1.1.2 Market Research

Question 1

What is product orientation

Answer 1

Is an inward looking approach to new product development where the key focus is on what products can be made and the production process

Question 2

What is market orientation

Answer 2

Is an outward looking approach to new products development were the key focus is on what products the consumer wants , informed by market research

Question 3

What is market research

Answer 3

Is the collection and analysis of data and information to inform a business about its market

Question 4

Data analysis is used to

Answer 4

Identify and anticipate customers needs and wants
Quantify likely demand
Gain insight into customer behaviour

Question 5

What is primary market research

Answer 5

Field research - involves the collection of first hand data that did not exist before and therefore it is original data

Question 6

What is secondary market research

Answer 6

Desk research - is research that has already been undertaken by another organisation and therefore already exists

Question 7

Examples of primary market research

Answer 7

Surveys and questionnaires: postal , face to face , telephone. Online

Question 8

Secondary market research examples

Answer 8

• national and local governments
• market research organisations
• professional bodies

Question 9

Qualitative Research is

Answer 9

The gathering of non statistical information that gives a company in depth insight into the reasons for human behaviour

Question 10

The size of the sample depends on

Answer 10

Budget
Importance of accuracy
Degree of confidence in result

Question 11

Limitations of market research

Answer 11

Past data and trends may not be a fair indication of the future

• accuracy of research findings
• financial opportunities cost

Question 12

Name the 3 type of sampling methods

Answer 12

Random
Quota
Stratified

Question 13

Describe random sampling

Answer 13

A sample is selected for study from a population where each individual is chosen entirely by chance and has equal change of being selected

Question 14

Describe quota sampling

Answer 14

The population is first segmented into sub groups before a judgement is made in selecting respondents that are representative of that subgroup

Question 15

Describe stratified sampling

Answer 15

The population is first segmented into subgroups before respondents are randomly selected from within that subgroup

Question 16

What are the uses within ict for market research

Answer 16

Websites - monitor number and frequency and timing is visitors , online polls and surveys

Social network - reviews , blogs , likes and dislikes , viral marking

Data base - data mining , trends

Question 17

What is market segmentation

Answer 17

Occurs when the market is split into subgroups of customers with similar characteristics

Question 18

What are segmentation methods

Answer 18

Demographics
Geographical
Income
Behaviour

Question 19

Demographics looks at

Answer 19

The social and economic characteristic

Age gender 
Level of education 
Race 
Religion
Family size

Question 20

Different geographical characteristics include

Answer 20

Temperature
Tastes / tradition
Infrastructure

Question 21

What is behavioural segmentation

Answer 21

Characteristics subgroups based in Feb behavioural patterns of the consumer rather than their characteristics:

• reason for making a purchase
• frequency is purchase
• brand loyalty
• method of purchase
• triggers

Question 22

Benefits of market research

Answer 22

• advertising can be targeted at specific market segments so that advertising spend is more efficient
• the most profitable and least profitable customers can be identified
• it Becomes easier to identify new products
• it helps the firm improve existing Pepsi ta and customer services