Market Research (12) Flashcards
Definition of market research
The process of gathering primary and secondary data on the buying habits, lifestyles, usage and attitudes of actual and potential customers
Benefits of market research
Can identify opportunities and threats, i.e.
changes.
Can be used to monitor sales after a
promotional campaign.
Can help them find alternative routes to
overcome a problem.
Identify target market.
Reduce risk of failure.
Drawbacks of market research
Research does not guarantee success.
It is costly in time.
Often all that is needed is good intuition or a
hunch.
Costs money.
Research can be unreliable (bias)
What is primary research
(field research) – collecting primary
data and information that does not already
exist. It is collected for a specific purpose.
Most primary information is gathered through
questionnaires, interviews, surveys, focus groups
and consumer panels.
What is secondary research
(desk research) – identifies, collects
and collates information that is already in existence. This can be collected internally or externally. It may be existing business documents, official publications, yellow pages, industry magazines and online desk research.
What is QUANTITATIVE research
Involves the collection of data that
can be measured. This means the collection
of statistical data such as sales figures and
market share
What is Qualitative research
Involves collection of data about
attitudes, beliefs and intentions. Focus groups,
participant observation and interviews are common
methods used to collect qualitative data.
What is sampling
a group of respondents to a market
research exercise who are selected to be
representative of the views of the target market
as a whole.
What is Quota sampling
the population is segmented
into a number of groups that share specific
characteristics
What is random sampling
every member of the population has
an equal chance of being interviewed.
What is bias
something that may cause data
within a sample to be weighted towards one
side. Such statistical bias occurs when one
subgroup outweighs the other in a sample.
