Market Research
What is primary research?
Any type of research that you collect yourself: surveys, interviews, observations, and ethnographic research
What is random sampling?
A technique in which each sample has an equal probability of being chosen
What is sales forecasting
The process of estimating future revenue by predicting how much of a product or service will sell in the next week, month, quarter, or year.
Surveys
Advantages: Cost effective, generalizability, reliability, and versatility.
Disadvantages: Inflexibility and issues with validity
What are the three types of correlation in sales forecast
Positive Correlation
Negative Correlation
No Correlation,
Give 3 examples of secondary research
Journal Articles, Governmental Articles, Market Analyses
Name 3 sampling techniques
1. Quota
2. Random
3. Convenience
Benefits of sales forecasting
Allows companies to efficiently allocate resources for future growth and manage its cash flow.
Mass Media
Advantages: Spreads awareness, Real-time updates are available, Gives voice to the voiceless
Disadvantages: Sometimes spreads fake news and creates rumors, lends more power to the already powerful and rich
Define Extrapolation
A statistical technique that predicts future trends based on existing data
What is the difference between qualitative and quantitative research
Quantitative research deals with numbers and statistics, while qualitative research deals with words and meanings
Advantages of quota sampling
Saves time and resources
How is the moving average calculated
Summing up the closing prices of the last x days and dividing by the number of days
Random Sampling
Advantages: Easy to implement, Each member of the population has an equal chance of being chosen, Free from bias
Disadvantages: Difficulty gaining access to a list of a larger population, time, costs, and that bias can still occur under certain circumstances.
Define Focus Group
A demographically diverse group of people assembled to participate in a guided discussion about a particular product before it is launched, or to provide ongoing feedback on a political campaign, television series, etc.
Define observations and identify which research it is, primary or secondary.
Observations: The process of watching and recording consumers' behaviors, actions, and interactions with products or services in a natural or controlled environment.
Primary Research
Why might companies want to implement sampling techniques
Optimize costs, save time, and efficiently gather representative data.
What does the moving average show
The direction of a trend
Sales Forecast
Advantages: Future revenue and aid in developing a business plan for the future
Disadvantages: The time involved to prepare forecast and the biases of sales professional may make them less attractive.
What other name is there for Secondary Research
Desk Research
Why might companies want to use secondary research?
Can give critical insights into competitors, trends, and market size.
Differentiate systematic sampling and stratified sampling
Systematic sampling involves selecting every nth item from a list after an initial random start, while stratified sampling divides the population into distinct subgroups and then randomly samples from each subgroup to ensure representation of various characteristics.
What is a cyclical variation
When sales change depending on cycles of the economy during growth and recession phases. Ex: The 2008 financial crises.
Convenience Sampling
Advantages: Cheap, efficient, and simple to implement
Disadvantages: Sampling is that the sample lacks clear generalizability.
What type of Maket Research is interviews
Primary Research