1.4 Market Research Flashcards
What is market research?
The process of gathering information about customer’s preferences and attitudes to a certain good or service. Or about your competitors statistics
What is primary market research?
Field research and it involves gathering data firsthand
What is the main advantage of primary research?
Data will be relevant and up to date with the business’s needs
What is the main disadvantage of primary research?
Can be very expensive and time consuming to obtain.
What is secondary research?
Gathering research that has already been obtained by somebody else
What is the main advantage of secondary research?
Very cheap and quick to obtain
What is the main disadvantage of secondary research?
May not be relevant and up-to-date to the business’s needs so it may be inaccurate or biased
What is quantitative data?
Data that is expressed numerically.
What is qualitative data?
Data that captures customers views and opinions
What is sampling?
The process of selecting a representative group of people to gather information
What is quota sampling?
A method of sampling where the population is divided into variables (e.g. age or income) and a quota sample is taken from each variable.
What is random sampling?
A method of sampling where each person in a population has an equal chance to be selected which reduces bias.
Why is market research important?
So a business can make intelligent business decisions in hopes of expanding their business and taking smart risks
