Marketing

Question1. Explain the use of a questionnaire as a survey instrument in market research

and the importance of testing a questionnaire prior to using it.

As survey instrument a questionnaire has very importance because it has a series of questions
covering different areas to collect information from respondents. After collecting information it
is also important to test the questionnaire to verify collective data details. Following are steps to
test a questionnaire:

a. Establish face validity

b. Pilot test
c. Clean dataset
d. Analyses of principal components
e. Cronbach’s Alpha
f. Revise option if needed

Question2. Explain the importance of valid and reliable market research data.

Data collection is an important part of market research. This data detail helps business to make
market decisions on base of these analyses. A good data should be both high quality and
relevant. High quality data will be accurate, valid and reliable with representation of reality
faithfulness.

Reliability
A reliable data will repeat the same method with same results output

Validity:
A validate data should measure or represent what it is supposed to measure

Question3. Discuss three advantages and disadvantages of focus groups in market research.

Focus group is normally referred to a group of 10 or fewer volunteers who gather to discuss a
particular product or idea.

Advantages of focus group

 1. Easy to measure customer reaction
2. Time saving opportunity
3. Feedback on multiple aspects

Disadvantages of focus group

1. Not as in-depth as other market research

2. Comparatively expensive
3. Moderate bias

Question4. Compare and contrast two methods that can be used to measure project
outcomes and progress and provide example to illustrate your answer.

Two method of research are:

 Focus groups
 Personal interview

Comparison of these two methods:

1. Both methods has a ready list of question

2. Both methods has prompt response with natural locations
3. Same facilities need to collect data like video tape, observation room and one way
mirror
4. Easy to measure reactions
5. Feedback can be collect on different aspects

Contrast of these two methods:

1. Focus group method is comparatively expensive as personal interview

 2. Focus group method need a highly skilled person to ask question but in personal
interview specific questions can be asked
3. Focus group method need more time as compare personal interview method

These above two methods are very important to collect a reliable and valid data about market
research to offer product to a right person in right market. These data collection help the business
to know what opinions of customers about their offered products are and how company can
make these products more effective as per customer requirements.

Question5. Explain two different methods that an organisation can use to engage
consultants for market research.

According to the survey about 80% new products fail within 3 years due to poor market research.
There are two basic market research are primary and secondary for which need a expert opinions
to conduct these research. Here are two research methods for which organizations hired
consultants and experts to conduct the market research.

Qualitative method:
Through this approach consultant collect the data with

1. observation of participants
2. interview which may be structured and unstructured
3. review existing reports and data details

Quantitative method:
Through this approach consultant collect the data with

1. surveys and questionnaires

2. experiments
3. business process modelling
Question6. Discuss the impact of economic trends on market research.

Economic trend is a trend where a nation’s economy will move. Before start any business or
offer a new product and services it is very important to know the economic trend of their target
market and customers. Due to globalization this awareness becomes most important part of
business and market analyses that to know what are economic situations is target country and
then offer product or service accordingly. During market research where consultants collect the
data of customers that what are there needs and what are their expectations with our offered
products, but at the same time if this data details will not identify economic trends of their target
country and market this report will be incomplete. Present due to involvement of digital media
this identification is very important for any market research.