1. Market Research
Chapter 4.4 IB Business

2. Chapter Goals Explain how organizations carry out market research
Analyze primary market research methods
Comment on secondary market research methods
Discuss ethical considerations of market research
Distinguish between qualitative and quantitative market research
Explain various sampling methods
Interpret results from given data

3. Purpose of Market Research
Identify consumer needs & wants
To help a business predict what is likely to happen in the future
To reduce the risk of product failure
To measure how effective a marketing strategy is
To provide current information regarding market activity

4. Market Research Methods
Primary Research
Field research;
Collection of first-hand information
Secondary Research
Second-hand research; desk research
Analyzing data that already exists
Cheaper and quicker

5. Primary Market Research Methods
Surveys
Questionnaires sent to a target audience
Must be designed effectively
Interviews
Can provide detailed information; can be time consuming; interviewers can be biased
Focus Groups – small number of people brought together to discuss an idea/product
Can be a good measure of customer reactions; more costly; only effective if people are honest
Observations
Direct method of data collection; large number can be surveyed at once; difficult to get complete answers; can’t study attitudes or opinions

6. Secondary Market Research Methods
Academic Journals – scholarly articles written by experts
Media Articles – newspapers and magazines
Government Publications – can provide useful information
Market Analyses – commercial publications that gather information about particular markets

7. Qualitative v. Quantitative
Qualitative Research
Quantitative Research
Collection of data re: opinion, attitudes, beliefs
Collection of numerical data
Information open to a high degree of interpretation
Open to less interpretation
Is subjective
Is objective
Key research questions – “why?”
Key research questions – “How many?”
Researcher is part of process
Researcher is separate
Provides multiple realities, focus is complex and broad
Provides one reality, focus is concise and narrow

8. Sampling Methods
Quota Sampling - involves segmenting a given population
Random Sampling – Every member of population has an equal chance of being selected
Stratified Sampling – target population made up of many different groups
Cluster Sampling – Used when the population is geographically dispersed

9. Sampling Methods – cont’d
Snowballing – surveying 1st group, then other groups or individuals suggested
Convenience Sampling – groups selected based on easy access & proximity to researcher
Advantages & Disadvantages of each method – p

10. Results from Data Collection
Important to maintain integrity in process
Appropriate data collection instrument essential