Advantages and disadvantages of market research

Marketing Fundamentals
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Marketing Fundamentals
Question 1: Discuss the advantages and disadvantages of quantitative and qualitative market research
Quantitative market research
The advantages of quantitative market research mainly lie in its scientific experimental methods that enable the results to be tested and checked. The methodology used in this type of research enables other parties to replicate it correctly and find similar results (Barnham, 2015). Therefore, results obtained from this type of research become reliable since they are backed with numbers less prone to bias. Besides that, quantitative research further provides a basis for the use of advanced statistical packages to interpret the results, thus providing valuable insights into the market. Therefore, evolving technology has made it possible to use computer modeling and data science to make critical business decisions based on the collected information.
However, on the other hand, the disadvantage of this type of market research is the difficulty and complexity of setting up the right research model. Such scientific research requires a hypothesis and model to appropriately collect relevant information to reduce bias (Barnham, 2015). Therefore, this process can be challenging and time-consuming for the organization. Furthermore, the extensive focus on mathematical figures and numbers may be misleading to interpretation. A focus on the numbers may take away the underlying relationships and information that may be beneficial for the organization in the long run.
Qualitative market research
In this type of research, a significant benefit is the flexibility involved in the data collection process. Researchers can adapt the questions or setting to improve the responses provided by respondents, thus enabling the collection of insightful results (Barnham, 2015). Apart from that, sample sizes, in this case, do not require to be too large, and data collection can be centralized as in the case of focus groups. This makes it easier for the data collection process making it efficient and time-saving while at the same time reducing the costs required for extensive traveling. This further allows the researcher to capture the respondents' feelings and attitudes regarding a product or service that would be impossible using quantitative methods. Such information provides valid data that may not be mathematically quantified, thus improving the overall data quality.
On the other hand, qualitative market research has a high risk of bias since respondents are not chosen using scientific methods in most cases (Barnham, 2015). Furthermore, the setting of the research may also influence the results since the researcher is present. This makes it impossible to generalize the results of the research to the whole market since the sample's views do not generally represent those of the entire population. Apart from that, analysis of captured results from qualitative data is difficult and cumbersome to analyze due to the subjectivity of both responses and interpretations. Thus, the researcher has to be highly skilled and knowledgeable in the market to differentiate between valid and invalid responses.
Question 2: Using examples, discuss the benefits of the conventional Product Life Cycle (PLC)
The PLC enables sales forecasting in an organization since it becomes possible to understand the time frame through which a product can be profitable in the market. Through forecasting, companies can plan accordingly on new strategies, maximizing the period where the product has reached its maturity stage (Lamb, Hair, & McDaniel, 2008). For instance, phone manufacturers can forecast the life cycle of a new phone model, which can help them strategize on time frames for releasing updates or other models in the market. Apart from that, a company can also gain a competitive advantage in the market since it can run concurrent PLC models with its competitor’s products. Having such information provides insight into the strategies planned by the competitor, thus enabling the company to find countermeasures that can propel them further in the market. For instance, in the case where a competitor is introducing a new product in the market while the company’s products are at a later stage, measures can be taken to either introduce a new product to compete or invest more in advertising. This enables the company to maintain a competitive edge over its competitors, thus improving its position in the market.
More so, the PLC also enables companies to make critical decisions regarding strategy and future plans. With the available data, including the sales projecti...