CHAPTER 4 - Market research

Question 1

What is market research

Answer 1

Market research is the process of collecting information and data about a business’s customers, the market place and the activities of competitors within that marketplace.

Question 2

Objectives of market research

Answer 2

• Discover the needs of customers
• Understand the structure of the market
• Discover whether or not market demand is increasing,
• Establish at what stage is the product in its life cycle
• Test consumer response to new products or services.
• Assess the effectiveness of previous promotion campaigns

Question 3

Primary research

Answer 3

primary research gathers first-hand information

questionnaires, focus groups, consumer panels

Question 4

secondary research

Answer 4

use of previously collected information.

Official publications , industry magazines, yellow pages

Question 5

Quantitative research

Answer 5

based on facts and figures.

closed questions, graphs/charts, surveys

Question 6

Qualitative research

Answer 6

gathers opinions and views

focus groups, interviews, open questions

Question 7

Random sampling

Answer 7

every member of the population has an equal chance of being interviewed.

drawn from local electoral registers and interviewees are contacted at home. - must call 3 times before giving up

Question 8

Quota sampling

Answer 8

the population is segmented into a number of groups which share specific characteristics.

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