12
Entrepreneurship
Quarter 1 – Module 4
Market Research
This instructional material was collaboratively developed and reviewed by
educators from public and private schools, colleges and/or universities. We
encourage teachers and other education stakeholders to email their feedback,
comments and recommendations to the Department of Education at
[email protected] W e va lu e yo u r fe e d b a ck a n d re c o m m en d a tio n s ..
D e p a rtm e n t o f E d u c a tio n ● R e p u b lic o f th e P h ilip p in e s
What I Need to Know
Firms and other business companies need to understand their service offerings and their
customers to ensure that their services will be adopted as solutions to consumer needs. In order for
the firms to recognize the needs of the market or the customers, they need to conduct market
research.
The M arket R ese arc h o r M arketin g R ese arc h P ro c ess can be defined as the process of
gathering, analyzing and interpreting the information about the products or the services to be offered
for sale to the potential consumers in the market,
There are different ways to collect the data. The most important methods you can consider
are su rve ys, fo cu s g ro u p d iscu ssio n an d in tervie w s.
Students are expected to:
1. Discuss market research
2. Know the meaning of data gathering
3. Identify the different data gathering techniques
What I Know
Before starting with this module, let us see what you already know about
market research and data gathering techniques. Answer the questions below by
encircling the letter of the correct answer.
1. It is the most common way to gather primary research with the use of questionnaires or interview
schedule.
A. Interview
B. Focus Group Discussion
C. Survey
D. Data Gathering
2. It is the traditional method of data collection which is normally done on personal manner with the
respondents.
A. Personal Interview
B. Focus Group Discussion
C. Survey
D. Data gathering
3. A data gathering technique where it can be moderated to group interviews and brainstorming
sessions that provide information on user’s needs and behaviors.
A. Personal Interview
B. Focus Group Discussion
C. Survey
D. Data Gathering
4. It refers to information gathered directly from the respondents who answered set of questions.
A. Primary Research
B. Secondary Research
C. Survey
D. Data Gathering
5. A data gathering technique where it can be done via direct mail, over the phone, internet or e-mail.
A. Data Gathering
B. Survey
C. Focus Group Discussion
D. Interview
6. It refers to the process of gathering, analyzing and interpreting the information about the product
or the services to be offered for sale in the market.
A. Primary Research
B. Secondary Research
C. Data Gathering
D. Market Research
7 – 9 In your own opinion what is Market Research?
___________________________________________________________________
___________________________________________________________________
10 – 15 Give at least three data gathering techniques and explain.
Lesson
Market Research
1
What’s In
In the previous lesson, you learned the following:
✓ How to recognize and understand potential market
✓ How to determine who the customers are in terms of
A. target market
B. customer requirement, and
C. market size
What’s New
Answer the following statements honestly. There is no right or wrong answer. Indicate your
response to the items by putting a check that best corresponds to your answer.
S tro n g ly D isa g ree N eith er A g ree S tro n g ly
D isa g ree A g ree o r A g ree
Q u estio n s
D isag ree
(1) (2) (3) (4) (5)
I always think about having my own
business in the future.
I do activities related to starting my
own business
I have a strong desire to start my own
business
I will make every endeavor to start my
own business
I would like to follow the footsteps of a
successful entrepreneur
I will comply all the requirements
needed to start a business
I will be very happy when I am able to
start my own business
I know my family would support of my
dream to start a business
I would have a great opportunity of
being successful if I try to start a
business while I am still young
When problems come my way, I will
not easily give up while starting my
own business
TOTAL
After answering all the statements, add your score. Refer to the conversion and the verbal
interpretation of your score:
40 – 50 = Very high intention to become an entrepreneur
30 – 39 = High intention to become an entrepreneur
20 – 29 = Average intention to become an entrepreneur
19 & below = Low intention to become an entrepreneur
What Is It
D A T A C O L L E C T IO N is the most valuable tool of any type of research study.
Inaccurate data collection may cause mistakes and ultimately lead to invalid results.
T IP S in G A T H E R IN G D A T A
• Organize collected data as soon as it is available
• Know what message you want to get across and then collect data that is relevant to the
message
• Collect more data
• Create more data
• Regularly run experiments or collect data
• Challenge your assumptions
• Set reasonable expectations
• Take note of interesting or significant data
In this lesson, we will consider the three different data collection techniques –
S U R V E Y (Questionnaire), IN T E R V IE W and F O C U S G R O U P D IS C U S S IO N – and
evaluate their suitability under different circumstances
S U R V E Y S are the most common way to gather primary research with the use of
questionnaires or interview schedule. These can be done via direct mail, over the phone, internet (e.g.
Google) or email, face-to-face or on Web (e.g. Skype or Viber).
When designing or constructing your own research questionnaire, remember the following
guidelines. (Edralin, 2016)
• Keep it simple as possible.
• Make sure it is clearly appealing and easy to read.
• Cluster or block related questions.
• Move from complex questions to more specific questions.
• Make sure questions are concise and easily understood.
• Avoid questions that are difficult to answer.
• Make sure any response scales used are consistent with categories that are mutually
exclusive.
IN T E R V IE W is one of the most reliable and credible ways of getting relevant information from
target customers. It is typically done in personal between the researcher/entrepreneur and a
respondent where the researcher asks pertinent questions that will give significant pieces of
information about the problem that he will solve. The interview is also helpful even when the business
has already started because the customers’ feedback provides the entrepreneur a glimpse of what the
customers think about the business.
Interviews normally last from 15 to 40 minutes, but they can last longer, depending on the
participants’ interest in the topic.
In a structured interview, the researcher asks a standard set of questions and nothing
more.(Leedy and Ormrod, 2001)
• P erso n al in terv iew s are the traditional method of conducting an interview. It allows the
researcher to establish relationship with potential participants and therefore gain their
cooperation. It generates highest response rates in survey research. They also allow the
researcher to clarify indefinite answers and when necessary, seek follow-up information.
• T elep h o n e in terv iew s are less expensive and less time consuming, but the
disadvantages are that the response rate is not as high as the face-to- face interview, but
considerably higher than the mailed questionnaire.
F O C U S G R O U P D IS C U S S IO N (F G D ) - is an excellent
method for generating and screening ideas and concepts.
It
can be a moderated group interviews and brainstorming
sessions that provide information on user’s needs and
behaviors.
The following are considerations in the use of focus group discussions in market research:
• The length of the session is between 90 and 120 minutes.
• Usually, conduct focus groups discussion with 8 to 10 participants per group.
• Assign an expert moderator / facilitator who can manage group dynamics.
• Use a semi-structure or open-format discussion
• Strive for consistency in the group’s composition (for example, it may not be advisable to
have business customers and retail customers in the same focus group, their needs are
very different)
What’s More
Aside from the main basic groups of research methods (quantitative, qualitative and mixed),
there are different tools that can be used to collect data. Interviews can be done either in personal or
over the phone. Surveys/questionnaires can be paper or web based. Focus Group Discussions can
be moderated group interviews and brainstorming sessions that provide information on user’s needs
and behaviors.
G U ID E D P R A C T IC E / A C T IV IT Y :
Conduct a survey among 15 high school students in our school about “M ilk T ea”. Use the
survey form below:
SURVEY FORM
Name of Respondent (optional): ______________________________________________
Age _______________ Gender: Male Female Grade Level__________
What are your reasons for buying the product?
__________________________________________________________________________
_________________________________________________________________
Where do you buy the product?________________________________________________
__________________________________________________________________________
Is it available when you need it? Yes Sometimes No
What do you use as a substitute if it is not available?
__________________________________________________________________________
__________________________________________________________________________
Is the price affordable to you? Yes No
What I Have Learned
Id en tify th e fo llo w in g :
1. It is an information gathered directly from the respondents who answered set of
questions.______________________________
2. It is the traditional method of data collection which is normally done on a personal manner
with the respondents.__________________________
3. It obtains information on general attitudes, understand the circumstances under which
customers might require your product or services, understand their desired outcomes.
_______________________
4. It is the most common way to gather primary research with the use of questionnaire or
interview schedule.__________________________
5. It is the most valuable tool of any type of research study._____________________.
6. A data gathering technique where it can be done via direct mail, over the phone, internet or
e-mail.______________________
7. They also allow the researcher to clarify indefinite answers and when necessary, seek follow-
up information. _______________________
8. A data gathering technique where it can be moderated group interviews and brainstorming
sessions that provides information on user’s needs and behavior.____________________.
9. It is typically done in personal between the researcher/entrepreneur and a respondent where
the researcher asks pertinent questions that will give significant pieces of information about
the problem that he will solve. _____________________
10. It can be a moderated group interviews and brainstorming sessions that provide information
on user’s needs and behaviors.___________________
11. It normally lasts from 15 to 40 minutes, but they can last longer, depending on the
participants’ interest in the topic._____________________
12. It is a type of interview are less expensive and less time consuming
______________________
G ive at leas t o n e g u id elin e o r co n sid eratio n in th e u se o f th e fo llo w in g d ata g ath erin g tech n iq u es
in m ark et rese arc h :
13. Surveys - ___________________________________________________
14. Focus Group Discussion _________________________________________
15. Interviews ____________________________________________________
What I Can Do
Conduct a Focus Group Discussion (FGD) among five of your friends in your neighborhood who are
interested to have their own business in the future. The goal of your FGD is to generate new
business ideas. Ask them what they have observed in the community or in other places that they
have gone to so that they may have prospects on what are the products being bought or patronized
which are not yet offered by other entrepreneurs in our locality.
The learners’ output will be evaluated according to the rubrics:
Creativity - 20 points
Content/ Accuracy - 20 points
Timeliness - 10 points
Total 50 points
Assessment
T est I. A n s w er th e q u estio n s b elo w . E n circle th e letter o f yo u r ch o ice.
1. It is the process of gathering, analyzing and interpreting the information about the product or the
services to be offered for sale in the market, the market and about past, present and any potential
consumers for the products.
a. Data Gathering c. Secondary research
b. Primary Research d. Market research
2. A data gathering technique where it can be moderated to group interviews and brainstorming
sessions that provide information on user’s needs and behaviors.
a. Personal Interview c. Survey
b. Focus Group Discussion d. Data Gathering
3. A data gathering technique where it can be done via direct mail, over the phone, internet or e-mail.
a. data gathering c. Focus Group Discussion
b. survey d. Personal Interview
4. It refers to information gathered directly from the respondents who answered set of questions.
a. Primary Research c. Survey
b. Secondary Research d. Data Gathering
5. It is the most common way to gather primary research with the use of questionnaires or interview
schedule.
a. Interview c. Survey
b. Focus Group Discussion d. Data Gathering
6. It is the traditional method of data collection which is normally done on a personal manner with the
respondents.
a. Personal Interview c. Survey
b. Focus Group Discussion d. Data Gathering
7. A data gathering technique where it can be done via direct mail, over the phone, internet or e-mail.
a. Data Gathering c. Focus Group Discussion
b. Survey d. Personal Interview
T est II. E xp la in b riefly b u t in a co n cise m an n er.
1. What is Market Research? (3 pts.)
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
2. Enumerate and discuss the three data gathering techniques (5 pts.)
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Additional Activities
You are to open a “L em o n Ju ice A n d S h ak e ” business in your neighborhood. Conduct a
simple market research to know if it is acceptable or not.
The learners’ output will be evaluated according to the rubrics:
Creativity - 20 points
Content / Information - 20 points
Timeliness - 10 points
Total 50 points
