MOM&O Market Research N5 U3 P16

Question 1

Market research definition

Answer 1

The process of gathering information about customers, competitors and market trends by collecting and analysing data
Business needs data of customers to know the requirements of customers to make profit and increase customer satisfaction

Question 2

Field research definition and examples

Answer 2

Sources of primary data
Information that is gathered for a specific purpose by the business
Examples include:
Observation
Questionnaires
Interview
Survey
Loyalty cards

Question 3

Desk research definition and examples

Answer 3

Source of secondary data
Information that already exists from within and outside of the business, re-used
Examples include:
Internal account records
Government statistics
Newspaper/magazines
Internet

Question 4

Field research advantages

Answer 4

Up to date
Collected for exact purpose required
Not available to competitors
Competitive advantage

Question 5

Field research disadvantages

Answer 5

Takes time
Difficult to get enough samples
People may be not be interested, or busy
Expensive to get to places to research

Question 6

Types of field research- surveys

Answer 6

Postal survey
Sending out questionnaires, relatively cheap, usually simple tick box questions
Telephone survey
Cheap, large samples can be taken, get information straight away
Purchase survey
Asking customers information when they make a purchase, done in store

Question 7

Types of field research- observation

Answer 7

Watching customers behaviour

Question 8

Types of field research- loyalty cards

Answer 8

They have benefits to both customer and business
Business; have their name and email address, contact them about new products, can collect data about their purchase trends
Customers; earning points, being a loyal customer, getting updates

Question 9

Types of field research- competitor analysis

Answer 9

Looks at what the competitor can offer, what they charge, why people shop with them

Question 10

Desk research advantages

Answer 10

Information is already there
Easy to find
May be free as its public
Don’t have to go outside for research

Question 11

Desk research disadvantages

Answer 11

Old information
Not specific
Available to competitors
Can’t ask follow up questions

Question 12

Reason for market research

Answer 12

Best market for good/service
Price to charge
Good/service to provide
Who the customers are
How to promote the product
Products customers already buy
Current trends/ customer preferences
Gaps in the market
Competition

Question 13

Manager decisions

Answer 13

Whether to use market research or not
The type of market research
Questions to ask in surveys