IGCSEBusinessEdexcelRevision Notes4. MarketingMarket ResearchThe Use of Data in Market Research

The Use of Data in Market Research (Edexcel IGCSE Business)

Revision Note

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Quantitative & Qualitative Market Research

  • Market research data can be quantitative or qualitative

    • Both forms are useful and any data analysis should ideally include a combination of the two
       

  • Quantitative data is based on numbers and could include financial reports (e.g. sales, costs), market data (e.g. markets share) or summaries of data gained from primary research (e.g. on a scale of 1-10 rate our customer service)

  • Qualitative data gathers descriptions or explanations based on conversations, discussions, impressions, and emotional feelings and is usually gathered through primary research
      

The Limitations of Quantitative & Qualitative Research Data

Limitations of Quantitative Data

Limitations of Qualitative Data

  • Numerical data may be out-of-date, especially in dynamic markets
     

  • Data analysis and interpretation is a complex skill that is likely to be lacking in smaller businesses

  • Looking at a small amount of data and then extrapolating results can provide wrong assumptions on which to base decisions

  • Numerical data does not provide reasons for outcomes e.g. data may reveal sales volumes are falling, but not the reason for the decline

  • Bias may mean that analysts can interpret responses in a particular way

  • Respondents may lack awareness or language skills to explain preferences accurately
     

  • Respondents in focus groups may be influenced by the responses of others, or not provide accurate information

  • Qualitative data is difficult to present in graphs and charts so may not be easily understood

Examiner Tips and Tricks

Make sure that you can define both of these key terms and identify examples of quantitative and qualitative research data.

Social Media & Market Research

The use of Social Media to Collect Market Research Data
 

  • Traditionally, primary research has been relatively difficult and expensive for businesses to gather
     

  • The rise of social media platforms such as Facebook, Twitter, Instagram and TikTok has provided businesses with incredible market research opportunities (and some threats too!)

Benefits of the use of Social Media to Collect Market Research Data

Benefit

Explanation

Speed

  • The speed of communication between businesses and customers can be almost instantaneous, e.g. by using online polls, thousands of responses can potentially be received in several hours

Cost

  • The cost of gathering this information can be very low e.g. Online polls take a few minutes to set up and software automatically gathers and analyses the results

Relationships

  • Social media helps businesses to generate an interactive relationship with their customers which helps to strengthen brand loyalty

Feedback

  • Customers are also able to feedback quickly on products - or to express innovative ideas about how they want the products to be changed

  • This feedback may help the firm to develop extension strategies in their product life cycle

The Reliability of Market Research data

  • Gathering and analysing reliable data is critical to a business

    • It supports decision-making and reduces risk

    • It helps businesses to set realistic objectives and manage performance 

  • The reliability and accuracy of market research depend upon a range of factors

Diagram: Factors Affecting the Reliability of Market Research data 

4-factors-affecting-the-reliability-of-market-research-data-

The reliability and accuracy of market research data depend on factors including the time and place of research, who carries out and take part in the research, the potential for bias and how questions are phrased

 

  • How questions are phrased in questionnaires or other tools used to conduct surveys

    • E.g. Market researchers should avoid leading questions 

  • How carefully the sample is selected

    • Including its size, types of respondent chosen and how closely these reflect the intended target market

  • Who conducts the research?

    • Do researchers have the experience, research skills to conduct research effectively?

    • Is the source primary or secondary?

  • Potential for Bias when conducting research or analysing results

    •  Presenting results in a particularly positive or negative way can impact decisions made

    • Personal preferences should be avoided

  • When and where the research is conducted

    • Customer tastes, fashions, economic conditions and technology change, giving data a relatively short period of usefulness 

    • Customers in different geographic areas can have very different opinions

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    Lisa Eades

    Author: Lisa Eades

    Expertise: Business Content Creator

    Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

    Steve Vorster

    Author: Steve Vorster

    Expertise: Economics & Business Subject Lead

    Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.