Market Research

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  • Created by: Zaynab
  • Created on: 11-12-19 10:08
what are the 3 main reasons for market research?
spotting opportunities, decide what to do next, helps to see if their plans are working
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what is a disadvantage of market research?
expensive, bad market research can lead to disastrous decisions.
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what is an example of quantitative market research?
questionnaires
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what is an example of qualitative market research?
focus groups
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what is primary market research?
a business gathers new data
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what is secondary market research?
a business analyses data that is already available.
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what is test marketing? (as an example)
a business launches a product in one region and measure sales and customer response before launching across the country.
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Why does primary data use sampling?
to make predictions about the whole market based on a sample.
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What are 2 advantages of primary data?
specific, exclusive (competitors don't benefit from it)
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what are 3 disadvantages of primary data?
labour intensive, expensive, slow
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what are internal sources of secondary data?
includes information from loyalty cards, feedback from company salesmen and analysis of company sales reports, financial accounts and stock records.
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what are external sources of secondary data?
include government publications, marketing agency reports, pressure groups and trade magazines.
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what are 3 advantages of secondary data?
easier,faster. cheaper.
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what are 3 disadvantages of secondary data?
out of date, may contain errors, may be unsuitable.
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Why is secondary data often used?
to get an initial understanding of the market.
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why do market researchers survey samples?
keeps costs down, saves a lot of time and resources
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what is in a representative sample?
similar proportions of people in terms of : age, gender, income. class and ethnicity
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what is a simple random sample?
when names are picked randomly from a list (usually from the electoral register)
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what is a stratified sample?
population divided into groups, people selected randomly from each group
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what is a quota sample?
people are picked who fit into a category (e.g. mums between 30 and 40)
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why should market research avoid bias?
quality of decisions is only as good as accuracy of it.
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Why is it risky to not spend enough on market research?
it increases the business' risk of failure.
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Other cards in this set

Card 2

Front

what is a disadvantage of market research?

Back

expensive, bad market research can lead to disastrous decisions.

Card 3

Front

what is an example of quantitative market research?

Back

Preview of the front of card 3

Card 4

Front

what is an example of qualitative market research?

Back

Preview of the front of card 4

Card 5

Front

what is primary market research?

Back

Preview of the front of card 5
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