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Buisness > 4.4 - Market Research > Flashcards

4.4 - Market Research Flashcards

1
Q

Define market research

A

Market research is the process of using different marketing activities designed to discover the opinions, beliefs and preferences of potential an existing customers. Basically, It helps to identify and anticipate the wants and needs of customers.

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2
Q

What can market research involve

A

Market research can involve collecting data and information on competitors and market trends to gain insight into an specific market. Businesses use market research information to make decisions.

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3
Q

Name 5 purposes of market research

A
  • up to date information
  • improved marketing strategies
  • assess customer reactions to new product
  • understanding rivals
  • helps predict the future
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4
Q

Why would a business want up to data information

A

particularly important in industries that are constantly changing (i.e. fashion, technology) so they can use the first-mover advantage.

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5
Q

How does a business improve marketing strategies through research

A

done by assessing how a firm implements the activities required by its marketing mix in specific market segments.

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6
Q

How does a business assess customer reactions to a new product and why do they do it

A

it can be done by testing the market using a small group of costumers. This can present possible losses if the product proves unsuccessful, reducing the risk of product failure.

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7
Q

Why would a company would to understand rivals

A

to provide current or latest information regarding the activity in the market.

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8
Q

Why would a company want to predict the future through market research

A

or at least what is likely to happen in the future. Understanding the possible trends that will help the business react accordingly (i.e. an upcoming recession might help the business spend less)

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9
Q

What are the 2 methods of market research

A

Primary and secondary

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10
Q

Define primary research

A

also known as field research, it involves the collection of first-hand (new) information from the market. Its is often used to gather data and information from costumers to identify their buying patterns and anticipate changes in market trends.

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11
Q

Define secondary research

A

also know as desk research, refers to the collection of second-hand data and information that already exists meaning that the data and information have previously been gathered by others.

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12
Q

What are 4 methods of primary research

A
  • surveys
  • interviews
  • focus groups
  • observations
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13
Q

Define a survey

A

these are questionnaires sent out to a particular target audience to unable to get useful information. They are the most common method of primary research and there are several types

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14
Q

What are 4 types of surveys

A

i.Self completed surveys – done by the business to get information from their own costumers

ii.Personal surveys – done face-to-face, helps to clarify some of the questions

iii.Email or online – takes advantage of technology, its quite impersonal but practical

iv.Telephone – calling customers or random people to get the information

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15
Q

What are 3 advantages of surveys

A
  1. A large amount of data can be collected in a relatively short period of time
  2. If well designed they can be easily used by the responder
  3. They can be used to collect information in different issues
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16
Q

What are 4 disadvantages of surveys

A
  1. The answers provided by the responder might not be an accurate reflection of what they feel. Affecting research results
  2. Surveys that are poorly designed or administrated can jeopardise the well intended research
  3. Since large samples are normally used, it can prove costly and time consuming to create and administer
  4. Even though random samples are selected, the answers could be biased distorting the results
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17
Q

Define interview

A

is a one-to-one discussion between an interviewer and an interviewee where to investigate their personal circumstances, opinions, beliefs or attitudes in detail. Generally carried out in person, but telephone or different technology options (i.e. zoom, teams, google meet) can also be used. The information from the interview is then analysed to identify the views that respondents share and identifying the differences as well.

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18
Q

What are 2 advantages of interviews

A
  1. Since questions can be more specific, the gathered information can be more detailed
  2. Since there is one to one attention more responses can be achieved. Information or questions can be clarified in the interview
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19
Q

What are 2 disadvantages of interviews

A
  1. The whole process can be very time consuming; setting up the interview, carrying it out, analysing the responses, gathering feedback and report
  2. Some interviews might affect the interviewees since they could be biased
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20
Q

Define focus group

A

a small group of people brought together to discuss a specific idea. The group is typically made up of participants who share a similar customer profile (i.e. teenage girls who like make up; teenage boys who like computer games, vegetarians or vegans to try new products). The participants answer questions designed by the marketer researchers discussing freely about their opinions, reactions or ideas. In some cases they can also taste the product. These groups can provide important information to the firm to help the business with new product, strategies etc. Often used when a product is going to be launched (or re-launched)

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21
Q

What are 4 advantages of focus groups

A
  1. An easy and cheap way of gathering market research
  2. The results can be either used to measure the reaction of customers to the new product or to help firms strategies
  3. They help identify key information about the product that the business might not have stated or competitors didn’t share
  4. They get insight of what customers are thinking about the competition compared to the firm
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22
Q

What are 3 disadvantages of focus groups

A
  1. If the group is too small the results wont reflect what either market is thinking. Specially if the firm is looking at whole segments
  2. some members of the group might not express their real opinion mainly guided by peer pressure
  3. focus groups are more costly to carry out, since every participant need to be remunerated
23
Q

Define observation

A

this method involves watching how people behave and respond in different situations. Observations can be carried out using surveillance filming, photographic evidence or in person (by using a checklist). The Government can use this method to evaluate traffic development, measuring the traffic in certain roads. Also, supermarkets might use it to evaluate the how long people take on looking at a certain display or determine queuing times. Other examples that might use the observation method are: restaurants, health centres, post office, etc.

24
Q

What are 3 advantages of observation

A
  1. It is a direct method to collect data as the researcher is actually looking at what the person is doing and how its behaving
  2. A large amount of individuals can be surveyed in a short space of time
  3. It is a cost effective way of gathering
25
Q

What are 2 disadvantages of observations

A
  1. If only observations iOS used, complete answers to any problem or issue can’t be obtained. So market reader hers will need to combine it with other methods
  2. It can’t be used to study attitudes or opinions of individuals since this normally requires a verbal
26
Q

What are 5 types of secondary marketing

A
  • academic journals
  • media articles
  • government publications
  • market analysis
  • online content
27
Q

Define academic journals

A

they are periodical publications from educational and research institutions where data and information relating a particular academic discipline is published (i.e. the Harvard Business Review or Journal of Finance). The articles in these Journals are “peer reviewed”, which means they are reviewed by experts in the field before being published. The main purpose of these articles is to share latest educational information instead of selling it at a profit.

28
Q

What are 3 Advantages of academic journals

A
  1. Very reliable since they are checked by other academics that are pert in this area
  2. Since they take less time to publish they are available earlier
  3. Most academic journals include reports, topic specific information and reviews of current research. That is very helpful for a firm that is looking for original research
29
Q

What are 2 disadvantages of academic journals

A
  1. They are very specific since they contagion specific academic interest. Hence they might not help for general interest topics
  2. The peer review process could take longer than expected so the latest information on a specific topic might not be updated
30
Q

Define media articles

A

this refers to the general media that contains valuable data and information as part of a secondary research . For example; Newspapers, TV documentaries and books.

31
Q

What is the issue with media articles in our society

A

However, media articles can take time on been published and nowadays the production of newspapers can be considered a waste of paper and energy resources. Therefore most of the information is now online. Additionally, communicating via newspaper is cheaper than via television

32
Q

Define government publication

A

these are articles produced by the Government on various topics such as inflation, population growth, social trends or customer expenditure patterns. They provide useful statistical information on topics like education, trade, etc. However, in some cases is difficult to access this information.

33
Q

Define market analyses

A

it reveals the characteristics and the trends for a particular product or industry (i.e. market size, market share and market growth rate). New business often rely on market analyses to formulate their market plan.

34
Q

Where can market analysis data be found

A

Market analyses data and information can be found in commercial sources and public information sources such as: market research firms, competitors (through their annual reports) and /or trade publications (specialized magazines).

35
Q

Define online content

A

this basically involves gathering information on the internet; where published and unpublished secondary data can be found.

36
Q

What is the problem with online content

A

Of course, there is a lot of up to date information available online and quickly accessed. However, information can be inaccurate and/or biased since anyone can publish online (i.e. Wikipedia)

37
Q

What are the 6 characteristics of primary research

A
  • high cost
  • time - take longer
  • very specific to out needs
  • accurate timely
  • private info
  • examples : Surveys, interviews, polls, focus groups
38
Q

What are 6 qualities of secondary research

A
  • low cost
  • time - its quicker
  • not always specific to our needs
  • might be out dated
  • public info
  • internment, magazine data, government publications
39
Q

What data types of data can primary and secondary use

A
  • qualitative
  • quantitative
40
Q

Define qualitative data

A

refers to collecting, analysing and interpreting data by observing what people do and say, that is: consumer opinions, attitudes or beliefs (i.e. focus groups can be used for this purpose)

41
Q

Define quantitive research

A

refers to the collection, analysis and interpretation of numerical data or data that can be measured (i.e. surveys and Government publications can be use for this research).

42
Q

What are the qualities of qualitative data

A
  • this involves the collection of data about opinions, attitudes or beliefs
  • information is open to a high degree of interpretation
  • it is subjective
  • Key research questions would include “Why?”
  • The researcher is part of the process.
  • It provides multiple realities, i.e. the focus is complex and broad.
43
Q

What are the 6 qualities of quantitative data

A
  • This involves the collection of numerical data or data that can be measured.
  • Information is open to less interpretation.
  • It is objective.
  • Key research questions would include “How many?”
  • The researcher is separate.
  • It provides one reality, i.e. the focus is concise and narrow.
44
Q

What is sampling

A

In reality is very difficult to carry out a survey with the whole population. Hence, researchers use sample of the population. For example, a small group of consumers (sample) could be selected out of a large number of potential buyers (population)

45
Q

What are 3 types of sampling

A
  • quota
  • random
  • convenience
46
Q

Define quota sampling

A

The aim is to obtain a sample that is “representative” of the overall population. The population is divided by the most important variables such as income, age and location. The required quota sample is then drawn from each band (i.e. in a Business course at the university 200 students are taking marketing; the research might take 15 males and 20 females to evaluate their perception of the program).

47
Q

What are some advantages and disadvantages of quota sampling

A

An advantage of quota sampling is that a relatively representatively sample can be obtained quickly. Also, the results are more reliable than picking someone at random. However, since the researcher might be biased on the selection of the sample the results might be affected.

48
Q

Define random sampling

A

This involves giving everyone in the population an equal chance of being selected for the sample. Nowadays, with the use of technology a random sample can be easily selected by a computer (i.e. any 50 people that live in the same postcode).

49
Q

What are some and tangles and disadvantages of random sampling

A

The advantage of a random sample is that it is relatively easy to obtain and since everyone has equal chance of being selected the selection is not biased. However, the sample might be too small or it might not represent the target population required by the researcher.

50
Q

Define convenience sampling

A

in this method the researcher uses individuals that are easy (convenient) to reach. For example, students might use their friends and classmates for a research study.

51
Q

What are some advantages and disadvantages of confidence sampling

A

The easy and quick availability to get individuals for the research is the main advantage. However, since a large proportion of the population is excluded the finding are not representing the entire population and the results might be biased.

52
Q

Why is it important to correctly collect data

A

Market research is not a perfect science so the results from data collection might not be absolutely reliable. Sampling errors occur either because the researcher made a mistake with the gathered information or because the sample was wrongly selected. Therefore, the sampler needs to carefully select the appropriate method for the correct research.Selecting the appropriate data collection instruments and providing clear instructions for their correct use reduces the likelihood of sampling errors occurring.

53
Q

What is the importance of using appropriate data collection methods

A

When conducting market research it is important that the data collection methods business used are appropriate and offer a high degree of accuracy as well as maintain integrity in the research process (ethics!)
Each sampling technique has its own strengths and weaknesses so picking a “correct” one depends as always, on the business.

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