4a-market research Flashcards
Q: What is market research?
A: Market research is the process of gathering, analyzing, and interpreting information about consumers, competitors, and the market.
Q: Why is market research important?
A:
Identifies customer needs and preferences.
Reduces business risks before launching new products.
Helps businesses understand market trends.
Improves marketing strategies and decision-making.
Q: What are the two main types of market research?
A:
Primary Research (Field Research) – First-hand data collection.
Secondary Research (Desk Research) – Using existing data.
Q: What are examples of primary research methods?
A:
Surveys & Questionnaires – Direct customer feedback.
Interviews – Detailed insights from customers or industry experts.
Focus Groups – Small groups discussing opinions on a product/service.
Observations – Watching consumer behavior.
Test Marketing (Product Trials) – Testing products before full launch.
Advantages of Primary Research:
Provides current, specific data.
Directly related to the business’s needs.
Disadvantages of Primary Research:
Time-consuming and expensive.
May have limited sample size, reducing accuracy.
Q: What are examples of secondary research sources?
A:
Government Reports – Economic trends, demographics.
Market Research Reports – From agencies like Mintel, Nielsen.
Competitor Information – Websites, annual reports.
Industry Publications & News Reports – Market trends and updates.
Advantages of Secondary Research:
Cheaper and quicker than primary research.
Covers wider market trends.
Disadvantages of Secondary Research:
Data may be outdated or not specific.
Possible bias or inaccuracy in data sources.
Q: What is the difference between quantitative and qualitative research?
A:
Quantitative Research – Collects numerical data (e.g., sales figures, customer ratings).
Qualitative Research – Collects opinions, emotions, and motivations.
Q: Why are both types important?
A:
Quantitative helps with measurable data and trend analysis.
Qualitative helps businesses understand consumer behavior.
Q: What are the main sampling methods?
Random sampling
Random Sampling: Everyone has an equal chance of selection.
Advantage: Reduces bias.
Disadvantage: May not be representative of the market.
Q: What are the main sampling methods?
Quota sampling
Quota Sampling: Selecting participants based on characteristics (e.g., age, gender).
Advantage: Ensures diversity.
Disadvantage: May still have some bias.
Q: What are the main sampling methods?
Statified sampling
Stratified Sampling: Dividing the population into groups and selecting a sample from each.
Advantage: More accurate than random sampling.
Disadvantage: Time-consuming.
Q: How can businesses ensure market research is reliable?
A:
Use large, representative sample sizes.
Combine primary and secondary research.
Avoid leading questions in surveys.
Use multiple data sources.
Q: What are the limitations of market research?
A:
Can be expensive for small businesses.
Consumer behavior changes, making data less accurate over time.
Sampling errors can affect reliability.
Competitor influence – Businesses may not always share full data.
