Business – 5.2 Sources of finance – Selecting the source of finance | e-Consult
5.2 Sources of finance – Selecting the source of finance (1 questions)
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The appropriateness of each source can be evaluated against four key criteria:
| Source | Cost | Relevance to New Product | Timeliness | Reliability |
|---|---|---|---|---|
| Primary market research | High – recruitment, incentives, facilities | Very high – data are specific to the new drink concept | Medium – data collection can take weeks | High – directly obtained from target consumers |
| Secondary industry reports | Low to medium – purchase or subscription | Moderate – provides market size and trends but not product‑specific insights | High – reports are usually up‑to‑date | Variable – depends on the credibility of the publisher |
| Social media listening | Low – software licences or free tools | High – captures real‑time consumer sentiment about health drinks | Very high – data are generated instantly | Medium – may include noise and unrepresentative voices |
| Competitor product reviews | Low – publicly available | Moderate – shows strengths/weaknesses of similar products | Medium – reviews are posted continuously but may lag behind product launches | Variable – depends on reviewer credibility |
Overall, primary research provides the most directly relevant insight despite its higher cost, while secondary reports and competitor reviews give useful contextual information at lower cost. Social media listening offers timely, low‑cost sentiment data but should be triangulated with more reliable sources.