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

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

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

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 

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