Limitations of Marketing Research
No matter how small or large a market research project may be, any type of research performed poorly will not give relevant results. In fact, all research, no matter how well controlled, carries the potential to be wrong. There are many reasons why research may not give good results but a common problem is deciding whether the research is really measuring what it claims to be measuring.
There are 3 types of limitations of market research. These are Cost effectiveness, reliability and validity of data collected. Reliability is chiefly concerned with making sure the method of data gathering leads to consistent results. For example; Nivea …show more content…
Political factors that affect a business are usually beyond the control of the organisation. However, the business needs to anticipate changes and identify the action it needs to take to either make the most of an opportunity or mitigate a threat. For example, a political factor that Nivea need to consider is that during a recession, any banks or financial services providers would have to consider the likely government scrutiny of any of their business decisions.
Economic factors can affect the performance of a business. These relate to the national – or international economy. A economic factor that can affect Nivea are the periods of prosperity that they go through. This can happen in three ways for example' when high employment and income drives demand within the organisation. It can also happen in the form of recession when demand falls, leading to lower income and employment within their organisation. Furthermore, in the form of recovery, when demand, income and employment gradually rise within the business.
Social factors relate to the values and beliefs of society. This includes the population’s demographics (for example, size, gender, ethnicity, income, education, occupation). These social factors provide useful information for Nivea as it allows them to target