PRIMARY RESEARCH

Question 1

What is Primary Research?

Answer 1

Also known as ‘field research’, it involves the collection of first-hand information from the market. It aims to find out specific buying patterns and anticipate any changes in these as well as spending behaviors.

Question 2

Advantages + Disadvantages of Primary Research

Answer 2

• Gain Info directily from customers - Advantage over rivals.
• Expensive: Takes time and requires specialist researchers

Question 3

Survey

Answer 3

They are questionnaires sent out to a particular target audience. It may contain close or open ended questions. Surveys can be by mail, telephone or online.

Question 4

Advantages of a Survey

Answer 4

• Collect a large amount of data in a short period of time
• If designed well, they can be easily administered and completed
• Can be used to collect information on a wide range of aspects

Question 5

Disadvantages of surveys

Answer 5

• If poorly constructed they can undermine well intended research
• Answers may be biased, or not an accurate reflection
• Costly, take a long time to construct and administer

Question 6

Interviews

Answer 6

A conversation during which the interviewer asks the interviewee questions in order to gain information. Interviews can be face to face, by telephone or online.

Question 7

Advantages of Interviews

Answer 7

• Provide Detailed Information about the perceptions and opinions of consumers through in depth questionning.
• High response rate because of the one to one attention
• Meaning of the questions can be clarified during the interview process.

Question 8

Disadvantages of Interviews

Answer 8

• Time consuming, requires lots of steps
• Interviewers can be biased and influence responses.

Question 9

Focus Groups

Answer 9

Small number of people brought together to discuss a specific product or idea. Participants respond to questions prepared by market researchers. They share their opinions and ideas freely. They can also be asked to try a new product.

Question 10

Advantages of Focus Groups

Answer 10

• Cheap + Easy way of gathering market research
• They can be used to measure the reaction of customers to a firm’s new product or startegy
• They help identify key product requiremnts or needs
• Provide insight on the position of their competitios in the customer’s mind.

Question 11

Disadvantages of Focus Groups

Answer 11

• Opinions of a small number of individuals may not reflect the entire market
• Not express honest opinions. Thye may be hesitant, especially if their opinions differ from others.

Question 12

Observation

Answer 12

It is a fundamental and basic way of gaining info. Consists of carefully watching and trying to understand certain things or people’s behavior.

Question 13

Advantages of Observation

Answer 13

• Direct method of collecting data, researcher can exactly see how people behave in a certain situation.
• Large number of people can be surveyed in a short time period
• Cost effective

Question 14

Disadvantages of Observation

Answer 14

• Complete answers cannot be obtained, has to be combined with other methods.