15. Market research Flashcards Preview

Business AS > 15. Market research > Flashcards

Flashcards in 15. Market research Deck (30):
1

Define market research

The process of collecting, recording and analysing data about the customers, competitors and the market

2

Why is market research important?

- Reduce the risks associated with new product launches
- To predict future demand changes
- To explain patterns in sales of existing products and market trends
- To assess the most favoured designs, flavours, styles, promotions and packages for a product
- Gather info regarding market size, consumers' tastes, weaknesses and strengths of the product, competitors and their USP

3

Define primary research

The collection of first-hand data that is directly related to a firm's needs

4

Define secondary research

Collection of data from second-hand sources

5

Types of primary research

- Questionnaires
- Interviews
- Consumer panels (focus groups)
- Observations

6

Benefits of questonnaires

- Easy to analyse because it is concrete data
- Can be quickly and easily quantified
- Large amounts of info can be collected from large number of people in a short period of time

7

Drawbacks of questionnaires

- Biased question
- Respondent might not be truthful
- People may interpret the question differently

8

Benefits of interviews

- Face to face interaction
- Easy correction of speech - any misunderstanding and mistake can be easily rectified
- Capture emotions and behaviours through body language

9

Drawbacks of interviews

- Time consuming
- Costly
- Qualitative data => hard to analyse
- Might not be recorded

10

Benefits of consumer panels

- Useful to obtain detailed info about personal feelings, perceptions and opinions
- Saves time and money compared to individual interviews
- Opportunity to seek clarification
- Provide useful material e.g. quote for PR publication

11

Drawbacks of consumer panels

- Disagreements and irrelevant discussion
- Hard to control/manage
- Difficult to analyse
- As they are self selecting, they may not be an ideal representative

12

Benefits of observations

- Direct method of collecting data - best for the study of human behaviour
- An additional method to improve precision of research results
- Easy to carry out

13

Drawbacks of observations

- Problems of the past can not be studied
- Can be subjective
- Cannot study opinions
- Complete answer to any issue can not be obtained by this method alone

14

Define qualitative research

Research into the in-depth motivations behind consumer buying behaviour or opinions

15

Define quantitative research

Research that leads to numerical results that can be statistically analysed

16

Define focus groups (consumer panels)

A group of people who are asked about their attitude towards a product, service, advertisement or new style of packaging

17

Types of secondary research

- Government publications (census, social and economic trends, family expenditure surveys)
- Trade organisations
- Internal company records
- Internet
- Newspapers reports

18

Advantages of secondary research

- Often obtainable very cheaply - apart from the purchase of market intelligence reports
- Identifies the nature of the market and assists with the planning of primary research
- Allows comparison of data from different sources
- Gathers info about competitors

19

Disadvantages of secondary research

- May not be updated frequently
- Data collection methods and accuracy may be unknown
- Might not be available for completely new products development

20

Define sample

The group of people taking part in a market research survey selected to be representative of the overall market

21

Define random sampling

Every member of the target population has an equal chance of being selected

22

Define systematic sampling

Every nth item in the target population is selected

23

Define stratified sampling

Particular set of people from the population chosen for a sample e.g. age, gender

24

Define quota sampling

When the population has been stratified and selects an appropriate number of respondents from each stratum. e.g. population: 65% male and 35% female => select 35% from 14-20; 35% from 21-30

25

Define cluster sampling

Random sample within a particular geographical area

26

Define convenience sampling

Members of the population are chosen based on their relative ease of acess.
Sample collected from an immediate area close to the researcher

27

Define snowball sampling

- The first respondent refers a friend and the process continues
- Often used by companies in the financial services sectors. e.g. health, insurance

28

Define judgmental sampling

The researcher chooses the sample based on who they think would be appropriate to study
- Used by an experienced researcher who may be asked to produce a report in a short period of time

29

How have the market research developed?

Due to the fast pace of technological change, businesses are turning to electronic means to gather data for marketing strategies.
E.g. membership/loyalty cards containing the info about consumers' age and gender and able to trace their buying patterns

30

Cost effectiveness of market research

- As technology develops, costs of market research is reduced
- Well focused and designed market research plays an important role in producing higher sales and profts