Market research 3.2

Question 1

Define the term “Market research”

Answer 1

This is the process of collecting, recording, and analyzing data about customers, competitors, and the market.

Question 2

What is the need for market research?

Answer 2

1. To reduce risks associated with new product launches.
2. To predict future demand.
3. To explain patterns in sales of existing products and market trends.
4. To assess the most favored designs, flavors, styles, promotions, and packages for a product.

Question 3

Define the term “Primary research”

Answer 3

The collection of first-hand data that is directly related to the firm’s needs.

Question 4

Define the term “Secondary research”

Answer 4

Collection of data from second-hand sources.

Question 5

List 3 things market research can be used to find out.

Answer 5

Answers may include :

• Market size and consumer tastes and trends
• The product and it’s perceived strengths and weaknesses
• The promotion used and its effectiveness
• Competitors and their claimed unique selling propositions
• Distribution methods most preferred by consumers
• Consumers preferences for packaging of the product

Question 6

List 3 Advantages of Primary Research

Answer 6

Answers may include :

• Often obtainable very cheaply
• Identifies the nature of the market and assists with the planning of primary research
• Obtainable quickly without having to devise a complicated data gathering method.
• Allows comparison of data from different sources

Question 7

List 3 Disadvantages of Primary Research

Answer 7

Answers may include :

• May not be updated frequently and may therefore be out of date
• As it was originally collected for another purpose, it may not be entirely suitable or presented in the most effective way for the business using it.
• Data collection methods and accuracy of these may be unknown
• Might not be available for completely new product developments

Question 8

List 3 Advantages of Secondary Research

Answer 8

1. Up to date
2. Relevant
3. Confidential

Question 9

List 3 Disadvantages of Secondary Research

Answer 9

1. Costly
2. Time consuming
3. Doubts over accuracy and validity

Question 10

Define the term “Qualitative research”

Answer 10

Research into the in-depth motivations behind consumer buying behavior or opinions.

Question 11

Define the term “Quantitative research”

Answer 11

Research that leads to numerical results that can be statistically analyzed.

Question 12

Define the term “Focus groups”

Answer 12

A group of people who are asked about their attitude towards a product, service, advertisement, or new style of packaging

Question 13

Define the term “Sample”

Answer 13

The group of people taking part in a market research survey selected to be representative of the overall target market.

Question 14

Define the term “Random sampling”

Answer 14

Every member of the target population has an equal chance of getting selected.

Question 15

Define the term “Systematic sampling”

Answer 15

When the population has been stratified and the interviewers selects an appropriate number from each stratum.

Question 16

Define the term “Stratified sampling”

Answer 16

This draws a sample from a specified sub group or segment of the population and uses random sampling to select an appropriate number from each stratum

Question 17

Define the term “Cluster sampling”

Answer 17

Using one or a number of specific groups to draw samples from and not selecting from the whole population.

Question 18

Define the term “Open questions”

Answer 18

Those that invite a wide ranging or imaginative response - the results will be difficult to collate and present numerically.

Question 19

Define the term “Closed questions”

Answer 19

Questions to which a limited number of pre-set answers are offered.