market research Flashcards
what is primary research?
information is gathered first hand
advantages of primary research
-specific to the business
-not out of date information is gathered, time relevant
disadvantages of primary research
-time consuming
-expensive
-market is constantly changing
-small amount of people are tested
methods of primary research and what are they?
-questionnaires-series of questions to gather specific information, online, post, face to face
-focus groups-chaired discussions on themes set by the researcher
-consumer panels-they are consumers of products, in order to gain opinions of consumer
-test marketing- trial release of product to gain public opinion
what is secondary research?
the use of previously collected information
advantages of secondary research
-short research time
-low cost
disadvantages of secondary research
-not specific to the business
-out of date
- may be poorly constructed leading to error
methods of secondary research and what are they?
-government reports- official publications, can be found online (external)
-competitor research, identify trends
-internet websites (external)
- sales figures(internal)
-market reports, reports focused on a specific market (external)
-local newspapers
benefits of carrying out market research
-aid decision making
-gain knowledge and understanding of consumer needs
-reduce risk of failure, less likely to waste resources
-identify opportunities and trends, for growth and new markets
-keep up with the changing market
- consumers feel as if their views are being appreciated leads to good business image
reasons against carrying out market research?
-may predict that a product will do well, however only small amount of people tested, may not accurately measure the whole market, based on an unrepresentive sample
-market is always changing
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what is qualitive market research?
-not numerical information
-seeks to gather opinions and views
what is quantitive market research?
what are the two types of sampling?
-quota
-random
what is quota sampling?
people being segmented into specific groups, with the same characteristics
what is random sampling?
every member of the target population has an equal chance of selection
