2, Market research

Question 1

market research

Answer 1

involves gathering, presenting and analysing information about the marketing and consumption of goods and services.

Question 2

why do businesses do market research

Answer 2

Businesses spend money on market research because it helps to reduce the risk of failure.

Question 3

Purpose of market research

Answer 3

1. identify and anticipate needs and wants
2. quantify likely demand
3. gain insight into customer behaviour

Question 4

primary research

Answer 4

involves collecting primary data, data that did not exist before the research began.

Question 5

sample

Answer 5

a group of people who are thought to be representative of the total market

Question 5

sample

Answer 5

a group of people who are thought to be representative of the total market

Question 6

methods of primary research

Answer 6

1. questionnaires/surveys
2. focus groups or consumer panels
3. face to face/telephone interviews
4. product trials/test marketing

Question 7

elements of a questionnaires

Answer 7

• have a balance of open and close questions
• contain clear and simple questions
• not contain leading questions
• not be too long

Question 8

questionnaires

Answer 8

a list of written questions to record the views and opinions of respondents

Question 9

focus groups or consumer panels

Answer 9

where a number of customers are invited to attend a discussion organised by market researchers.

Question 10

interviews

Answer 10

questions may be explained if a respondent is confused and may collect more detailed information.

Question 11

product trial/test marketing

Answer 11

where consumers are encouraged to examine, use or test a product before it is launched fully into the market.

Question 12

advantages of primary research

Answer 12

1. data can be collected that directly applies to the issue being researched.
2. the business that initially collects the data will be the only organisation with access to it. –> can be a marketing advantage over rivals
3. secondary data may be unavailable in a certain area

Question 12

advantages of primary research

Answer 12

1. data can be collected that directly applies to the issue being researched.
2. the business that initially collects the data will be the only organisation with access to it. –> can be a marketing advantage over rivals
3. secondary data may be unavailable in a certain area

Question 13

disadvantages of primary research

Answer 13

1. it can be expensive to collect and may take longer than other research
2. the sample taken may not represent the views of all the population
3. if the research method is flawed then the findings will also be flawed.

Question 14

secondary research

Answer 14

involves the collection of secondary data, data that already exists.

Question 15

methods of secondary data

Answer 15

websites 
social media
newspaper/magazines
television/radio 
reports

Question 16

advantages of using social media as a form of secondary research

Answer 16

broad reach
personal
ability to target
free or low cost

Question 17

advantages of secondary research

Answer 17

It is relatively easy, quick and cheap to collect, especially if the sources that exist are known.

Several sources may be used. This allows the data to be checked and verified.

historical data may be used which can show a trend over time

it can be used before carrying out primary research which can help to establish the most useful questions to be asked in questionnaires.

Question 18

disadvantages of secondary research

Answer 18

data is not always in a form that the business wants as it has been collected for another purpose

data may be out of data and not relevant

researchers ,must be aware of bias

there may have been problem with the research

Question 19

Qualitative research

Answer 19

involves the collection of data about attitudes, beliefs and intentions.

Question 20

quantitative data

Answer 20

involves the collection of data that can be measured

Question 21

target population

Answer 21

includes all those people whose views a business wants to explore

Question 22

sampling method

Answer 22

when a business collects a sample of people in the population, who are representatives of the target customer group.

Question 23

random sampling

Answer 23

Gives each member of a group an equal chance of being chosen, the sample is selected at random

Question 24

quota sampling

Answer 24

respondents are selected in a non-random manner in the same proportion as they exist in the whole population.

Question 25

stratified sampling

Answer 25

where the sample is divided into segments or strata based on previous knowledge about how the population is divided up. A random group is then chosen from each of these groups, making sure that there were the same proportions of the sample in each category as in the population as a whole.

Question 25

stratified sampling

Answer 25

where the sample is divided into segments or strata based on previous knowledge about how the population is divided up. A random group is then chosen from each of these groups, making sure that there were the same proportions of the sample in each category as in the population as a whole.