Methods of Market Research
Business Management: IB Diploma, topic 4.3.3
Methods of Market Research
Sampling and technology can be used to perform market research.
Sampling
- When a business is carrying out market research, sampling may be used to reduce the costs associated with market research.
- Sampling occurs when a business selects a sample of the population to save collecting data from everybody in that population.
Advantages of sampling
- Sampling reduces cost as a business can choose a cross-section of the population instead of collecting data from everybody.
Disadvantages of sampling
- Sampling may not accurately reflect the full target market if the sample is not chosen properly.
Technology
- Technology can be used to analyse market research data by completing calculations and creating graphs and charts which can be used by managers and leaders.
Test yourself on Methods of Market Research
Which of the following is the primary benefit of sampling when conducting market research?