Market Research

Question 1

What is market research?

Answer 1

Market research is the process of gathering data and information about consumer needs and preferences.

Question 2

Market research helps find what information?

Answer 2

Provides information about:
The market itself
Customer feedback
Promotional methods
Sales data
Competitors
Effect of price on market

Question 3

What are the 2 main types of market research?

Answer 3

Desk research
Field Research

Question 4

What is field research?

Answer 4

Field research is information that is first hand information and has been collected by the business for a specific purpose.

Question 5

Name 3 methods of collecting field research

Answer 5

Face to face interview
Postal survey
Focus group
Hall test
Telephone interview online survey
Observation

Question 6

Name advantages of field research

Answer 6

Only the firm which collects the data has access to it
Collected for a specific purpose

Question 7

Name disadvantages of field research

Answer 7

Expensive to collect
Time consuming

Question 8

What is desk research?

Answer 8

Desk research is information that is second hand. it has already been collected by someone else

Question 9

Name 3 methods of collecting desk research

Answer 9

Sales figures
Newspapers
Websites
Government publications
Commercial publications

Question 10

Name advantages of desk research

Answer 10

Saves time
Relatively inexpensive
Widely available

Question 11

Name 2 disadvantages of desk research

Answer 11

May be out of date
May contain bias
Not specifically gathered for the business.

Question 12

Name the advantages of a face to face interview

Answer 12

Two way communication
Researchers can encourage respondents to answer
Mistakes and misunderstandings can be cleared up right away

Question 13

Name the disadvantages of a face to face interview

Answer 13

Can be expensive
Researchers have to be selected and trained
Home interviews are unpopular with consumers

Question 14

Name the advantages of a postal survey

Answer 14

Inexpensive
No interviewer training needed

Question 15

Name the disadvantages of a postal survey

Answer 15

Questions must be simple and easy to answer
Very low response rate, incentive may be needed

Question 16

What are the advantages of a focus group?

Answer 16

Qualitative information provided in the form of opinions, feelings and attitudes.

Topics can be explored in some depth.

Question 17

Name the disadvantages of a focus group

Answer 17

Expensive
Can be difficult to analyse qualitative information

Question 18

Name the advantages of a hall test

Answer 18

Qualitative information provided in the form of tasting or demonstration.

Question 19

Name the disadvantages of a hall test

Answer 19

Respondents may be too positive as they obliged to give favourable opinion.

Question 20

Name the advantages of a telephone interview

Answer 20

Inexpensive
Can reach a large geographical area

Question 21

Name the disadvantages of a telephone interview

Answer 21

Response rate may be low as people may view it as a “nuisance call”

Question 22

Name the advantages of an online survey

Answer 22

Inexpensive
Large sample sizes

Question 23

Name the disadvantages of an online survey

Answer 23

Limited to people with internet access

Question 24

Name the advantages of observation

Answer 24

Quantitative information gathered.
Real life and behaviours in action.

Question 25

Name the disadvantages of observation

Answer 25

Samples are often random and not representative of all customers.
Only shows actions, does not explain attitudes and feelings.