Methods of Market Research Flashcards

All 13 cards in this deck

What is primary market research?

Research that collects new, first-hand data for the business itself.
e.g. questionnaires, surveys, interviews, focus groups, observations.

What is secondary market research?

Research that uses information already collected by someone else.
e.g. internet research, newspapers, market reports, government reports.

True or false? Internet research is a method of primary market research.

False. Internet research is secondary research; focus groups, questionnaires, interviews and surveys are primary.

What is a questionnaire?

A set of questions designed to find out customers' opinions, conducted online, in person or by post.

In a questionnaire, what is the difference between open and closed questions?

Open questions let customers answer in their own words and give reasons; closed questions give fixed options such as yes/no or a rating scale.

What is a survey?

A method of asking questions to get opinions and learn about customers' experiences with a product or service.
It can be done by online or paper questionnaire, interview or focus group.

What is an interview as a method of market research?

A primary method where a researcher asks a customer questions in person, by phone or online.
It can gather both qualitative and quantitative data.

What is a focus group?

A group interview where people are asked questions or given scenarios and asked for their opinions about a product or service.
It is primary research and gives more in-depth information than a questionnaire.

What sources are used in internet research?

Competitors' websites, newspaper articles and social media.

State one benefit and one drawback of primary market research.

Benefit: it is specific to the business, detailed and up to date. Drawback: it is time consuming and expensive to collect.

State one benefit and one drawback of secondary market research.

Benefit: it is quick, cheap and easy to gather and analyse. Drawback: it is not specific to the business and may be out of date, biased or inaccurate.

Why is social media a useful research tool for a business?

It reaches huge numbers of customers cheaply and on a large scale, and shows the latest tastes, trends and competitor behaviour.

Which type of market research usually suits a new business with very little money and time, and why?

Secondary research, e.g. internet research, because it is quick, cheap and easy to gather.