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| Question | Answer |
| Market research | Marketing activities designed to identify customer wants and needs. |
| Ad hoc market research | Takes place on an ‘as and when necessary’ basis |
| Continuous research | Takes place on a regular and ongoing basis |
| Role of market research | - give businesses up to date information - enable businesses to improve marketing strategies - assesses customer reactions to a new product by testing it on a small group of customers - gives businesses and understanding of the activities and strategies used by their rivals - help businesses predict what is likely to happen in the future |
| Primary research | Gathering new data first hand for a specific purpose |
| Benefits of primary research (CURry) | - relevance; carried out for specific purpose, so directly addresses questions that need to be answered - up to date - unique and confidential |
| Drawbacks of primary research | - time consuming - costly - validity |
| Methods of primary research | Surveys, interviews, focus groups and observations |
| All market research should be held on the premises of... | ORCA: - objectivity - relevance - cost - accuracy |
| Surveys | Surveys contain questions used to collect data for a specific purpose. In order to for a survey to be effective it should avoid bias in wording, avoid technical jargon, include both open and closed-ended questions, not have too many qns, be tried and tested and include only relevant data. |
| Interviews | Involve one-to-one discussion. Main drawback is that they are time-consuming and don't provide quantifiable data. |
| Focus groups | Forming small discussion groups to gain insight into the attitudes and behaviour of respondents. Drawbacks include mainly extrovert participation, and pressure to conform to the majority view. |
| Observations | Watching how people behave and respond in different situations. A benefit is that they record actual behaviour, rather than hypotheses of people. Nonetheless, they don’t show WHY the people do what they do. |
| Secondary research | Involves collection of second-hand data and information that already exists |
| Benefits of secondary research (FISSC) | - cheap and fast to collect - wide range of sources - provides insight - statistically valid |
| Drawbacks of secondary research | - collected for another purpose - out of date - available to competitors - lack of knowledge on the objectivity etc of the research conducted |
| Methods of secondary research | Media articles Academic journals Government publications Market analyses |
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