1.2.2 Market Research

Quantitative data

• In depth research into a small group of potential or actual customers to provide insight into why consumers buy what they buy

• When a company taps into research that has already been carried out for general purposes

• Research conducted first-hand, tailored to the company;'s needs

• Research among a large enough sample of people to provide statistically reliable results

Secondary market research

• In depth research into a small group of potential or actual customers to provide insight into why consumers buy what they buy

• When a company taps into research that has already been carried out for the needs of many companies in a market

• Research conducted first-hand, tailored to the company;'s needs

• Research among a large enough sample of people to provide statistically reliable results

Primary market research

• In depth research into a small group of potential or actual customers to provide insight into why consumers buy what they buy

• When a company taps into research that has already been carried out for the needs of many companies in a market

• Research conducted first-hand, tailored to the company;'s needs

• Research among a large enough sample of people to provide statistically reliable results

Focus group

• In depth research into a small group of potential or actual customers to provide insight into why consumers buy what they buy

• A group discussion among people selected from the target market

• Research conducted first-hand, tailored to the company;'s needs

• The use of closed questions on a form

Which ONE of the following is an example of secondary market research

• Questionnaires sent to existing customers

• Surveys with strangers

• Focus group of potential investors

• Printed newspaper reports from the local area

Which one of the following is a characteristic of primary research

• Already exists

• Specific to the needs of the business

• Only suitable for start-up businesses

• Collects quantitative data only

Which of the following is a disadvantage of primary market research

• Specific to the needs of the business

• It already exists

• It is compiled by experts

• Results may be limited

Which one of the following is an example of secondary market research

• Questionnaires

• Observing customer behaviour

• Focus groups

• Statistics published by the government

Which one statement best describes the different between quantitative and quantitative data

• Qualitative data can be tested for reliability; quantitative cannot

• Qualitative data shows 'how'; quantitative shows 'why'

• Qualitative data is good for sales forecasting; quantitative for finer judgements

• Qualitative looks at the psychology of consumers; quantitative looks at the proportions thinking in a particular way

Which two of the following are examples of primary market research?

• Magazine articles

• Internet research

• Focus group meetings

• Published government statistics

• Interviews with competitors