M Market Research

Question 1

Describe field research

Answer 1

Research that gathers new primary information that does not already exist.

Question 2

Describe desk research

Answer 2

Research that gather secondary information, information that already exists.

Question 3

Benefits of desk research

Answer 3

-Quicker and cheaper than field research as the information already exists

Question 4

Costs of desk research

Answer 4

• The information could be out of date
• The information could show bias
• The information may not be entirely relevant

Question 5

Methods of conducting desk research

Answer 5

• Newspapers
• Annual accounts
• Government reports
• Internet data

Question 6

Methods of conducting field research

Answer 6

• Postal survey
• Internet survey
• Face to face interview
• Telephone interview
• Focus groups
• Hall tests
• Observation

Question 7

Benefits of field research

Answer 7

• The information is entirely relevant

- The information is up to date

Question 8

Costs of field research

Answer 8

• Information can be costly to gather

- Information can be time consuming to gather

Question 9

Describe postal survey

Answer 9

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.

Question 10

Benefits of postal survey

Answer 10

• Fairly cheap method
• No interviewer so the responses should be unbiased
• A large geographical area can be covered

Question 11

Costs of postal survey

Answer 11

• 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

Question 12

Describe internet survey

Answer 12

A survey where people can complete on the internet in their own time and home.

Question 13

Benefits of internet survey

Answer 13

• 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

Question 14

Costs of internet survey

Answer 14

• 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)

Question 15

Describe face to face interview

Answer 15

Interview where random people are asked questions by an interviewer about the brand or a product

Question 16

Benefits of face to face interview

Answer 16

• 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

Question 17

Costs of face to face interview

Answer 17

• 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

Question 18

Describe telephone interview

Answer 18

Where people are phoned and asked to answer questions about the topic

Question 19

Benefits of telephone interview

Answer 19

• Cheap method
• Can reach people from anywhere
• Follow up questions can be asked to clarify points and makes responses more in depth

Question 20

Costs of telephone interview

Answer 20

• Many people will not be willing to participate

- Times where respondents can be reached are limited

Question 21

Describe focus groups

Answer 21

Where a group of consumers are gathered to discuss their opinions on a topic and answer questions asked by an interviewer

Question 22

Benefits of focus groups

Answer 22

• Only one interviewer is required for multiple people, so fairly cheap
• Information is qualitative, can see their opinions, viewpoints, expressions

Question 23

Costs of focus groups

Answer 23

• 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

Question 24

Describe Hall Tests

Answer 24

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.

Question 25

Benefits of hall tests

Answer 25

-A group of consumers are being tested at one time, making the process more cost and time efficient

Question 26

Costs of hall tests

Answer 26

-Consumers may feel pressured to give positive feedback

Question 27

Describe observation

Answer 27

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.

Question 28

Benefits of observation

Answer 28

• 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.

Question 29

Costs of observation

Answer 29

-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

Question 30

Describe random sampling

Answer 30

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.

Question 31

Benefits of random sampling

Answer 31

• Simple and quick to select

- There is less chance of bias as the people are chosen at random

Question 32

Costs of random sampling

Answer 32

• Since the selection is random, it may not reflect the target market
• It can be expensive as a large sample is required

Question 33

Describe quota sampling

Answer 33

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.

Question 34

Benefits of quota sampling

Answer 34

-Cheaper as less respondents are required

Question 35

Costs of quota sampling

Answer 35

-It is harder to eliminate bias in the selection process.

Question 36

Ways a business can use market research information.

Answer 36

• 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