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Flashcards in Market Research/PED Deck (18):
1

PRODUCT orientation is

An inward looking approach to new product development where the key focus is what products can be made and the production process

2

MARKET orientation is

An outward looking approach on a new product development where the key focus is on what products the customer wants

3

+ and - of product orientation

+ high quality products

- not keeping up with market research can mean no buyers

4

+ and - of market orientation

+ more chance of buyers

- product may not be high quality

- production time means trends may have moved on

5

Market research is

The collection and analysis of data and information to inform a business about its market

6

Primary market research is

Research that involved the collection of first hand data that didn’t exists before and therefore is original data

7

Secondary research is

Research that has already been undertaken by anotuher organisations and therefore already exists

8

+ and - of primary research

+ know who it’s done to
+ specific purpose
+can get qualitative answers

-relies on skill on interviewer
-expensive

9

+ and - of secondary market research

+can pay for people to do it for you
+easy and convenient to find on internet

-info may be dated

10

Qualitative research and quantities research

Qualitative is the gathering of non statistical information that gives a company in sight into the reasons for human behaviour.

Quantitative is the gathering of statistical data to inform company about people’s behaviour but doesn’t identify reasons

11

Limitations of market research

Past data and trend may not be a fair indication of the future

Accuracy of research findings

Dependant upon ability to correctly analyse findings

Financial and opportunity costs

Bias

12

Random quota and stratified sampling

Random- a sample is selected for study from a population where each individual is chosen entirely by chance and has an equal chance of being selected.

Quota- the population is first segmented into subgroups before a judgement is made selecting respondents that are representative of that subgroup.

Stratified- the population is first segmented into subgroups before chosen at random.

13

PED

PED is a measure of how responsive demand is in relation to a change in price

14

Price elastic is

Means a change in price will lead to a more than proportional change in demand

15

Price inelastic

Means that a change in price will lead to a leas than proportional change in demand

16

PED formula

%change in quantity demanded/%change in price

17

Factors influencing PED

Availability of substitutes
Price of competitor goods
Time
Branding
Income
Nature of good

18

Problems of forecasting PED

Difficulty in finding accurate info
Price elasticity changes over different price ranges
Price elasticity will change over the economic cycle
Competitors don’t stand still
Tastes are constantly changes