Chapter 11 Market Research Flashcards
What is market research
Process of gathering, analysing and interpreting information about a market.
What is a product-oriented business
Business whose main focus of activity is on the product itself. Develop and produce the product first then find a market for it.
What is a market-oriented business
Carries out market research to find out customer wants before a product is developed and produced.
What is the marketing budget
Financial plan for the marketing of a product(s) for a specified period of time.
What are the two types of market research
Primary market research
Secondary market research
What is primary market research
Collection or collation of original data via direct contact with potential or existing customers.
Another name for primary market research
field research
What are the primary market research methods
Questionnaire Focus groups Online surveys Interviews Observation
What is the process of primary research
Identify the method you want to use Find sample and sample size Carry out the primary research method collect and analyse data Submit research
What are the two types of data you get when you do market research
Quantitative - numerical data
Qualitative - theoretical data
What is a questionnaire (primary)
A (usually large) set of questions made by the market research team.
Types of questions in a questionnaire
open-ended: subjective questions
close-ended: yes/no questions
Types of questionnaire
Face to face, telephone, post
Adv of questionnaires
If its face-to-face, you can see the person’s reactions to the questions - if they have doubts, etc
Disadv of questionnaires
Time consuming
Could be expensive to conduct
What is an online survey
Require the sample to answer a series of questions on the internet.
Adv of online surveys
Very cheap
Very quick
Much easier to conduct, collate and analyse info - more convenient
Can reach a larger sample size
Disadv of online surveys
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.
What is an interview
An individual asking a series of questions face-to-face or on the phone.
Advantages of an interview
Questions are more flexible - can change/be altered on the spot by the individual
Any doubts can be answered by the interviewer
Diff between an interview and a ftf questionaire
In a questionnaire, the questions can not be changed
In an interview, they can be modified
Disadv of interviews
Can be very time consuming
Can be expensive
Interview bias - questions could be asked in a certain way that could skew results
What is a focus group
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.
Disadv of a focus group
Time consuming
Expensive
Opinions of a few people could skew the opinions of others
Adv of a focus group
The group discussion could give a lot of useful information
Cheaper than individual interviews
What is observation
Trained observers watch customers shop/response to a product
Disadv of observation
Can’t approach customers - least effective way of primary market research
Customers may feel uncomfortable
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
Two types of samples
Random
Quota
What is a random sample
Consists of people selected at random
What is a quota sample
Participants selected base on a specific characteristics
What is secondary market research
Use information that has already been collected or available for use
Another name for secondary market research
desk research
Difference between primary and secondary market research
Data is not unique
Adv of secondary market research
Cheaper
Quicker
Can be used to access total market by finding the size of population and age structure.
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
Two types of secondary market research
Internal
External
What is internal secondary market research
Data from customers that the business already has. (from the business records)
Example of internal secondary
buying/spending patterns of customers
What is external secondary market research
Information that is obtained from outside of the business
Examples of external secondary
Newspapers (could be politically oriented)
Internet
Social media
Publix records
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
How to present research
Table
Graph
Chart
What is a table
record the data in its original form
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
What is a graph
Shows the relationship between two sets of data
