Unit 2 KA2- Market Research

Question 1

What information can market research provide to a business?

Answer 1

Market research provides information about:

• The market itself (size and make-up – i.e. age, gender, income, tastes)
• Customer feedback
• Promotional methods
• Sales data
• Competitors
• Effect of price on market

Question 2

What are the two types of research?

Answer 2

Field
Desk

Question 3

Give examples of field research

Answer 3

-Face-to-face interview
Postal survey
-Focus group
-Hall test
-Telephone interview
-Online survey
-Observation

Question 4

Give pros and cons of field research

Answer 4

Pros
-Only firm that collects data has access to it
-Collected for a specific purpose

Cons
-Expensive to collect
-Time consuming

Question 5

Give examples of desk research

Answer 5

-Sales figures
-Newspapers
-Websites
-Government publications
-Commercial publications

Question 6

Give the pros and cons of desk research

Answer 6

Pros
Saves time
Relatively inexpensive
Widely available

Cons
Not specifically gathered for the business
May be out of date
May contain bias

Question 7

What is sampling?

Answer 7

Sampling is the process of creating a small unbiased group/population to be used in a test or experiment. The sample removes the impractical idea of surveying everyone in a market or a population.

Question 8

Explain random sampling

Answer 8

Random sampling is when a sample is created by chance. It is the luck of the draw.

Random sampling does not target any specific market segment. The people to be included in the sample are generated at random. This could be done by using a computer program or taking names from a list or telephone book.

Question 9

Give pros and cons of random sampling

Answer 9

Pros
Less chance of bias as respondents are chosen at random
Simple and quick to select sample

Cons
The sample may not truly reflect the target market
It can be expensive as a large sample is required

Question 10

Explain quota sampling

Answer 10

Quota sampling is a sample that has been created to mimic the characteristics of a market. The researcher will choose the characteristics they wish the respondents to have. For example, only sampling males who are over 50 years old.

Question 11

Give pros and cons of quota sampling

Answer 11

Pros
Cheaper as less respondents are required

Cons
Harder to eliminate bias in the selection process

Question 12

Compare random and quota sampling

Answer 12

Random sampling does not target any specific market segment. Quota sampling chooses a group of people with certain characteristics.
Random sampling is often more expensive than quota sampling as it requires a large group of people to be sampled. Quota sampling requires less respondents.