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What is Market Research?

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Presentation on theme: "What is Market Research?"— Presentation transcript:

1 What is Market Research?
Market research is the process of gathering and interpreting data about customers and competitors within a firm’s target market.

2 Purpose of market research
Market research is carried out to: Help firms make marketing decisions Reduce risk Data may be gathered for different reasons: identify current and future needs of consumers, the price customers will pay for a product the success of a promotional campaign.

3 Primary research Primary research involves finding out new, first-hand information. This is called primary data. Methods of primary research include: Questionnaires Focus groups Observation Questionnaires may be face-to-face, telephone or written. Focus groups allow for more qualitative data to be collected and follow up questions can be posed to gain a greater understanding of opinions and feelings. ICT is increasing being used in market research. Data is gathered using online questionnaires and loyalty card schemes. Observation can be carried out using CCTV.

4 Types of Survey Questions

5 Closed-End Questions These questions give the respondent options.
No space for opinions. Easy to calculate and analyze responses ie. Calculate a percentage for each option and create a graph.

6 Open-End Questions Each respondent will answer differently.
Tougher to calculate results. Qualitative type of question because you are researching attitudes and opinions. Important to get respondent's specific views.

7 Types of Closed-End Questions

8 Dichotomous A question offering two (2) answer choices. For example:
In arranging this trip, did you personally phone “itravel 2000”? Yes No

9 Multiple Choice A question offering three (3) or more answer choices.
For example: With whom are you traveling on this flight? No one Spouse Spouse and Children Children only An organized tour group

10 Likert Scale A statement where the respondent shows the amount of agreement and/or disagreement For example: Small airlines generally give better service than large ones. Strongly Disagree Neither Agree Agree Strongly Disagree nor Disagree Agree

11 Importance Scale A scale that rates the importance of some attribute from “not at all important” to “extremely important”. For example: To me, airline food service is: Extremely Very Somewhat Not very Not at all Important Important Important Important Important

12 Rating Scale Excellent Very Good Good Fair Poor
A scale that rates some attribute from “poor” to “excellent” For example: Air Canada’s food service is: Excellent Very Good Good Fair Poor

13 Primary research Benefits Drawbacks Directly relevant to the business
Up-to-date data obtained Competitors do not have access to the findings Time consuming Often expensive Results may be misleading if the sample size is too small, questions are unclear or there is interviewer bias Bias may occur if questions are written or posed in a way that leads the respondent into answering in a particular way.


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