PED

• What is the primary purpose of market research for businesses?

  To understand their market
• What are the two main types of market research mentioned in the study material?

  Primary and secondary market research
• What is the difference between qualitative and quantitative research data?

  Qualitative data focuses on opinions and reasons, while quantitative data focuses on numerical values
• What is market mapping in the context of market research?

  It is a technique used to visualize the position of a business in relation to its competitors
• What is the significance of sampling in market research?

  Sampling allows researchers to gather data from a subset of the population to make inferences about the whole
• What are confidence intervals in marketing data analysis?

  Confidence intervals provide a range of values that likely contain the true population parameter
• How are correlation and extrapolation used in marketing data analysis?

  Correlation identifies relationships between variables, while extrapolation predicts future trends based on current data
• What role does technology play in marketing decision-making?

  Technology aids in gathering and analyzing data for informed marketing decisions
• What is price elasticity of demand?

  It measures how the quantity demanded of a good responds to a change in its price
• What is income elasticity of demand?

  It measures how the quantity demanded of a good changes as consumer income changes
• What are the four reasons for undertaking market research?

  • Descriptive: To identify important information
  • Explanatory: To investigate why certain things occur
  • Predictive: To predict trends and find links between data
  • Exploratory: To gather information when no existing data is available
• What is primary market research?

  Collection of information gathered first-hand for a specific purpose
• What is secondary market research?

  Information that has already been collected for a different purpose
• What are the methods of primary market research?

  • Experiment
  • Observation
  • Surveys
  • Focus groups
  • Test marketing
  • Personal interviews
  • Postal surveys
  • Telephone surveys
• What is the benefit of conducting experiments in primary market research?

  It is a relatively cheap way of finding out customer preferences
• What is a drawback of using experiments in market research?

  Consumer behavior may not be the same throughout the country
• How does observation benefit market research?

  It examines actual customer behavior in detail
• What is a drawback of observation in market research?

  It is expensive to employ specialists for observation
• What is the purpose of focus groups in market research?

  To gather detailed information on consumer reactions to products
• What is a drawback of focus groups?

  There can be bias due to participants wanting to please the company
• What is the benefit of personal interviews in market research?

  They allow for a wide range of information to be obtained
• What is a drawback of personal interviews?

  They can be time-consuming
• What are postal surveys?

  Surveys sent to potential customers to complete at home
• What is a drawback of postal surveys?

  Response rates are usually low
• What is the difference between telephone interviews and telesales?

  Telephone interviews seek opinions, while telesales aim to sell products
• What is a benefit of telephone interviews?

  They are cheap to conduct
• What is a drawback of telephone interviews?

  Detailed questions are difficult due to time constraints
• What are internet surveys?

  Questionnaires on websites that gather consumer opinions
• What is a benefit of internet surveys?

  They are relatively inexpensive to conduct
• What is a drawback of internet surveys?

  The sample may be biased towards internet users
• What is secondary market research?

  It involves examining published documents for information
• What are some key sources of secondary market research?

  Government publications, newspapers, magazines, company records, and competitors' materials
• What is a benefit of secondary market research?

  It is often cheaper than primary research
• What is a drawback of secondary market research?

  The information may be outdated and misleading
• What are the benefits of secondary market research?

  • Information is already available for quick decisions
  • Cheaper than primary research
  • Often conducted regularly, helpful for identifying trends
• What is qualitative market research?

  It collects information based on subjective factors such as opinions and reasons
• What is a benefit of qualitative market research?

  It provides insights into consumer behavior and preferences
• What is a drawback of qualitative market research?

  It is expensive and often conducted on a small scale
• What should be considered when assessing the value of market research data?

  • Possible bias in the sample or questions
  • Sample size must be statistically significant
  • Survey should be recent
  • Data availability to all firms
• What is the purpose of qualitative market research?

  To gain insight into why customers buy products and modify them for appeal