Market Research

Question 1

what are the types of market research

Answer 1

desk and field

Question 2

why is market research important

Answer 2

anticipates changes in market and customer tastes, keep ahead of competitors, ensures correct price/promotions are set

Question 3

what are the methods of field research

Answer 3

telephone survey
postal survey
online survey
personal interview
hall tests
focus groups
consumer audit 
test marketing
EPOS

Question 4

what are the methods of sampling

Answer 4

random sampling
quota sampling
stratified random sampling
cluster sampling

Question 5

what are the advantages of postal surveys

Answer 5

• cheap to send survey to large no. of people over a wide geographical area
• people can complete survey at own pace & time that suits them

Question 6

what are the disadvantages of postal surveys

Answer 6

• people need to
open survey sent to them in post and send it back- might not do it
• can take time to get info back
• no opportunity for respondent to clarify anything they don’t understand
• survey must be designed carefully so it’s not misinterpreted

Question 7

what are the advantages of telephone surveys

Answer 7

• large no. people all over country contactable
• less expensive to carry out compared to personal interview
• info obtained instantly
• clarification can be given

Question 8

what are the disadvantages of telephone surveys

Answer 8

• people might not want to participate
• unsuitable for large surveys since people often only willing to answer a short survey over telephone due to time it would take for a larger one

Question 9

what are the advantages of hall tests

Answer 9

• product is tried by participant who can report back on their actual experience
• relatively inexpensive

Question 10

what are the disadvantages of hall tests

Answer 10

• opinions & views (qualitative info) can be difficult to analyse
• participant might give response they think the org. wants to hear so they don’t seem rude

Question 11

what are the advantages of observation

Answer 11

• facts & figures (quantitative info) are gathered which are easier to analyse than qualitative info
• people being observed might no be aware so will act naturally

Question 12

what are the disadvantages of observation

Answer 12

• those being observed not usually asked for opinion or explanation as to why they did/didn’t do something
• there’s privacy & ethical issues to consider when observing

Question 13

what are the advantages of consumer audit

Answer 13

• info is gathered over a period of time & customer trends can be identified
• more detailed feedback gathered on products to shape future changes

Question 14

what are the disadvantages of consumer audit

Answer 14

• ’participants receive payment which can be expensive

* info recorded may be inaccurate/incomplete

Question 15

what are the advantages of online surveys

Answer 15

• link to survey website can be sent to large no’s
• don’t need money to print surveys
• people all over world can participate

Question 16

what are the disadvantages of online surveys

Answer 16

• relies on internet connection

* no personal contact with participants

Question 17

what are the advantages of focus groups

Answer 17

• feelings&views & body language of people can be observed
• points not understood can be clarified

Question 18

what are the disadvantages of focus groups

Answer 18

• time consuming & expensive
• info can be difficult to analyse
• sample of people used might not represent views of whole
population

Question 19

what are the advantages of personal interviews

Answer 19

• allows 2 way communication
• interviewer can response to customers body language, tone of voice & facial expressions to encourage fuller responses

Question 20

what are the disadvantages of personal interviews

Answer 20

• can take a lot of time to conduct interviews

* customers might feel this sort of questioning is a nuisance and not want to respond

Question 21

what are the advantages of test marketing

Answer 21

• changes can be made to products before launched to wider market
• money can be saved on launching a product to wider market if its unsuccessful in test area

Question 22

what are the disadvantages of test marketing

Answer 22

• customers in 1 area might not have tastes that are representative of wider market

Question 23

what are the advantages of EPOS

Answer 23

• gathers vital info about consumer behaviour (when and what they buy)
• allows retailers to offer promotions tailored to individual customers needs and preferences

Question 24

what are the disadvantages of EPOS

Answer 24

• can be v expensive & time consuming to set up systems

* can lead to lower profits when used with loyalty cards when vouchers are issued

Question 25

what is test marketing

Answer 25

when a new product is launched in a regional area & the reaction is monitors so successful products are then launched to a wider market

Question 26

what is EPOS

Answer 26

- electronic point of sale where info on customer preferences and habits is gathered as their loyalty cards are swiped - its used in conjunction with loyalty schemes to match purchasing info with customer details

Question 27

what are postal surveys

Answer 27

where a list of Qs is sent to people though post and they must send it back

Question 28

what are telephone surveys

Answer 28

when people are contacted by telephone & asked to answer Qs

Question 29

what are hall tests

Answer 29

where a product is given to customers to try and they’re asked for feedback on product

Question 30

what is observation

Answer 30

where an observer watches something and records what happens (how many times something happens/ someone does something)

Question 31

what is consumer audit

Answer 31

where customers are asked to record their responses to products they’ve purchased

Question 32

who usually uses consumer audit and why

Answer 32

large market research companies to continually monitor customer habits and influences

Question 33

what are online surveys

Answer 33

where people answer Qs displayed on a website

Question 34

what is a focus group

Answer 34

a discussion between selected people about a specific good/service

Question 35

what are personal interviews

Answer 35

where interviews are conducted as a street surveys or by caol calling at customers homes