Chapter 11 Business Studies
Chapter 11 Business Studies
Chapter 11 Business Studies
MARKET
RESEARCH
WHAT IS MEANT BY MARKET RESEARCH?
Quantitative Qualitative
information information
The answers about The answers where
the quantity of opinions and
something judgements is
Examples: how necessary
many sports shoes examples: what do
were sold? consumers like about
the product?
DISADVANTAGES
ADVANTAGES
× If questions are not framed
Detailed qualitative
properly, answers may be
information
inaccurate
Can be carried out online so it
× Carrying out questionnaires on
is cheap and easy
street and phone may cost a lot
They can be linked to prize,
of money and time
draws or other incentives to
× Collecting, analysing and
encourage people to fill the
presenting the data is time
questionnaire
consuming
2.INTERVIEWS
In this method the interviewer will
have ready prepared questions for
the interviewee
ADVANTAGES
DISADVANTAGES
Can explain any question if
× Results may be inaccurate
misunderstood × Very time consuming and
Detailed information can be
expensive
gathered
HOW TO DECIDE WHO WILL FILL QUESTIONNAIRES AND INTERVIEWS ?
QUOTA SAMPLE
When people are
selected on the basis of
characteristics (age,
gender or income) to
respond to the market
research
3.FOCUS GROUPS
It is where groups of people agree to
provide information about a specific product
or general spending patterns over a period
of time
ADVANTAGES DISADVANTAGES
Detailed information can be × Time consuming ,expensive and
generated biased
4. OBSERVATION
May be in the form of
DISADVANTAGES
ADVANTAGES
× Only provide basic figures and
Not very expensive
not reasons why people do things
ADVANATGES AND DISADVANTAGES OF
PRIMARY RESEARCH
• ADVANTAGES
UP TO DATE INFORMATION
COLLECTED FOR A SPECIFIC PURPOSE SO RELEVANT DATA IS GATHERED
CONFIDENTIAL
• DISADVANTAGES
× COSTLY AND TIME CONSUMING
× DOUBTS ABOUT ACCURACY DUE TO SAMPLING
SECONDARY RESEARCH
SECONDARY RESEARCH IS THE INFORMATION THAT HAS ALREADY BEEN
COLLECTED AND IS AVAILABLE FOR USE BY OTHERS. IT IS ALSO CALLED
AS DESK RESEARCH
SOURCES OF EXTERNAL
INTERNAL SOURCES OF
RESEARCH
INFORMATION
• GOVERNMENT STATISTICS
• SALES
• NEWSPAPERS
RECORDS/REPORTS
• TRADE ASSOCIATIONS
• CUSTOMER RECORD
• MARKET RESEARCH
• FINANCE DEPARTMENT
AGENCIES
• CUSTOMER SERVICE
• INTERNET
DEPARTMENT
ADVANTAGES AND DISADVANTAGES
OF SECONDARY RESEARCH
• ADVANTAGES
CHEAPLY OBTAINED
LESS TIME CONSUMING
ALLOWS COMPARISON OF DATA
• DISADVANTAGES
× MAY NOT BE UPDATED
× INFORMATION COLLECTED HERE MAY BE OR OTHER PURPOSE
× DATA COLLECTION METHOD AND ACCURACY MAY BE UNKNOWN
WHO CARRIES OUT MARKET RESEARCH?