U1 AOS1/KK8: Market research Flashcards
Market research is…
investigation into consumer needs allowing to gain insight to assess the potential success
The market research process is…
- Research Objectives (i.e. What do you want to find out?)
- Perform Secondary Research and Analyse the data
- Decide on Primary Research Methods
- Conduct Primary Research and analyse the data
- Present the data and produce the report
Two types of market research data are…
Qualitative and quantitative data.
Primary research is…
The collection of information first-hand by a business for a specific purpose.
Pros of primary
- Data is accurate and up to date
- Fully specific to the purpose or cause
Cons of primary
- Time consuming
- Expensive
- Bias
- May lack validity
Secondary research is…
The use of information that has already been collected previously. This could be by another organisation/business or for a different purpose.
Examples of primary
Surveys, questionnaires, interviews, observations
Examples of secondary
Newspapers, reports, websites (internet), journals, statistics
Pros of secondary
- Cheaper
- Quicker
Cons of secondary
- Not applicable to specific requirements
- Business not aware of conditions under which research was conducted.
Why is MR useful?
Allows business to:
1. Understand the needs and wants of the customer
2. Assess the viability of the business idea
3. Allows them to understand the market