2. Understanding Customer Needs
What an entrepreneur needs to know
The entrepreneur has come up with what he/she believes is a good business idea. But, how does the entrepreneur check that the business idea actually meets customer needs and has the potential to become a viable business? The answer is to do some market research.
The purpose of market research is to get information about the market(s) in which the business operates.
Primary research (also called field research) data comes from research into the market. Primary research data doesn't exist already.
Research that's used to obtain primary data may be either quantitative or qualitative:
· Quantitative research summarises the findings in the form of figures. For example, in a survey, 'closed' questions such as `how many...?' or 'which of these...?' are asked,
· Qualitative research studies consumer behaviour In a survey, 'open' questions will be asked, e,g, to find out the reasons for buying, and opinions about, the product,
Interviews take place either face-to-face (usually for products in consumer markets) or by telephone (often for industrial market products). Information can be obtained quickly, and the interviewer can explain questions if necessary.
But, questionnaires have to be designed carefully, and…