market research

• market research

  provides information about the market, feedback, promotions, sales, competitors, effect of price on market
• market

  size and make up (age, gender, income, tastes)
• field research / primary research

  first hand information collected by the business for a specific purpose
• advantages of field research / primary research

  only the firm has access to it, collected for a specific purpose
• disadvantages of field research / primary research


  expensive, time consuming
• methods of field research / primary research



  face to face interview, postal survey, focus group, hall test, telephone interview, online survey, observation
• advantages of face to face interview

  two way communication, misunderstandings can be cleared up immediately, researcher can encourage respondent to answer
• disadvantages of face to face interview

  expensive, researchers must be selected and trained, home interviews unpopular with consumers
• advantages of postal survey

  inexpensive, no interviewers needed
• disadvantages of postal survey

  questions must be simple and easy to answer, response rate very low and might require incentives
• advantages of hall test

  qualitative information provided in the form of tasting or demonstrations
• disadvantages of hall test

  respondents may be too positive as they feel pressured to say nice things
• advantages of telephone interview

  inexpensive, can reach a large geographical area
• disadvantages of telephone interview

  response rate low as people see it as a "nuisance call"
• advantages of online survey

  inexpensive, large sample sizes
• disadvantages of online survey

  limited to people with internet access
• advantages of focus group

  qualitative information provided through feelings + attitudes + opinions, topics can be explored in depth
• disadvantages of focus group

  expensive, difficult to analyse qualitative information
• random sampling


  when a sample is created by chance, does not target any specific market segment
• advantages of random sampling

  less chance of bias as respondents are random, simple and quick to choose sample
• disadvantages of random sampling

  sample does not truly affect target market, expensive as large sample is required
• quota sampling


  sample created to mimic the characteristics of a market
• advantages of quota sampling

  cheaper as less respondents are required
• disadvantages of quota sampling

  harder to eliminate bias in the selection process
• desk research / secondary research

  second hand information collected by someone else
• methods of desk research / secondary research

  sales figures, newspapers, websites, government publications, commercial publications
• advantages of desk research / secondary research

  saves time, inexpensive, widely available
• disadvantages of desk research / secondary research

  may be out of date, might contain bias, not specifically gathered for the business