6C : market research

Question 1

what is market research ?

Answer 1

Market research is the process of collecting and analyzing information about a product
or service.

Question 2

why do companies do market research ?

Answer 2

• to check if customer loyalty is being maintained
• when entering a new market with a new product

Question 3

why is market research important ?

Answer 3

• market research reduces risk
• helps businesses make decision weather or to launch a new product

Question 4

what does market research help decide ?

Answer 4

• do consumers want the product ?

*what price is the customer ready to pay

*what design features will be appealing

Question 5

why is market research valuable ?

Answer 5

• better communication between businesses and customers
• helps identify opportunities and the amount of competition

Question 6

mention the issues involved in selecting the most appropriate method of research

Answer 6

• accuracy : using primary research can lead to more reliable and less biased results than secondary market research
• time : may need to complete market research quickly before competitors
• cost : primary market research is usually more expensive than secondary

Question 7

what are the types of data ?

Answer 7

• primary data
  
  • qualitative data
  • quantitative data
• secondary data

Question 8

what is primary data ?

Answer 8

first hand information based on raw data . gathered data meets specific needs however very costly e.g. surveys , interviews

Question 9

what is secondary data ?

Answer 9

second hand information already collected for another purpose. does not always reach the specific needs of a business e.g. internet, newspapers

Question 10

what is quantitative data ?

Answer 10

collecting data that can be measured e.g. sales figures , market share

Question 11

what is qualitative data ?

Answer 11

collecting data on attitudes , beliefs & intentions

Question 12

what are some methods of field research
(primary data) ?

Answer 12

• observation : watching peoples reactions to adverts

*focus groups : groups discuss feelings about product or market

• online survey : method of asking questions to customers about product through website

*face to face surveys : personal interviews conducted face to face

Question 13

what are the advantages and disadvantages of primary research ?

Answer 13

ad:
*information on consumer views is up to date
* question can be tailored to the individual need of business

dis:

• usually very expensive
• risk of bias
• sample size to small

Question 14

what are some methods of desk research (secondary data) ?

Answer 14

• government statistics : available to all businesses
• commercial reports : market research reports available to hundreds of customer products or service
• businesses own data : e.g. sales figures and number of customers visiting a business
• competitors data : e.g. publically available sales and profit figures

Question 15

what are some advantages and disadvantages of secondary data ?

Answer 15

AD :
* cheap and to collect

DIS :
* not specific to the needs of a business
* could be out of date and inaccurate
* could be biased

Question 16

what are the benefits of market research ?

Answer 16

• reduces risk
• helps decision making
• identifies threats & opportunities

Question 17

what are the problems of market research ?

Answer 17

• product may still fail
• to expensive to collect
• there maybe bias

Question 18

define bias

Answer 18

something that may cause data within a sample to be weighted towards one side