(a) Exchange functions of marketing include buying and selling of goods and services. These functions have a common feature in one respect, that they are directly concerned with the change in ownership of goods. Once the right type of product or service is developed, it must be transferred to customers. Products are bought from different sources to meet diverse needs of consumers. The products are sold in small lots over a period of time. Thus, buying and selling are the activities of exchange.
(b) The two methods of marketing research are as follows:
1. Observation Method: Observation refers to the process of recognising and noting facts or events. Under this method, the behaviour of consumers is watched through personal observation or mechanical devices. It avoids the pitfalls of questioning such as interference in the consumer’s activity, bias of the interviewer and distortion due to the consciousness of being questioned.
2. Experimentation method: Under this method, a control market is established in which all forces except those being tested are kept under check. It seeks to test a theory or to find consumer’s reactions. The method involves a large expenditure of time and money. It requires skilled investigators. Moreover, it is difficult to select test markets and to control the variables.
