Sampling
Carrying out a survey of every single potential consumer (known as
population) of a firm's product would be impractical, time-consuming
and costly. Businesses still, however, need to collect enough primary
data to have a clear idea of the views of consumers. This can be done
by taking a sample of the population. This sample group should be made
up of consumers that are representative of all potential buyers of the
product. There are a number of ways in which a sample can be chosen.
Random Sampling
This method gives each member of a group an equal chance of being
chosen. In other words, the sample is selected at random, rather like
picking numbers out of a hat. Today computers can be used to produce a
random list of numbers which are then used as the basis for selecting
a sample. Its main advantage is that bias cannot be introduced when
choosing the sample. However, it assumes that all members of the group
are the same (homogeneous), which is not always the case. A small
sample chosen in this way may not have the characteristics of the
population, so a very large sample would have to be taken to make sure
it was repetitive. It would be very costly and time consuming for
firms to draw up a list of the whole population and then contact and
interview them.
One method sometimes used to reduce the time taken to locate a random
sample is to choose every tenth or twentieth name on a list. This is
known as systematic sampling. It is, however, less random.
Stratified Random Sampling
This method of random sampling is often preferred by researchers as it
makes the sample more representative of the whole group. The samp...
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... a street within
a city may be chosen and then a particular household within a street.
Snowballing
This is a highly specialised method of sampling. It involves starting
the process of sampling with one individual or group and then using
these contacts to develop more, hence the 'snowball' effect. This is
only used when other sampling methods are not possible, due to the
fact that samples built up by snowballing cannot be representative.
Firms operating in highly secretive businesses such as the arms trade
may use this method of sampling. Similarly, firms engaged in producing
highly specialised and expensive one off products for a very limited
range of customers may need to rely upon snowballing when engaged in
market research. Examples might include firms engaged in nuclear and
power generating industries.
The company’s marketing team should first collect information regarding the income level of customers who live in the vicinity of the
Precise and comprehensive information is the basis of all successful commerce activity because it provides a vast amount of information about possible customers, existing ones and the firm’s competition. Market research allows business proprietors to establish the viability of a business venture before committing sizeable resources.
Having a large sample size in a survey does not assure accurate statistics. What really matters is the sample diversity. For example: you wanted to find out how many of your workmates watch football, it would be foolish to only survey the men in your office and assume that the statistic applies for all the company’s employees. In order to get accurate statistics, you would have to expand the survey to include the female employees and the workers in other company offices.
d) Enlarging new customers. Research on the consumer purchase behavior is an essential need. The analysis data will provide more information on who, how, and why to buy, and also understanding the competitors marketing strategic plan. Secondly, by analyzing the majority of subscribers age group, gender, preference items. Sending regular email on current promotion items and offer them with the 1st trial discount voucher to convert the subscribers into customers.
... of consumer behaviour, lays emphasis on the objectivity of science and the consumer as a reasonable and sensible decision maker. While, the interpretive point of view is in contrast to that of the positivist, in that it emphasises on the importance of the subjective meaning of the consumers individual experience, hence, it suggest that whichever behaviour a consumer performs is subject to diverse interpretations to a certain extent than just a single explanation to it.
The market for Frigidaire's front-loading washing machine should be divided into single segments which can then identify groups of consumers who share commonalities that have the potential to drive demand for the new product. Each segment of the market will have similar needs in quality and performance; they have a semi-uniform response to the marketing mix. The target of Frigidaire's marketing campaign will rely on the hierarchy of each segment's priorities. Typically, a market is segmented to include demographics combined with other behavioral attributes as previously demonstrated in the VALS survey. The information obtained in data collection from these market segments is crucial because the behaviors behinds these groups combined with the presentation of the product are the driving forced behind sales. One technique frequently used is a perceptual map that discerns which features are important to consumers, often called determinant attributes (Business).
Conclusion Companies are better able to market their products to consumers if they have a good Understanding of the consumers and the basic purchase decision process. By understanding the consumer and the type of purchasing behavior associated with different products, marketers are more likely to create a marketing campaign that positively impacts the consumer’s purchasing decision.
Therefore to improve the responsiveness to customers, the company must evaluate the needs and wants of the consumers, this can be done by conducting market research and surveys.
Every company wants to understand why people decide to buy its products or others. Firstly, we have to understand why people buy certain kind of product. People buy products because they need them. A need is activated and felt when there is a sufficient discrepancy between a desired or preferred state of being and the actual state. (Engle£¬Blackwell and Miniard. 1995. p407 ) For example, when you feel hungry, what you needs is some food. It is very important for marketer to understand the needs of consumers. All the consumers may have the same needs, but the ways which they satisfy what they need are different. Here is a example, Chinese people would choose rice when they feel hungry, whilst British people may choose bread to satisfy their needs.
...customers are going to respond in the future based on their past behavior as well as their segmented demographics.
As we discussed the decision-making process for consumers is anything but straight forward. There are many factors that can affect this process as a person works through the purchase decision. The number of potential influences on consumer behavior is limitless. However, marketers are well served to understand the KEY influences. By doing so they may be in a position to tailor their marketing efforts to take advantage of these influences in a way that will satisfy the consumer and the marketer (remember this is a key part of the definition of marketing).
The sampling design process includes five steps which are closely related and are important to all aspect of the marketing research project. The five steps are: defining the target population; determining the sample frame; selecting a sampling technique; determining the sample size; and executing the sampling process.
Demographically we can segment the market into groups based on age, gender, family- size, income, family life cycle and occupation.
The perception we have of a business or service can affect our buying behavior. Businesses spend a lot of money to ensure that consumers have a good perception of their business and make sure their product stand out from the crowd. When bringing a new yet risky product on the market a company can provide a lot of information along with reviews and a free trial, by doing this it decreases the risk of a bad perception. For example when...
Nevertheless, one of the most important constants among all of us, regardless of our differences, is that, above all, we are buyers. We use or consume on a regular basis food, clothing, shelter, transportation, education, equipment, vacations, necessities, luxuries, services, and even ideas. As consumers, we play an essential role in the health of the economy; local, national and international. The purchase decision we make affect the requirement for basic raw materials, for transportation, for production, for banking; they affect the employment of employees and the growth of resources, the successfulness of some industries and the failure of others. In order to be successful in any business and specifically in today’s dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers; what they are want, what they are think, how they are work, how they are spend their leisure time. They have to find out the personal and group influences that affect consumer decisions and how these decisions are made. In these days of ever-widening media choices, they need to not only identify their target audiences, but they have to know where and how to reach