4.4 Market research

Question 1

Market research

Answer 1

Process of collecting, recording and analysing data about costumers, competitors and the market.

Question 2

Why organizations carry out market research?

Answer 2

• to reduce risk associated with new product launches
• to predict future demand changes
• to explain patterns in sales of existing products and market trends
• to asses the most favoured designs, flavours, promotions and packages for a product

Question 3

Primary research

Answer 3

Collection of first-hand data that is directly related to a firm’s needs.

Question 4

Methods of primary research

Answer 4

• surveys
• interviews
• focus group
• observations
• test marketing - marketing a new product in a geographical region before a full-scale launch

Question 5

Advantages of primary research

Answer 5

• up to date
• relevant to a particular business
• confidential - no other business has access to it

Question 6

Disadvantages of primary research

Answer 6

• costly
• time-consuming
• doubts over accuracy and validity

Question 7

Secondary research

Answer 7

Collection of data from secondary sources.

Question 8

Methods of secondary research

Answer 8

• market analysis
• academic journals
• government publications
• media articles

Question 9

Advantages of secondary research

Answer 9

• cheap
• obtainable quickly
• comparison from other sources

Question 10

Disadvantages of secondary research

Answer 10

• can be out of date
• may not be entirely suitable for a particular business
• unknown accuracy of data collection
• may not be available for new product

Question 11

Ethical considerations for market research

Answer 11

• permission of the people who will be studied
• not cause harm physical or emotional
• objectivity
• anonymity
• not taking advantage of easy to access groups of people
• responses should not be taken out of context

Question 12

Qualitative research

Answer 12

Research into in-depth motivations behind consumer’s buying behaviour or opinions, not expressed in numbers.

Question 13

Quantitative research

Answer 13

Research that leads to numerical results that can be presented and analysed.

Question 14

Sample

Answer 14

Group of people talking part in a mark research survey selected to be representative of the target market overall.

Question 15

Methods of sampling

Answer 15

• quota
• random
• stratified
• cluster
• snowballing
• convenience

Question 16

Quota sampling

Answer 16

Gathering data from a group chosen out of a specific sub-group .

Question 17

Random sampling

Answer 17

Every member of a target population has an equal chance of being selected.

Question 18

Stratified sampling

Answer 18

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

Question 19

Cluster sampling

Answer 19

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

Question 20

Snowball sampling

Answer 20

Using existing members of a sample study group to recruit further participants through their acquaintances.

Question 21

Convenience sampling

Answer 21

Drawing representative selection of people because of the ease of their volunteering or selecting people because of their ability or easy access.

Question 22

Method of presentation results from the data collection:

Answer 22

• tables
• line graphs
• bar charts
• pie charts
• histograms
• pictograms