Please enter something

4.4 Market research – IB Business Management

question

Market research
answer

The process of collecting, analyzing and reporting data related to a particular market
question

Purpose of market research
answer

– To identify consumer needs and wants – To assist a business in predicting what is likely to happen in the future – To reduce the risk of product failure – To measure the effectiveness of a marketing strategy – To provide current or latest information regarding activity in the market
question

Primary research
answer

The collection of first-hand information from the market – surveys – interviews – focus groups – observation
question

Secondary research
answer

The collection of second-hand information from the market – academic journals – media articles – government publications – market analyses
question

Surveys
answer

Questionnaires sent out to a particular target audience (by email, telephone or online) Advantages- large amount of data, easy to use, can be used to collect information in a wide range of aspects such as opinions Disadvantages- if constructed poorly, thy can hinder research, answers may not be accurate, can be costly
question

Interviews
answer

A conversation in which one person asks another questions Advantages- Detailed information, high response rate because of the one-on-one attention Disadvantages- highly time consuming, may be biased
question

Focus groups
answer

A small group of people brought together to discuss a product or idea Advantages- subjects are cheap and easy, can be used to measure the reaction of consumers, help identify key product requirements, provide insights on the position of competitors Disadvantages- opinion of a small number of individuals do not reflect a whole market, some members might not be honest, more costly than surveys
question

Observation
answer

Carefully watching and trying to understand certain thing in people’s behavior Advantages- it is a direct method, a large number of individuals can be surveyed, cost-effective Disadvantages- complete answers cannot be obtained, cannot be used to study attitudes or opinions
question

Academic journals
answer

Publications of scholarly articles written by experts. Advantages- they undergo a peer-review before being published, include reports and reviews of current research and topic-specific information, take less time to publish than books Disadvantages- may not be the best source of general-interest topics, peer-review process can be time consuming
question

Media articles
answer

Newspapers and magazines Advantages- cheap, most newspaper articles have been well researched, widely available Disadvantages- Difficult to communicate events in real-time, information can be biased, can be considered a waste of paper and energy resources
question

Government publications
answer

Articles produced by the government on a wide variety of topics
question

Market analyses
answer

Commercial publications or market intelligence reports that gather data about particular markets
question

Qualitative research
answer

Collecting of data about opinions, attitudes or beliefs
question

Quantitative research
answer

Collecting of numerical data and data that can be measured
question

Sample
answer

Small group selected to represent the population or a target market
question

Sampling methods
answer

– quota sampling – random sampling – stratified sampling – cluster sampling – snowballing – convenience sampling
question

Quota sampling
answer

Segmenting the population into a number of groups that share certain characteristics
question

Random sampling
answer

Every member of the population has an equal chance of being selected for the sample
question

Stratified sampling
answer

The target population is made up of many different groups who are subdivided into segments that share similar characteristics
question

Cluster sampling
answer

When the population is geographically dispersed, a group of people from each region is selected
question

Snowballing
answer

Surveying the first group or individual, who then suggests another group or individual
question

Convenience sampling
answer

This is a sampling technique where groups are selected on their easy access and proximity to the researcher