Chapter 18: Market Research

Question 1

Define market research

Answer 1

Market research: this is the process of collecting, recording and analysing data about customers, competitors and the market.

Question 2

Define primary research

Answer 2

Primary research: the collection of first-hand data that is directly related to a firm’s needs.

Question 3

Define secondary research

Answer 3

Secondary research: collection of data from second- hand sources.

Question 4

Define qualitative research

Answer 4

Qualitative research: research into the in-depth motivations behind consumer buying behavior or opinions.

Question 5

Define quantitative research

Answer 5

Quantitative research: research that leads to numerical results that can be statistically analysed.

Question 6

Define focus groups

Answer 6

Focus groups: a group of people who are asked about their attitude towards a product, service, advertisement or new style of packaging.

Question 7

Define sample

Answer 7

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

Question 8

Define random sampling

Answer 8

Random sampling: every member of the target population has an equal chance of being selected.

Question 9

Define systematic sampling

Answer 9

Systematic sampling: every nth item in the target population is selected

Question 10

Define stratified sampling

Answer 10

Stratified sampling: this draws a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum.

Question 11

Define quota sampling

Answer 11

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

Question 12

Define Cluster sampling

Answer 12

Cluster sampling: using one or-a number of specific groups to draw samples from and not selecting from the whole population, e.g. using one town or region

Question 13

Define open questions

Answer 13

Open questions: those that invite a wide-ranging or imaginative response – the results will be difficult to collate and present numerically.

Question 14

Define closed questions

Answer 14

Closed questions: questions to which a limited number of pre-set answers is offered.

Question 15

Define mean

Answer 15

mean: calculated by totalling all the results and dividing by the number of results

Question 16

Define median

Answer 16

Median: the value of the middle item when data have been ordered or ranked. It divides the data into two equal parts.

Question 17

Define mode

Answer 17

Mode: the value that occurs most frequently in a set of data.

Question 18

Define range

Answer 18

Range: the difference between the highest and lowest value.

Question 19

Define inter-quartile range

Answer 19

Inter-quartilerange: the range of the middle 50% of the data