Component 1 - Market Research Flashcards
Explain : Market Research is the process of
collecting information and data about […] and […]
- The Potential needs and wants of customers
- The Activities of competitors within the market
Explain : 3 reasons why market research can benefit a business
Businesses can
- Discover the needs and wants of customers
- Understand the level of competition.
- know if market demand is increasing or not
These all can help prevent failure and improve decision making
Explain : Primary and Secondary , With 2 examples for each
Primary Research
- Primary research is the gathering of first hand information ( Questionnaires, Focus groups)
Secondary research
- Secondary Research is the use of existing information (Government research, Existing market data/trends)
Explain : Distinguish between Qualitative and Quantitative data
Qualitative - information that is descriptive, can be interpreted in different ways(opinions).
Quantitative - Information/data that is numerical , Objective conclusions can be made.
Explain : How cost can affect market research decisions.
Cost - different methods have different costs associated with them it is important to consider these and budget.
Explain : How sample size can affect market research decisions.
2) Sample size - Different methods require different sample sizes, its important to consider the size of your target market before undertaking market research.
Explain : How Data quality can affect market research.
Data quality - The quality of the data collected can vary depending on the method used, and it is important to consider the potential for bias or error when selecting a method.
Explain : What is meant by sampling/sample
A sample is a group of consumers within a market who can be used to represent the market as a whole.
Explain : Difference between Random and quota sampling methods
Random Sampling
- Every member of the population has a chance of being selected, avoids bias within data
Quota Sampling
- The population is segmented into different groups which share similar characteristics, greater specific insight into segments.
Explain : The Two Types of Bias in Market Research.
Type of biases
sampling bias - Sampling bias occurs when the sample of people being studied is not representative of the larger population
confirmation bias - the researcher’s expectations or preconceived notions about the study influence the way the data is collected or analysed.
Explain : What is meant by Bias in market research? + why is it important to minimise.
A bias is Skewed information, it is important to mitigate as it can impact the validity and reliability of the research, leading to incorrect decision making.
Evaluate : The use of Market research to a business and its stakeholders
On the one Hand
Market Research can
1)Identify customer needs and preferences helping a business understand the needs and preferences of its customers, which can inform product development, pricing decisions, and marketing strategies.
2)Identify new opportunities: Market research can help a business identify new opportunities for growth, such as untapped market segments or potential new products or services.
on the other hand
1)Sampling errors can be made meaning data may not be representative of the whole market and can lead to incorrect decisions being made
2)Changing market conditions means change can happen rapidly, and the results of market research may not always be applicable in the long term
Evaluate : Quantitative and Qualitative Market research
Quantitative -
on the one hand
1) Useful for understanding patterns and trends in the data and making predictions about the market
2)Allows for analysis of large amounts of data and statistical inferences about the population
on the other hand
1) Can be limited by assumptions made about the research design and potential for bias in the sample, such as —> Sampling error or response error or observer errors.
Evaluate : The use of the different methods of primary and secondary research
Primary Research
on the one hand
1)Data collected is specific to the research question
2)Control over the research design and data collection process
on the other hand
1) Could be costly and time consuming
2) Could be sample errors
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Secondary Research
1) Inexpensive and fast to carry out
2) Broader Range of sources
on the other hand (limitations)
1) Availability and quality of the data may be limited a specific field.
2) it is not specific to the research Question.
Evaluate : The usefulness of sampling for a business + Stakeholders
On the One hand
Cost effectiveness - Sampling is typically less expensive than conducting a full-scale survey of the entire population,
Time efficient - Sampling allows researchers to gather data more quickly than if they were to survey the entire population.
On the other hand
Sampling errors can cause bad decisions to be made
