4.4 Market research

Question 1

Academic journals

Answer 1

Academic journals are periodical publications from educational and research institutions that publish data and information relating to a particular academic discipline.

Question 2

Cluster sampling

Answer 2

Cluster sampling is used when getting feedback from respondents involves too much time, travelling or money. For example, it would be too time consuming and costly for a company to randomly interviewpeople across all the countries that it operates in.

Question 3

Convenience sampling

Answer 3

Convenience sampling uses subjects that are easy (convenient) to reach, e.g.students often use their classmates and friends in a research study. It relies on ease of reach and volunteers because oftheir availability.

Question 4

Focus groups

Answer 4

Focus groups involve forming small discussion groups to gain insight into the attitudes and behaviour of respondents. The group is typically made up of participants who share a similar customer profile, such as teenage boys who like to play online computer games.

Question 5

Interviews

Answer 5

Interviews are a type of primary research that involve discussions between an interviewer and interviewees to investigate their personal circumstances and opinions. Beliefs, attitudes and feelings can be examined in detail.

Question 6

Market analysis

Answer 6

A market analysis reveals the characteristics and the outlook (trends) for a particular product or industry, e.g. market size, market share and market growth rate.

Question 7

Market research

Answer 7

Market research refers to marketing activities designed to discover the opinions, beliefs and preferences of potential and existing customers in order to identify and anticipate their wants and needs.

Question 8

Non-sampling errors

Answer 8

Non-sampling errors are caused by human error or human behaviour. They arise from the researcher’s mistakes in recording, processing or analysing data, or because respondents do not always give truthful and honest answers.

Question 9

Observations

Answer 9

Observations are a method of primary research that involves watching how people behave or respond in different situations. It can be done under controlled conditions (like a laboratory test) or as real-life situations (where people do not know that they are being watched).

Question 10

Population

Answer 10

The population, in marketing terms, refers to all potential customers ofa particular market.

Question 11

Primary research / field research / bespoke research

Answer 11

Primary research (also known as field research or bespoke research) is market research that involves gathering new data first-hand for a specific purpose. Methods of primaryresearch include: surveys (questionnaires), interviews, focus groups and observations.

Question 12

Qualitative market research

Answer 12

Qualitative market research involves getting non-numerical answers and opinions from respondents. The main purpose is to understand the behaviour, attitudes and perceptions of customers,employees or other respondents.

Question 13

Quantitative market research

Answer 13

Quantitative market research is about collecting and using factual and measurable information rather than opinions.

Question 14

Quota sampling

Answer 14

Quota sampling is the most common sampling method, involving a certain number of people (known as the quota) from different marketsegments being used forresearch.

Question 15

Random sampling

Answer 15

Random sampling gives everyone in the population an equal chance of being selected for the sample.

Question 16

Sample

Answer 16

A sample is a selected proportion of the population used for primary market research purposes.

Question 17

sampling errors

Answer 17

Sampling errors are caused by mistakes made in the sample design, such as an unrepresentative sample being used or the sample size being too small.

Question 18

Secondary research / desk research

Answer 18

Secondary research (or desk research) involves the collection of second-hand data and information that already exists, previously gathered by others. Examples include government publications and news articles.

Question 19

Snowballing

Answer 19

Snowballing refers to market research carried out with individuals who then suggestother friends,family members or colleagues, thereby increasing the sample size. It is used when firms are unable to get hold of appropriate respondents as the population is not clear.

Question 20

Stratified sampling

Answer 20

Stratified sampling involves subdividing the market into segments (known as strata) that share homogeneous or very similar characteristics. A number of respondents from each stratum that isproportional to the population is then randomly selected for the sample.

Question 21

Survey / questionnaire

Answer 21

A survey (or questionnaire) is a document that contains a series of questions used to collect data for a specific purpose. It is the most common method of primary research.