12

Entrepreneurship
Quarter 1 – Module 4
Market Research

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 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 Market Research or Marketing Research Process 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 surveys, focus group discussion and interviews.

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.

Strongly Disagree Neither Agree Strongly

Disagree Agree or Agree
Questions Disagree
(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

DATA COLLECTION is the most valuable tool of any type of research study.
Inaccurate data collection may cause mistakes and ultimately lead to invalid results.

TIPS in GATHERING DATA

• 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 –
SURVEY (Questionnaire), INTERVIEW and FOCUS GROUP DISCUSSION – and
evaluate their suitability under different circumstances

SURVEYS 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.

INTERVIEW 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)

• Personal interviews 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.
• Telephone interviews 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.

FOCUS GROUP DISCUSSION (FGD) - 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.

GUIDED PRACTICE / ACTIVITY:

Conduct a survey among 15 high school students in our school about “Milk Tea”. 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

Identify the following:

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
______________________
Give at least one guideline or consideration in the use of the following data
gathering techniques in market research:

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

Test I. Answer the questions below. Encircle the letter of your choice.

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
b. Primary Research
c. Secondary 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
b. Focus Group Discussion
c. Survey
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
b. survey
c. focus group discussion
d. personal interview
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. 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
6. It is the traditional method of data collection which is normally done on a personal
manner with the respondents.
a. Personal Interview
b. Focus Group Discussion
c. Survey
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
b. Survey
c. Focus Group Discussion
d. Personal Interview

Test II. Explain briefly but in a concise manner.

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 “Lemon Juice And Shake” 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