1.1.2 Market research

Question 1

define invention

Answer 1

formulation of new ideas for product processes

Question 2

define innovation

Answer 2

practical application of new inventions into marketable product or services

Question 3

define product innovation

Answer 3

launching new or improved products onto the market

Question 4

product innovation pro’s

Answer 4

• first mover advantage
• higher prices + profitability
• added value
• opportunity to build customer loyalty
• enhanced reputation
• public relations

Question 5

define process innovation

Answer 5

finding better more efficient ways of producing existing products

Question 6

pro’s process innovation

Answer 6

• reduced costs - less wages
• improved quality - human error
• more responsive customer service
• greater flexibility
• higher profits

Question 7

define product orientation

Answer 7

product is the most important factor when designing and creating products for a market informed by scientific research.

Question 8

define market orientation

Answer 8

the consumer is the most important factor when providing products for the market informed by market research.

Question 9

define market research

Answer 9

collection and analysis of data and information to inform a business about its market

Question 10

data collected and analysed is used to

Answer 10

• identify and anticipate customers needs + wants
• quantify likely demand
• gain insight into consumer behaviour

Question 11

define primary research

Answer 11

collection at first hand data that didnt exist before

Question 12

examples of primary research

Answer 12

focus groups, questionnaires, loyalty cards

Question 13

define secondary research

Answer 13

research that has already been undertaken by another organisation already existing

Question 14

examples of secondary research

Answer 14

social media, govt reports, trade unions.

Question 15

define quantitative data

Answer 15

gathering data and measuring responses

Question 16

example of quantitative data

Answer 16

govt stats, surveys loyalty cards

Question 17

pro’s of quantitative data

Answer 17

• easy to analyse
• insight into relevant trends
• can be compared with other data

Question 18

con’s quantitative data

Answer 18

• doesn’t explain why things happen
• may lack reliability if sample size + method is not valid

Question 19

define qualitative data

Answer 19

data gathered based on consumers thoughts

Question 20

examples of qualitative data

Answer 20

focus groups, interviews.

Question 21

pro’s qualitative data

Answer 21

• important for new product development launches
• understands customer needs

Question 22

con’s qualitative data

Answer 22

• expensive
• based around opinions

Question 23

define sampling

Answer 23

group of subjects chosen from a larger group

Question 24

define random

Answer 24

each individuals chosen by chance

Question 25

define quota

Answer 25

population segmented to sub groups, judgement is made in selecting respondents representative of that sub group

Question 26

define stratified

Answer 26

population segmented into sub groups respondents randomly selected within subgroups

Question 27

value of sampling depends on

Answer 27

- budget - important of quality

Question 28

pro's sampling

Answer 28

- useful research - reduce risks + costs - flexible + quick

Question 29

con's sampling

Answer 29

- unrepresentative - risk of bias

Question 30

define market segmentation

Answer 30

identifiable group of individuals where consumers share 1 or more characteristics or needs

Question 31

pro's market segmentation

Answer 31

- easier to identify new products - targeted advertising - more profitable