4.4 Market research

4.4

Market research

process that business organizations conduct to gather specific a=info about the market

why businesses need market research?

to:

identify consumers’ needs and wants

predict what might happen in the future

reduce risks of failure

measure how effective their marketing strategies are

gather latest info on competitors

types of market research

primary market research: surveys, interviews, focus groups, observation

secondary market research: academic journals, media articles, gov publications, market analysis

primary market research

business organization collects first-hand info from the market; so new info that didn’t exist before.

+provide exclusive info

+helps businesses better meet customer needs and wants

-time consuming

-extensive finances

surveys

+large amount of data in short time

+simple and clear for respondents

-some might have unrelated questions

-some ppl might give poor answers

-might be time consuming or costly

interviews

+can gain details

+researchers can adapt their questions based on responses

-time consuming

-requires present attention

focus groups

small number of people brought together to investigate an issue

+quick and efficient

+cost effective

-potential bias

-small sample size so it cant represent the whole maarket

Observation

process where researchers gather info through watching and monitoring specific variables in the market.

+direct info

+cheap

+lots of info in short time

-might not be relevant info

-cannot identify consumer attitutudes

Secondary market research

involves collection of existing information from the market

+quicker and cheaper

+wide variety of info

-might be outdated info

-might be unreliable

academic journals

+scholarly: detailed accurate

+less time consuming than books

-might not match specific need

Media articles

+cheap

+easy to find

-might be outdated

-might be biased

Government publications

+likely reliable

+free or low cost

-might be outdated

-

Market analyses

produced by industry experts about specific topics in the market

+detailed, specific, expert-driven

+give current trends and forecasts

-expensive

-limited scope

Qualitative Vs. quantitative research

Qualitative: based on opinions, attitudes, and intentions; asks why and how; ex: interviews, focus groups, open ended surveys

Quantitative: collecting numerical data; ex. surveys with numbered questions, market analyses

Characteristics of qualitative research:

• subjective → the data is based on individual perspectives, making it more open to interpretation

• descriptive → rather than numbers, it produces rich descriptions of a phenomenon or behavior

• flexible → allows for changes and new questions to emerge during the research process

• exploratory → often used to explore new areas where little is known or to gain insights for developing quantitative research

Characteristics of quantitative research:

• objective → presents factual information that can be measured and applied universally

• statistical → utilizes statistical techniques for data analysis

• structured → adopts a more fixed approach to extract specific information

• conclusive → geared towards hypothesis testing and determining the correlations between variables

qualitative AND quantitative research

synergy = using both qualitative and quantitative research provides a comprehensive view ⇒ qualitative research offers depth and context, enhancing the understanding of quantitative analysis

application = for a business, combining both approaches can reveal not just the extent of market potential (quantitative) but also deep insights into customer behavior and preferences (qualitative)

Sampling methods

process of selecting a sample group form a larger target population to collect data and conclude about the whole population.

quota sampling

random sampling

convenience sampling

quota sampling

used to divide the market into different segments based on specific variables like age, gender. and then, business decides a certain number of individuals to be selected from these segments

+quick and cost effective

+different segments might make it more reliable

-findings dont represent the whole market

Random sampling

selection of individuals randomly, every member of the population has the equal chance of being selected.

+reduces bias

+might not represent the whole market

Convenience sampling

method where individuals are selected based on how easy and convenient they are to reach

+quick, easy, innefective

-risk of bias

-might not represent the whole market