8 - The role of market research in the strategy making

Question 1

What is the primary role of market research in strategy making?

Answer 1

Market research provides essential information and insights to make informed decisions, mitigate risks, and identify opportunities in the market.

Question 2

What is the definition of market research?

Answer 2

It’s the systematic process of gathering, analyzing, and interpreting information about a market, including customers, competitors, and the environment.

Question 3

What are the four fundamental aims of market research?

Answer 3

1. Identify and define marketing opportunities/problems.
2. Generate, refine, and evaluate marketing actions.
3. Monitor marketing performance.
4. Improve understanding of marketing as a process.

Question 4

What is a “management problematic”?

Answer 4

A broad, action-oriented decision-making challenge or opportunity a manager faces.

Question 5

Give an example of a management problematic.

Answer 5

How can we increase our market share in the smartphone industry?”

Question 6

What is a “research problematic”?

Answer 6

A redefinition of the management problematic into a clear, concise, and actionable research question.

Question 7

Give an example of a research problematic for the management problematic: “How can we increase our market share in the smartphone industry?”

Answer 7

“What are the key factors influencing consumer purchasing decisions for smartphones, and how do consumers perceive our brand compared to key competitors?”

Question 8

What is secondary research?

Answer 8

Using existing data collected for purposes other than the current research project.

Question 9

List the characteristics of secondary research methods.

Answer 9

Advantages
1. Cost-effective
2. Time-saving
3. Accessible

Disadvantages
1. Potential for irrelevance
2. Accuracy/reliability concerns
3. Outdated information
4. Lack of control

Question 10

What is primary research?

Answer 10

Collecting original data specifically for the current research project.

Question 11

List the characteristics of primary research methods.

Answer 11

Advantages:
1. Specific and relevant
2. Up-to-date
3. Control over data quality
4. Proprietary information

Disadvantages:
1. Time-consuming
2. Expensive
3. Requires expertise
4. Potential for bias

Question 12

Why is there a need for complementary application of secondary and primary research methods?

Answer 12

Secondary research provides foundation and context, helps refine problems, and offers efficiency; primary research provides depth, specificity, and validation.

Question 13

How can secondary and primary methods be applied complementarily?

Answer 13

Start with secondary research, identify information gaps, design primary research to fill those gaps, then analyze and synthesize both for strategic decisions.

Question 14

What is a marketing database?

Answer 14

A centralized repository of information about customers, prospects, and other marketing-related data.

Question 15

What is one possibility of using a marketing database?

Answer 15

Enables detailed customer segmentation and personalized communication.

Question 16

What is one limitation of a marketing database?

Answer 16

Requires significant investment and maintenance; data quality issues.

Question 17

What is database marketing?

Answer 17

A form of direct marketing that uses databases to generate personalized communications and offers.

Question 18

What is one possibility of database marketing?

Answer 18

Highly targeted campaigns; improved customer retention.

Question 19

What is one limitation of database marketing?

Answer 19

Can be perceived as intrusive; requires clean data

Question 20

What is data mining?

Answer 20

The process of discovering patterns, trends, and anomalies in large datasets using statistical and computational techniques.

Question 21

What is one possibility of data mining?

Answer 21

Identifying customer segments; predicting future purchasing behavior; optimizing pricing strategies.

Question 22

What is one limitation of data mining?

Answer 22

Requires specialized skills; results need careful interpretation; ethical concerns.

Question 23

What is the main role of Artificial Intelligence (AI) in market research and strategy?

Answer 23

AI can analyze vast amounts of data, identify complex patterns, and make predictions at speeds and scales impossible for humans.

Question 24

List possibilities of AI in market research.

Answer 24

1. Enhanced data analysis (e.g., sentiment from unstructured data).
2. Predictive analytics (e.g., forecasting sales).
3. Personalization at scale.
4. Automated insights.
5. Market simulation.
6. Automated optimizaton

Question 25

List the limitations of AI in market research.

Answer 25

1. Data dependency ("garbage in, garbage out"). 2. Ethical concerns (bias, privacy). 3. Cost and complexity. 4. Lack of nuance/struggles with qualitative insights.

Question 26

What are the two main categories of methods for choosing participants for a questionnaire?

Answer 26

Probability sampling and non-probability sampling.

Question 27

What is the key characteristic of probability sampling methods?

Answer 27

Every member of the population has a known, non-zero chance of being selected.

Question 28

What is the key characteristic of non-probability sampling methods?

Answer 28

Participants are not selected randomly, and not every member has an equal chance of selection.

Question 29

What is Simple Random Sampling?

Answer 29

Every individual in the population has an equal and independent chance of being selected.

Question 30

What is an advantage of Simple Random Sampling?

Answer 30

Minimizes bias, highly representative (if sample size is sufficient), allows for calculation of sampling error.

Question 31

What is a disadvantage of Simple Random Sampling?

Answer 31

Requires a complete list of the population, which can be difficult to obtain; can be geographically dispersed.

Question 32

What is Systematic Sampling?

Answer 32

Individuals are selected at regular intervals from a sorted list of the population.

Question 33

How do you determine the sampling interval (k) in Systematic Sampling?

Answer 33

k=N/n (Population size / Desired sample size).

Question 34

What is a potential disadvantage of Systematic Sampling?

Answer 34

Can introduce bias if there's a hidden pattern in the list that aligns with the sampling interval.

Question 35

What is Stratified Sampling?

Answer 35

The population is divided into homogeneous subgroups (strata), and then a random sample is drawn from each stratum.

Question 36

What is an advantage of Stratified Sampling?

Answer 36

Ensures representation of key subgroups, reduces sampling error, allows for more precise estimates within strata.

Question 37

What is Cluster Sampling?

Answer 37

The population is divided into natural groups (clusters), a random sample of clusters is selected, and all individuals within chosen clusters are surveyed.

Question 38

What is an advantage of Cluster Sampling?

Answer 38

Cost-effective and time-efficient, especially for geographically dispersed populations.

Question 39

What is a disadvantage of Cluster Sampling?

Answer 39

Less precise than simple random or stratified sampling; higher sampling error if clusters aren't representative.

Question 40

What is Convenience Sampling?

Answer 40

Participants are selected based on their ease of accessibility and proximity to the researcher.

Question 41

What is an advantage of Convenience Sampling?

Answer 41

Quick, easy, and inexpensive; useful for pilot studies.

Question 42

What is a major disadvantage of Convenience Sampling?

Answer 42

High risk of bias; results cannot be generalized to the broader population.

Question 43

What is Voluntary Response Sampling?

Answer 43

Participants self-select to participate in the survey, often by responding to a public call.

Question 44

What is a major disadvantage of Voluntary Response Sampling?

Answer 44

Highly susceptible to self-selection bias; results are rarely representative.

Question 45

What is Quota Sampling?

Answer 45

Participants are non-randomly selected within predetermined subgroups (quotas) until the quota for each group is met.

Question 46

How does Quota Sampling differ from Stratified Sampling?

Answer 46

Quota sampling uses non-random selection within strata, while stratified sampling uses random selection.

Question 47

What is a limitation of Quota Sampling?

Answer 47

Still subject to selection bias within each quota; cannot guarantee true representativeness.

Question 48

What is Purposive Sampling (Judgmental Sampling)?

Answer 48

The researcher deliberately selects participants based on their specific knowledge, expertise, or characteristics relevant to the research.

Question 49

When is Purposive Sampling typically used?

Answer 49

In qualitative research where in-depth insights from specific individuals are needed.

Question 50

What is a disadvantage of Purposive Sampling?

Answer 50

Highly subjective and prone to researcher bias; not suitable for generalizing findings.

Question 51

What is Snowball Sampling?

Answer 51

Initial participants refer other potential participants who fit the study criteria, used for rare or hard-to-reach populations.

Question 52

What is an advantage of Snowball Sampling?

Answer 52

Effective for reaching hard-to-access populations.

Question 53

What is a disadvantage of Snowball Sampling?

Answer 53

High risk of bias, as participants are likely to be similar; limited generalizability.

Question 54

Name the key considerations when choosing a participant selection method.

Answer 54

1. Research objectives. 2. Target population. 3. Available resources (budget, time). 4. Desired level of generalizability. 5. Potential for bias.