4.4 market research. learning outcomes to understand why and how organisation s carry out market...
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Learning Outcomes• To understand why and how organisation s carry out market
research. A02• To have working knowledge and understanding of the following
primary research methods – surveys, interviews, focus groups, observations. A02
• To have working knowledge and understanding of the following secondary research methods – market analyses, academic journals, government publications, media articles. A02
• To be able to analyse the ethical considerations of market research. A03
• To know the difference between qualitative and quantitative research. A02
• To have working knowledge and understanding of the following methods of sampling – quota, random, stratified, cluster, snowballing, convenience. A02
What is Market Research?
• Market Research is the process of gaining information about the market (customers and competitors) through the collection, analysis and reporting of data related to a particular market
ADHOC CONTINUOUS
When necessary
Regular & ongoing
There are 2 methods of Market Research
Primary Research Secondary Research
The collection of new and original information (primary data) for a specific purpose
Looking into and examining existing published information (secondary data)
Research Methods
Secondary Research
Finding secondary sources of information either in paper based or internet based•Books•Magazines•Newspapers•Market Reports (Mintel, Keynotes)•Academic Journals•Government statistics•Trade Journals•Competitor publications (annual reports)
What are the advantage/limitations of secondary data? Complete task on next slide.
Which ones apply to the
techniques/methods that you need to know:
•Market analyses•Academic journals•Government publications•Media articles
Task - 5 mins• Create & share a Google Doc. Pair up and tackle
Ads and Disads for your secondary market research method
Secondary Method/Technique
Advantages Disadvantages
Academic Journals
Media articles
Government Publications
Market Analyses
• There is no best method but some methods could be more appropriate in a given context.
• How old the data is could aid your decision of which method(s) are most appropriate.
• Ideally a combination of methods is likely to increase accuracy and reliability whilst offering a broader overview.
Primary Research
• Can you think of what primary research methods a firm could use?
• Where might a business obtain secondary data from?
Types of Primary Research
• Questionnaires/Surveys• Interviews • Focus Groups• Observations
How might questionnaires be carried out?How might interviews be carried out?What would be the advantages and limitations with each of these options? Complete task on next slide.
Task - 5 mins• Create & share a Google Doc. Pair up and tackle
Ads and Disads for your primary market research method
Primary Method/Technique
Advantages Disadvantages
Questionnaires / Survey
Interviews
Focus Group
Observations
Focus Groups• Small groups of consumers
discuss a product led by a researcher
• Provides in-depth information• Can uncover unanticipated
problems• Danger of group-bias• Often used to make decisions
on packaging/advertising
Interviews
• In depth discussions• Avoid chance of group-bias• However interviewer could bias
conversation to achieve the required results
Ethical considerations of market research
Research and find one example of each of the following. Make and share on googledoc
Ethical Consideration
Definition / Meaning
Example 1(evidence)
Example 2(evidence)
Deceptive Practices
Invasion of Privacy
Breaches of Confidentiality
Objectivity
Qualitative vs Quantitative Research
Qualitative Research• Data collection on
opinions, attitudes, thoughts, beliefs emotions.
• Results can be difficult to analyse and can be subjective (open to interpretation)
• Key phrase used is “why?”.• Researcher is part of the
process• Expensive & time
consuming
Quantitative Research• Collecting numerical data
that can be measured• Results less open to
interpretation – harder to argue with numbers
• Objective (although bias can still occur)
• Questions – How many? How often?
• Researcher is separate• Narrow focus
Which methods of primary research would be used for qualitative research?
So…Which is Best?
QUANTITATIVE QUALITATIVEor
DISCUSS
Look at some questionnaire examples on the next slides to help aid discussions
Questionnaire design• The questions need to be asked in a logical order• The questionnaire must not be too long• Difficult questions should be at the end of the
questionnaire• Personal questions such as those about age or hygiene
should be phrased sensitively• it is important that questions are:
– are easy to understand– cover every possible answer– are unbiased (they do not lead respondents to give
a particular answer) – unambiguous (they have a clear meaning).
Sampling• The only way to gain a “True” and “accurate” picture
of the market is to ask everyone. Is this possible / feasible?
NO!
• Therefore, the idea is to select a group (sampling) that will represent the population as a whole (sample)
Sample Size
• The SAMPLE SIZE is the number of people within the sample
• The sample size will be a trade-off between cost and accuracy
• Bigger sample sizes will give greater ‘confidence levels’
Choosing the Sample
• Once the business has decided on how many people it will survey, they then need to choose who these people will be…..
• This is done using a sampling method
How might it choose the sample?
Sampling Methods
• Quota • Random• Stratified• Cluster• Snowballing• Convenience
What does each of these sampling methods involve?
Quota Sample• Aim is to obtain a sample that is "representative" of
the overall population;• In quota sampling, the researcher aims to represent the
major characteristics of the population by sampling a proportional amount of each.
• quota sample (proportional to the whole population) is chosen by the interviewer
Advantages/limitations?
Example Quota Sample
Category Sample size
Males 60 Full Time 54Part Time 6
Females 40 Full Time 32Part Time 8
E.g. If the whole population is 60%% male and 40% female, with 90% of the population being full time and 10% being part time. A sample of 100 people would be selected as per the following quotas:
Random SampleEverybody within the population has
the same chance of being picked for research.
This is like putting the name of everyone in a “hat” and picking out a percentage of the total to research.
Advantages/limitations?
+ Risk of bias minimised- The people selected may not be part
of the target group- Sample sizes need to be large to get
meaningful results
Example…..
• A firm has a workforce of 1000. Of these:• 600 are male• 400 are femaleWhat percentages are these?If the business wants to do a survey of 100
employees how many males and females should they ask?
Survey Sample
Category Sample size
Males 60 Full Time 54
Part Time 6
Females 40 Full Time 32
Part Time 8
Stratified Random SampleThis is a way of choosing people making sure a fair spread of
people are used.
This is usually done by splitting up the population into certain strata based on similar characteristics. Once this has been done a random sample will be done on each group of people.
Advantages/limitations?
Cluster Sampling• Units in the population can often be found in certain
geographic groups or "clusters" • A random sample of clusters is taken, then either all or
a sample of people within the cluster are examined
Advantages/limitations?
Snowballing
• Surveys/Interviews are carried out with individuals who then suggest other friends/family/colleagues
• Useful if the business is unable to get hold of appropriate respondents
Advantages/limitations?
Convenience
• Groups selected based on ease of access and proximity to researcher i.e. choosing the first 10 people you see
Advantages/limitations?
Task – 5 -10 mins• Create & share a Google Doc. Pair up and tackle
Ads and Disads for your sampling method
Sampling Method Advantages Disadvantages
Quota
Random
Stratified
Cluster
Snowballing
Convenience
Criteria for choice of sampling method
• Available budget• Required accuracy• Time constraints• Availability of population
Results from data collection
• The data collection process should strive for a high degree of accuracy whilst ensuring integrity and ethics.
• Benefits of data collected properly include:> ability to answer the research questions posed> increased accuracy of findings> opportunities for other researchers to pursue
Types of Errors
• Sampling error• Non response error• Data collection error• Data analysis error
SO…IMPORTANT TO MINIMISE OR AVOID IF POSSIBLE!