4.4 - Market Research

Question 1

what is market research

Answer 1

the process of gathering, processing and analysing any data that is relevant to the marketing process of a business

Question 2

pros/cons of market research

Answer 2

pros
* product more likely to sell - higher profits and brand loyalty
* can contributebetter brand image
* better understanding of consumers and their behaviours
* improving product

cons
* may be incorrect
* market changes all the time
* high costs
* time consuming

Question 3

what is primary research

Answer 3

the collection of first-hand evidence and data

Question 4

examples of primary data collection in business

Answer 4

• surveys
• interviews
• focus groups
• observation

Question 5

what is a survey

Answer 5

a document where respondents fill out a variety of questions
* most commonly used
* can collect qualitative and quantitative data

Question 6

survey pros/cons

Answer 6

pros
* can collect a large number of responses at once

cons
* often a low response rate
* indviduals may not be honest
* limited options
* no follow up questions may be asked

Question 7

what are interviews

Answer 7

when individuals or a group of individuals are verbally asked a set of questions

• an interviewer asks questions to an interviewee/respondent

Question 8

pros/cons interview as a form of primary research

Answer 8

pros
* can ask follow up questions
* can read body language (if video)
* open ended
* easier to ask complex questions

cons
* may say what you want to hear
* may take time to organise

Question 9

what are focus groups

Answer 9

small and interactive discussions between groups of people
* a detailed discussion of an issue

Question 10

pros/cons of focus groups

Answer 10

pros
* can get a wider range of perspectives and information than an interview

cons
* interviewees may just join the bandwagon - may be dominated by one speaker
* time consuming
* may require insentives for people to join

Question 11

observations definition

Answer 11

when market researchers watch, record and assess aspects of consumer behaviour

Question 12

observations pros/cons

Answer 12

pros
* can see how consumers really act

cons
* ethical?
* time consuming
* limited information

Question 13

what is secondary research

Answer 13

data and information has been pre-collected and is available for use

Question 14

examples of secondary data

Answer 14

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

Question 15

pros/cons of secondary data

Answer 15

pros
* takes less time
* costs less money

cons
* other companies have used same data - other businesses may have advantages if seen first
* may be outdated or incorrect

Question 16

what is market analysis as a form of secondary research

Answer 16

a report that offers details and an assessment of a given market

eg. market growth, future trends and key brands of the market

Question 17

what is an academic journal in terms of a form of secondary research?

and what is a pro

Answer 17

articles which are published by scholars and experts

likely to be very reliable and based on data

Question 18

what are government publications in terms of secondary research

Answer 18

articles published by the government

• likely to be free of charge

Question 19

what are media articles in terms of secondary research

what is a con?

Answer 19

articles and documents published on social media

• may be biased

Question 20

what is online content in terms of secondary research

what is a con?

Answer 20

articles published on the internet

• information may be inaccurate as it is not necessarily checked

Question 21

what is quantitative data

Answer 21

data and information that is based on numbers, numerical

Question 22

what is qualitative data

Answer 22

data or information that is not based on numbers, rather on thoughts and opinions

Question 23

what is sampling

Answer 23

identifying a group of people that are representative of the whole population to collect data and information

Question 24

what are the sampling techniques?

Answer 24

• random sampling
• convenience sampling
• quota sampling

Question 25

what is random sampling

Answer 25

when a sample is created randomly by choosing random people * each member of a target population have an equal chance of getting chosen

Question 26

pros/cons of random sampling

Answer 26

pros * quick and easy to set up * little bias cons * must have an up to date and accurate list of the population

Question 27

what is convenience sampling

Answer 27

identifying respondents because they are easy to ask

Question 28

convinience sampling pros/cons

Answer 28

pros * makes it quick and convenient cons * bias - volunteer bias * sample may not represent the population

Question 29

what is quota sampling

Answer 29

respondents are chosen in proportion to the overall population

Question 30

pros/cons of quota sampling

Answer 30

pros * quicker and easier to complete - quick to organise cons * not random - may not be representative

Question 31

customer/consumer

Answer 31

customer and consumer both buy the product but consumer actually uses/consumes it in comparison to a customer who may resell

Question 32

validity/reliability in terms of market research

Answer 32

validity: * how accurate findings are reliability * how likely the same results are to come up is research is conducted again