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Business studies > 3.15 Market research > Flashcards

3.15 Market research Flashcards

1
Q

Market research

A

The process of collecting, recording and analysing data about the customers, competitors and the market

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2
Q

Primary research

A

The collection of first-hand data that’s directly related to a firm’s needs

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3
Q

Secondary research

A

Collection of data from second-hand sources

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4
Q

Qualitative research

A

Research into the in-depth motivations behind consumer buying behavior or opinions

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5
Q

Quantitative research

A

research that leads to numerical results that can be statistically analysed

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6
Q

Focus groups

A

A group of people who are asked about their attitude towards a product, service, adverts or new style packaging

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7
Q

Sample

A

The group of people taking part in a market research survey selected to be representative of the overall target market

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8
Q

Random sampling

A

Every member of the target population has an equal chance of being selected

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9
Q

Systematic sampling

A

Every nth item in the target population is selected

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10
Q

Stratified sampling

A

Draws a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum

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11
Q

Quota SAMPLING

A

When the population has been stratified and the interviewer selects an appropriate number of respondents from each stratum

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12
Q

Cluster sampling

A

Using one or a number of specific groups to draw samples from and not selecting from the whole population

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13
Q

Open questions

A

Invites a wide-ranging or imaginative response - results will be difficult to collate and present numerically

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14
Q

Closed questions

A

Questions to which a limited number of pre-set answers is offered

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15
Q

The need for market research

A
  1. To reduce the risks associated with new product launches
    e.g: Identify consumer needs and tastes -> primary and secondary research into consumer needs and competitors
    Product idea and packaging design -> testing of product and packaging with consumer groups
    Brand positioning and advertising testing -> pre-testing of the product image and advertisement
    Product launch and after launch period -> monitoring of sales and consumer response
  2. To predict future demand changes
  3. To explain patterns in sales of existing products and market trends
  4. To assess the most favoured designs, flavours, styles, promotions and packaging of a product
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16
Q

The market research process

A
  1. Management problem identification
  2. Research objectives
  3. Sources of data - primary and secondary research
    Secondary: a, Gov. publications
    b, Local libraries and gov. offices
    c, Trade organisation
    d, Market intelligence reports
    e, Newspaper reports and specialist publications
    f, Internal company records
    g, The internet
    Primary: Quantitative and qualitative
    Quantitative research techniques
    a, Observation and recording
    b, Test marketing
    c, Consumer surveys
17
Q

Probability sampling

A
  1. Simple random sampling
  2. Systematic sampling
  3. Stratified sampling
  4. Quota sampling
  5. Cluster sampling
18
Q

Non- probability sampling

A
  1. Convenience samling: members of the population are chosen based on their relative ease of access
  2. Snowball sampling: The first respondent refers a friend and then a friend of the one who is referred … -> cheap but biased since friends are likely to have similar lifestyle and opinions
  3. Judgemental sampling: The researcher chooses the sample based on who they think would be appropriate to study
  4. Ad hoc quota: A quota is established and researchers are told to choose any respondent they wish up to the pre-set quota..
19
Q

Problems with primary research

A
  1. Sampling bias: the results from a sample may be different from those that would have been obtained by the entire population
  2. Questionnaire bias: Questions tend to lead respondents towards one particular answer
  3. Respondents not answering in a truthful way.
20
Q

Ads of secondary research

A

+ Often obtainable very cheaply
+ Identifies the nature of the market and assists with the planning of primary research
+ Obtainable quickly without the need to devise complicated data-gathering methods
+ Allows comparison of data from different sources

21
Q

Disads of secondary research

A
  • May not be updated frequently -> obsolete info
  • It may not be entirely suitable or presented in the most effective way for the business to use it bc it was originally collected for another purpose
  • Data-collection methods and accuracy = unknown
  • Might not be available for completely new product dev.
22
Q

Ads of primary research

A

+ up-to-date and therefore more useful than secondary
+ relevant - collect for a specific purpose - directly addresses the questions the business wants answers to
+ confidential - no other business has access to this data

23
Q

Disads of primary research

A
  • costly
  • time consuming
  • doubts over accuracy and validity - risk of the samples may not be representative
24
Q

Cost effectiveness of market research

A

Internet and cellphones have facilitated contacting a wide range of potential consumers
Although it’s cheaper, it doesn’t mean it’s effective. –> answer after the research has been gathered and analysed

25
Q

Presentation of data

A
  • Bar charts: common, easiest to use and conduct
  • Histograms: Measures relative frequencies from grouped data
  • Line graphs: most commonly used for showing changes in a variable over time
  • Pie charts: Used to display data that need to be presented in a way that the proportions of the total are clearly shown.
  • Pictograms: Use to attract the reader towards looking at the data but it’s imprecise.
26
Q

Arithmetic mean

A

Calculated by totaling all the results and dividing by the number of results

27
Q

Mode

A

The value that occurs most frequently in a set of data

28
Q

Median

A

The value of the middle item when data have been ordered or ranked.
Divides data into two equal parts

29
Q

Frequency data

A

Showing median, mode, mean

30
Q

Range

A

Difference between the highest and lowest value

31
Q

Inter-quartile range

A
  • The range of the middle 50% of the data

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