Market Research Flashcards
what is product orientation?
When a business focuses its efforts in creating the product rather than responding to the needs of the market.
2 examples of product-orientated companies
- Apple (envisioned their product before their customers knew they needed it)
- Netflix
what is market orientation?
prioritizes identifying the needs and desires of consumers and creating products that satisfy them
2 examples of market-oriented companies
- Amazon
- Starbucks Coffee
What is primary research?
Data gathered first-hand that are specifically designed and obtained for a specific business
3 examples of how to conduct primary research
- interviews
- focus groups
- surveys
2 pros and 2 cons of primary research
Pros:
- up-to-date
- ownership of the data
Cons:
- costly
- time-consuming
what is secondary research?
The use of information about the market that can be obtained from existing sources
3 methods of secondary research
- internet
- archives
- libraries
2 pros and 2 cons of secondary research
Pros:
- faster
- cheaper
Cons:
- quality of researcher
- not specific to researchers needs
what is qualitative research?
Data based on investigating consumer’s attitudes and opinions.
2 methods of qualitative research
- observations
- focus groups
what is quantitative research?
Market research using numerical measurements to establish consumer preferences
2 methods of quantitative research
- questionnaires
- surveys
benefits of market research
- maintains a customer-centric approach
- identifies opportunities for growth
- stay on top of trends
- reduce risks by testing concepts
limitations of market research
- effects of extraneous factors
- costly
- problem of rapid change
- problem of trust and accuracy
discuss importance of sample size
sample size is extremely important as it needs to be diverse and large enough in order to accurately represent the population
Discuss sample bias
Where the findings do not give a true reflection of the views of the target audience on the product or service
Examples of how IT can support market research
- more efficient
- streamlining costs
- real-time data
