Market Research Flashcards
Define market research
Process of collecting information about customers and competitors in order to make informed decisions
Pros of primary research
- collected first hand for organisations specific needs
- targeted towards specific customer groups
- up to date
Cons of primary research
- time consuming
- expensive
- may be biased
- once data is collected it’s obselete
Pros of secondary research
- likely to cover more data points
- time saving
Cons of secondary data
- source of info may not be clear
- could be out of date
- not specific to organisations needs
What is quantitative data
Statistical information focused on patterns of consumer behaviour
What is involved in quantitative data
- provides numerical info on how consumers behave
- helps identify trends
- collected by questionnaires, observations, experiments
What is Qualitative data
Gathering in depth data explaining patterns of consumer behaviour
How is qualitative data usually collected
- focus groups, open ended questioning = identity reasons why consumers act
2 acv of quantitative data
- able to summarise & analyse numerically (graph etc)
- allows large sums of data to be collected = identify trends and patterns
2 disadv of quantitative data
- doesn’t explain reasons for conumer behaviour
- relies of good quality questions & honest consumer responses
2 adv of qualitative data
- enables reasons for consumer behaviour to be identified
- follow up questions can be asked
E.g. Dubai white cars sell because desert sand doesn’t show up as much but in UK white cars get dirtier quicker
2 disadv of qualitative data
- based in small sample sizes = not representative
- expensive to collect (pay participant, interviewee)
What is sampling
Conducting market research on a group of customers chosen to be representative of the entire market
What is the two types of sampling
Random: study individual by chance
Stratified : a proportion of those sampled is representative of the market as a whole
