Market Research

Question 1

Market Research

Answer 1

The action or activity of gathering information about consumers needs and preferences

Question 2

Primary data

Answer 2

Data collected first hand for a specific purpose by the entrepreneur

Examples are:- observation, postal survey, surveys, focus groups, telephone interview, etc

Pros- up to date info, more reliable, specific to your business, gain extra info

Cons-expensive, time consuming, requires people to corporates and they may not want too

Question 3

Secondary data

Answer 3

Data that already exist and which has been collected for a different purpose

Example sources:– google, government, magazine, market research reports

Pros- cheap, already made data, easy to access, quick

Cons- not specific, not got control over quality of data, not reliable, out of date, not valid

Question 4

Limitations of market research

Answer 4

Validity-are the results meaningful?
-are they necessary

Money - expensive

Size of sample- too small=meaningless

Bias-be accurate so it can represent whole population

Question 5

QuanTITive research

Answer 5

Numerical data such as…
95% of people like ice cream

Concerned data such as “how many” or “how often”

Based on larger samples of people so it’s more valid

Question 6

QuaLITive research

Answer 6

Based on opinions, attidues,beliefs, and interests

Answer questions Such as “why” “would”

• aims to understand how customers behave/how they respond to a new product or service

Examples of qualitative research is focus groups and interviews

Question 7

How to conduct good market research

Answer 7

1. Set sound research objectives
2. write a unbiased questionnaire
3. choose right sampling method
4. get a high enough sampling size
5. leading to reliable fundings