3.3.2 Understanding markets and consumers

• Sampling involves the gathering of data from a sample of responders the results of which should be representative of the population as a whole
• What is quantitative research?

  Research that uses numerical data and statistical analysis to understand and explain phenomena
• What is qualitative research?

  Qualitative research is a method of inquiry that focuses on understanding and interpreting social phenomena through non-numerical data, such as interviews, observations, and textual analysis
• Business cannot ask for the opinions of all potential customers and therefore try to choose a representative sample

  A sample is a group of subjects that has been chosen from a larger group, the population for investigation
• What is random sampling?

  • A sample is selected for study from a population where each individual is chosen entirely by chance
  • Every subject has an equal chance of being selected
• What is quota sampling?

  • The population is first segmented into subgroups before a judgement is made selecting respondents that are representative of that subgroup
• What are the benefits of sampling?

  Gain specific data

  Allows for fair representation

  Flexible and relatively quick
• What are the drawbacks of sampling?

  Can be costly to carry out

  Carries risk - not all data is representative

  Risk of bias
• What is market mapping?

  • A market map is a diagrammatic technique that enables businesses to display the perceptions of customers
  • Compares variables regarding products and consumers
  • It can be used to analyse consumer buying habits and preferences
  • Can look for a gap in the market; where there is a need but no product produced