1.2b Market Reseach

Question 1

What is the main purpose of market research ?

Answer 1

• used to gather accurate information about the market , the needs from customers and competitors
• help decide if a business is viable

Question 2

What are the two main types of market research ?

Answer 2

• primary research : new research that is carried out to answer specific questions and issues
• secondary research : using existing sources of information previously researched

Question 3

Give some examples of primary research

Answer 3

• questionnaires / surveys
• focus groups
• interviews

Question 4

What is a focus group ?

Answer 4

Group of people who are asked about their views, beliefs and attitudes or idea on a product
Helps a business understand consumer needs more deeply
Choose people from the intended target market

Question 5

What is the advantages of using observations as primary research ?

Answer 5

Customer behaves relatively naturally , because they are unaware of being observed

Less likely to be biased

Question 6

What is the disadvantage of using observations as market research ?

Answer 6

It’s very time consuming , can also be inconclusive

Research must be conducted in a ethical manner , the researcher has to ask consent

Question 7

Disadvantage of holding interviews face-face ?

Answer 7

Cost of hiring room are very expensive

Very time consuming

Question 8

What is internally sourced information ?

Answer 8

Data , statistics and research that a business has accumulated in the past.

Helps them understand their customer needs and provide information for reordering sticks quickly

Question 9

What is externally sourced information ?

Answer 9

Published by people or organisation that are not related to the business

Eg. Government agencies , trade unions , media , chambers of commerce

Question 10

What is qualitative and quantitative data ?

Answer 10

Qualitative is descriptive data that can’t be measured in numbers

Quantitative is numerical data

Question 11

What is the advantages and disadvantages of getting qualitative data ?

Answer 11

• provides depth and detail , gives a detailed picture of why customers behave in a particular way
• helps a business to listen to what their customer wants
• a relatively small sample , so biased
• responses are subjective based on personal opinions
• results depends of the skills of the interviewer
• time consuming compared to quantitative data

Question 12

Why is social media a good way to do market research ?

Answer 12

• allows a business to see what customers like and dislike ( communication )
• can see competitors pages
• Analyse market trends
• saves time , provides large samples in minutes
• customers can easily access it and efficient for them too