Definitions for Market Research

Market Research for Dummies.

What is Market Research?
            Market Research is the systematic gathering, recording and analysis of data in order to better understand the behavior of consumers.

Sampling Methods

            Random Sampling:
You have to assign everyone in your population a number and then select a number at random. You could use a ‘random generator’
If you get the same number twice then you skip over that number, you do not survey the same person twice, you pretend that they are not there and re-select a number.

Advantages:

-          It is a quick way of choosing people.

-          The larger the sample size, the more useful the information is. This is because it will be more representative.

-           A truer reflection of customers wants and needs with a larger sample size.

Disadvantages:

-                            If your sample size is not large enough then it will not be representative of the population.

-                            Sampling is not always suitable for the target market, you may pick out people who will not be interested in the product e.g. pick majority men for a female perfume.

Systematic Sampling:
Is where you create a system to find people to survey/interview. For example every third person in the telephone book.

            Advantages:

            Disadvantages:

-          If you are doing door to door then people might not be in or they may not reply to letters/questionnaires.

-          Biased, as may be more of one gender, age group or ethnic group selected.

Stratified Sampling:

This is where you have to group people with things in common; this can be religion, age, race, gender, characteristics, lifestyle choices etc. Each of these groups is called a ‘Strata’.
Now you number each person within their groups and then pick numbers at random, just like ‘Random…