Flashcards in Year Nine Exams Deck (46):
What is a sample?
A selection of the total population
What is an unbiased sample?
When a sample is collected with no particular group favoured over the other
What are the types of sampling?
What is simple random sampling?
Taking random data from the population when each piece of data had an equal chance of selection
What is convenience sampling?
Selecting data/subjects due to the fact they are easy to access or are close to the researcher
What is systematic sampling?
Choosing a starting point from all your population and taking a sample from a certain place/ taken in even increments
What is cluster sampling?
When the whole population is divided into equal groups and then a group/ a few groups are chosen for the sample
What is stratified sampling?
Dividing the entire population into different sub-groups(strata) and then randomly selecting the final subjects proportionally from the different stratas
What are the advantages of simple random sampling?
It is generally unbiased and a good representation of the whole population
What are the disadvantages of simple random sampling?
You need to have a list of all the things in the population and is more expensive when subjects are taken from spread out places
What are the advantages of convenience sampling?
It is generally very quick and cheap to carry out
What are the disadvantages of convenience sampling?
It can be biased because people self select to answer questions if they are interested in the topic. It is not a world-wide representation
What are the advantages of systematic sampling?
Easier to carry out than random sampling. Seems fair and unbiased
What are the disadvantages of systematic sampling?
Survey can become biased and unrepresentative
What are the advantages of cluster sampling?
Quite easy and practical to administer as you have all the groups.
What are the disadvantages of cluster sampling?
The make up of the groups chosen can be different to each other which can lead to bias
What are the advantages of stratified sampling?
It is a really useful method to make sure each group in the sample is represented in the same proportion as they are in the population
What are the disadvantages of stratified sampling?
Can be difficult and complex to carry out. It requires a detailed sampling frame
What areas can market research be used for?
What are the limitations of market research?
-Sampling (may not be accurate)
-Costs restrict frequency and quantity of market research
-Rate of change
What is primary data?
Data collected first hand for a specific purpose by the business
What is secondary data?
Research data that already exists and which has been collected for a different purpose
What are the methods for primary research?
Surveys and questionnaires
What are the benefits of observation?
-works well in retail markets
-don’t rely on future assumptions
What are the drawbacks with observation?
Expensive and time consuming
What are the benefits of surveys and questionnaires ?
-Relatively cheap and can produce good data
-Usually quantitive data (easier to analyse)
-Can be undertaken in many forms
What are the drawbacks of surveys and questionnaires?
-reply rates are often low
-Expensive and time consuming, large sample needs to be received
What are the benefits of interviews?
-Detailed insights from individuals
-Answers can be followed up
-Often used in combination with questionnaires
What are the drawbacks with interviews?
-Costly in time and unrepresentative
-Results can be influenced by the researchers asking leading questions
What are the benefits of focus groups?
-Good way to obtain detailed information
What are the drawbacks of focus groups?
-Need careful management (reduce influences)
-Only small amount of data collected
What is usually the main source for market research for new businesses?
What are the ways to obtain secondary research?
-Trade associations, trade press and magazines
-Market research reports
What are the drawbacks of secondary research?
-Research is created for a different user and a different purpose
-Data may be out of date
-Could be biased
-Competitors can see same data
What are the benefits of secondary research?
-Information is readily available
-Generally cheaper and usually free
-Good research can provide an excellent overview
What does market size show?
Whether the overall market is increasing or decreasing. Can be measured by volume or value
What is market share?
The total sales of one business compared to the total sales in a particular market (percentage)
What are business costs?
The spending that a business has to undertake in order to make goods and provide services
What are fixed costs?
They are costs towards a business that do not change as output varies e.g
-Rent or tax
What are variable costs?
Costs to a business that change when output changes
-wages based on hours or production
-agent and other commissions
-Market costs based on sales
How do you calculate total costs?
Variable costs + fixed costs
What is revenue?
The money a business receives from sales
How do you calculate revenue?
selling price per unit x quantity sold
What is profit ?
The financial return or reward from a business
What are retained profits?
Profits earned which are kept in the business