T2 Market Research

Question 1

Benefits and drawbacks of primary research?

Answer 1

Benefits - directly focused on research objectives, kept private, more detailed insights

Drawbacks - time consuming, costly, sampling may not be representative

Question 2

Benefits and drawbacks of secondary research?

Answer 2

Benefits - easy to obtain, good source, quick access

Drawbacks - data is available to everyone, expensive, data may be out of date

Question 3

What is quantitative research and what are the benefits and drawbacks?

Answer 3

Based on statistics (numbers)
Benefits - shows trends, easy to analyse, can be compared to other sets of data

Drawbacks- doesn’t explain reasons for the statistics

Question 4

What is qualitative research and what are the benefits and drawbacks?

Answer 4

Based on attitudes, beliefs and intentions (e.g. questionnaires or focus groups)

Benefits- important when releasing a new product, focus’ on what customers want, good for addressing issues

Drawbacks - expensive to collect and analyse, requires specialist skills
Could be bias

Question 5

Using IT to support market research.

Answer 5

IT reduces the cost for market research, can make the process of collecting data a lot more efficient
Using company websites and social media are good examples for gaining insights to customers preferences

Question 6

Limitations of market research.

Answer 6

• even when businesses conduct market research the information can be unreliable
• data can be collected that is unreliable and too costly to be put into effect
• human behaviour, market research depends on the response are honest/ truthful. Human behaviour is unpredictable

Question 7

Benefits and drawbacks of market segmentation.

Answer 7

Benefits- focuses on parts where the business can succeed, allows them to grow shares in markets, helps to get better targeting promotion

Drawbacks - data isn’t always available or reliable, just because you can identify a segment doesn’t mean you can reach its customers

Question 8

Demographic market segmentation

Answer 8

Common for a business to target specific segments according to the following
- age
- gender
- income
- social class
- religion

Question 9

Geographic market segmentation

Answer 9

Splitting people according to where people live

Question 10

Phsychographic market segmentation

Answer 10

Based on attitude, opinions + lifestyle
E.g. sports products, clothes, certain fashion, newspaper/ magazine

Question 11

Behavioural market segmentation

Answer 11

This relates to how customers use a product:
-usage rate according to the quantity and frequency of their purchases
- loyalty
-knowledge
-attitudes