Primary Research Flashcards
1
Q
What is Primary Research? (2)
A
It involves collecting new data that is specific and up to date to the business
2
Q
What is the benefit of Primary Research? (7)
A
- Involves Collecting new data and specific to the business
- Eg. Questionnaires/Focus Groups
- Allows to effectively Meet Wants and Needs
- Create a product to meet Wants and Needs
- Increase Loyalty
- Can Increase price without a fall in demand
- Increase Profit margins to reinvest
3
Q
What is the Drawback of Primary Research? (9)
A
- Primary Research is expensive
- May need researchers
- Eg. Questionnaires / Focus groups from a large sample
- To meet customer wants and needs
- Increased Cash Outflows on wages
- May lead to a lower net cash flow
- Less Cash Reserves
- Can’t pay day to day bills
- Forced to sell non current assets and therefore can’t operate
