Chapter 12- understanding the consumer Flashcards

1
Q

Market research

A

The process of gathering data in order to understand current and future customer needs and the nature of the market place. This reduces risks in developing a new business idea

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2
Q

Primary market research

A

Is obtained first hand by the business that’s interested in the results. It involves field work and can be directly related to the needs of the individual business.

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3
Q

Secondary market research

A

Also known as desk research. Uses data that has been gathered previously by another organisation

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4
Q

Quantitative market research

A

Market research conducted where the results are numerical and can be analysed statistically

  • generally collected from large samples and easy to analyse
  • methods include questionnaires
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5
Q

Qualitative market research

A

Market research to examine options and feelings

  • often more useful than quantitive but is more difficult to collect and analyse
  • methods include focus groups and indepth interviews
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6
Q

What is the purpose of market research?

A

To ensure the upfront costs and expenses have minimal risk, to ensure the product will be profitable in the long run and help firms make marketing decisions

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7
Q

Primary research benefits

A

Directly relevant to the business

Up to date data obtained

Competitors don’t have access

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8
Q

Primary research drawbacks

A

Time consuming

Expensive

Sample can be misleading if sample size is too small, questions unclear or bias interviewer

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9
Q

Secondary research benefits

A

Quick and easy to collect

A wide range of data available

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10
Q

Drawbacks of secondary research

A

Data may not be reliable or up to date

May not be totally relevant

May not be in the form that is easily interpreted and analysed

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