M Market Research Flashcards
Describe field research
Research that gathers new primary information that does not already exist.
Describe desk research
Research that gather secondary information, information that already exists.
Benefits of desk research
-Quicker and cheaper than field research as the information already exists
Costs of desk research
- The information could be out of date
- The information could show bias
- The information may not be entirely relevant
Methods of conducting desk research
- Newspapers
- Annual accounts
- Government reports
- Internet data
Methods of conducting field research
- Postal survey
- Internet survey
- Face to face interview
- Telephone interview
- Focus groups
- Hall tests
- Observation
Benefits of field research
- The information is entirely relevant
- The information is up to date
Costs of field research
- Information can be costly to gather
- Information can be time consuming to gather
Describe postal survey
Survey is mailed out to people in a wide geographical area and are asked to fill out the survey and post it back to the organisation.
Benefits of postal survey
- Fairly cheap method
- No interviewer so the responses should be unbiased
- A large geographical area can be covered
Costs of postal survey
- The response rate can be slow or low and this will increase the time it takes for recording times.
- If the questions are not well laid out, they can cause misunderstandings which cannot be clarified
Describe internet survey
A survey where people can complete on the internet in their own time and home.
Benefits of internet survey
- Very cheap method
- Can reach people from all over the world
- Very convenient for people to complete so it can expect a larger response rate
- Analysis is easier as the results are automatically recorded and stored online
Costs of internet survey
- Many people ignore ‘pop ups’ and won’t do the survey
- Immediately discounts any respondents who do not use the internet and who prefer more traditional methods (eg not effective for an older demographic)
Describe face to face interview
Interview where random people are asked questions by an interviewer about the brand or a product
Benefits of face to face interview
- The interviewer will be trained to ask open questions that will gather full responses
- The interviewer can ask follow up questions to clarify any misunderstandings
Costs of face to face interview
- The interviewee may feel like they have to speak positively about something as there is an interviewer, so the results could be biased
- Very time consuming and expensive to conduct and also train employees
Describe telephone interview
Where people are phoned and asked to answer questions about the topic
Benefits of telephone interview
- Cheap method
- Can reach people from anywhere
- Follow up questions can be asked to clarify points and makes responses more in depth
Costs of telephone interview
- Many people will not be willing to participate
- Times where respondents can be reached are limited
Describe focus groups
Where a group of consumers are gathered to discuss their opinions on a topic and answer questions asked by an interviewer
Benefits of focus groups
- Only one interviewer is required for multiple people, so fairly cheap
- Information is qualitative, can see their opinions, viewpoints, expressions
Costs of focus groups
- The group of people selected may not represent the overall market
- More vocal group members may influence other members, so doesn’t fully provide everyone’s opinions
Describe Hall Tests
This is when a group of consumers are gathered to a venue then asked to try and give their opinion on a product/service or advertising campaign.
Benefits of hall tests
-A group of consumers are being tested at one time, making the process more cost and time efficient
Costs of hall tests
-Consumers may feel pressured to give positive feedback
Describe observation
This is when the business watches their customers in the shop to see their shopping habits. Eg, how long they take to decide to decide on a product, if promotions are noticeable and effective.
Benefits of observation
- Very cost efficient and a large amount of data can be gathered at once
- Reliable source of information as the consumers don’t know they are being observed, so will behave as they normally do.
Costs of observation
-The consumers cannot be asked follow up questions, so the business may see certain behaviours but not find out why, it may take a long time to find out why
Describe random sampling
Sampling that does not target any market segment and the list of people that is generated is random. Often done using a computer program or a list of people such as a phone book or electoral register.
Benefits of random sampling
- Simple and quick to select
- There is less chance of bias as the people are chosen at random
Costs of random sampling
- Since the selection is random, it may not reflect the target market
- It can be expensive as a large sample is required
Describe quota sampling
A sample that is created to mimic the characteristics of a market. The researcher will only choose people who have the characteristics they want them to have, for example, 16-24 year olds.
Benefits of quota sampling
-Cheaper as less respondents are required
Costs of quota sampling
-It is harder to eliminate bias in the selection process.
Ways a business can use market research information.
- Helps a business make an informed decision when it comes to launching new products (market led)
- It demonstrates that the business is listening to consumers
- It reduces the risk of launching a product
