4.4 Market Research

Question 1

reasons to carry out market research

Answer 1

• identify customers’ needs and wants and understand consumers’ purchasing behaviour
• identifying potential changes in the market (ie consumer spending patterns)
• establishing what consumers like and dislike testing new products
• evaluating existing marketing efforts
• investigating new possibilities in existing or new markets

Question 2

how social enterprises use market research

Answer 2

• they focus on human needs
• they carry out market research to identify which human needs they should address through their work and how well their activities manage to meet the need

Question 3

product-based research

Answer 3

• testing new product –> releasing the product to a specific area for a limited time
• see if it meets needs of target market

Question 4

price-based research

Answer 4

• regularly research market to find out pricing strategies of competitors
• adjust own prices to make sure they are in line with the competition

Question 5

promotion-based research

Answer 5

select which media ttheir target market accesses

(if they select wrong and the target market doesn’t see it = money wasted)

Question 6

place-based research

Answer 6

selecting right distribution channels

Question 7

people-based research

Answer 7

people representing bran are well trained and inform and support customer
- good experience incentivizes repeat selling

customer service

Question 8

process-based research

Answer 8

implementing appropriate process for delivering the service

Question 9

physical evidence-based research

Answer 9

researching sensory and visual experiences of the customer

Question 10

primary market research

Answer 10

• new information gathered by surveys, interviews, observations, focus groups, camera studies etc

Question 11

secondary market research

Answer 11

using evidence (about a market) gathered by others

• ex. academic journals, government publications, media articles, market analyses

Question 12

surveys

Answer 12

primary market research

• qualitative and quantitative data
• email surveys, phone surveys, face-to-face surveys

Question 13

surveys and prices/ responsiveness

Answer 13

fast and affordable: online
middle: telephone
higher response rate: face-to-face

Question 14

interviews

Answer 14

primary market research

• lengthier
• large amount of qualitative data
• follow-up questions
• interviewees usually require financial incentive to take part

Question 15

focus groups

Answer 15

primary market research

• interview with a small group of individuals (with similar characteristics)

Question 16

observations

Answer 16

primary market research

• natrual reactions of customers studied

Question 17

market analyses

Answer 17

secondary market research

• paying a market research agency for new research is more up-to-date, but it is expensive
• less expensive to buy market analysis reports that are already published

Question 18

academic jounals

Answer 18

secondary market research

• articles on new research and academic theory

Question 19

government publications

Answer 19

secondary market research

• up to date and reliable data
• free

Question 20

media articles

Answer 20

secondary market research

• updated regularly
• current local and/or national info

Question 21

other online secondary research content examples

Answer 21

secondary market research

• social media
• company websites
• e-commerce sales data
• investor relations pages

Question 22

five best things to look for in market research

Answer 22

currency
relevance
authority
accuracy
purpose

Question 23

uses of primary research

Answer 23

• direct information about preferences and tastes
• info about reasons for purchase
• unique info = competitive advantage

Question 24

limitations of primary research

Answer 24

• expensive and time-consuming
• training staff to carry it out
• difficult to construct effective questions and experiments

Question 25

uses of secondary research

Answer 25

- lower cost - broader contextual information about whole economy, population and general trends - already available (published)

Question 26

limitations of secondary research

Answer 26

- rely on research methods of others - information that the business wants may not exist - existing info may not fit business's purpose (may be for different issue, subject or target market)

Question 27

quantitative research

Answer 27

collection of numerical data and information that can be counted smaller amount of information from a larger sample size

Question 28

qualitative research

Answer 28

collection of non-numerical data, such as opinions ("why") more information from a smaller sample size

Question 29

sample

Answer 29

subset of individuals from a given population that is used to make some estimation or prediction of the population as a whole

Question 30

population

Answer 30

group of individuals from which a sample is drawn

Question 31

sampling

Answer 31

selecting a subset of individuals from a given population to make an estimation or prediction about the population as a whole

Question 32

sampling mehods

Answer 32

- random sampling - quota sampling - convenience sampling

Question 33

random sampling

Answer 33

everyone in the population has the same chance of being selected to take part in the research

Question 34

quota sampling

Answer 34

dividing the population into strata (layers) based on a given characteristic; proportional sample then taken from each strata

Question 35

advantages of quota sampling

Answer 35

- faster and easier to administer - less expensive than random - population proportions taken into account

Question 36

convenience sampling

Answer 36

sample is made up of whoever is willing to take part in the research

Question 37

pros and cons of convenience sampling

Answer 37

pros: easier, convenient, less expensive cons: doesn't represent population accurately

Question 38

pros and cons of random sampling

Answer 38

pros: more accurate cons: more expensive