4.4 Market Research Flashcards
Market research
process of collecting, analysing and reporting data related to a particular market
Purpose of market research
- identify consumer needs and wants
- understand consumer satisfaction levels
- understand consumer patterns in purchasing behavior
- predicting what is likely to happen in the future
- reduce risk of product failure
- measure the effectiveness of a marketing strategy
- provide latest information on activities happening in the market
Market research methods
- primary
- secondary
Primary research
collection of first-hand information from the market
Primary market research methods
- surveys
- interviews
- observation
Surveys
questionnaires sent out to a particular target audience by mail, telephone, or online
Advantages of surveys
- enable researchers to collect a large amount of data in short time
- if designed well they can be easily completed by respondents
- collect information on a wide rabge if aspects (attitudes, preferences, opinions)
Disadvantages of surveys
- those that are poorly constructed can undermine well-intended research
- answers provided may not be an accurate reflection of how they feel
- answers could be biased
- large samples can be costly and take a long time to adminster
Interviews
conversation during which the interviewer asks the interviewee question, can be conducted one on one, face to face or online
Advantages of interviews
- provide detailed information about the opinion of consumers
- achieve a high response rate because of one on one attention
- precise wording can be tailored to the respondent and the meaning of questions clarified during the interview process
Disadvantages of interviews
- process is time consuming involving setting it up, carrying it out, analysing responses, gathering feedback and reporting
- some interviewers may be biased influencing interviewees responses
Focus groups
small numeber of people brought together to discuss a specific product or idea, representative of the customers of the business or a specific segment
Advantages of focus groups
- cheap and easy
- used to measure customer’s reaction to a new product o strategy
- help identify key product requirements
- provide insights on current position of the firm’s competitors in the mind of the customer
Disadvantages of focus groups
- opinion of small number of individuals may not reflect information about the entire market
- some members may not be honest when their opinion is different from the rest
- costly to set
Observation
carefully watching and trying to understand certain things or people’s behaviour
Advantages of observation
- direct method of collecting data studying human behaviour
- the researcher can see exactly how people behave in a specific situation
- large number of individuals can be surveyed in a short space of time
- cost-effective
Disadvantages of observation
- complete answers cannot be taken
- need to combine with other methods
Secondary research
collection of second-hand information from the market
Secondary market research methods
- academic journals
- media articles
- market analyses
- online content
Academic research journals
publications of scholarly articles written by experts
Advantages of academic research journals
- increased relaibility of information
- include reports, reviews and topic specific information, good sources
- take less time to publish than books
Disadvantages of academic research journals
- contain information of specific academic interest, not best source for general-interest topics
- peer-review process can be time consuming
Media articles
test written and submitted for publication in newspapers or magazines
Advantages of media articles
- newspaper is cheaper than television
- serious newspaper articles have been well researched, reliable and accurate
- widely available
Disadvantages of media articles
- difficult to communicate events in real time, may be out of date
- can be biased
- newspaper is considered waste of paper
- online magazines are considered unreliable sometimes
Government publications
documents produced by the government that provide official recor of government activities and cover a wide variety o topics
Advantages of government publications
- provide details about any changes in government policy or governance in a country
- provide information that would only be undertaken by the government, like census
- useful statistical information on activities like education, trade, social trends
- up to date information
Disadvantages of government publications
difficult to gain access to
Market analyses
commercial publications or market intelligence reports that gather data about particular markets, carried out by specialist market research agents
Advantages of market analysis
information provided is usually accurate and recent as it is carried out by specialists research agents
Disadvantages of market analysis
obtaining information this way can be costly as some organizations charge a lot for this service
Online content
gathering information from the internet or websites
Advantages of online content
- up to date news and information about current events, trends, interesting topics
- information provided quickly
- easy access
Disadvantages of online content
- could be inaccurate or biased, even outdated
- limited amount of scholarly research is opently available on the internet
Qualitative research
collection, analysis, and interpretation of data about consumer opinions, attitudes and beliefs. subjective. “why?”
Quantitative research
the collection analysis and interpretation of numerical datta or data that can be measured. objective. “how many?”
Sample
group of people selected to represent the population or target market under research
Sampling
process of selecting an appropiate sample
Sampling methods
- quota sampling
- random sampling
- convenience sampling
Quota sampling
segmenting a population into a number of groups that share characteristics like age or gender
Advantages of quota sampling
- quick and cost effective
- more reliable than random sampling
Disadvantages of quota sampling
- not always statistically representative of the population
- statistical errors
- interviewer may be biased and choose those interviewees that will most likely cooperate
Random sampling
every member in the population has an equal chance of being selected as part of the sample
Advantages of random sampling
- reduces bias as everyone has an equal chance to be selected
- relatively easy way to obtaining a sample
Disadvantages of random sampling
- sample chosen may be too small
- may not consist of the target population
- larger sample may have to be selected
Convenience sampling
research groups are selected based on their easy access and proximity to the researcher
Advantages of convenience sampling
fast, easy and cheap method as the groups are readily available
Disadvantages of convenience sampling
sample may be biased and not representative of the entire population
Benefits of properly collected data
- ability of the research to accurately answer the research questions posed
- the ability to repeat and validate a particular study where needed
- increased accuracy of findings resulting in an efficient use of resources
- good opportunities for other reseachers to pursue areas needing further investigation
