Chapter 11 Market Research Flashcards

1
Q

What is market research

A

Process of gathering, analysing and interpreting information about a market.

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2
Q

What is a product-oriented business

A

Business whose main focus of activity is on the product itself. Develop and produce the product first then find a market for it.

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3
Q

What is a market-oriented business

A

Carries out market research to find out customer wants before a product is developed and produced.

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4
Q

What is the marketing budget

A

Financial plan for the marketing of a product(s) for a specified period of time.

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5
Q

What are the two types of market research

A

Primary market research

Secondary market research

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6
Q

What is primary market research

A

Collection or collation of original data via direct contact with potential or existing customers.

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7
Q

Another name for primary market research

A

field research

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8
Q

What are the primary market research methods

A
Questionnaire
Focus groups
Online surveys
Interviews
Observation
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9
Q

What is the process of primary research

A
Identify the method you want to use
Find sample and sample size
Carry out the primary research method
collect and analyse data
Submit research
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10
Q

What are the two types of data you get when you do market research

A

Quantitative - numerical data

Qualitative - theoretical data

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11
Q

What is a questionnaire (primary)

A

A (usually large) set of questions made by the market research team.

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12
Q

Types of questions in a questionnaire

A

open-ended: subjective questions

close-ended: yes/no questions

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13
Q

Types of questionnaire

A

Face to face, telephone, post

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14
Q

Adv of questionnaires

A

If its face-to-face, you can see the person’s reactions to the questions - if they have doubts, etc

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15
Q

Disadv of questionnaires

A

Time consuming

Could be expensive to conduct

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16
Q

What is an online survey

A

Require the sample to answer a series of questions on the internet.

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17
Q

Adv of online surveys

A

Very cheap
Very quick
Much easier to conduct, collate and analyse info - more convenient
Can reach a larger sample size

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18
Q

Disadv of online surveys

A

There is no interviewer to explain any open-ended questions/ask follow up questions

Can’t reach potential customers who don’t have access to the internet

Quality of answers. People may answer the survey carelessly or dishonestly to gain the incentive that could’ve been offered with the survey.

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19
Q

What is an interview

A

An individual asking a series of questions face-to-face or on the phone.

20
Q

Advantages of an interview

A

Questions are more flexible - can change/be altered on the spot by the individual

Any doubts can be answered by the interviewer

21
Q

Diff between an interview and a ftf questionaire

A

In a questionnaire, the questions can not be changed

In an interview, they can be modified

22
Q

Disadv of interviews

A

Can be very time consuming
Can be expensive
Interview bias - questions could be asked in a certain way that could skew results

23
Q

What is a focus group

A

Group of people who are a representative of the target market . These people agree to provide information through a group discussion with a researcher present.

24
Q

Disadv of a focus group

A

Time consuming
Expensive
Opinions of a few people could skew the opinions of others

25
Adv of a focus group
The group discussion could give a lot of useful information Cheaper than individual interviews
26
What is observation
Trained observers watch customers shop/response to a product
27
Disadv of observation
Can't approach customers - least effective way of primary market research Customers may feel uncomfortable
28
What is a sample
A group of people who are selected to respond to a market research exercise. They are a small % of the population
29
Two types of samples
Random | Quota
30
What is a random sample
Consists of people selected at random
31
What is a quota sample
Participants selected base on a specific characteristics
32
What is secondary market research
Use information that has already been collected or available for use
33
Another name for secondary market research
desk research
34
Difference between primary and secondary market research
Data is not unique
35
Adv of secondary market research
Cheaper Quicker Can be used to access total market by finding the size of population and age structure.
36
Disadv of secondary market research
Data could be out of date Available to all businesses Data may not be completely relevant to the business and its needs
37
Two types of secondary market research
Internal | External
38
What is internal secondary market research
Data from customers that the business already has. (from the business records)
39
Example of internal secondary
buying/spending patterns of customers
40
What is external secondary market research
Information that is obtained from outside of the business
41
Examples of external secondary
Newspapers (could be politically oriented) Internet Social media Publix records
42
Factors that influence the accuracy of the research
The way the questions were phrased Size of the sample How the sample is selected Age of the information
43
How to present research
Table Graph Chart
44
What is a table
record the data in its original form
45
What is a chart
Total figures for each piece of data or the proportion of each piece of data in terms of the total number Eg: pie chart
46
What is a graph
Shows the relationship between two sets of data