P1 M1 describe types of market research
Market research is the method of gathering and analyzing information about customers, competitors and the market. Market research is used when companies want to focus on things like market trends, customer habits and lifestyle, what price customers will pay for a product and what competition exists. This type of research assists companies build an idea on how competitive the market is also business owners can price their products efficiently with the understanding of the current market research. Market research can provide companies with vital information which allows them to make choices based on what the customer wants. It can allow businesses to predict what might happen in the future of a market and how to plan for such events. Types of data
There are two types of data which market research can collect: Qualitative and Quantitative Qualitative data
Qualitative data is data which describes and explains something is - such as why customers act in the way they do or why a market is shrinking in size. It is generally any type of non-numeric data. Such data is usually highly biased and may not be representative of the whole population. Data is essentially hard to analyse and quantify providing less scientific results. Qualitative data does however give a more in-depth and rich description. Qualitative data could be a body of text or narrative, non-numerical, information. A company can examine qualitative data to identify connections between categories of information. It can also be used to uncover trends based on variations in consumer behavior, such as spending patterns. Data interpretation shapes business goals and objectives, and serves as a key resource for directing marketing efforts.
Quantitative data is usually far more scientific and numerical; it can include percentages and frequencies. As quantitative data is usually available in a greater quantity it is usually more representative....
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