market research Flashcards
what is the purpose of market research?
to identify and understand customer needs
to identify gaps in the market
to reduce risk
to inform business decisions
what are the two types of market research?
primary
secondary
examples of primary research
survey
questionnaire
focus group
observation
examples of secondary research
internet
market reports
government reports
advantages of having reliable market research data include:
the business can make properly informed decisions
reduces risk
means less money is wasted
gives a higher chance of business success
qualitative data
non numerical insights (opinions, motivations etc)
quantitative data
numerical data (stats, percentages etc)
role of social media in market research
Platforms provide real-time data and customer feedback.
importance of reliability
accurate data leads to better decision making
The consequences of relying on unreliable market research data include:
the business making unwise decisions
it could ultimately cost the business money
the business could bring out products that don’t sell
the business could fail
benefits of using social media for market research include:
it is cheaper than other forms of research, such as using a market research agency, and can often be free
it can save time putting information together, eg some online questionnaires put the results into a graph instead of the researcher doing this themselves
it allows businesses to spot the latest tastes and trends, and monitor the behaviour of their competition
advantage of secondary research
quick + easy to gather
industry specific info
often easy to analyse
disadvantage of secondary research
not specific to business
could be out of date
may be biased or inaccurate
advantage of primary research
specific to business
provides detailed info
relevant and up to date
mix of quantitative and qualitative
disadvantage of primary research
time consuming
expensive
sometimes difficult to collect
