lecture3-market_research Flashcards
Why is market research important?
It provides insights and predictions on consumer reactions to company decisions.
What can market research reveal about a product?
It can reveal which attributes the product is missing or which attribute levels should be changed.
What are the four steps in the market research process?
- Define research problem 2. Collect data 3. Analyze data 4. Ask: is our research any ‘good’?
What types of research problems can be addressed in marketing?
- Forecast trends? * Advertise? * Study competition? * Change prices? * Improve product features?
What is primary data?
Data specifically collected for the research project.
What are examples of secondary data?
- Transaction data * Browsing/clickstream data * User Generated Content * Government or 3rd party data
What are the advantages of primary data?
- Can study specific issues * Can be low cost or free * More specific results than secondary data
What are the disadvantages of primary data?
- Expensive * Time-consuming * Potential biases
What are the advantages of secondary data?
- Abundant and easily available * More representative of market behavior
What are the disadvantages of secondary data?
- Not customized to your needs * Does not allow many/any what-if scenarios
What methods can be used to collect data?
- Ask consumers (surveys, focus groups) * Observe consumer behavior
What is the difference between unaided and aided questions?
Unaided questions require respondents to recall information without prompts, while aided questions provide options.
What is a focus group?
Informal sessions of 6 to 10 consumers discussing a firm’s products and competitors.
What is a challenge when asking consumers for data?
Promoting honest responses and ensuring anonymity.
What is reliability in research?
The consistency of results across different instances.
What is generalizability in research?
The extent to which results can be applied to the larger population.
What is validity in research?
The accuracy of the method in measuring what it intends to measure.
What is a confound in research?
A variable that can hide the true causal relationship between the variables being studied.
What is the purpose of an experiment in determining causal effects?
To compare outcomes between a treatment group and a control group to assess the impact of a treatment.
What are the two types of experiments mentioned?
- Laboratory Experiments * Field Experiments
Fill in the blank: Primary data are specifically collected for the _______.
[research project]
True or False: Secondary data allows for many what-if scenarios.
False
What is conjoint analysis?
A method to show consumers different product profiles and analyze their preferences.
What is the purpose of regression in market research?
To determine consumer attribute weights from their choices.
