Understanding the Consumer
Understanding the Consumer
Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes
Primary and Secondary market research data
Primary Research
- This is carried out directly by conducting surveys, interviews, and observations
- By extracting data through primary research, it allows firms to explore exactly what they need to
- Data tends to be more specific, however can also be more expensive
Secondary Research
- This is carried out by a third party, such as the government
- There are very low costs involved with conducting secondary research – it can be accessed for free and data can be extracted using libraries, internet and newspaper articles
- Secondary research can be less time consuming
- Secondary research can be more generic and may not be exactly what is required
Qualitative Data and Quantitative Data
Qualitative Data
This is descriptive and provides information regarding consumer satisfaction. This can include opinions towards directing a firm on the products that consumers want
Quantitative Data
This is numerical and consists of statistical data
Limitations of market research, sample size and bias
- Market Research – this involves using a collection of data to understand consumer demands more thoroughly
- Large sample size is usually ideal – this lowers the margin error as there is a wide range of opinions, making data more objective
- Strong confidence level – this suggests the research is confident about the research
Categorising consumers
- Market Segmentation – the market is divided into smaller groups consisting of consumers with similar characteristics
- For e.g a market may be segmented by its geographical location or demographics
- Better opportunities are able to grow when promoting goods / services by segmenting a market as it allows consumer demands to be met more efficiently
Quick Fire Quiz – Knowledge Check
1. Explain the difference between Primary Research and Secondary Research (6 marks)
2. Explain the difference between Qualitative Data and Quantitative Data (4 marks)
3. Identify and explain three key points for market research, sample size, and bias (6 marks)
4. Explain what is meant be ‘Market Segmentation’ and provide an advantage of this (4 marks)
Next Revision Topics
- Demand
- Supply
- Price Determination
- Price Mechanism
- The Competition
A Level Economics Past Papers
