Market Research Flashcards
What are the two main types of market research?
- field research
- desk research
What is desk research?
involves researching and analysing secondary information (older information gathered for another purpose from another source)
Methods of desk research:
Make up akrenum to remember
- competitors website
- online news articles
- trade magazines
- government publications
- financial publications
- sales figures
- previous market research reports
- social media posts/comments
- review websites eg trip advisor
Advantages of desk research
- desk information is quick to gather
- desk research does not require trained and paid interviewers or research companies making it cost effective
- desk information already exists so is easy to look up
Disadvantages of desk research
- Desk research only uses information that already exists and so this information may have become out of date and no longer represent the current market.
- The business has not collected the information itself and therefore it cannot determine the accuracy of the information as the source is not known.
- may contain bias
- desk information is not fit for the exact purpose and may have to be ‘shoehorned’ to fit the businesses needs
What is field research?
Field research involves conducting research to gather new and first-hand information for a specific purpose. (Primary information)
Advantages of field research
- research is complete and information should have no missing parts
- the field information is appropriate as it is fit for the purpose is it needed for
- information should be correct as it can be validated making it accurate
- information is up to date
Disadvantages of field research
- it is costly as field information requires trained and paid interviewers or expensive research companies
- it is time consuming
Methods of field research
- telephone survey
- postal survey
- online survey
- personal interview
- hall tests
- focus groups
- consumer audit
- test marketing
- electronic point of sale (EPOS)
What is a Telephone survey and
What are advantages and disadvantages of it
A market researcher telephones customers, usually at home, and asks them questions
Advantages
● People spread across large geographical areas can be accessed.
● Less expensive than a personal interview.
● Clarification can be obtained.
● Information is obtained instantly.
Disadvantages
● People might not like taking part in a telephone survey.
● Large and/or time –consuming surveys are unlikely to be suitable for this method.
What is a postal survey and
What are the advantages and disadvantages of it
A survey is sent to customers through the post and is returned once completed
Advantages
● People spread across large geographical areas can be accessed.
● Surveys can be completed at a time that people choose and is more convenient to them.
Disadvantages
● Relies on people opening the letter containing the questionnaire in the first place, completing it and sending it back.
● Information is not obtained instantly.
● Clarification cannot be gained so
questionnaire has to be designed carefully.
What is an online survey and
What are the advantages and disadvantages of it
A website or email is used to ask customers questions
Advantages
● Online software can often be free of charge.
● No postal or telephone costs.
● People spread across large geographical areas and countries can be accessed.
● Online software can often collect and analyse the results.
Disadvantages
● Online software that is free might limit the number of questions that can be asked.
● People require access to the internet.
● Clarification cannot be gained so questionnaire has to be designed carefully
What is a personal interview and
What are the advantages and disadvantages of it
Often conducted as a street survey or by ‘cold calling’ at customers homes
Advantages
● Clarification can be gained on questions not understood.
● Body language and facial expression can be monitored.
● Information is obtained instantly.
Disadvantages
● Time-consuming and expensive to carry out.
● Not many people may be able to be interviewed in this way compared to other survey methods.
● Researcher requires training to be successful (eg questioning techniques).
What are hall tests and
What are the advantages and disadvantages of it
A product is given to customers to try and their feedback is gathered
Advantages
● Qualitative information can be gained.
● Inexpensive and easy to do
Disadvantages
● Qualitative information can be difficult to analyse.
● Results may be inaccurate as respondents feel obliged to be positive about the product.
What are focus groups and
What are the advantages and disadvantages of it
A group of customers is brought together and asked to answer and discuss questions put forward by a market researcher
Advantages
● Qualitative information can be gained.
● Customers have agreed to participate so considered responses are more likely
Disadvantages
● Qualitative information can be difficult to analyse
● Results may be inaccurate as respondents feel obliged to be positive about the product.
