What is market research?
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What is market research?
Market research is the objective collection, compilation and analysis of information about a market.
True or False?
Market research helps reduce risk when launching new products.
True.
Market research helps reduce risk when launching new products.
What is a market niche?
A market niche is a potential gap in the market which can be exploited to increase sales volume.
Define the term primary research.
Primary research involves gathering information directly from consumers using field research methods such as surveys or interviews.
State two primary market research methods?
Primary market research methods include:
Surveys
Observation
Interviews
Test marketing
Focus groups.
True or False?
Surveys are the least widely used method of gathering primary research.
False.
Surveys are the most widely used method of gathering primary research.
In the context of market research, what is observation?
Observation involves studying consumer behaviour in a store, or judging potential consumer traffic at a particular location.
What is test marketing?
Test marketing is providing free samples for a limited period to the target market to gauge their response to the product.
Define the term secondary research.
Secondary research involves the collection, compilation, and analysis of data that already exists.
State two sources of secondary market research.
Sources of secondary market research include:
Government publications
Academic institutions
Industry associations
Financial reports
Online databases
Market research reports
Media sources
What are specialist market research reports?
Specialist market research reports are in-depth reports on various industries, markets and consumer trends produced and sold by companies specialising in market research.
True or False?
Secondary market research is usually more expensive than primary research.
False.
Secondary market research is often cheaper to collect than primary research.
True or False?
Secondary market research is suitable for small businesses that lack large marketing budgets.
True.
Secondary market research is suitable for small businesses that lack large marketing budgets.
What is quantitative data?
Quantitative data is based on numbers and could include financial reports, market data, or summaries of data gained from primary research.
What is qualitative data?
Qualitative data gathers descriptions or explanations based on conversations, impressions, and emotional feelings and is usually gathered through primary research.
True or False?
Market research should include a combination of quantitative and qualitative data.
True.
Ideally, market research should include a combination of quantitative and qualitative data.
True or False?
Numerical data provides reasons for consumer behaviour.
False.
Numerical data may provide insights, but does not provide the reasons for consumer behaviour.
What is meant by the term sampling?
Sampling involves getting opinions from a selected group of people in order to find out about the market as a whole.
State two sampling methods.
The main sampling methods are:
Quota sampling
Random sampling
Convenience sampling.
True or False?
A random sample may not be representative of the market as a whole.
True.
A random sample may not be representative of the market as a whole.
What is quota sampling?
Quota sampling aims to obtain a representative sample by determining specific proportions of each group of the population upon which to carry out research.
True or False?
Where researchers lack experience or expertise in market research, a quota sample is likely to provide a useful set of data that can be easily interpreted.
False.
Where researchers lack experience or expertise in market research, a convenience sample is likely to provide a useful set of data that can be easily interpreted.
What is random sampling?
Random sampling is a method that makes sure every member of the population has an equal chance of selection.
What is convenience sampling?
Convenience sampling is a method that uses those who are willing to volunteer and easiest to access in the study.
What is a research population?
A research population refers to the group of people in whom the business has an interest when conducting market research.