Theme 1 1.2 Market Research Flashcards
(44 cards)
What is a characteristic of a dynamic market?
Constant change and evolution in consumer preferences and technology.
List two advantages of operating in a mass market.
- Larger customer base
- Economies of scale
List two disadvantages of operating in a mass market.
- High competition
- Lower profit margins
List two advantages of operating in a niche market.
- Reduced competition
- Higher profit margins
List two disadvantages of operating in a niche market.
- Limited customer base
- Vulnerability to market changes
What is product orientation?
A business is product orientated when it only looks at the product or the production process when deciding what to make next.
When is product orientation appropriate?
- Little competition in the market
- Limited consumer knowledge
- Low disposable income of consumers
What is market orientation?
A market orientated business focuses on the needs of the consumer.
Give an example of a market-oriented business.
ASDA’s Chosen By You range, tested by consumers.
What is primary market research?
Collecting data first hand for the benefit of the business.
List three methods of primary market research.
- Questionnaires
- Observation
- Focus groups
What is secondary market research?
Gathering data which already exists, also known as desk research.
List three methods of secondary market research.
- Government sources
- Trade publications
- Internet sources
What is qualitative research?
Research that seeks to gather and explore feelings and thoughts about a product from consumers.
What is quantitative research?
Research involving gathering data and measuring responses, often displayed in charts and statistics.
What is market segmentation?
An identifiable group of individuals or part of a market where consumers share one or more characteristics or needs.
Give an example of segmentation by location.
Targeting products for rural versus urban areas.
What is segmentation by demographics?
Statistical data relating to the population and particular groups within it.
What does segmentation by lifestyle consider?
- Values
- Attitudes
- Hobbies and interests
How can the population be segmented by income?
- Low income
- Middle income
- High income
Define disposable income.
Income remaining after deduction of taxes and social security charges, available to be spent or saved.
List the age groups for market segmentation.
- 0-10
- 11-16
- 17-19
- 20-25
- 26-35
- 36-50
- 51+
What is a potential consequence of not carrying out market research?
Poor business decisions leading to financial losses.
True or False: Primary research data is existing data.
False
