2.1a Customer Needs Flashcards
Names 2 types of data and a short explanation
There are two types of data. Quantitative and qualitative. Quantitative data is gathered by using ‘closed’ questions meaning they have set options from which the person being interviewed can pick from. Qualitative data is a descriptive type of data that cannot be measured and is often opinionated.
What is the purpose of market research?
Market research is used to gather accurate information about 3 key influences on a businesses success. The 3 influences are the CUSTOMER NEEDS, THE MARKET and COMPETITORS. Doing market research helps the entrepreneur to decide whether the business idea is viable and worth investing into.
What is primary research?
Primary research is a new research that is carried out to answer specific issues and questions. It usually involves surveying consumers opinions by asking questions, through QUESTIONNAIRES, FOCUS GROUPS and INTERVIEWS.
Name 2 examples of primary research and shortly explain what it consists of.
Questionnaires:
A set of questions with a choice of answers
Focus groups:
A group of people who are asked about their views, opinions and beliefs towards a product or service
Interviews:
Can be done over the phone, online or in person. Interviews are used to ask open questions which can be used to identify trends in the data collected
What is Secondary research?
It is research using existing sources of information that has already been researched by other people. The info can be sourced INTERNALLY or EXTERNALLY
Internal and external sources of information
Internal sourced info is information that the company has accumulated in the past.
External sourced info is published by other businesses or organisations that aren’t linked to your business.
What impact can social media have, on collecting market research data?
Three advantages of using social media for market research are:
It saves time- it can provide results within minutes and as more and more people are coming online much larger samples can be provided.
Identifies trends- a business can look at popular posts or hashtags in order to see what customers are currently talking about
Understand the market- lots of businesses use social media to promote new products or existing ones. Competitors can use this to gain info on rivals and customer satisfaction levels
Write a disadvantage and advantage of qualitative data
Advantages:
Provides depth and detail in the answer.
Helps a business know exactly what customers may want
Disadvantages:
Relatively small sample size
Results can be subjective as that awe based on one persons beliefs.
Write a disadvantage and advantage of quantitative data.
Advantages:
You can have very large sample sizes
Possible to avoid biased opinions
Disadvantages:
The person may find that their opinion doesn’t fit what is given
What is a trade association?
A trade association is an organisation founded and funded by businesses that operate in a specific industry.
