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Market research Flashcards

1
Q

What is market research ?

A

Information is gathered on customers (attitudes, behaviour & wants) in relation to a product or service

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2
Q

What does market research allow ?

A
  1. Better communication between business & customers
  2. Help identify opportunities
  3. Minimise risk = understand customer needs
  4. Creating benchmarks to measure progress
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3
Q

What 5 issues need to be considered when selecting the most appropriate method of market research ?

A
  1. Costs
  2. Accuracy
  3. Objective of research
  4. Level of business expertise
  5. Time
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4
Q

What issue do start up businesses have with market research ?

A

Little background information

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5
Q

What are 4 advantages of market research ?

A
  1. Engages with customers
  2. Customers feel more involved in process if involves selling process
  3. If accurate & reliable, can make risks that are less costly & risky
  4. Online = customers agree for collection of data for research, reducing ethical issues
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6
Q

What are 4 disadvantages of market research ?

A
  1. Expensive & may lack expertise
  2. Difficult balance at quick decisions to beat competitors & detailed info for customers
  3. May be biased & unreliable
  4. Legal & ethical issues in collecting data
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7
Q

What is primary market research ?

A

Collecting data that does not already exist

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8
Q

What are 5 methods of primary market research ?

A
  1. Questionnaires
  2. Interviews
  3. Surveys
  4. Focus groups
  5. Consumer panels
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9
Q

What are 3 advantages of primary market research ?

A
  1. Only available to that business
  2. Up to date
  3. Targets specific needs
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10
Q

What are 3 disadvantages of primary market research ?

A
  1. Expensive
  2. Time consuming
  3. Bias
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11
Q

What is secondary market research ?

A

Identifying, collecting & collating information that already exists

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12
Q

What are 3 methods of secondary market research ?

A
  1. Documents
  2. Official publications
  3. The Internet
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13
Q

What are 2 advantages of secondary market research ?

A
  1. Inexpensive & quick to collect
  2. Enables cost effective analysis of several data sources
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14
Q

What are 4 disadvantages of secondary market research ?

A
  1. Often out of date
  2. Might not be available
  3. Little control over quality
  4. Problems of interpretation
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15
Q

What is quantitative data ?

A

Involves the use of numbers

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16
Q

What is qualitative data ?

A

Looks at views, opinions without statistically reliable information

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17
Q

What are 3 advantages of quantitative data ?

A
  1. Conclusive & objective data
  2. Statistical & structured
  3. Large sample sizes = representative
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18
Q

What is a disadvantage of quantitative data ?

A

Lacks detail

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19
Q

What is an advantage of qualitative data ?

A

Captures views & opinions = detailed

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20
Q

What are 3 disadvantages of qualitative data ?

A
  1. No conclusive outcome
  2. Not statistical & unstructured
  3. Small sample = not representative
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21
Q

What are 4 methods of primary market research ?

A
  1. Observation
  2. Online surveys
  3. Face to face surveys
  4. Focus groups
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22
Q

What is an observation ?

A

Watching customers to see how they behave when purchasing specific products or services

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23
Q

What is an advantage of an observation ?

A

Reveals customer views & feelings about a product that other methods can’t

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24
Q

What is a disadvantage of an observation ?

A

Time consuming & costly

25
What is an online survey ?
ICT method of asking customers questions about a product or service through using a range of websites
26
What is an advantage of an online survey ?
Automatically feeds results into a database that collects all answers
27
What is a disadvantage of an online survey ?
Low response rates from potential customers = distorted picture of consumer opinion
28
What is a face to face survey ?
Personal interviews face to face to gain consumer views on a product or service
29
What is an advantage of a face to face survey ?
Useful to gain emotional response style questions
30
What is a disadvantage of a face to face survey ?
Qualitative research method
31
What is a focus group ?
Groups of potential customers brought together to discuss their feelings on the product or market
32
What is an advantage of a focus group ?
Can gain qualitative detailed information on customer tastes & preferences
33
What is a disadvantage of a focus group ?
Expensive
34
What are the methods of secondary market research ?
1. Government statistics 2. Mintel & other commercial reports 3. Business' own data 4. Competitor's data
35
What are government statistics ?
Available to all businesses & contain data like demographic trends
36
What are demographic trends ?
Statistics showing how things are changing within the population
37
What is an advantage of government statistics ?
Free to gain & free from bias
38
What is a disadvantage of government statistics ?
May be out of date & all businesses have access to information
39
What are minted & commercial reports ?
Market research reports that are available on hundreds of customer products or services
40
What is an advantage of mintel & commercial reports ?
Specific about certain market
41
What are 2 disadvantages of mintel & commercial reports ?
1. Available to any business & expensive 2. Not completely focused on specific questions the business might like to know answers to
42
What is the business's own data ?
Own data that helps research what customers want from a product or service
43
What is an advantage of own data ?
Cheap & confidential
44
What is a disadvantage of own data ?
May not answer key questions to ensure they are successful
45
What is competitor's data ?
Data of competitors that help research how a business is performing in the market compared to other businesses
46
What is an advantage of competitor's data ?
Cheap & shows rivals performance in the market
47
What is a disadvantage of competitor's data ?
Every competitor can access it & information table is basic
48
What is sampling ?
Method of obtaining a representative number of people in order to find out about the whole group
49
What 3 things needs to be account for in sampling ?
1. Margin of error that's acceptable 2. Confidence level that's required from sample 3. Bias
50
What are 4 advantages of sampling ?
1. Low costs = small proportion of population researched 2. Less time consuming 3. Some populations impossible to research whole population 4. High accuracy
51
What are 4 disadvantages of sampling ?
1. Bias 2. Difficult & complicated to gain representative sample 3. Needs subject specific knowledge 4. Presumes sample has same views
52
What is quota sampling ?
Obtains a sample representative of the whole population, dividing it into variables
53
Where is a quota sample taken from ?
Each variable
54
What are 2 advantages of quota sampling ?
1. Cheap 2. Easy to create & complete
55
What is a disadvantage of quota sampling ?
Not random = bias
56
What is random sampling ?
Each person in chosen population has equal chance of being selected
57
What is an advantage of random sampling ?
Easy to design
58
What is a disadvantage of random sampling ?
Bias = needs accurate list of population

Business Paper 1 (11 decks)

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