Presentation on theme: "Market Research Sampling & reliability Aims: To recap intro to Market research – market research methods, qualitative & quantitative methods. To understand."— Presentation transcript:
Aims: To recap intro to Market research – market research methods, qualitative & quantitative methods. To understand the different types of samples available in market research. To understand the factors influencing the choice of sampling methods.
Recap last theory lesson What is the difference between field and desk research? Field = collecting new data direct from people Desk = collecting existing/printed data What is the difference between qualitative and quantitative research? Qualitative = personal opinion Quantitative data = statistical data - % results
Different types of research methods include Accounts Consumer panels Experiments Government statistics Group interviews High street surveys Internet results Loyalty cards Market research publications Observations On line surveys Sales record Telephone survey
Different types of research methods include Accounts Consumer panels Experiments Government statistics Group interviews High street surveys Internet research Loyalty cards Market research publications Observations On line surveys Sales record Telephone survey Student ‘volunteer’ to underline all primary research Student ‘volunteer’ to CIRCLE all secondary research
Quantitative v Qualitative Quantitative Research Qualitative Research Based on opinions, attitudes, beliefs and intentions Answers questions such as “why”? “Would?”, or “how?” Aims to understand why customers behave in a certain way or how they may respond to a new product or service Focus groups and interviews are common methods used to collect qualitative data Concerned with data and addresses question such as “how many?”, “how often”, “who?”, “when?” and “where?” Based on larger samples and is, therefore, more statistically valid The main methods of obtaining quantitative data are the various forms of survey – i.e. telephone, postal, face-to-face and online.
Why do businesses need Market research? Descriptive: To identify what’s happening in the market. Predictive: To predict what’s likely to happening in the future. Exploratory: To investigate new possibilities in a market.
Your task – take a business and identify one of each reasons for Market research Descriptive: To identify what’s happening in the market. Predictive: To predict what’s likely to happening in the future. Exploratory: To investigate new possibilities in a market. McDonalds Nike Vodaphone Sky Sport Nickelodeon X-Box HSBC Mercedes Hummers Pepsi Levi Burberry I-Pod Matalan Chelsea FC Barbie
Sampling It is not possible to survey every possible customer, so market research needs to take a sample of the population. Random sampling Quota sample Stratified sample Cluster sample
Random sampling Each member of the sample is selected at random… like out of a hat… but today it uses ICT! Methods: Pick every 50 th off the electoral list. Send interviewer to their house Return twice if they are out! What are the benefits and problems?
Quota sample This segments the population into groups that share specific characteristic. Interviews are then asked to interview a set number within each segment. E.G. interview 20% under 16’s; 15% 17 – 25; 25% 26 – 50 etc… What are the benefits and problems?
Stratified sample To only select those with key characteristics to suit the focus of the products. To interview Swimmers for new swimwear, Equestrians for new jodhpurs! What are the benefits and problems?
Cluster sample To send interviews into a few geographical areas. E.g. To a few seaside resorts to research swimwear. What are the benefits and problems?
Sampling – Main Methods Random sample A random sample gives each member of a population an equal chance of being chosen. The main advantage of this is that bias is not introduced when the sample is chosen. However, a random sample also assumes that all members of the population are the same, which is rarely the case! The main drawback of random sampling for a start-up is the cost of the required sample size. Random sampling needs large sample sizes in order to achieve acceptable confidence levels. Quota sample Quota sampling involves the population being segmented (broken up) into groups that share specific characteristics. The research then focuses on a specific sample size (quota) chosen for each group. Quota sampling can help market research focus more closely on the target customers or market segments. However, it takes more time than random sampling and is the sampling method most likely to result in bias. Stratified sample Stratified samples are used when the research wants to provide insights into specific market segments or customer groups. Once the target group is selected the sample is chosen at random from that group. A stratified sample still has the benefit of being random (i.e. low bias) and is not as expensive or difficult to obtain as a full random sample.
Factors affecting sample size Finance and cost Important. Market research should be low cost, or even better, free! Type of product If the start-up is offering an existing product or service, there may be lots of secondary research already available. By contrast, a new product is less likely to have secondary data available Level of riskThe newer the product and the greater the investment prior to launch – the greater the risk. If the start-up is investing significantly upfront and there is a high chance of failure, this increases the need for effective primary research. In such a situation, there is a case for choosing a random sample, backed up by additional quota or stratified samples. Target market If the start-up’s product is targeted at a specific segment (e.g. geographical, income) then it is easier to target primary research. If the business can identify the target customers, then it is usually more appropriate to conduct research using a stratified sample.
Reliability of research. Human behaviour – in answers given & a true understanding of their reasons behind their actions. Sampling & bias – are the interviewees representative? Questions used in questionnaires. Response rate Methods of collecting answers – face to face V self-completion.
Your tasks: Using the mini case studies – you will be given one case study to work on in pairs. Complete the three worksheets
Factors that will influence the type of market research used. Finance and cost Type of product Level of risk Target market Look at your specific business case study – identify the following factors to decide on what the sampling method & size of sample that you would recommend.
Business name: Descriptive: To identify what’s happening in the market. Predictive: To predict what’s likely to happening in the future. Exploratory: To investigate new possibilities in a market Descriptive MR Q’s: Predictive MR Q’s: Exploratory MR Q’s: Identify at least 5 MR q’s for each area ….
Random sample Quota sample Stratified sample Justify which sample method you would use for your company – and why the other two are not suitable in their specific case