Market Research/Sampling

Market Research/Sampling

1. Primary Research

   • Not available to competitors - get ahead
     • Difficult to carry out - req specialist experience - poor decisions can be made
   • Can verify accuracy of info it attains - 2* can be misleading
     • May in inaccurate/biased - expensive
   • Up-to-date info - firm can predict demand for new product
     • TC and expensive - planning / cost of gathering data

2. Secondary Research

   • Used as a starting point to focus 1* on particular area
     • Available to competitors - also identify trends and respond to them
   • Relatively inexpensive
     • Can't verify accuracy/quality - expensive mistakes
   • Quicker - beneficial in fast changing markets
     • May be out-of-date

3. Random Sampling

   • Lead to less bias
     • Can appear bias - all sample is male
   • Easy to carry out
     • Assumes all customers are equally important - not useful for specific segments
   • Computer can be used - quick
     • May need a larger sample to be representative

4. Quota Sampling

   • Suited to firm's needs - specifically chosen e.g. socio-group
     • Very expensive to employ research firm
   • Representative of customer base
     • Time consuming to find consumers from each group
   • Useful when proportions of population are known - may record customer details when sales are made (used later)
     • Samplers cut corners to save time