ch11 market research

Question 1

Define Market Research (IMPORTANT)

Answer 1

the process of collecting recording and analyzing data about customers competitors and market for a product

Question 2

what is a Market orientated business?

Answer 2

such firms will collect market research to see what consumers want and then produce goods and services that satisfy them

Question 3

what are the types of Market Research

Answer 3

1. Primary
2. Secondary

Question 4

Define Primary research

Answer 4

The collection of original first hand data it involves directly collecting information from existing or potential customers

Question 5

what are the FOUR methods of primary research

Answer 5

1. Questionnaires/Surveys
2. Interviews
3. Focus groups
4. Observation

Question 6

what are the ADV of using Questionnaires/Surveys

Answer 6

• detailed information will be collected
• customer opinion about the product can be obtained
• online surveys will be cheaper and easier to collate and analyze
• can be linked to prize draws and prize draw websites to encourage customers to fill out surveys

Question 7

what are the DISADV of using Questionnaires/Surveys

Answer 7

• if questions are not clear or is misleading then unreliable answers will be given
• time consuming and expensive to carry out research collate and analyze them

Question 8

what are the ADV of using Interviews

Answer 8

• interviewer is able to explain questions that the interviewee doesnt understand and can also ask follow up questions
• can gather detailed responses, body language also allowing interviewer to come up with accurate conclusions about the customer opinion

Question 9

what are the DISADV of using Interviews

Answer 9

• the interviewer could lead and influence the interviewee to answer a certain way
• time consuming and expensive to interview everyone in sample

Question 10

what are the ADV of using Focus groups

Answer 10

they provide detailed information about the consumers opinion

Question 11

what are the DISADV of using Focus groups

Answer 11

• time consuming
• expensive
• opinions could be influenced by others in the group

Question 12

what are the ADV of using
Observation

Answer 12

inexpensive

Question 13

what are the DISADV of using
Observation

Answer 13

only gives basic figures
does not tell the firm why consumer buys them

Question 14

Define a Sample

Answer 14

Sample is a subset of a population that is used to represent the entire group as a whole.

Question 15

what are the types of Sampling

Answer 15

1. random sampling
2. quota sampling

Question 16

What is secondary Market research?

Answer 16

The collection of information that has already been made available by others.

Question 17

what are the ADV of primary research (IMPORTANT)

Answer 17

• Data is up to date
• Data is collected for a specific purpose which is directly relevant to the business
• It is available to other
  businesses.

Question 18

what are the DISADV of primary research (IMPORTANT)

Answer 18

• It is costly to collect
• It is time consuming
• Risk of being inaccurate data.

Question 19

what are the ADV of secondary research

Answer 19

• It is fairly cheap to obtain
• It is easier and quicker to obtain than primary research data.

Question 20

what are the DISADV of secondary research

Answer 20

• Outdated since collected a long time ago
• Not collected for the specific purpose required by the business so less reliable than primary research.

Question 21

What makes Market research information inaccurate?

Answer 21

• Information could be biased
• Secondary data may be out of date
• Secondary data may be collected for a different purpose.