1.4 market research Flashcards
what is the definition of bias?
something that may cause data
within a sample to be weighted towards one side. Such statistical bias occurs when one
subgroup outweighs the other in a sample.
what is the definition of random sampling
every member of the population has an equal chance of being interviewed.
what is the definition of a sample
a group of respondents to a market research exercise who are selected to be representative of the views of the target market as a whole
what is the definition of quota sampling
the population is segmented
into a number of groups that share specific characteristics.
what is the definition of primary research
collecting primary
data and information that does not already
exist. It is collected for a specific purpose.
what is the definition of secondary research
identifies, collects
and collates information that is already in
existence. This can be collected internally
or externally
what is the definition of quantitative research
Involves the collection of data that
can be measured. This means the collection
of statistical data such as sales figures and
market share
what is the definition of qualitative research
Involves collection of data about
attitudes, beliefs and intentions
what is the definition of market research
the process of gathering
primary and secondary data on the buying
habits, lifestyles, usage and attitudes of actual
and potential customers.
why is having an understanding of the market place as a major priority to businesses
- the expense of launching new products
- the importance of maintaining market share
- the importance of preserving the profile and brand value of existing products.
General Drawbacks of Market Research
-Research does not guarantee success.
-It is costly in time.
-Often all that is needed is good intuition
-Costs money.
-Research can be unreliable.
General Benefits of Market Research
-Can identify opportunities and threats, i.e. changes.
-Can be used to monitor sales after a promotional campaign.
-Can help them find alternative routes to overcome a problem.
-Identify target market.
-Reduce risk of failure.
Advantages of primary research
-The research carried out is only available to that business – this will enable it to gain market advantages over rival firms.
-It is up to date information, thereby enabling better decision making.
-It can be targeted for specific needs that the business may have identified
disadvantages of primary research
Can be very expensive to collect – could the money have been better utilised using
secondary research.
-Can be very time consuming to collect so that by the time it has been collected and analysed the market may have changed.
-Can have problems of bias.
advantages of secondary research
-It is inexpensive to collect and quick to obtain.
-Enables cost-effective analysis of several data sources.
