Market Research Flashcards
What is product orientation?
A business is product orientated when it only looks at the production process on looking what to do next.
When is product orientation appropriate?
1) When there’s little competition in the market and the business can make in what suits it’s production capacity.
2) When there is limited consumer knowledge.
3) When there is low disposable income of consumers.
What company is an example of product orientation?
Gillette
What will a market orientated business focus on?
It will focus on the needs of the consumer e.g the consumer can choose the colour of a new car. The best example is ASDA where each “Chosen by You” was tested by a minimum of 50 people in a single location.
What are the benefits of a business researching their market?
1) Carrying out research reduces risks and costs of making poor decisions.
2) It can help businesses react to changes in the market.
3) It helps them become market orientated.
What is primary market research?
Primary market research is collecting data first hand. This means new data is gathered for the benefit of the business.
What are 5 main methods of primary market research?
Questionnaires, Observations, Customer interviews, Test marketing, Focus groups.
What is secondary market research?
This is gathering data or information that already exists.
What are the 5 main methods of secondary research?
Government sources, Trade publications, Market reports, Internet sources, Newspapers and TV
What does qualitative research aim to do?
It seeks to gather and explore feelings and thoughts about a product from consumers. This information can be gathered by focus group discussions, interviews and observations. It helps the business identify the decisions of the purchases of a product.
What does quantitative research involve?
It involves gathering data and measuring responses. This data is displayed in charts, graphs, statistics and percentages. Quantitative research asks questions to a large sample to provide valid useful data for the business.
What is sampling?
It’s the process of choosing the right people to be part of the research
What is sample size?
It’s the number of people who are interviewed during the research. It also needs to be large enough for decision making.
What is bias?
Bias is when research findings are found out to be inaccurate or not able to be trusted. This can be through interviewer bias, biased questions and respondent bias.
Why are websites helpful for research?
Websites can be used to ask customers about how they feel about products they’ve bought. It can also be used to gather e-mail addresses so they can survey them later on
