chapter 17- market research

Question 1

define market research

Answer 1

collecting, recording and analyzing data about consumers, competitors and the whole market

Question 2

what’s the difference between primary and secondary research

Answer 2

primary- first hand, directly related to the firm

secondary- second hand sources

Question 3

what’s the difference between qualitative and quantitative research

Answer 3

qualitative- in-depth motivations behind consumer buying behavior or opinions
quantitative- numerical results that can be statistically analyzed

Question 4

define focus groups

Answer 4

group of people who are asked about their attitude towards a product or something about it

Question 5

define sample

Answer 5

the group of people taking part in a market research survey selected to be representative of the overall target market

Question 6

define random sampling

Answer 6

every member of the target population has an equal chance of being selected

Question 7

define systematic sampling

Answer 7

event nth item in the target population is selected

Question 8

define stratified sampling

Answer 8

this draws a sample from a specified sub-group or segment of the appropriate population that uses random sampling to select an appropriate number from the stratum eg. 20% of people that are ages 2-30 are interviewed

Question 9

define quota sampling

Answer 9

when the population has been stratified and the interviewer selects an appropriate number of respondents from each stratum

Question 10

define cluster sampling

Answer 10

using one or a number of specific groups to draw samples from and not selecting from the whole population eg, using one town or region

Question 11

define arithmetic mean

Answer 11

calculated by totaling all the results and dividing by the number of results

Question 12

define mode

Answer 12

the value that occurs most frequently in a set of data

Question 13

define median

Answer 13

the value of the middle item when data have been ordered or ranked it divides the data into two equal parts

Question 14

define range

Answer 14

the difference between the highest and lowest value

Question 15

define inter-quartile range

Answer 15

the range of the middle 50% of the data

Question 16

give 3 example of secondary sources of data

Answer 16

government publications, local libraries and government offices, trade organizations, market intelligence reports, newspaper reports and specialist publications, internal company records, internet

Question 17

give 1 advantage and disadvantage of both secondary and primary research

Answer 17

secondary advantage- often quick
secondary disadvantage- can be out of date and not directly for the business
primary advantage- up to date, relevant
primary disadvantage- time consuming

Question 18

what are and give an example of 2 forms of primary research bias

Answer 18

sampling bias (larger sample group is more accurate), questionnaire bias (some questions can lead the people to one answer)