Understanding Consumers (CH 12) Flashcards
What is Market Research?
The action of gathering information about consumers needs/preferences
Market Research Purpose
- Find potential demand
- Understand customers behaviour
- Study competitors and USP
- Understand how much customers are willing to pay
Types of Market Research
- Primary
- Secondary
What is Primary MR and give examples?
- Method of gathering new information and data directly from the consumers
- Surveys
- Interviews
- Observations
- Test Marketing
What is Secondary MR and give a example?
- Use data already gathered before by other organisations
Data Sources
Types of Primary MR?
Quantitive- numbers, percentages
Qualitative- feelings, opinions
Primary MR + and -
+
- Up to date and conducted as required
- Tailored to precise needs of firm
- Data produced that rivals don’t have access to
-
- Expensive
- Time consuming to collect + Interpret data
- Focus groups can require specialist skills
Secondary MR + and -
+
- Available immediately
- Can be free/ inexpensive
- Normally cheaper than PMR
- Provides data on market size and share
-
- May be out of date
- Difficult to guarantee access
- Expensive sometimes
- Rivals can access this too
Market Research Concerns
- Sampling
- Random sample
- Quota Sample
- Potential Bias
What is sampling?
Collecting data from no. people to represent the target market/population as a whole
What is a random sample?
Everyone has equal chance of being selected
What is a quota sample?
Dividing target market into groups according to their consumer characteristics
What is a potential bias?
Data collected from sample might not reflect accurately of population
MR Limitations
- Difficult in foreign markets
- Some markets change rapidly; hard to keep up to date
- Production decisions taken by managers unfamiliar with their market
What is Market Segmentation?
Dividing markets into groups of similar consumers, such as needs/ characteristics
