MARKETING RESEARCHQ1: Why is marketing research is important to business?Ans: Marketing research is a development, interpretation, andcommunication of decision- oriented information to be used inall phases of marketing process. It is a systematic design,collection, analysis and reporting of data relevant to a specificmarketing situation facing an organization. Every organizationneeds a research. It is important because it plays a role in allphases of business. It recognizes the researcher’s responsibilityto develop information, which includes defining problems,gathering and analyzing data, interpreting results, andpresenting the information in such a way that it is useful tomanagers.Q2: Explain the difference between descriptive research,predictive research and explanatory research.Ans: Explanatory Research: Marketing research to gather preliminaryinformation that will help define problems and suggesthypothesis.
Descriptive Research: Marketing research to better describe marketingproblems, situations or markets such as the market potentialfor a product for the demographics and attitudes of consumers.Predictive Research: Marketing research to predict what is likely to happenin the future. It tests hypothesis about cause and effectrelationship.Q3: State five areas that marketing research could concentrateon.Ans: Five areas on which marketing research can concentrateon are The Market, Competition, Promotion, The Product,Distributing the Product, Pricing the Product.Q4: What is meant by Desk research?Ans: Desk research involves the use of secondary data. This isinformation or available data, already gathered for some otherpurpose. For example, the data in a study by the foodmarketing institute, an industry trade group, that reported thedifference in food preferences and shopping behavior of menand women are secondary data. It may include marketingresearch reports sales figures, annual reports and accounts andstock movements.Q5:What is meant by field research?Ans: Field research involves collecting primary data. Primarydata are new data gathered specifically for the project at hand.When researchers at a mid western super market chain
watched 1600 shoppers move through the stores, anddiscovered that 80% of the traffic was in 20% of the store (theproduce, dairy and meat sections) they were collecting primarydata.Q6: Why might field research be a benefit to a business?Ans: It is benefited to a business because it can produce resultsquickly. The test can be done secretly, without competitor’sknowledge or interference. The cost may be lower thentraditional market. The main advantage of field research is thefirm which collects it initially will be the only one with access toit. It will provide the latest information about trend of marketwhich will be more useful for any organization. It is usual tocarry out a survey of a sample of people who are thought to berepresentative of the total market. So more benefits can getthrough this method of research.Q7: In what circumstances might; postal surveys;questionnaires; observation be useful?Ans: It can be useful when the people are not directlyinteracted with any organization. These three methods can giveaccurate and direct information when there is no suitablecondition for other methods. Postal surveys can be useful whenyou have to cover wide geographical area with less expense.And questionnaires can be useful to know balanced betweenclosed and open questions. And to know the clarity of question,the use of leading questions.Q8: What is meant by sampling?
Ans: The fundamental idea about sampling is that a smallnumber of items – a sample - if properly selected from a largernumber of items – a universe- will have the samecharacteristics and in about the same proportion as the largernumber. Obtaining reliable data with this method requires theright technique in selecting the sample. Business still, needs tocollect enough primary data to have a clear idea of the views ofconsumers. This can be done by sampling.Q9: why might a stratified random sampling be preferred to arandom sample?Ans: Stratified random sampling may be preferred because itis more representative. It ensures greater accuracy. Greatergeographical concentration reduces the time and expenses.When the original population is badly skewed, this method isappropriate one. For non-homogeneous population it mayyield more reliable results. So stratified random sampling ismore preferred on a random sampling.Q10: Briefly explain how a business might obtain a quotasample.Ans: Quota SamplingQuota sampling is taken as a special type of purposivesampling. In this method, investigator is assigned a fixednumber of quota of persons from within certain well-definedclass, e.g. sex, occupation, age, income, etc. Within the quotas,the selection of the sample items depends on personaljudgment. The investigators are free to select within the quota.They usually select those persons who are well-familiar to themor they agree to their opinion. It is quick method ofinvestigation and is widely used in public opinion polls.
Q11: Suggest 3 benefits of marketing research to a business.Ans: 1. An aid to decision making perhaps the main benefit of marketing research is that it allows a business to make more informed decisions. 2. The size of markets as markets become ever larger and as new markets open up, marketing research becomes ever more important. In international and global markets it is impossible for businesses to operate without precise information about the needs of their customers. This is because of the huge number of customers and the large differences in their tastes. 3. Public relation carrying out market research may be good for the image of a business. Consumers may feel that their views are being considered. They may also think that the business is concerned that its customers are happy. This may lead to cooperate brand loyalty.Q 12: Why might sampling result in statistical bias?Ans: Statistical Bias Bias means a systematic component of error due to whicha statistical result is not of its true representation. Sampling result is Statistical Bias due toDeliberate selection Deliberate selection is based upon personal judgment andperson judgment introduces Bias.SubstitutionSometimes it becomes difficult to make contact with certainmembers or information is not obtained from certain units,then we substitute members or units that are convenientlyavailable. Such substitutions introduce bias.Incomplete coverage
Bias also introduces when we fail to cover the whole of theselected samples.Haphazard SelectionHaphazard human selection can also introduce bias as everyhuman being has a tendency away from random in his choices.Inadequate InterviewingBias also enters when the interviewing is hasty, incomplete andmisleading.