market research sampling & reliability aims: to recap intro to market research – market...
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Market Research
Sampling & reliability
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 surveysSales 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 surveysSales 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 50th 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 risk The 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 MR Q’s:
Predictive MR Q’s:
Exploratory MR Q’s:
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
Final quick Questions…
True or False
If every member of the target population has an equal chance of selection, this is a quota sample
FALSE
It’s a random sample! A
quota = looking at
specific segment of
customres
True or False
A focus group is an example of qualitative research
True
They collect people’s
opinions rather than
statistics
True or False
The findings of a focus group are statistically reliable.
False
They collect people’s
opinions rather than
statistics
Homework
Textbook p35
Do Q2 a&b travel industry/Alex.
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