IGCSE Business Studies - 3.2.1 Methods of Market Research

Objective: Analyse simple market research data

Introduction

Market research is a crucial process for businesses to understand their customers, competitors, and the overall market. This section explores various methods used to gather market research data and how to analyse simple data.

Methods of Market Research

There are two main types of market research: primary and secondary.

Primary Market Research

This involves collecting new data specifically for the business's needs.

• Surveys: Collecting information from a sample of people using questionnaires.
• Interviews: Talking to individuals to gain in-depth information.
• Observation: Watching consumers' behaviour in a natural setting.
• Experiments: Testing different products or marketing strategies in a controlled environment.

Secondary Market Research

This involves using existing data that has already been collected by someone else.

• Internal Data: Information collected within the business (e.g., sales records, customer feedback).
• Government Publications: Data released by government agencies (e.g., census data, economic reports).
• Industry Reports: Reports published by industry associations and research firms.
• Trade Publications: Articles and information published in industry-specific magazines and journals.
• Online Resources: Information available on websites, databases, and social media.

Types of Data Collected

Market research can gather various types of data:

• Qualitative Data: Descriptive data that provides insights into opinions, attitudes, and motivations (e.g., interview responses).
• Quantitative Data: Numerical data that can be measured and analysed (e.g., survey responses with numerical scales).

Analysing Simple Market Research Data

Once data is collected, it needs to be analysed to extract meaningful information. Here are some simple methods:

1. Frequency Distribution: Organising data into categories and counting how many times each category occurs.
2. Pie Charts: Representing data as proportions of a whole.
3. Bar Charts: Comparing different categories of data using rectangular bars.
4. Trend Analysis: Looking for patterns and changes in data over time.

Example Data Analysis

Consider a survey asking customers how satisfied they are with a new product, using a scale of 1 to 5 (1 = Very Dissatisfied, 5 = Very Satisfied). The results are as follows:

Satisfaction Level	Number of Respondents
1	2
2	5
3	10
4	8
5	15

Analysis:

• The most common satisfaction level is 5 (Very Satisfied), with 15 respondents.
• A significant number of respondents (10) are satisfied (level 3).
• There are a small number of dissatisfied customers (2 respondents at level 1).

Conclusion: The product is generally well-received, with a high proportion of satisfied customers. However, the business should investigate the reasons for the low number of dissatisfied customers to improve the product further.