Market Research

Question 1

what is market research

Answer 1

it is the systematic gathering and recording of data about a product and its target market

Question 2

why can research be used to improve the effectiveness of an organisation

Answer 2

• it can help identify the specifics of the market
• it can help assess the strengths of competitors
• gap in the market

Question 3

what are different methods of sampling

Answer 3

Quota and random sampling

Question 4

what is quota sampling

Answer 4

• it is used if the average consumer profile is known
• cheaper than random sampling
• results may not rep the target market as the interviewer bias impacts who is picked

Question 5

what is random sampling

Answer 5

• people are picked randomly from a list
• simple system
• expensive
• time consuming
• if the person is unavailable the interviewer must contact them again and again

Question 6

what is desk research

Answer 6

it involves re using previous info for another purpose and is completed by a researcher without direct contact with respondents

Question 7

why is desk research effective

Answer 7

it gives a variety of information and allows a greater understanding of PESTEC factors. info should be instantly available

Question 8

what are the drawbacks of desk research

Answer 8

• it may be available to rivals so does not bring a competitive advantage
• information may not be good quality

Question 9

what does desk research involve

Answer 9

research of secondary info:

• websites give a great deal of info about the rest of the industry
• stats like gov figures can help make decisions on target market
• previous information

Question 10

what is field research

Answer 10

it is carried out by a researcher to obtain first hand information which often involves direct contact

Question 11

what are examples of field research

Answer 11

personal interview
telephone survey
postal survey
group discussion
customer audit
epos
hall test
observation 
test marketing

Question 12

what is a personal interview

Answer 12

face to face interview

Question 13

what are the advantages of a personal interview

Answer 13

• 2 way communication
• misunderstanding dealt with quick
• skilled researcher

Question 14

what are the disadvantages of a personal interview

Answer 14

• costly
• time consuming
• unpopular

Question 15

what is a telephone survey

Answer 15

researcher phones people to ask them questions

Question 16

what are the advantages of a telephone interview

Answer 16

• pretty inexpensive
• immediate response
• clarification can be given

Question 17

what are the disadvantages of a telephone interview

Answer 17

• straight forward questions needed

- participants hostile if privacy is invaded

Question 18

what is a postal survey

Answer 18

researcher posts a questionaire to selected houses which are returned

Question 19

what are the advantages of a postal survey

Answer 19

• cheap as no interviewer needed
• no interviewer bias
• easy to segment market via post codes

Question 20

what are the disadvantages of a postal survey

Answer 20

• time consuming to make questionnaire
• simple questions only
• low response rate

Question 21

what is a group discussion

Answer 21

involves meeting between selected people led by an experienced person who encourages open discussion

Question 22

what are the advantages of group discussion

Answer 22

• more detailed in depth info
• stimulates discussion
• get opinions and ideas

Question 23

what are the disadvantages of group discussions

Answer 23

• analysis harder is widely different views
• dominant members can sway discussion
• cost of bringing several respondents

Question 24

what is customer audit

Answer 24

continuous research by market research org on buying habits of a specific group

Question 25

what are the advantages of customer audit

Answer 25

- used to monitor specific segments - possible to identify trends - respondents get better at expressing opinions

Question 26

what are the disadvantages of customer audit

Answer 26

- incentives may be needed to encourage participation | - difficult to keep the same panel for a long time

Question 27

what is EPOS

Answer 27

electronic point of sale: | used by retailers to record data about shopping habits of consumers when a card is used

Question 28

what are the advantages of EPOS

Answer 28

- very accurate consumer profiles can be set up | - can gail customer loyalty as they feel valued

Question 29

what are the disadvantages EPOS

Answer 29

- expensive set up and to monitor the system | - know what consumers and doing but not why

Question 30

what is hall testing

Answer 30

inviting customers to look at and try a product then give their reaction

Question 31

what are the advantages of a hall test

Answer 31

- simple to organise - respondents come to you - immediate response

Question 32

what are the disadvantages of a hall test

Answer 32

- opinion is harder to analyse | - respondents might not give a true opinion to be complimentary

Question 33

what is an observation

Answer 33

the researcher watched and records particular occurrences or habits

Question 34

what are the advantages of an observation

Answer 34

- accurate quantitive info is gathered | - large amount of surveys at once

Question 35

what are the disadvantages of an observation

Answer 35

- no questions asked | - can be expensive to set up

Question 36

what is test marketing

Answer 36

monitors consumer reaction by launching a product to a certain region then launch elsewhere based on results

Question 37

what are the advantages of test marketing

Answer 37

- changes can be made before launch - more chance of long term success - expensive launch

Question 38

what are the disadvantages of test marketing

Answer 38

- consumers may have regional bias so doesn’t reflect target market - poor marketing could result in failed launch