Market Research Chpt 21 Flashcards
(13 cards)
What is Market research?
Market Research is the gathering, recording and analysis of information about consumer preferences for a good or service, in order to make informed decisions about a potential market.
WHAT BENEFITS OF CONDUCTING MARKET RESEARCH?
Market research helps the business reduce the risk of business failure by finding out:
• Information about customers’ needs and wants
• Consumer reaction to changes to an existing product or service
• Information about the competition
• The best price to charge their customers
• Consumers’ reaction to how the product is promoted
• The likely level of demand/sales for a new product or service
WHAT is the USES OF MARKET RESEARCH?
Enterprises use market research for the following reasons:
• To identify what is happening in a market
• To identify what is likely to happen in the future
• To explain the causes of changes in the market
• To investigate new market possibilities
• To identify gaps in the market
What’s field research?
• Field research involves going into the marketplace (i.e. to people who might buy your product or service) to gather information first-hand for a specific purpose.
• It is also known as primary research and is carried out by making direct contact with customers or potential customers.
• Examples include: Surveys, Focus Groups, Observation
What Are the Key Principles of Survey Design?
• A survey involves questioning consumers in relation to products and services.
• The responses will be analysed by market researchers.
• Questions should be clear and should not be leading.
Question types include:
• Closed
• Multiple choice
• Open-ended
What Are the Advantages and Disadvantages of Personal Interviews?
Personal Interview Face-to-face interview between market researcher and consumer using a questionnaire. The interviewer usually fills out the responses on behalf of the consumer Advantages: Allows for detailed responses. The question or answer can be clarified.
Disadvantages: Time-consuming and expensive. Consumers may feel uncomfortable answering some questions face to face and may be dishonest in their responses.
How Do Postal Surveys Work and What Are Their Limitations?
Postal Survey Questionnaires are sent and returned through the post
Advantages: Cheaper than a personal interview, as there is no interviewer involved. People can answer in their own time.
Disadvantages: Very low response rate. Responses may take a long time to be returned.
What Are the Pros and Cons of Telephone Surveys?
Telephone Survey A series of questions is asked over the telephone
Advantages: Cheaper than a personal interview. People can be chosen from a wide geographical area. The question or answer can be clarified.
Disadvantages: Difficult to get people to respond, particularly if you contact them at busy times. People may provide quick responses to get the survey over quickly.
What Are the Advantages and Disadvantages of Online Surveys?
Online Survey Survey published on a website or sent via email
Advantages: Cheapest method. People worldwide can take part. People can answer in their own time. Responses can be analysed automatically.
Disadvantages: Many people ignore on-screen pop-ups or ignore the option to complete a survey. The opinions of consumers who are not online are ignored.
What Are the Advantages and Disadvantages of the Observation Method?
This involves watching or viewing consumers in action. This method is often used in retail stores.
Advantages: Large numbers of people can be observed in one location. It is a relatively cheap method of market research, as there is no need to employ staff to interview consumers.
Disadvantages: It is time-consuming and provides only limited information. For example, it shows what products are purchased, but it might also be useful to know why those products were chosen.
How Do Focus Groups Help Gather Consumer Opinions?
FOCUS GROUP
A group of consumers is brought together to discuss a particular product or service.
Advantage: It is an efficient way to gather reactions and opinions from a group of people at the same time.
Disadvantage: Some members of the group may dominate the responses and influence the views of other group members.
What are the pro and cons of field research?
Advantages: Up-to-date information is gathered, Relevant Information is gathered for the specific needs of the business
Disadvantages: Time-consuming, Expensive, Requires skill to conduct
What Is Desk Research and How Is It Used in Market Research?”
DESK RESEARCH
Desk research involves looking at and analysing information that nas already been gathered for another purpose or from another source.
It is also known as SECONDARY RESEARCH and can be both internal and external.
EXAMPLES OF DESK RESEARCH
• Business Sales Reports
• Newspapers and Magazines
• Internet
• Central Statistics Office (CSO)
