Market Research

Question 1

Market research

Answer 1

The process of collecting, recording and analysing data about customers, competitors and the market

Question 2

Purpose of market research

Answer 2

-Identifying main features of the market
-Reduce risks for new product launches
-Identifying consumer characteristics
-Explain patterns in sales and market trends
-Predicting future demand changes
-Assess popular designs, promotions and packaging for product

Question 3

Primary and secondary research

Answer 3

Primary research is the collection of first hand data for the needs of the business

Secondary research uses existing data which initially was collected for another purpose

Question 4

Benefits and limitations of secondary research

Answer 4

Benefits

-Provides info about population, economy and market conditions
-Helps in identifying key areas of the market
-Many sources of secondary data can be accessed via internet
-If time or finance is very limited, secondary research might be the only option

Limitations

-Data maybe out of date
-Data is unlikely to be collected for the needs of the business
-Not all secondary data is available to potential users
-Big data is vast and hard to analyse

Question 5

Benefits and limitations of primary research

Answer 5

Benefits

-Can find out about new markets
-Can collect data for specific business needs
-Information about a particular target group
-Collects data that is up to date

Limitations

-The selection of large samples reduces the accuracy of data
-Startups may not be able to finance primary research
-New businesses have no consumers yet to collect data from
-It can be time consuming to collect primary research

Question 6

Sampling

Answer 6

The process of selecting a group of respondents from a larger population

Question 7

Limitations of Sampling

Answer 7

-Sample maybe too small
-Risk of sampling bias
-Researchers may not use the most appropriate method of sampling

Question 8

Sampling bias

Answer 8

When a sample is not a good representation of a population because it is chosen in ways which give a greater chance being selected to others

Question 9

Main reasons for primary data being unreliable

Answer 9

-Sampling bias
-Questionnaire bias
-Other bais