Market Research Chapter 4.4 IB Business

Chapter Goals Explain how organizations carry out market research Analyze primary market research methods Comment on secondary market research methods Discuss ethical considerations of market research Distinguish between qualitative and quantitative market research Explain various sampling methods Interpret results from given data

Purpose of Market Research Identify consumer needs & wants To help a business predict what is likely to happen in the future To reduce the risk of product failure To measure how effective a marketing strategy is To provide current information regarding market activity

Market Research Methods Primary Research Field research; Collection of first-hand information Secondary Research Second-hand research; desk research Analyzing data that already exists Cheaper and quicker

Primary Market Research Methods Surveys Questionnaires sent to a target audience Must be designed effectively Interviews Can provide detailed information; can be time consuming; interviewers can be biased Focus Groups – small number of people brought together to discuss an idea/product Can be a good measure of customer reactions; more costly; only effective if people are honest Observations Direct method of data collection; large number can be surveyed at once; difficult to get complete answers; can’t study attitudes or opinions

Secondary Market Research Methods Academic Journals – scholarly articles written by experts Media Articles – newspapers and magazines Government Publications – can provide useful information Market Analyses – commercial publications that gather information about particular markets

Qualitative v. Quantitative Qualitative Research Quantitative Research Collection of data re: opinion, attitudes, beliefs Collection of numerical data Information open to a high degree of interpretation Open to less interpretation Is subjective Is objective Key research questions – “why?” Key research questions – “How many?” Researcher is part of process Researcher is separate Provides multiple realities, focus is complex and broad Provides one reality, focus is concise and narrow

Sampling Methods Quota Sampling - involves segmenting a given population Random Sampling – Every member of population has an equal chance of being selected Stratified Sampling – target population made up of many different groups Cluster Sampling – Used when the population is geographically dispersed

Sampling Methods – cont’d Snowballing – surveying 1st group, then other groups or individuals suggested Convenience Sampling – groups selected based on easy access & proximity to researcher Advantages & Disadvantages of each method – p. 287-289

Results from Data Collection Important to maintain integrity in process Appropriate data collection instrument essential