Market Research

Question 1

Focus groups

Answer 1

A group of consumers who are selected to represent the target market brought together to discuss their feelings on a product/market

Question 2

Quantitive data

Answer 2

Data that is numerical such as statistics or facts

Question 3

Why does quantitative data limit the information that a business can find out?

Answer 3

It doesn’t give a reason or detail

Question 4

What is qualitative data

Answer 4

Data that tells you what someone thinks or feels

Question 5

Why can qualitative be more beneficial than quantitative?

Answer 5

You will have a better understanding of peoples opinions and reasons

Question 6

How many people normally take place in focus groups

Answer 6

6-10 poeple

Question 7

Which groups can be tarteged in a focus group?

Answer 7

The target market

Question 8

What is normally the incentive for taking part in a focus group

Answer 8

People get paid in money or gift cards

Question 9

Why might the accuracy of the information collected in a focus group be limited?

Answer 9

Observer interference

Question 10

Advantages of focus groups

Answer 10

Data is usually accurate as people are chosen to represent the target market

The ability to ask further questions (unlike questionnaires) to get more in depth responses

Question 11

Disadvantages of focus groups

Answer 11

Focus groups are small sized which limits the quantity of responses.

The selection of people to take part is time consuming and costly

Question 12

Trials

Answer 12

In a trial, a product or service is sold for a short amount of time as a test to see whether or not consumers like the product.

Question 13

Advantages of trials

Answer 13

Risk reduction

Reliability of conclusions

Question 14

Disadvantages of trials

Answer 14

Short term and long term costs

Question 15

Secondary research

Answer 15

Sometimes called desk research, refers to data that already exists

Question 16

Examples of secondary research

Answer 16

Websites
Internal data
Censu data
Newspapers and magazines

Question 17

Primary research

Answer 17

Also known as field research, is new research that a business undertakes itself. It is new data being collected for the first time

Question 18

Examples of primary research

Answer 18

Questionnaires
Interviews
Focus groups
Trials

Question 19

Advantages of questionnaires

Answer 19

Can easily target particular customers
Can distribute to many respondents to get varied opinions
Cheaper than other primary research methods

Question 20

Disadvantages of questionnaires

Answer 20

Not all customers will complete every question leading to gaps in results data

Customers may not understand all of the questions

Question 21

Interviews

Answer 21

One to one meeting when the interviewee is asked a set of questions by the interviewer to gain market research

Question 22

Why might interviews be more effective than questionnaires

Answer 22

You would get deeper insights and more developed responses

Question 23

Disadvantages/problems with interviews regarding time and money

Answer 23

Interviews take longer to complete and are one on one whereas surveys are quick and more people can complete them.

Surveys are typically free whereas you usually have to pay people to interview them

Question 24

Secondary market research : websites

Answer 24

Most companies put information about themselves and their products on the internet m, all of which can be used by other competitors as secondary data

Question 25

Advantages of websites as secondary research

Answer 25

It is a quicker way to obtain data compared to primary market research methods

Question 26

Disadvantages of websites as secondary research

Answer 26

The data may not be up to date The data may not match the purpose of the market research required

Question 27

Census data (secondary research)

Answer 27

Data collected by the government even 10 years Questioning the entire population on their income, occupation etc…

Question 28

Newspapers and magazines as secondary market research

Answer 28

Information can be identified from reading newspapers and magazines. For example, new products competitors are offering

Question 29

Internal data

Answer 29

Refers to last sales figures, profits and comments from customers. This can be used for future decision making and is usually stored in computer systems

Question 30

Quantitative data key points

Answer 30

Can be used to create percentages and graphs making things easier to analyse Typically quantitative data can incorporate responses from a larger number of people

Question 31

Qualitative data key points

Answer 31

Can offer more in depth information The detail or opinion may be more useful in satisfying the market research brief