Market Research flashcards

Flashcards based on the provided lecture notes about Market Research to help students review and prepare for exams.

Market Research

The process of collecting, recording, and analyzing data about customers, competitors, and the market.

Primary Research

The collection of first-hand data that is directly related to the needs of the business.

Secondary Research

The use of existing data that was originally collected for another purpose.

Qualitative Data

Non-numerical data, which provides insight into the detailed motivations of consumers and helps to explain their buying behavior or opinions.

Quantitative Data

Numerical results from research that can be statistically analyzed.

Sampling

The process of selecting a group of respondents from a larger population.

Sample

A group of people taking part in a market research survey selected to be representative of the overall target market.

Sampling Bias

When a sample is not a good representation of the whole population because it is chosen in ways which give some people a greater chance of being selected.

Arithmetic Mean

The value calculated by totaling all the results and dividing by the number of results.

Mode

The value that occurs most frequently in a set of data.

Median

The value of the middle item when data has been ordered or ranked. It divides the data into two equal parts.

Range

The difference between the highest and lowest value in a set of data.

Coding

The process of labeling and organizing qualitative data to identify the main themes and the links between them.

Purpose of Market Research: Identify Market Features

Establish key features like overall size, growth, and competitors before entering a new market.

Purpose of Market Research: Reduce Risks

Assess potential demand for new products to improve chances of success.

Purpose of Market Research: Explain Sales Patterns

Understand sales trends using market research data in company promotions.

Primary Research Usefulness

Useful for new markets, specific business purposes.

Limitations of Primary Research

Start-ups may not be able to finance detailed primary research.

Electronic Data Retrieval Methods

Retailers can have a complete picture of what each consumer purchases using loyalty card schemes.

Limitations of Sampling

To save on costs, a very small sample might be researched which is likely to be too small to represent a true cross section of the whole target population.