1.2.2 Flashcards
Purpose of market research
Identifying. And understanding customer needs
Identify Gaps in market
Reduce risk
Inform business decisions
Primary research
Survey
Questionaire
Focus group
Observation
Secondary research
Internet
Market reports
Government reports
Qualitative data
Usually expressed as opinions
Includes descriptive information
Gained by asking open ended questions
Cons qualitative data
Detailed information can’t be expressed in a graph or chart can be time-consuming, Costly to gather and analyse
Quantitative data
Usually numerical data
Gathered by closed questions, yes or no, ratings, multiple choice
Generally expressed in graph or chat
Quantitative data pros
Simple and quick to analyse easy to understand results
Quantitive data cons
Lacks specific opinions doesn’t allow a business to see exactly what customers think
Therole of social media in collecting market research data
Social media can reach huge numbers of customers
Social media allows businesses to
Conduct research, cheaply and on a large scale
Social media benefits
Cheaper Than other forms of research,
it can save time putting info together
allows a business to spot latest trends and tastes
This leads to
A business. Bringing out new products are offering discount to match competitors
Importance of reliability of market research data
This is essential - basing decisions on unreliable research can be costly to a business
Advantages of having reliable market research data
Business can make properly informed descions
Reduces risk
Means less money is wasted
Higher chance of business success
Consequences of relying on unreliable market research data
The Business making unwise decisions
could ultimately cost the business money
business could bring out products and don’t sell
the business can fail
