Market Research - Chapter 16.1

Question 1

What is an entrepreneur?

Answer 1

Entrepreneur is the person who takes the initiative and risk to set up a business with the hope of making a profit. E.g. Richard Branson

Question 2

Explain 3 ways an entrepreneur comes up with ideas.

Answer 2

Competitors: this involves copying a product that already exists. Be careful of copyright and patents.
Import Substitution: a product that is currently imported is now made in Ireland.
Market Research is the gathering, recording and analysis of information about consumer opinion to help the business make informed decisions.

Question 3

List 3 benefits of Market Research.

Answer 3

1. Information about customers’ needs and wants.
2. Information about their competition.
3. The best price to charge their customers.

Question 4

List 3 uses of market research.

Answer 4

1. To explain the causes of changes in the market.
2. To investigate new market possibilities.
3. To identify gaps in the market.

Question 5

What is a target market?

Answer 5

Target Market is a group of people who all need/want a particular product/service. It is who your product is aimed at. E.g. males aged 18-24

Question 6

What is desk research

Answer 6

Desk Research involves looking at information that is already available. E.g. sales reports

Question 7

Give 2 advantages and disadvantages of desk research.

Answer 7

Advantages
1. Easy to collect as information is available already
2. Quick to collect as information is available already

Disadvantages
1. Information may be out-dated or inaccurate
2. Information may not be relevant or useful to the business

Question 8

What is field research?

Answer 8

Field research involves gathering information directly from the marketplace. E.g. Surveys

Question 9

What is a survey/questionnaire?

Answer 9

A Survey/Questionnaire involves questioning consumers about the product/service. Questions should be clear and not lead the consumer.

Question 10

List 1 advantage and disadvantage of a survey/questionnaire

Answer 10

Advantage:
Detailed information provided

Disadvantage:
Dishonest responses

Question 11

What is observation?

Answer 11

Observation involves watching the consumer in action.

Question 12

List 1 advantage and disadvantage of observation

Answer 12

Advantage:
Cheap method of field research

Disadvantage:
Time consuming

Question 13

What is a focus group?

Answer 13

Focus Group is a group of consumers brought together to discuss a product or service

Question 14

List 1 advantage and disadvantage of focus groups.

Answer 14

Advantage:
Large number of opinions collected

Disadvantage:
One group member may dominate conversation