1.1.2 - Market Research

Question 1

What is product orientation?

Answer 1

When a business prioritises a product’s design quality or
performance rather than meeting customer preferences to guide production and marketing decisions.

Question 2

What is market orientation?

Answer 2

The business finds out the needs and wants of the customers and responds to them/meets customer requirements

Question 3

What is consumer behaviour?

Answer 3

How consumers make decisions about how they choose and
use products or services

Question 4

What is primary market research?

Answer 4

Obtaining data first hand by the business to match the
specific needs of the business. It can also be known as field
research

Question 5

What are the methods of primary market research?

Answer 5

1. surveys
2. observations
3. test marketing
4. interviews
5. focus groups/consumer panels

Question 6

What is a survey?

Answer 6

A method of (primary) research used to collect information

Question 7

What is an observation?

Answer 7

Where market researchers watch the behaviour of customers

Question 8

What is test marketing?

Answer 8

Trialling the product in a small area or to a limited number of
users to assess the suitability of a product

Question 9

What is a focus group?

Answer 9

A group of people who participate in a discussion as part of
market research to give feedback about a product or service

Question 10

What are face to face surveys?

Answer 10

A research method used where the interviewer
communicates directly with the respondent using a
questionnaire.

Question 11

What are the advantages of primary market research?

Answer 11

1. directly focused or research objectives.
2. not publically available, so can be a source of competitive advantage.
3. provides more detailed insights =, especially to customer views.

Question 12

What are the disadvantages of primary market research?

Answer 12

1. Time consuming and costly.
2. Risk of potential bias.
3. Sampling may not be representative.

Question 13

What is secondary market research?

Answer 13

Data collected by another business or organisation but used
by the business in question. Also known as desk research

Question 14

What are examples of secondary market research?

Answer 14

1. market research reports
2. online sources
3. government data
4. trade publications

Question 15

What is government data?

Answer 15

Government publications that a business can use such as the
census of the population

Question 16

What are market reports?

Answer 16

A document that contains information, stats, research and
facts on a chosen field

Question 17

What are trade publications?

Answer 17

Specialist magazines that look at current trends in the
business world

Question 18

What are databases?

Answer 18

An organised collection of data stored electronically with
instant access, searching and sorting facilities

Question 19

What are the advantages of secondary market reserach?

Answer 19

1. often free and easy to obtain.
2. good sources of overall market insights.
3. quick to access, and easy to use.

Question 20

What are the disadvantages of secondary market research?

Answer 20

1. not specific to the needs of the business.
2. often out of date
3. available to other businesses.

Question 21

What is quantitative market research?

Answer 21

Numerical information gathered and can be presented and analysed using graphs, charts, table etc

Question 22

What are the advantages of quantitative market research?

Answer 22

1. data is relatively easy to analyse
2. numerical data can provide insights into trends.
3. can be compared with data from other sources

Question 23

What are the disadvantages of quantitative market research?

Answer 23

1. focuses on data as opposed to why something happened, so doesn’t explain the reasoning behind the trend.
2. may lack reliability if sample size and method is not valid.

Question 24

What is qualititative market research?

Answer 24

Market research collected relating to the opinions and beliefs
of consumers . Data not presented numerically

Question 25

What are the advantages of qualititative market research?

Answer 25

1. essential for important new product development and launches. 2. provides crucial insights into consumer behaviour. 3. an effective way of testing elements of the marketing mix.

Question 26

What are the disadvantages of qualitative market research?

Answer 26

1. expensive to collect and analyse = requires specialist skills. 2. based around opinions = risk of sample being unrepresentative.

Question 27

What is sampling?

Answer 27

Sampling involves getting data from a small group of people who must represent a proportion of a total market when carrying out market research.

Question 28

Why is sampling used in market research?

Answer 28

Sampling is widely used in market research, and it can prove statistically valid insights into the profile of the overall population (e.g., market) being analysed.

Question 29

What are the advantages of sampling?

Answer 29

1. flexible and relatively quick. 2. using sampling before making marketing decisions can reduced risk and cost.

Question 30

What are the disadvantages of sampling?

Answer 30

1. if the sample is unrepresentative it could lead to incorrect conclusions and decisions. 2. risk of interviewer, question sna respondent bias.

Question 31

What are biased questions?

Answer 31

Where the questions do not produce findings that give a true reflection of the views of the target audience on the product or service

Question 32

What is interview bias?

Answer 32

Where the opinion of the interviewer interferes with the judgements of the interviewee

Question 33

What is respondent bias?

Answer 33

When respondents respond inaccurately to a question for some reason

Question 34

What is social networking?

Answer 34

A platform such as Facebook, X and You Tube, which can be used to market a businesses products/services

Question 35

What is market segmentation?

Answer 35

Dividing a whole market into particular customer groups that have similar characteristics

Question 36

What are the traditional ways of segmenting the market?

Answer 36

1. age 2. gender 3. income 4. hobbies and lifestyle 5. location 6. culture and ethnic origin 7. occupation 8. lifestyle

Question 37

What are the benefits of market segmentation?

Answer 37

Better resource focus – Targets areas with the best chance of success. Growth opportunities – Helps grow market share or follow fast-growing segments. Improved products – Develops products that meet specific customer needs. More effective marketing – Tailors the marketing mix to fit the segment.

Question 38

What are the drawbacks of market segmentation?

Answer 38

Inexact and outdated – Data may be unreliable or not current. Hard to reach – Finding a segment doesn't guarantee access to its customers. Constant change – Segments can shift quickly as markets evolve.