chapter 11 Flashcards

1
Q

define product orientated business

A

businesses that produce the product first and then tries to find a market for it

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2
Q

define market orientated business

A

businesses that conduct market research to see what consumers want and then produce goods and services to satisfy them

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3
Q

define market research

A

process of gathering, analyzing, and interpreting information about a market

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4
Q

why is market research important?

A

1.helps business identify customer taste and preferences->reduces the risk of failure when developing and launching a new product
2.helps business identify the main competitors->business knows the strengths and weaknesses of other competitors, so new product can have a competitive advantage
3.discover the current and future market size->helps business identify future growth opportunities

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5
Q

types of market research

A

1.primary research
2.secondary research

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6
Q

advantages of primary research

A

1.data is up to date
2.specific
3.not available for other businesses-competitive advantage

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7
Q

disadvantages of primary research

A

1.expensive
2.time consuming
3.contain bias

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8
Q

advantages of secondary research

A

1.cheap
2.easy to obtain

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9
Q

disadvantages of secondary research

A

1.not up to date
2.not specific

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10
Q

define primary research

A

collection of original data via direct contact with customers

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11
Q

types of primary research

A

1.qualitative research
2.quantitative research

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12
Q

define qualitative research

A

collecting information about consumer buying behaviour

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13
Q

define quantitative research

A

collection of numerical data that can be analyzed using statistical techniques

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14
Q

methods of primary research

A

1.questionnaires
2.interviews
3.focus groups
4.observation

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15
Q

advantages of questionnaires

A

1.detailed information can be gathered
2.can be carried out online->cheap

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16
Q

disadvantages of questionnaires

A

1.questions can be misleading
2.time consuming to design and carry out and analyze the results
3.can be expensive to design and carry out

17
Q

advantages of interviews

A

1.interviewer can explain any questions that the interviewee doesn’t understand->accurate answers->accurate data and market research
2.can gather detailed information

18
Q

disadvantages of interviews

A

1.the interviewer can influence the interviewee into answering in a certain way->inaccurate results, as interviewer bias
2.very time-consuming and expensive to carry out

19
Q

define focus groups

A

group of people who are representatives of the target market

20
Q

advantages of focus groups

A

1.provide detailed and specific information

21
Q

disadvantages of focus group

A

1.time consuming and expensive
2.can include bias if consumer is influenced by the opinion of others

22
Q

methods of observation are

A

1.recording
2.watching
3.audits

23
Q

advantages of observation

A

inexpensive

24
Q

disadvantages of observation

A

1.information gives basic figures,Does not tell the firm why consumer buys them.
2.requires observers that are well trained to analyze consumer behavior

25
define samples
group of people who are selected to respond to a market research exercise
26
types of sampling
1.random sampling 2.quota sampling
27
what is random sampling
when people are selected randomly as a source of information for market research
28
what is quota sampling
when people are selected based on certain characteristics as a source of information for market research
29
reasons for sampling
1.very time consuming and inapplicable to ask the whole population- so a sample should be chosen 2.very costly to conduct market research with the whole population
30
what is secondary research
information that has already been collected and is available for use by others
31
internal sources of information
1.Opinions of distributors 2.Finance department 3.Customer Services department
32
external sources of information
1.internet 2.government statistics 3.newspaper and magazines 4.market research agencies
33
reasons for market research data inaccuracy
1.sample chosen may be too small or not representative of the population 2.wrong type of method to collect data 3.people attending to market research exercise may not answer truthfully 4.interviewer bias 5.data maybe recorded incorrectly 6.secondary data may be out of date or collected for other purposes
34
define primary research
collecting original data via direct contact with customers