Market Research Overview

Flashcards summarizing key concepts related to market research, including definitions, advantages and disadvantages of research methods, and types of data.

What is market research?

Market research involves the gathering, analyzing, and presentation of information about the marketing and consumption of goods and services in a particular market.

What are the main purposes of market research?

To identify customer needs and wants, assess likely demand, and gain insights into consumer behaviors.

What are the two main types of market research?

Primary Market Research and Secondary Market Research.

What is Primary Market Research?

It involves collecting new and original information for a specific purpose.

What is Secondary Market Research?

It involves collecting existing information from published sources or business records.

Give an example of a method used in Primary Market Research.

Questionnaires/surveys, focus groups, consumer panels, or product trials.

What is an advantage of Primary Market Research?

Data is collected specifically to answer the exact questions the business needs to know.

What is a disadvantage of Primary Market Research?

It takes time and can be costly to collect data.

What is one advantage of Secondary Data?

It is relatively quick, low cost, and easy to collect.

What is a drawback of Secondary Data?

Data may be outdated, not relevant, or may have been collected for another purpose.

How is Quantitative data characterized?

Research data that is in numerical form, easily measured, and often collected in surveys.

What defines Qualitative data?

Research data that is based on opinions or beliefs and may require interpretation.

What issues can arise in survey design?

Leading questions, lack of understanding by respondents, and sampling errors.

What does Random Sampling involve?

Randomly choosing a small sample from the population, where each member has an equal chance of being selected.

What is Quota Sampling?

Targeting a small sample that represents specific groups within the market that the business is interested in.

What does Stratified Sampling entail?

Dividing the population into subgroups based on shared characteristics and then randomly sampling from each subgroup.