Market research

• Two main types of market research

  • Field Research
  • Desk Research
• Methods of collecting field research include:

  • face-to-face interview
  • postal survey
  • focus group
  • hall test
  • telephone interview
  • online survey
  • observation
• Advantages of field research


   

  Only firm who collects data has access to it

  Collected for a specific purpose
• Disadvantages of field research


   

  Expensive to collect 

  Time consuming
• Methods of collecting desk research include:


  • sales figures
  • newspapers
  • websites
  • government publications e.g. social trends
  • commercial publications e.g. Keynote and Mintel reports
• Advantages of desk research


   

  Saves time

  Relatively inexpensive

  Widely available
• Disadvantages of desk research

   

  Not specifically gathered for the business

  May be out of date

  May contain bias
• Advantages of a face to face interview 


   

  Two way communication

  Researcher can encourage respondent to answer

  Mistakes and misunderstandings can be cleared up right away
• Disadvantages of a face to face interview


   

  Personal interviews can be expensive

  Researchers have to be selected and trained

  Home interviews unpopular with consumers
• Advantages of a postal survey

   

  Inexpensive

  No interviewer training needed
• Disadvantages of a postal survey 


   

  Questions must be simple and easy to answer

  Response rate very low, incentives sometimes needed
• Focus Group

  • A method of market research involving a group of people assembled to participate in a discussion about a product before it is launched, or to provide feedback.
• Advantages of a focus group

   

  Qualitative information provided in the form of opinions, feelings and attitudes

  Topics can be explored in some depth
• Disadvantages of a focus group

   

  Can be difficult to analyse qualitative information

  Expensive
• Hall Test

  • A method of market research conducted where respondents try or taste the product/service and offer instant feedback.
• Advantages of a hall test

  Qualitative information provided in form of tasting or demonstrations
• Disadvantages of a hall test


  Respondents may be too positive as they feel obliged to give favourable opinion
• Advantages of a telephone interview 


   

  Can reach a large geographical area

  Inexpensive
• Disadvantages of a telephone interview

  Response rate may be low as people may view it as a ‘nuisance call’
• Advantages of an online survey

   

  Large sample sizes

  Inexpensive
• Disadvantages of an online survey


  Limited to people with internet access
• Advantages of an observation 


   

  Quantitative information gathered

  Real life and behaviours in action
• Disadvantages of an observation 


   

  Samples are often random and not representative of all customers

  Only shows actions, does not explain attitudes or feelings