ch2 potential qs Flashcards
Identify and explain two advantages of using interviews to research the market.
Using interviews to research the market allows the interviewer to ask several questions and obtain detailed information. Also, face-to-face interviews provide detailed insights from signs such as body language which assist these studies.
a) Explain the process of carrying out primary market research.
b) Identify and explain three reasons for using primary market research
a) The market research process involves several steps which include the following:
- Identify the purpose of the market research.
- Set the objectives.
- Select the right research methods.
- Design the research method.
- Determine the data analysis to use.
- Collect the data, organize it, and analyze the outcome.
- Present the findings, and use the information to meet the objectives.
b) Primary research can be used to collect information about the products that the business sells, customer satisfaction about the company’s product and services, and consumer feedback on newly-launched products.
a) Describe how a business could carry out primary research.
b) Give two advantages of using primary research to a company producing a new flavor pack of chips.
a) A business can carry out primary research by collecting original or first-hand information through direct contact with customers such as interview surveys, questionnaires, etc.
b) The primary research conducted by the chips producer targets a specific purpose which is identifying consumers’ flavour preference by directly gathering information from them to decide on the new flavour accordingly. The producer also determines the exact source of information which allows him to classify it by target market such as age or gender.
[G] Why do businesses use market research?
Market research is used:
- To identify who the consumers are and what prices they are willing to pay.
- To increase the demand for a product.
- To become more competitive.
- To advertise efficiently.
- To develop better products.
- To identify which products are profitable and which prices are consumers willing to pay.
[G] How is primary research different from secondary research?
Primary research is conducted by the business itself and it answers a specific purpose. It is more accurate and specific. It includes quantitative and qualitative data that is genuine.
[G] How does a business benefit from using market research?
It allows to identify potential consumers, know what they prefer, and supply products that allow the firm to better compete in the market and make profit. Through market research, the firm can plan better on the four elements of the marketing mix, especially the price.
[G] What are the benefits and limitations of primary market research?
Benefits: data is up to date and serves a specific purpose
Drawbacks: time consuming and expensive, involves a certain degree of bias and data may not be useful if the employees who are collecting it are inexperienced.
Explain, with the use of examples, the difference between primary and secondary market research.
Primary research is a market research method, such as surveys, that involves gathering original or first-hand information, However, secondary research, such as company reports, involves researching already available information sources
State whether each of the following features describes primary research or secondary research.
a) information prepared for a specific purpose
b) information available right away
c) time-consuming and expensive to collect
d) might be misleading
a) primary research
b) secondary research
c) primary research
d) secondary research
[G] Why might secondary not be as useful as primary data?
Secondary data might not answer a specific purpose and hence could not be used as it will be irrelevant or outdated.
Primary research is more time consuming and more expensive than secondary data. However, it collects first hand data that is more accurate and that serves a specific purpose.
