Market Research Flashcards
What is market research
The process of gathering information about consumers needs and preferences
5 ways market research gives insights into businesses
-prices they are willing to pay
-what benefits they want
-what media they see and use
-where/how they purchase products
-quantities they buy
How can market research help a business
- reduce risk
-identify gaps in the market
-aids making decisions
-gain insight to customer behaviour
-identify competitors
What is bias
Bias means to influence typically in an unfair direction
What is sampling in markets
The gathering of data from a sample of respondents, the results of which should be representative of the population
What is primary research
Data that is obtained first hand by the business, helps meet specific needs of business
What is secondary market research
Gathering data or information that already exists for another purpose from a second hand party
What are a benefit of primary research
-directly focused to research objectives
-kept private
-more detailed insights
What are the benefits of secondary research
-Often free and easy to obtain
-good source of market insights
-quick to access and use
What is a drawback of primary research
-Time consuming
-costly to obtain
-risk of survey bias
-sampling may not be representative
What are some drawbacks of secondary research
-not tailored to business needs
-specialist reports are often quite expensive
-Can quickly become out of date
What is qualitative research
Based on opinion and attitudes, aims to understand why customers behave in a certain way or respond to certain products
What is quantitative research
Concerned with data and based on statistical validity usually carried out through surveys
What is market segmentation
The market is split into subgroups of consumers with similar characteristics
What are the 4 segmentation methods
-demographic
-geographic
-income
-behavioural
