Unit 5.2 - market research Flashcards
Define market research.
The way in which information
and data is gathered about consumers, competitors and market trends.
Define primary (field) research.
Collecting information that does not already exist and is collected for a specific
purpose.
Define secondary (desk) research.
Using information which already exists which can be
collected internally or externally.
Explain the difference between quantitative and qualitative data.
Qualitative data involves collection of data about attitudes, beliefs and
intentions (opinions) whereas quantitative data involves the collection of data that can be measured.
This means the collection of statistical data such as sales figures and market share.
Name the advantages (3) and disadvantages (3) of primary research.
Up-to-date first-hand information collected by the researcher (yourself)
Specific to a business’ own needs/accurate
Provides answers to exact questions that a firm may be interested in
Can be very expensive to collect could the money have been better utilised using
secondary research?
Can be very time consuming to collect so that by the time it has been collected and
analysed the market may have changed
Can have problems of bias
Name the advantages (2) and disadvantages (4) of secondary research.
It is inexpensive to collect and quick to obtain
Enables cost-effective analysis of several data sources
Often out of date
Might not be available
Little control over quality
Problems of interpretation
Name the different methods of primary research. (5)
Surveys/questionnaires
Focus groups
Consumer panels
Interviews
Observation
Define surveys/questionnaires.
A way of gathering information by questioning a sample of people.
Define focus group.
Consumers are brought together by businesses to discuss their reactions to products before they are launched.
Define consumer panels.
Similar to focus groups, though they are slightly different as consumer panels tend to be more product-orientated. Consumers will be asked to comment on such things as product design and taste, or on the branding and advertising of products.
Define interviews.
Structured conversations used to obtain detailed information from a limited number of respondents.
Define observation.
Looking at what people do and how they behave and recording it.
Name the different methods of secondary research. (10)
Company reports
Business records
Financial data
Government statistics
Census data
The Internet
Newspapers/magazines
Trade journals
Published research
Competitor information
Split the methods of secondary research into internal (3) and external. (7)
Internal:
Company reports
Business records
Financial data
External:
Government statistics
Census data
The Internet
Newspapers/magazines
Trade journals
Published research
Competitor information
Name the advantages (1) and disadvantages (3) of questionnaires/surveys.
Cheap to carry out
Low response rate
Questions need to be short so detailed questions are difficult to ask
Must be well designed and easy to understand
