Unit 4.4

Question 1

Define Market Research

Answer 1

The process of collecting and analysing data about customers (current and potential), competitors, and the market

Question 2

Why firms carry out market research

Answer 2

Up to date information

E.g. fashion and electronics

Identify likely future trends

Improve marketing strategy

Better product design

More suitable price

Testing of new products

Question 3

Define primary research

Answer 3

Collecting data first-hand for a specific purpose

Specific to the needs of the firm

Question 4

What are the methods of primary research?

Answer 4

Surveys

Interviews

Focus Groups

Observation

Question 5

Define survey

Answer 5

Document containing series of questions to collect data

Can collect both Quantitative research (numerical results) And Qualitative research (non-numerical, behavioural)

Question 6

Define inteview

Answer 6

One on one discussions, gain lots of qualitative data

Question 7

Define focus groups

Answer 7

Small and interactive discussion groups

Question 8

Define observations

Answer 8

Watching how people behave rather than asking

Question 9

Define secondary market research

Answer 9

Collection of second-hand data collected by someone else for their specific purpose

Question 10

Examples of secondary research

Answer 10

Market analyses

Academic journal

Government publications

Media articles

Question 11

What is quantitative data

Answer 11

numerical data

Question 12

What is qualitative data

Answer 12

non-numerical/behavioural data

Open ended

Provides more context

Question 13

Define sampling

Answer 13

Doing market research with a proportion of the population

Question 14

What are non probability sampling methods

Answer 14

Snowball sampling

Convenience Sampling

Quota Sampling

Question 15

What are probability samplings methods

Answer 15

Random Sampling

Stratified Sampling

Cluster Sampling

Question 16

Define convenience sampling

Answer 16

Selecting respondents because of their availability or ease of access

E.g. Asking people on the street

Likely to have sampling bias

Question 17

Define snowball sampling

Answer 17

One person is asked this person refers a friend, who refers a friend

Question 18

Define quota sampling

Answer 18

Population is segmented into distinct sub-groups (e.g. Male/Female)

Researcher is given a quota (e.g. e.g. 100 males, 50 females

Researcher then uses ‘judgement’ to get a sample

Question 19

Define random sampling

Answer 19

Each member of target population has an equal chance of being selected.

1. Make a list of the total population
2. Use probability methods to select the sample

Question 20

Define cluster sampling

Answer 20

Taking a sample from one or two groups

Often geographical

E.x. Population is whole country but take sample from one city

Question 21

Define stratified sampling

Answer 21

Population is segmented into strata

Take a random proportion from strata based on how many there are in proportion to total

E.g. if the population contained 20% old people and sample size is 1000 people there must be 200 old people in the sample