suppliers in the market

T/F?

Answer 13

T

Question 14

Market segmentation

Answer 14

An identifiable group of individuals where consumers share one or more characteristic or need

Question 15

Markets can be divided into…

Answer 15

Segments

Question 16

Each segment is made up of consumers who share the same what?

Answer 16

similar needs

Question 17

4 types of market segmentation

Answer 17

• geographic
• demographic
• psychographic
• behavioural

Question 18

Geographic segmentation

Answer 18

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

Question 19

Demographic segmentation

A, G , I , SC , E , R

Answer 19

Age, gender, Income, social class , ethnicity , religion

Question 20

Psychographic segmentation

Answer 20

Customers that are grouped according to their attitudes , opinions , lifestyles and personality

Question 21

Behavioural segmentation

Answer 21

?

Question 22

Advantages of Market segmentation (3)

Answer 22

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)

Question 23

Disadvantages of market segmentation

Answer 23

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.