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Cambridge IGCSE Business Studies          Section 3 Marketing




                                             Methods of primary research

              KEY TERMS                      There are two types of primary research.
               Quantitative research:  the   ■  Quantitative research produces numerical data which can be presented in tables,
               collection of numerical data that   graphs or charts. It can be further analysed using statistical techniques.
               can be analysed using statistical
                                             ■  Qualitative research aims to find out consumers’ opinions about products and the
               techniques.
                                               factors that influence their buying decisions.
               Qualitative research:  the
               collection of information about   Businesses can collect market research information in several diff erent ways.
               consumer buying behaviour and
                                             All of the methods shown in Figure 11.2 can be used to collect both quantitative
               their opinions about products.
                                             and qualitative data, except for focus groups which are used to collect qualitative
                                             data only.


                                                                           Methods of
                                                                         primary research


                                                                                                Consumer
                                                     Focus groups   Observation   Test market
                                                                                                 surveys

                                                                                                   Interviews



                                                                                                    Postal
                                                                                                  questionnaire
    156


                                                                                                  Online survey

                                                    Figure 11.2 Methods of primary research

                                             Focus groups
                                             This method of research is most often used by manufacturers of consumer


                                             products, for example hair shampoo, to collect qualitative data. A group of
                                             consumers is invited to discuss topics such as new products, packaging, brand
                                             names and advertisements. The discussions are often recorded or fi lmed.


                                               Focus groups are a very good way for a business to find out from ‘typical’

                                             consumers what they think about a product and its marketing. For example, a hair
                                             shampoo manufacturer can find out what consumers think of the colour, smell,


                                             name and packaging of a new shampoo. The results of the focus group might then
                                             be used to change one or more of these features to try and improve its successful
                                             entry into the market.

                                               The main limitations of this method are that it can be time-consuming to
                                             arrange and there is no numerical data collected, which makes statistical analysis
                                             impossible.

                                             Observation

                                             The behaviour of consumers is secretly observed and recorded by market
                                             researchers. This method of primary research is often used by large supermarkets


                                             who observe the behaviour of customers as they select their products from the
                                             many options available on the shelves.
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