chapter 11

Question 1

define product orientated business

Answer 1

businesses that produce the product first and then tries to find a market for it

Question 2

define market orientated business

Answer 2

businesses that conduct market research to see what consumers want and then produce goods and services to satisfy them

Question 3

define market research

Answer 3

process of gathering, analyzing, and interpreting information about a market

Question 4

why is market research important?

Answer 4

1.helps business identify customer taste and preferences->reduces the risk of failure when developing and launching a new product
2.helps business identify the main competitors->business knows the strengths and weaknesses of other competitors, so new product can have a competitive advantage
3.discover the current and future market size->helps business identify future growth opportunities

Question 5

types of market research

Answer 5

1.primary research
2.secondary research

Question 6

advantages of primary research

Answer 6

1.data is up to date
2.specific
3.not available for other businesses-competitive advantage

Question 7

disadvantages of primary research

Answer 7

1.expensive
2.time consuming
3.contain bias

Question 8

advantages of secondary research

Answer 8

1.cheap
2.easy to obtain

Question 9

disadvantages of secondary research

Answer 9

1.not up to date
2.not specific

Question 10

define primary research

Answer 10

collection of original data via direct contact with customers

Question 11

types of primary research

Answer 11

1.qualitative research
2.quantitative research

Question 12

define qualitative research

Answer 12

collecting information about consumer buying behaviour

Question 13

define quantitative research

Answer 13

collection of numerical data that can be analyzed using statistical techniques

Question 14

methods of primary research

Answer 14

1.questionnaires
2.interviews
3.focus groups
4.observation

Question 15

advantages of questionnaires

Answer 15

1.detailed information can be gathered
2.can be carried out online->cheap

Question 16

disadvantages of questionnaires

Answer 16

1.questions can be misleading
2.time consuming to design and carry out and analyze the results
3.can be expensive to design and carry out

Question 17

advantages of interviews

Answer 17

1.interviewer can explain any questions that the interviewee doesn’t understand->accurate answers->accurate data and market research
2.can gather detailed information

Question 18

disadvantages of interviews

Answer 18

1.the interviewer can influence the interviewee into answering in a certain way->inaccurate results, as interviewer bias
2.very time-consuming and expensive to carry out

Question 19

define focus groups

Answer 19

group of people who are representatives of the target market

Question 20

advantages of focus groups

Answer 20

1.provide detailed and specific information

Question 21

disadvantages of focus group

Answer 21

1.time consuming and expensive
2.can include bias if consumer is influenced by the opinion of others

Question 22

methods of observation are

Answer 22

1.recording
2.watching
3.audits

Question 23

advantages of observation

Answer 23

inexpensive

Question 24

disadvantages of observation

Answer 24

1.information gives basic figures,Does not tell the firm why consumer buys them.
2.requires observers that are well trained to analyze consumer behavior

Question 25

define samples

Answer 25

group of people who are selected to respond to a market research exercise

Question 26

types of sampling

Answer 26

1.random sampling
2.quota sampling

Question 27

what is random sampling

Answer 27

when people are selected randomly as a source of information for market research

Question 28

what is quota sampling

Answer 28

when people are selected based on certain characteristics as a source of information for market research

Question 29

reasons for sampling

Answer 29

1.very time consuming and inapplicable to ask the whole population- so a sample should be chosen
2.very costly to conduct market research with the whole population

Question 30

what is secondary research

Answer 30

information that has already been collected and is available for use by others

Question 31

internal sources of information

Answer 31

1.Opinions of distributors
2.Finance department
3.Customer Services department

Question 32

external sources of information

Answer 32

1.internet
2.government statistics
3.newspaper and magazines
4.market research agencies

Question 33

reasons for market research data inaccuracy

Answer 33

1.sample chosen may be too small or not representative of the population
2.wrong type of method to collect data
3.people attending to market research exercise may not answer truthfully
4.interviewer bias
5.data maybe recorded incorrectly
6.secondary data may be out of date or collected for other purposes

Question 34

define primary research

Answer 34

collecting original data via direct contact with customers