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Question 1

Limitations of Market Research

Answer 1

1. Doesn’t guarantee success
2. Make sure secondary research (sr) data is reliable
3. Make sure sr data is accurate (in fast-changing markets)

Question 2

Benefits of Market Research

Answer 2

1. Aids in decision making
2. Reduces Risk
3. Public Relations

Question 3

Define Quantitative Research

Answer 3

Collection of numerical data which can be analyzed statistically to identify general trends and patterns.

Question 4

Define Qualitative Research

Answer 4

Collection of info about market based on subjective factors such as opinions and reasons

Question 5

Advantages of Store Loyalty Cards

Answer 5

1. Large quantities of accurate info
2. Identify local/regional shopping habits
3. Easy to run once established

Question 6

Disadvantages of Store Loyalty Cards

Answer 6

1. Very expensive to start up and run
2. There are no reasons behind the behavior

Question 7

Advantages of Observation

Answer 7

1. Accurate Results Produced
2. Free from any Bias
3. Large no. of people surveyed in short period of time

Question 8

Disadvantages of Observation

Answer 8

1. Difficult to analyse results
2. Must be kept secret
3. Doesnt explain reasons for behavior

Question 9

Advantages of Interviews

Answer 9

1. Gain in-depth Qualitative data
2. Responses are individual (not influenced by others

Question 10

Disadvantages of Interviews

Answer 10

1. Time Consuming / Expensive
2. Small Samples (not representative)
3. Open to interviewer bias

Question 11

What is an Interview?

Answer 11

Asking one individual a set series of questions selected on the basis of meeting pre-determined criteria

Question 12

Advantages of Test Marketing

Answer 12

1. Ensures firm does not waste its resources.
2. Tests all aspects of marketing mix
3. large scale, representative

Question 13

Disadvantages of Test Marketing

Answer 13

1. Give competitors vital info
2. Time Consuming + Expensive
3. Minimal Reduction to risk as its completed late in the market research process

Question 14

Advantages of Consumer Panels

Answer 14

1. Useful in collection of Qualitative info
2. CP are conducted long term, therefore consumers provide more useful data over time (as they gain confidence and experience)

Question 15

Disadvantages of Consumer Panels

Answer 15

1. Small Scale, may not be truly representative
2. difficult to analyse Qualitative results

Question 16

Advantages of Focus Groups

Answer 16

1. Useful in collection of qualitative info
2. Freer discussion, resulting in more detailed answers. (Children, etc, are more likely to participate in this)

Question 17

Disadvantages of Focus Groups

Answer 17

1. Small scale, may not be truly representative
2. Few dominant members may influence others
   Difficult to analyse qualitative info

Question 18

Advantages of Internet / E-Surveys

Answer 18

1. Can be sent, completed and returned very quickly
2. Cheap
3. Sent via email so intended respondent can receive questionnaire

Question 19

Disadvantages of Internet / E-Surveys

Answer 19

1. Low response rate
2. Electronic surveys can be less secure

Question 20

Advantages of telephone surveys

Answer 20

1. Low costs
2. Covers wide geographical area (more representative)
3. Generally produces results more quickly

Question 21

Disadvantages of telephone surveys

Answer 21

1. Doesn’t allow use of images
2. Increased use of tele-sales / fraud means individuals are less likely to participate

Question 22

Advantages of Postal Survey

Answer 22

1. Lower costs per completed questionnaire
2. Wide geographical area covered
3. Interviewer bias is reduced
4. Can be completed in own time

Question 23

Disadvantages of Postal Survey

Answer 23

1. No way of knowing who completed the survey
2. Questions must be straightforward (otherwise respondent rate will be low)

Question 24

Advantages of Personal / Face-to-Face- Surveys

Answer 24

1. High Response Rate
2. Pictures / Images can be used
3. Researchers can ask respondents to clarify unclear answers

Question 25

Disadvantages of Personal / Face-to-Face- Surveys

Answer 25

1. Time Consuming/ Expensive 2. Small samples will be surveyed

Question 26

Disadvantages of Primary Research

Answer 26

1. Takes a long time to plan and carry out research effectively (particular issue in fast changing markets) 2. Expensive

Question 27

Advantages of Primary Research

Answer 27

1. Results gathered are more relevant to the firms needs 2. Data will be more up to date and accurate

Question 28

Advantages of Secondary Research

Answer 28

1. Info is readily available 2. It is cheaper 3. Helpful in identifying trends as surveys are conducted regularly

Question 29

Disadvantages of Secondary market research

Answer 29

1. info may be outdated 2. unlikely to give the firm a competitive advantage as it's also available to other firms 3. data may not have targeted the exact issue that the current research requires

Question 30

Types of reasons for marketing research

Answer 30

1. Descriptive (describe what is happening in the market) 2. Explanatory (explain why certain things occur) 3. Predictive (predict trends) 4. Exploratory (probable consumer reaction)

Question 31

Reasons for market research

Answer 31

1. identify target markets 2. reduce risk 3. to test new product or service concepts 4. find out more about competitors 5. identify consumer perception about a company

Question 32

Scope of marketing research (areas of market research)

Answer 32

1. The market (identifying market trends / forecasting sales levels) 2. Competition (Analysing strengths /weaknesses of competitors) 3. Promotion 4. The Product (identifying consumer wants) 5. Distribution (identifying suitable retail outlets) 6. Pricing (identifying ped)