The Purpose And Methods Of Market Research
Overview
In 1985 the largest soft drinks company in the world tested a new, sweeter formula on close to two hundred thousand people. In blind taste tests the new drink beat the old one. On that evidence Coca-Cola replaced its original recipe in April, and by July it had brought the old one back under protest from its own customers. The research was enormous, expensive and competently run. It had simply measured the wrong thing: a sip from an unmarked cup, rather than what people felt about a drink they had grown up with.
This lesson is about doing better than that. You will learn what market research is for, the difference between primary and secondary and between quantitative and qualitative, and which technique to choose for a particular business with a particular budget. You will practise pulling information out of a table, which the specification asks for by name, and you will spend real time on the objective candidates skip: the reasons research produces results that are wrong and lead a business into an expensive decision it would not otherwise have made.
Objectives
- Purpose of market research.
- Methods of market research.
- Use of market research: information that may help decision making.
Mind map
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Lesson Note
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Lesson Evaluation
Congratulations on completing the lesson on The Purpose And Methods Of Market Research. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.
Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- Which one of the following is an example of secondary market research? A. Interviewing shoppers outside your shop B. Running a focus group of eight customers C. Studying your competitor's published sales figures D. Watching how customers move around your store Answer: C
- Which one of the following describes qualitative research? A. It produces numbers that can be compared between years B. It explains the reasons behind customers' choices C. It always uses a very large sample D. It can only be carried out online Answer: B
- A survey of 250 people found that 36 per cent would buy a product. How many people said they would buy it? A. 36 B. 69 C. 90 D. 214 Answer: C
- Which one of the following is the main drawback of secondary research? A. It is expensive to obtain B. It may be out of date and was collected for another purpose C. It cannot produce numbers D. Competitors are unable to see it Answer: B
- A business asks: 'Would you agree that our prices are very reasonable?' What is wrong with this question? A. It is too short B. It is a leading question that suggests the answer C. It produces qualitative rather than quantitative data D. It can only be asked online Answer: B
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