market research

Question 1

definition of desk research

Answer 1

involves researching and analysing information that has already been gathered

Question 2

definition of field research

Answer 2

involves gathering brand new info suitable for the business’s exact needs

Question 3

methods of desk research

Answer 3

-competitors website
-online news articles
-trade magazines
-government publications
-financial statements
-sales figures
-previous market research reports
-social media psots/comments
-review websites (eg Trip Advisor)

Question 4

advantages of desk research

Answer 4

timely - desk information is quick to gather
cost effective - desk information does not require trained and paid interviewers or research companies
available - desk information already exists so is easy to look up

Question 5

advantages of field research

Answer 5

complete-field info should have no parts missing
timely-in the respect that the info is up to date
appropriate- field info is fit for the purpose it is needed for
accurate- info should be correct as it can be validated

Question 6

disadvantages of field research

Answer 6

not cost effective-field info, requires trained and paid interviewers or expensive research companies

Question 7

disadvantages of desk research

Answer 7

not objective - desk information is collected and presented by someone else, so could be biased
not appropriate - desk information is not fit for the exact purpose and may have to be ‘shoehorned’ to fit the business’s needs
not concise - the researcher may have to read through a lot of information to get what is needed

Question 8

method of field research

Answer 8

telephone survey, postal survey, online survey, personal survey, hall tests, focus groups, consumer audit, test marketing, electronic point of sale (EPOS)

Question 9

definition of random sampling

Answer 9

the sample is picked randomly (eg. using a telephone directory or list of customers)

Question 10

telephone survey definition

Answer 10

a market researcher telephones customers, usually at home, and asks them questions

Question 11

definition of quota sampling

Answer 11

the researcher chooses from a group of people with certain characteristics

Question 12

advantages of random sampling

Answer 12

-no bias is shown by the researcher
-saves time in selecting the sample

Question 13

disadvantages of random sampling

Answer 13

-sample may not reflect the target market
-can over-represent a certain segment (eg. all males could be chosen randomly)
-Can be expensive as many calls may have to be made if customer lists are not up to date

Question 14

quota sampling advantages

Answer 14

-Quick and easy method as group lists are pre-made
-Can select customers that reflect the target market

Question 15

quota sampling disadvantage

Answer 15

-The exact sample from each group is not randomised, so researcher bias could be involved

Question 16

what is sampling

Answer 16

selecting people from the population to conduct market research on, that can be used

Question 17

postal survey definition

Answer 17

a survey is sent to customers through the post and is returned once complete

Question 18

online survey definition

Answer 18

a website or email is used to ask customers questions

Question 19

personal interview definition

Answer 19

often conducted as a street survey or by ‘cold calling’ at customers’ homes

Question 20

hall tests definition

Answer 20

a product is given to customers to try and their feedback is gathered

Question 21

focus groups definition

Answer 21

a group of customers is brought together and asked to answer and discuss questions put forward by a market researcher

Question 22

customer audit definition

Answer 22

used by large market research companies to continuously monitor customer habits and influences. one means of auditing is to ask some customers to record their responses to products they have purchased

Question 23

test marketing definition

Answer 23

a new product is launched in a regional area and the reaction is monitored. successful products are then launched to a wider market

Question 24

electronic point of sales (EPOS) definition

Answer 24

information on customer preferences and habits is gathered as their loyalty cards are swiped through electronic tills. used in conjunction with loyalty schemes to match purchasing information with customer details.

Question 25

advantage and disadvantage of telephone survey

Answer 25

adv- easy to target specific customers eg calling 01224 to contact customer in Aberdeen.
-info is obtained immediately and can be clarified if necessary

disadvantage - customer can feel that telephone surveys are intrusive and may not wish to respond
-only short surveys can be carried out

Question 26

adv and disadv of postal surveys

Answer 26

adv - easy to target specific customers (eg, sending out surveys on exclusive products to affluent postcodes, to meet needs of specific segments)
- customers can choose to complete the survey at a time that is most convenient to them

disadv - questions must be simple and easy to follow for the best results
-customers often view postal surveys as ‘junk main’ and will simply ignore them

Question 27

adv and disadv of personal interview

Answer 27

adv - allows two way communication. the interviewer can respond to the customers body language, tone of voice and facial expression to encourage fuller responses

disadv - it can take a lot of time to conduct interviews
- customers may feel that this sort of questioning is a nuisance and may not wish to respond

Question 28

advantage and disadvantage of online survey

Answer 28

advantage- customers can be surveyed across a very large geographical area
-online software can often be used to collate and analyse the results easily

disadvantage- the response may be too brief to be meaningful as clarification cannot be gained
-access to the internet must be available

Question 29

advantage and disadvantage of hall test

Answer 29

advantage- good quality feedback can be gathered based on the product trial allowing changes to be made
-inexpensive and easy to do

disadvantage- customers opinions and feelings can be more difficult to analyse
-customers might feel they need to give a positive response as they have been given free products.

Question 30

adv and disadv of focus groups

Answer 30

adv - more in-depth feedback can be gathered
- customers have agreed to participate so considered responses are more likely

disadv - participants are often paid which can increase R&D (research and development) costs
-strong personalities within the group can sway discussion and opinion