The purpose and methods of market research

• What is the focus of quantitative research?

  Concerned with and based on data
• Why is quantitative research considered more statistically valid?

  It is based on larger samples
• What are some survey methods used in quantitative research?

  Telephone, postal, online, face to face
• What is a benefit of quantitative research data?

  Data is relatively easy to analyse
• What is a drawback of quantitative research?

  Doesn't explore reasons behind results
• What is the goal of qualitative research?

  To understand customer behaviour and responses
• What are some methods used in qualitative research?

  Focus groups and interviews
• What does qualitative research focus on?

  Opinions, attitudes, beliefs, and behaviours
• What is a benefit of qualitative research?

  Focused on understanding customer needs
• What is a drawback of qualitative research?

  Requires special skills and analysis
• What is primary research?

  Data collected first-hand for a specific purpose
• What are some examples of primary research methods?

  Focus groups, interviews, surveys
• What is a benefit of primary research?

  Directly focused on research objectives
• What is a drawback of primary research?

  Time-consuming and often costly to obtain
• What is secondary research?

  Uses data that already exists for another purpose
• What are some sources of secondary research?

  Reports from market research organisations
• What is a benefit of secondary research?

  Quick and easy to gather
• What is a drawback of secondary research?

  Not specific to business needs
• What is the purpose of market research?

  To collect information about demand and competition
• What is market share?

  The % of the total market owned by a business
• How is market share calculated?

  Market Share (%) = Company Sales / Total Market Sales
• What is market growth?

  The % growth of the market size over time
• How is market size calculated?

  Market size = (Current market size / Original market size) x 100
• What is the formula for calculating market size based on units sold?

  Number of units sold / market purchased in a period