Chp 11 Market Research

Question 1

Market research

Answer 1

• The process of gathering, analysing and interpreting information on the market.
• It is important for the business to perform market research so that thy don’t wast money producing the wrong type of product for the wrong market

Question 2

Product orientated business

Answer 2

• Main focus of activity is the product itself
• Produce the product first then find a market for it

Question 3

Market orientated business

Answer 3

Market research is done before the product is manufactured
Business wants to find out the consumers needs and wants first
They have a marketing budget

Question 4

Why do market research

Answer 4

1 To reduce risk with new product launches
2 To predict future changes in the market
3 Explain patterns in sales of existing products
4 Asses the most favoured designs, flavours, promotion style

Question 5

What is Primary research?

Answer 5

Is the collection of ORIGINAL data via direct contact with the customer

Question 6

ADVANTAGES of Primary research

Answer 6

1 It is up to date and relevant to the business
2 The research is done by those who want it , it is planned
3 effective for business with specific problems
4 Competitors do not have access to information

Question 7

DISADVANTAGES of primary research

Answer 7

1 Can be expansive
2 Time

Question 8

Process of primary research

Answer 8

1 Purpose
2 Decide on method
3 Size of sample
4 Go do the research
5 Collect data and results
6 Produce a report

Question 9

ADVANTAGES of Questionners

Answer 9

1 Qualitative info can be produced
2 You can get the customers opinions
3 They can be done online
4 To encourage customers to answer, vouchers can be offered

Question 10

DISADVANTAGES of Questioners

Answer 10

1 Answers can be inaccurate
2 Tim and money
3 Takes time to collect all data

Question 11

ADVANTAGES of online surveys

Answer 11

1 Fast, quick response time
2 Cheaper
3 easy for customers to complete
4 data can be quickly collected and displayed on a graph

Question 12

DISADVANTAGES of Online surveys

Answer 12

1 Can’t explain open Qs
2 Not everyone has access to internet
3 People may answer carelessly

Question 13

ADVANTAGES of Interviews

Answer 13

1 Interviewer is able to explain any questions that the interviewee does not understand
2 Detailed information

Question 14

DISADVANTAGES of Interviews

Answer 14

1 time and money
2 The interviewer may be bias and influence answers, leading to in accurate data

Question 15

ADVANTAGES of focus groups

Answer 15

1 Detailed data
2 Interaction between customers can show their reasons for their opinions
3 Cheaper and quicker than individual interviews

Question 16

DISADVANTAGES of focus groups

Answer 16

1 Time and money if a specialist agency is used
2 Biased discussion from group
3 Some people may dominate

Question 17

Define Sample

Answer 17

Is the group of people selected to respond to market research

Question 18

Random sample

Answer 18

People are selected at random as a source of information on the market

Question 19

Quota sample

Answer 19

People are selected based on certain characteristics such as age, gender or income as a source of market research