1.1.2 - Market Research

Question 1

Definition of Market Research

Answer 1

The collection and analysis of data and information to inform a business about its market.

Question 2

Primary Market Research

Answer 2

Involves the collection of first hand data that did not exist before and therefore it is original data.

Question 3

Secondary Market Research

Answer 3

Research that has already been undertaken by another organisation and therefore already exists.

Question 4

Focus Groups

Answer 4

Form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging.

Question 5

Quantitative Research Data

Answer 5

Based upon numerical data, measures things and produces statistical information, e.g. the number of times 18-25 year olds go to the cinema.

Question 6

Qualitative Research Data

Answer 6

Based upon feelings, attitudes and opinions. It tries to identify why consumers behave the way they do, e.g. How to customers feel about a new product.

Question 7

Market Orientation

Answer 7

An outward looking approach to new product development where the key focus is on what products the consumer wants.

Question 8

Product Orientation

Answer 8

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

Question 9

Random Sampling

Answer 9

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

Question 10

Quota Sampling

Answer 10

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

Question 11

Stratified Sampling

Answer 11

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

Question 12

Market Segmentation

Answer 12

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

Question 13

Demographic Segmentation

Answer 13

Identifies subgroups of the population based on their demographic profile or characteristics, e.g. age, gender, level of education, race, religion, family size & stage in life.

Question 14

Geographic Segmentation

Answer 14

Market categories based on where people live e.g. regions, cities or neighbourhoods

Question 15

Income Segmentation

Answer 15

Identifying subgroups of the market based on their levels of income and profession, e.g. high income & luxury goods.

Question 16

Behavioural Segmentation

Answer 16

Characteristics subgroups based on the behavioural patterns of the consumer rather than their characteristics, .e.g. how often they buy.