3.2 - market research Flashcards
(10 cards)
1
Q
importance of market research
A
- reduces chances of business failure
- finds out what people want to buy
- how many people are willing to buy that product before producing product
- ensures that they are producing goods and services that will sell successfully in the market and generate profits
2
Q
product oriented business
A
- such firms produce product first and then try to find a market for it
- their concentration is on it’s quality and price
e.g : firms that produce electrical and digital goods such as refrigerators and computers
3
Q
market oriented business
A
- firms that conduct market research to see what consumers want and then
produces goods and services to satisfy the consumers
4
Q
primary research
A
- involves collecting original data which may require direct contact with customers
e.g questionnaires, interviews, consumer panels, observation, experiments
5
Q
secondary research
A
- involves using info that already has been collected by another
- obtained from internal / external sources
internal source : finance department, distribution, sales department, customer service department
external source : internet, newspaper, research reports, government reports
6
Q
primary research advantage
A
- info is up to date
- able to talk to customer personally
7
Q
primary research disadvantage
A
- data collection is expensive
- requires expertise in collecting accurate data
- time consuming
- accessibility may be difficult
8
Q
secondary research advantage
A
- usually cheap = lower cost to business
- data is easily accessible
- less time consuming
- wider range of data
9
Q
secondary research disadvantage
A
- can be out of date
- might be unreliable = data not clear
- may not be applicable to specific research as aims have a different focus
10
Q
factors influencing market research data
A
- age of the information
- how questions were phrase in the questionnaires / surveys
- how the research was carried out
