chapter 11 Flashcards
define product orientated business
businesses that produce the product first and then tries to find a market for it
define market orientated business
businesses that conduct market research to see what consumers want and then produce goods and services to satisfy them
define market research
process of gathering, analyzing, and interpreting information about a market
why is market research important?
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
types of market research
1.primary research
2.secondary research
advantages of primary research
1.data is up to date
2.specific
3.not available for other businesses-competitive advantage
disadvantages of primary research
1.expensive
2.time consuming
3.contain bias
advantages of secondary research
1.cheap
2.easy to obtain
disadvantages of secondary research
1.not up to date
2.not specific
define primary research
collection of original data via direct contact with customers
types of primary research
1.qualitative research
2.quantitative research
define qualitative research
collecting information about consumer buying behaviour
define quantitative research
collection of numerical data that can be analyzed using statistical techniques
methods of primary research
1.questionnaires
2.interviews
3.focus groups
4.observation
advantages of questionnaires
1.detailed information can be gathered
2.can be carried out online->cheap