business: #11

in market research, what questions must be answered?

1. are customers willing to buy?

2. what suitable price?

3. what feature is liked/disliked?

4. what type of customers?

5. what type of promotion?

6. how strong is competiton?

methods of market research

1. primary research

2. secondary research

primary research

• aka field research

• collection & complication of original data via direct contact with potential/existing customers

advantage of primary research

first-hand data

disadvantages of primary research

1. expensive (eg. interviewing many individuals)

2. takes time to collect

types of primary research

1. observation

2. questionnaire/online survey

3. interview

4. focus group

process of primary research (not important)

1. identity purpose

2. decide suitable method of research

3. decide of sample size (amount of people)

4. carry out research

5. compile data & analyse results

6. produce report

advantages of observation

1. low costs & less time-consuming than face-to-face interaction

2. consumers are observed in real-world situations without their knowledge → won't try to please/misinform data collector

disadvantages of observation

1. no questioning of consumers → reasons for actions can't be identified

2. if few consumers during observation → necessary sample size might not be recorded

3. if consumers are told that they are being watch (to meet legal requirements) → may change behavior

advantages of questionnaire/online survey

1. detailed info

2. can understand customers' opinions

3. can be carried out online

4. online questionnaire can be distributed to consumers worldwide

5. online → fast collection

disadvantages of questionnaire/online survey

1. carrying out & compiling is time-consuming

2. expensive

3. no feedback is possible

4. can't reach respondents who don't have internet access

advantages of interview

1. interviewer can explain questions

2. follow up questions can be asked

3. useful for studying a sensitive topic

disadvantages of interview

1. interviewer bias → interviewer may lead interviewee into answering in a certain way

2. time-consuming

3. sample size may be lower than ideal

4. if interviewer writes answers on paper → time-consuming

focus group

where groups of people agree to provide info through a group discussion with a researcher present

advantages of focus groups

1. provide detailed info

2. helps business understand reasons for consumer behaviour

disadvantages of focus group

1. discussion could be biased if it's dominated by someone

2. difficult to form an overall conclusion

3. shy members may be unwilling to join in

secondary research

• aka desk research

• uses info that has already been collected & is available for use by others

advantages of secondary research

1. cheaper

2. quicker to obtain

disadvantages of secondary research

1. may be outdated

2. may be irrelevant