Market Research Flashcards

Flashcards covering key market research vocabulary.

Unlimited liability

A feature of unincorporated businesses where the owners are personally liable for all debts incurred by the business.

Limited liability

A feature of incorporated businesses where the owners’ liability is limited to the amount they have invested in the business.

Public Limited Company

A public limited company (plc) is owned by shareholders but its shares can be freely bought and sold on the Stock Exchange.

Private Limited Company

A private limited company (ltd) is one that is owned by shareholders but they cannot sell their shares without the agreement of the other shareholders.

Sole Trader

One owner of the business who has sole control of the business and does not have to share the profits with anyone else.

Market Research

The collection, collation and analysis of data relating to the marketing and consumption of goods and services

Primary Market Research

Data collected first-hand for a specific purpose by the entrepreneur, also known as ’field research’

Secondary Market Research

Data that already exists and which has been collected for a different purpose, also known as ‘desk research’

Quantitative Data

Data collected and collated in numerical form to establish key information about a business and its market.

Qualitative Data

Data collected and collated about opinions, attitudes & feelings and aims to understand why customers behave in a certain way .

Sampling

A group of people that is intended to represent the overall target population

Random Sampling

A sample where each potential member of the population has an equal chance of being in the sample

Quota Sampling

A sample where the characteristics of the market as a whole are mirrored in the sample

Stratified Sampling

Researchers divide subjects into subgroups based on shared characteristics then each subgroup is randomly sampled

Correlation

An apparent (statistical) relation between two factors (variable) which can be either positive or negative.

Extrapolation

A prediction of a future trend based on an identified current trend.

Price elasticity of demand

Measures how much demand for a product changes following a change in its price.

Income elasticity of demand

Shows the correlation between quantity demanded and customers’ incomes.