Market Research

Question 1

Define PRODUCT ORIENTATION

Answer 1

Product orientation is an inward facing approach where the main focus is on the product and how to make it better. A lot of scientific research is involved in the production process to ensure high quality. A market is built around the product once it has been finished.

Question 2

Define MARKET ORIENTATION

Answer 2

Market orientation is an outward facing approach where the main focus is on the market and the needs of consumers within it. There are high levels of market research that is used to identify specific consumer wants and needs and a product is then made to meet them.

Question 3

Define MARKET RESEARCH

Answer 3

Market research is the collection, analysis and presentation of information about a business’ market. The information could include size of the market, trends within it, consumer needs, different market segments and competitor strategies.

Question 4

Define PRIMARY MARKET RESEARCH

Answer 4

Primary market research is research that is collected first hand by the business itself for their specific aims and objectives.

Question 5

Define SECONDARY MARKET RESEARCH

Answer 5

Secondary market research is research that already exists for a different purpose that can be adapted for use by the business.

Question 6

Define SAMPLING

Answer 6

Sampling involves the collecting of data from a small group who are seen to be representative of the whole population.

Question 7

What are the benefits of primary market research?

Answer 7

• Focused and relevant to the business’ objectives
• Can be kept private from competitors
• Up to date
• More detail insights into consumer behaviour can be gained

Question 8

What are the benefits of secondary market research?

Answer 8

• Can be obtained quickly, freely and easily

- There is lots of it so trends can be identified

Question 9

What are the drawbacks of primary market research?

Answer 9

• Expensive and time consuming to collect

- Risk of survey bias is high so any information collected may be inaccurate and not representative

Question 10

What are the drawbacks of secondary market research?

Answer 10

• Not necessarily focused on the business’ objectives
• There is a risk of it being out of date
• Specialist reports are expensive,

Question 11

Define QUALITATIVE DATA

Answer 11

Qualitative data is data that is comprised of ideas, attitudes and opinions of consumers. It is very detailed and aims to understand how or why consumers respond to products or services.
Methods: focus groups, interviews, surveys and questionnaires.

Question 12

Define QUANTITATIVE DATA

Answer 12

Quantitative data is data that can be numerically categorised and analysed. Aims to achieve clear, concise answers that can be compared. Typically based on large samples so it is more statistically valid.
Methods: surveys (telephone, postal, face-to-face)

Question 13

What are the benefits of qualitative data?

Answer 13

• Gives detailed insights into consumer opinions and how they think
• By gaining this information, promotion can be effectively targeted and the business’ brand can be built.
• Ideas that the business may not have thought of can be gained.

Question 14

What are the drawbacks of qualitative data?

Answer 14

• Difficult to compare or categorise
• Expensive to collect
• Sample size is often small and therefore the risk of bias is high.

Question 15

What are the benefits of quantitative data?

Answer 15

• Can be easily compared and contrasted
• Trends can easily be identified if the data is collected long term.
• Easy to extract meaning from the results.

Question 16

What are the drawbacks of quantitative data?

Answer 16

• Only identifies what consumers do, not why the do it.

- Only reliable and valid if the sample size is large enough.

Question 17

Define BIAS

Answer 17

Bias is a preference to gold a viewpoint that does not take into account the alternatives within a population.

Question 18

Define CONSUMER BEHAVIOUR

Answer 18

Consumer behaviour is the reasons behind the actions of people, influenced by their opinions and preferences, when making purchasing decisions.

Question 19

Define CONSUMER INCOMES

Answer 19

Consumer income is the level of income left from a consumer’s pay after taxes have been deducted and living expenses paid.

Question 20

Define DATABASES

Answer 20

Databases are electronic storage systems that enables the keeping and sorting of information more easily.