Summarize the provisions of two significant laws that are designed to protect consumers.
1. The Consumer Protection Act: This law was enacted to protect consumers from unfair trade practices. It ensures that consumers have the right to be informed regarding the quality, quantity, potency, purity, standard, and price of goods and services they purchase. It also requires manufacturers to provide accurate and truthful representations of their products, and prohibits misleading and deceptive advertising. The act also allows consumers to seek compensation for any loss or injury suffered as a result of a faulty product or service.
2. The Fair Credit Reporting Act: This law protects consumers' credit information and ensures that their credit reports are accurate and fair. It requires credit reporting agencies to provide consumers with their credit reports free of charge once a year, and allows consumers to dispute any errors they find on their reports. The act also limits the type of information that can be included on a credit report, how long it can be reported, and who can access it. Additionally, the act requires companies to seek consumers' permission before accessing their credit reports.
Give three examples of scenarios for the use of three kinds of market research: exploratory, descriptive, and causal.
1. Exploratory market research:
- Suppose a company wants to launch a new line of fitness products. To better understand the market potential and customer preferences, they can conduct exploratory research by interviewing industry experts and conducting focus groups with potential customers to explore and gather insights on new trends in the fitness industry.
- A restaurant wants to explore customer preferences in terms of the food menu to provide more dishes to gain more customers. It can conduct exploratory research by carrying out individual interviews or group discussions with customers to understand their taste preferences and discover any gastronautic preferences.
2. Descriptive market research:
- A mobile phone manufacturer wants to know the average usage time and pattern of customers while charging their devices. It can conduct descriptive research by conducting a survey to collect information on the percentage of phone battery used by customers before recharging and the length of time it takes to recharge.
- An online retailer wants to gauge customer satisfaction level. It can conduct a descriptive study by sending out a feedback email anna online survey after purchase, asking customers to rate their level of satisfaction with the product quality, delivery speed, packaging, and customer service.
3. Causal market research:
- A beverage company wants to study the effect of caffeine on human body temperature. It can conduct a study that involves giving participants caffeinated and decaffeinated versions of the same drink, measuring their body temperature before and after they consume it to determine whether caffeine is a causal factor.
- A hotel wants to investigate the effect of discounts on sales. It can conduct a causal research study by offering two groups of customers two different discounts, measuring sales of each group, and comparing the sales volume to determine whether the discounts were a causal factor.
Give three examples of scenarios for the use of three kinds of market research: exploratory, descriptive, and causal. 3-5 sentences
1. Exploratory market research:
- A startup wants to enter a new market and needs to understand the consumer needs and preferences in that market. It can conduct exploratory research by analyzing the trends and demands in that market, studying the competitors' products and marketing strategies, or conducting focus groups to explore the unmet customer needs in that market.
- A cosmetics company wants to enhance its product line and needs to identify potential areas of expansion. It can conduct exploratory research by analyzing the current sales patterns, surveying the customers' opinions about different cosmetic products, or conducting interviews with industry experts to gather insights about emerging trends.
2. Descriptive market research:
- A car manufacturer wants to know the average price range and features that customers look for in a mid-sized sedan. It can conduct a descriptive research study by analyzing the sales data of mid-sized sedans over a specific period, surveying car buyers to determine their feature preferences, and identifying the average price point for these types of vehicles.
- A health insurance company wants to understand the healthcare utilization patterns among its customers. It can conduct a descriptive research study by analyzing the claims data to determine the average number of doctor visits, the prevalence of chronic conditions among its policyholders, and the corresponding healthcare costs.
3. Causal market research:
- A beverage company wants to study the effect of a new flavor on consumer preferences. It can conduct a causal research study by conducting a taste test where participants are given a sample of the new flavor and asked to rate their preference level. The company can then compare the results to a control group that has not tasted the new flavor to determine whether the new flavor had a causal effect on consumers' purchasing decisions.
- A social media company wants to understand the impact of content visibility on user engagement. It can conduct a causal research study by manipulating the level of content visibility for different groups of users and analyzing the resulting changes in engagement metrics. This type of study can help the company determine the optimal content visibility level to maximize user engagement.
Give three examples of scenarios for the use of three kinds of market research: exploratory, descriptive, and causal. 2-3 sentences
1. Exploratory market research:
- A technology company wants to expand to a new market segment but has limited knowledge about the market's behaviors. Conducting an exploratory research study that involves qualitative research methods like in-depth interviews, focus groups, or observation would help to gather insights into the new market segment.
- A fashion brand wants to introduce a new line of clothing but is not sure how the target audience will react. Exploratory research can help the brand conduct a pre-test to gather feedback from potential customers and identify any specific preferences or needs among the target audience.
2. Descriptive market research:
- A real estate agency wants to understand the housing market trends in a specific area. Conducting a descriptive research study that involves collecting data from various sources such as secondary data or surveys would help the agency to understand the current market conditions.
- An e-commerce retailer wants to enhance its product line by adding new products. Conducting descriptive research by analyzing sales data, customer feedback, and reviews of the existing product range would help to identify new product opportunities that meet customers' needs.
3. Causal market research:
- An education institute is considering implementing a new learning strategy. Conducting a causal research study by comparing the performance of students who receive the new learning strategy to those who follow the traditional method would help determine if the new approach has a significant impact on student outcomes.
- An automotive manufacturer wants to know whether a new eco-friendly engine design is more fuel-efficient. Conducting a controlled experiment in a test lab or setting a test group to use the new engine design can help to compare fuel efficiency data between the new design and traditional models and determine which one is more fuel-efficient.
Give three examples of scenarios for the use of three kinds of market research: exploratory, descriptive, and causal. Short answer
1. Exploratory market research:
- A startup wants to enter a new market and needs to understand the consumer needs and preferences in that market.
- A cosmetics company wants to identify potential areas of expansion for its product line.
- A research institute needs to explore new research areas.
2. Descriptive market research:
- A real estate agency wants to understand the housing market trends in a specific area.
- An e-commerce retailer wants to enhance its product line by adding new products.
- A nonprofit wants to understand the demographics of its donors.
3. Causal market research:
- An education institute is considering implementing a new learning strategy.
- An automotive manufacturer wants to know whether a new eco-friendly engine design is more fuel-efficient.
- A fast-food chain wants to determine the impact of a new menu item on customer satisfaction and sales.