Topic 11 - Market Research

Question 1

Desk Research

Answer 1

Researching and analysing information that has already been gathered.

Advantages:
- Quick
- Easy
- Cheap

Disadvantages:
- May be out of date
- May be biased
- May not be fit to business’s needs
- Available to competitors

Question 2

Field Research

Answer 2

Gathering brand new information.

Advantages:
- Up to date
- Specific to business’s needs
- Not available to competitors
- Not biased

Disadvantages:
- Expensive
- Time consuming

Question 3

Random Sampling

Answer 3

Sample is picked randomly.

Advantages:
- No bias shown by researchers
- Saves time in collecting the sample

Disadvantages:
- May not reflect target market
- May over-represent a certain segment
- Expensive as large sample size is needed

Question 4

Quota Sampling

Answer 4

Researcher chooses from a group of people with certain characteristics.

Advantages:
- Quick and easy as lists are pre-made
- Can select customers that reflect target market
- Cheaper as less respondents are required

Disadvantages:
- Risk of bias
- Detailed understanding of different market segments is necessary

Question 5

Telephone Survey

Answer 5

A market researcher telephones customers and asks them questions.

Advantages:
- Responses are gained immediately
- Clarification can be gained

Disadvantages:
- Only short surveys can be carried out
- Customers may refuse to respond

Question 6

Postal Survey

Answer 6

A survey is sent to customers through the post and is returned once completed.

Advantages:
- Specific customers can be targeted
- Customers can complete survey at a time that suits them

Disadvantages:
- May be seen as junk mail
- Questions must be simple

Question 7

Online Survey

Answer 7

A website or email is used to ask customers questions.

Advantages:
- Large amount of customers can be targeted
- Technology can easily analyse the results

Disadvantages:
- Internet access is necessary
- Responses may be too brief

Question 8

Personal Interview

Answer 8

A market researcher asks customers questions face-to-face.

Advantages:
- Directly gains views of customers
- Clarification can be gained

Disadvantages:
- Time consuming
- Interviewers have to be trained

Question 9

Focus Group

Answer 9

A group of customers is brought together and asked to answer and discuss questions put forward by a market researcher.

Advantages:
- Responses are considered as participants have agreed to take part
- In-depth feedback can be gained

Disadvantages:
- Participants are paid
- Strong personalities may sway the discussion

Question 10

Hall Test

Answer 10

A product is given to customers to try and their feedback is gathered.

Advantages:
- Cheap
- Directly gains views of customers

Disadvantages:
- Difficult to analyse results
- Customers may feel the need to give a positive response

Question 11

Consumer Audit

Answer 11

Monitoring customer habits and influences.

Advantages:
- Customers act naturally as they are unaware hat they are being observed
- Customers trends can be identified

Disadvantages:
- Information may be incomplete
- No direct contact with customers

Question 12

Test Marketing

Answer 12

A new product is launched in a regional area and the reaction is monitored.

Advantages:
- Changes can be made to products before they are launched fully
- Saves money

Disadvantages:
- Not representative of the whole market

Question 13

EPOS

Answer 13

Information on customer preferences and habits is gathered as their loyalty cards are swiped through electronic tills.

Advantages:
- Can gain information about consumer behaviour
- Promotions can be individually targeted

Disadvantages:
- Expensive
- Time consuming
- May lower profits of vouchers are offered