Market research

Question 1

What are the 2 types of market research?

Answer 1

Field Research
Desk Research

Question 2

Field Research

Answer 2

This involves finding out informtaion first hand (primary information) directly from the public/consumer.

Question 3

Advantages of field research (2)

Answer 3

Information is gathered specific to your purpose.
Information is up-to-date.

Question 4

Disadvantges of field research (3)

Answer 4

It is more expensive to gather compared to desk research.
It is more time consuming to gather compared to desk research.
People may not always give truthful answers in response to questions.

Question 5

Desk research

Answer 5

This uses secondary information which has already been gathered for another purpose either from inside or outisde the business.

Question 6

Advantages of desk research (3)

Answer 6

It is cheaper to access existing information rather than having to collect information from scratch.
It is easier to obtain by looking in a newspaper or on a website as the research has already been carried out.
Decisions can be made quickly as the information already exists.

Question 7

Disadvantages of desk research (3)

Answer 7

Information may be out of date as it may have been collected a long time ago and so may not be relevant.
Information is available to competitors making it harder to find a competitive edge.
The information may not be as useful as the research has been carried out for a different purpose.

Question 8

What are the 6 methods of field research?

Answer 8

Personal interview
Telephone survey
Postal Survey
Online Survey
Focus groups/Consumer pannels
Social networking websites

Question 9

Personal interview

Answer 9

A face-to-face discussion between a trained interviewer and a respondent which can take place in the street or at home.

Question 10

Personal interview advantages (3)

Answer 10

Allows two-way communication so any point can be clarified.
The researche can encourage the respondant to answer certain questions.
Body language and facial expression can be observed.

Question 11

Personal interviews disadvantages (2)

Answer 11

It is a costly method of research as interviewers need to be trained.
It’s very time consuming as only one respondent can be interviewed at any one time.

Question 12

Telephone survey

Answer 12

People are contacted by telephone and asked to answer a range of questions.

Question 13

Telephone survey advantages (2)

Answer 13

Information is obtained immediately.
Any points can be clarified by the researcher.

Question 14

Telephone survey disadvantages (1)

Answer 14

Many people will not want to speak to a researcher over the phone and so many calls will need to be made to get a large number of responses.

Question 15

Postal survey

Answer 15

A list of questions is sent to people through the post. They will complete the survey and send it back to the business.

Question 16

Postal survey advantages (2)

Answer 16

Cost effective way of sending a survey to a large number of people over a wide geographic area.
People can complete their survey at their own pace when it suits them.

Question 17

Postal survey disadvantages (2)

Answer 17

The response rate may be very low.
There is no opportunity for the respondent to clarify anything they don’t understand.

Question 18

Online survey

Answer 18

People answer a number of questions that are displayed on a website. Respondents may have to click an appropriate answer and/or type in comments.

Question 19

Online survey advantages (2)

Answer 19

A link to a website can be sent to a large number of people all over the world.
Computer software can automatically collate and display results in real time.

Question 20

Online survey disadvantages (2)

Answer 20

Relies on respondents having access to the internet.
No peronal contact with business to clarify any misunderstandings.

Question 21

Focus group/Consumer panel

Answer 21

A selected group of people is gathered to take part in a discussion about a product. Their opinions are obtained on the design, colour shape etc and what they like and dislike about the product.

Question 22

Focus group/consumer panel advantages (2)

Answer 22

Opinions, feeling and attitudes can be gained.
Follow up questions can be asked and points can be calrified.

Question 23

Focus group/Consumer panel disadvantages (2)

Answer 23

The sample of people used may not represent the views of the whole population.
Financial incentives may be needed to encourage people to take part.

Question 24

Social networking websites

Answer 24

Businesses can set up social media accounts (e.g. Facebook, Twitter) in order to interact with customers around the world to find out their reactions and opinions on different issues.

Question 25

Social networking websites advantages (3)

Answer 25

Two-way communication can occur between the business and the customer.
Large number of people can be reached.
Questions can be answered very quickly.

Question 26

Social networking websites disadvantages (2)

Answer 26

Customers may not want to join social networking websites.
Information is not usually private so can be viewed by anyone.

Question 27

What are the 5 methods of desk research?

Answer 27

Internet websites
Newspaper
Government statistics
Internal sales figures
Industry reports