Research Methods

Question 1

Quantitive market research

Answer 1

Quantitive - is factual! Consists of “how much” and “how many” type questions

Question 2

Primary data and examples of how to collect it

Answer 2

Doesn't already exist 
> surveys 
> loyalty cards 
> panel and group discussions 
> test marketing 
Taken from a small sample

Question 3

Secondary data and examples of how to collect it

Answer 3

Second hand info gathered by someone else
> department of business
> enterprise and regulatory reform
> government stats
Market Intelligence reports are produced by Mintel and Nielsen

Question 4

Advantages of primary data

Answer 4

1. Targeted at specific issue
2. assess buyer psychology
3. its up to date

Question 5

Disadvantages of primary data

Answer 5

1. its expensive

2. risk of bias if not done correctly

Question 6

Advantages of secondary data

Answer 6

1. Obtained for free
2. Good overview of market
3. Based on accurate and reliable figures

Question 7

Disadvantages of secondary data

Answer 7

1. Not tailored specifically to your business
2. Market intelligence reports are expensive
3. Information may be out of date

Question 8

6 sampling methods

Answer 8

Random 
Stratified 
Cluster 
Systematic 
Quota
Convenience

Question 9

What is random sampling

Answer 9

Names are picked randomly from a list of the whole population usually from the electoral register

Question 10

What is stratified sampling

Answer 10

Population is divided into segments - age etc - 18-24, 25-34 and names are selected at random from within each segment

Question 11

What is cluster sampling

Answer 11

Start by picking a random sample of groups / clusters and then you interview a random sample of people from that cluster

Question 12

Systematic sampling

Answer 12

Selecting every nth person e.g. Every 5th person

Question 13

Quota sampling

Answer 13

In quota sampling, the selection is made by the interviewer who will have a quota to meet. It’s a bit like stratified sampling but it’s not random, interviewers tend to pick people who look nice e.g. It’s bias

Question 14

Convenience sampling

Answer 14

New businesses with limited funds use this! Ask people who are easily contactable! Bias is clearly an issue!

Question 15

Qualitative market research

Answer 15

Why customers make purchasing decisions. It’s concerned with customer behaviour, motivation, tastes and preferences

Question 16

Sampling errors

Answer 16

Is the difference between the value obtained in a survey and the true value. For example if a survey concludes that people eat jam sandwiches 10 times a month and they actually eat them 7 times a month the sampling error is 3. Generally the larger the sample, the smaller the sampling error. Sampling errors are unavoidable unless you can survey an entire population

Question 17

Non sampling errors

Answer 17

1. The people they ask may give answers just to please the interviewer
2. They may give social acceptable answers instead of honest views
3. They may fail to understand the question