Business test

Chapters 11

market research

the process of collecting, recording and analysing data about the customers, competitors and market for a product.

Unique selling point

the special feature of a product that sets it apart from competitors’ products

Market-orientated

products are developed based on consumer demand identified by market research

product-orientated

the firm decides what to produce and then tries to find buyers for the product

primary research

the collection of first-hand data for the specific needs of the firm

Secondary research

the collection of data from second-hand sources

pros and cons of primary

data is up to date, data is collected for a specific purpose which is directly relevant to the business, not available to competitors

expensive, time-consuming, risk of the data being inaccurate or containing bias

pros and cons of secondary

fairly cheap, easier and quicker to obtain

may not be up to date, not as reliable

Quantitative research

the collection of numerical data can be analysed using statistical techniques

qualitative research

the collection of information about consumers’ buying behaviour and their opinions about production

methods of primary research

focus groups, consumer surveys, test market, observations

Sample

a representative sample of the target market selected to take part in market research