Market research - EdexcelReliability of market research data
When businesses are deciding how to develop their products and services, they undertake market research. Market research can either be done by the company itself or taken from elsewhere.
Having reliable market research Market research is the process of collecting information about the market or what customers want that might help a business to be more successful and spot gaps in the market.dataFacts and statistics collected together for reference or analysis. is essential. Basing decisions on unreliable research can be very costly to a business.
For research to be reliable, it must have a high level of validity. This means that the facts and evidence gathered are accurate.
The advantages of having reliable market research data include:
the business can make properly informed decisions
reduces risk
means less money is wasted
gives a higher chance of business success
The consequences of relying on unreliable market research data include:
the business making unwise decisions
it could ultimately cost the business money
the business could bring out products that donât sell