IB Business Management Marketing 4.4 Market Research

Market research

The range of marketing activities designed to discover the opinions, beliefs and feelings of potential and existing customers to identify and anticipate the needs and wants of customers.

Consumer profile

A quantified picture of consumers of a firm's products, showing proportions of age groups, income levels, location, gender and social class.

Random sample

A sampling method that gives every person in the population an equal chance of being selected.

Quota sample

A sampling method that involves segmenting the population and then selecting a certain number (the quota) in each market segment.

Stratified sampling

Draws a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum.

Sampling error

Errors in research caused by using a sample for data collection rather than the whole target population.

Quantitative research

Focusses on the collection and interpretation of statistical and numerical data for market research purposes.

Qualitative research

Focusses on the comments, suggestions and opinions of respondents. Qualitative research data are not statistical but can generate in-depth findings.

Quota sampling

Gathering data from a group chosen out of a specific sub-group; e.g. a researcher may ask 100 individuals between the ages of 20 and 30 years.

Primary research

Involves data being collected by the researcher since the dtaa does not currently exist.

Test marketing

Marketing a new product in a geographical region before the full scale launch.

Non-sampling errors

Occur during the course of the survey activities, rather than from the survey itself. Such as response bias, data entry error, undercoverage etc.

Population

The entire set of items from which a sample is drawn; i.e. all potential customers of a particular market,

Sampling

The practice of selecting a representative group (known as the sample) of a population for primary research purposes.

Secondary research

Using data and information that has already been collected by another party; i.e. the data or information already exists.

Snowball sampling

Using existing members of a sample study group to recruit further participants through their acquaintances.

Cluster sampling

Using one or a number of specific groups to draw samples from and not selecting the whole population; e.g. using one region or town.