Business Studies

Question 1

What is market research?

Answer 1

The process of discovering consumer needs and the activities of competitors

Question 2

What are the FOUR important questions to ask customers when gathering market research?

Answer 2

1) What is it? 2) Where should we sell it? 3) How much should we sell it for? 4) How should we advertise it?

Question 3

Market research is important for businesses. List a few benefits (at least 6).

Answer 3

Potential for increased success in market. Prevents resource wastage. Competition. Forecasting. Planning. Business development and expansion.

Question 4

What are some potential market research questions? (at least 8)

Answer 4

What do customers feel about the product? Do people want to buy this product? What do customers like/dislike about the product? What price are they willing to pay? Where would they most likely be when they buy it? What type of customers would buy this product? What type of promotion would be most effective for this customer group? What is my competition like?

Question 5

What is a loyal customer base?

Answer 5

An ongoing positive relationship between customers and a business

Question 6

How can a loyal customer base help a business succeed? (at least 3 benefits)

Answer 6

Drives repeat purchases and favor over competitors. Better customer insights which aids market research and business development. Increases brand advocacy spread by positive experiences from loyal customers.

Question 7

what 3 attributes should the Aim of the Research have? Why?

Answer 7

Specific. Measurable. Purposeful. So the business can plan and design the overall research to obtain information that is suitable for its purpose.

Question 8

The aim of the research should… thereby….

Answer 8

The aim of the research should drive the entire research process thereby making the research process easier and more effective.

Question 9

What steps are involved in Planning and Designing succesful market research? (At least 5 steps) checking if… working out… deciding which… knowing the… deciding how…

Answer 9

checking if similar research has been done in the past. working out how much information you need. deciding which methods will be most appropriate in collecting the information you need. knowing the deadline for the research. deciding how the information you collect will be used.

Question 10

What is Secondary Research?

Answer 10

Based on information from studies previously performed by government agencies and other organizations on similar products.

Question 11

What are the advantages of Secondary Research? (Cost, Accuracy, TIme)

Answer 11

Cost: Don’t have to spend money creating own primary resources.
Accuracy: Analysed and presented correctly.
In-depth research which can cover areas not thought about.
TIme: Don’t have to spend time doing primary research.

Question 12

What are the disadvantages of Secondary Reasearch? (Cost, TIme)

Answer 12

Cost: Pay others for work they have done.
Expensive when information is unhelpful/does not apply.
Time: May take longer to read and sort through secondary information than doing your own primary research.
May be out of date or not relevant to the time you need data for.

Question 13

List some types of Secondary Research (at least 9)

Answer 13

Internal reports and records, Finance department, Customer service department, Trade and employer associations, Specialist journals, Research reports, Newspapers, Government reports and stats, Market research agency reports.

Question 14

List some examples of the Secondary Research Type: Internal Reports and Records (3)

Answer 14

Sales records, pricing data, customer records

Question 15

List some examples of the Secondary Research Type: Finance Department (2)

Answer 15

Costs of producing goods, break-even analysis

Question 16

List some examples of the Secondary Research Type: Customer Service Department (2)

Answer 16

Customer Complaints/Compliments, Staff feedback of customer behaviours

Question 17

What is the Secondary Research Type: Trade and Employee Associations?

Answer 17

Information by similar companies published for everyone to use, compare & contrast

Question 18

What is the Secondary Research Type: Specialist Journals?

Answer 18

Research that may be relevant to what the business needs to find out about the market or product

Question 19

How can the Secondary Research Type: Research Reports be useful?

Answer 19

Can be useful if on a particular market or similar product to yours. Can see the data and analysis which can assist in decision making.

Question 20

List some benefits/uses of the Secondary Research Type: Newspapers (2)

Answer 20

Can contain economic forecasts (will there be a recession or will there be a boost in the economy). Market trends

Question 21

List some examples of the Secondary Research Type: Government Reports and Stats (2)

Answer 21

Detailed general information about population and age structures. Rules and regulations about the industry.

Question 22

What is the Secondary Research Type: Market Research Agency Reports?

Answer 22

Publicly published reports about what they have researched (can be for free or businesses may have to pay for it)

Question 23

What is Primary Research?

Answer 23

Primary research involves gathering data that has not been collected before.

Question 24

What does Primary Research focus on? Who is it conducted by?

Answer 24

Focuses on your company’s needs. Conducted by you or by a company that you pay to conduct the research for you.

Question 25

What information does Primary Research help in collecting?

Answer 25

Primary market research lets you investigate an issue, get feedback about your product, assess demand for your service or find out how much consumers will pay for your product, and more.

Question 26

List some types of Primary Research (at least 6)

Answer 26

Questionnaire Interview Focus Group/ Consumer Panel Observations Experiments Customer loyalty programmes

Question 27

What is the Primary Research type: Questionnaire

Answer 27

Series of questions for consumers to answer and may have a guide for responses (like a scale or rank system).

Question 28

What is the Primary Research type: Interview

Answer 28

Face to face discussion, asking direct questions.

Question 29

What is the Primary Research type: Focus Group/ Consumer Panel

Answer 29

Testing of product with a group of people who agree to discuss their opinions.

Question 30

What is the Primary Research type: Observations

Answer 30

Recording, Watching, Auditing

Question 31

What is the Primary Research type: Experiments

Answer 31

Giving out samples and doing trials

Question 32

What is the Primary Research type: Customer loyalty programmes

Answer 32

Card issued by a store/company that can track consumer purchasing habits e.g. Onecard

Question 33

Advantages of Primary Research Type: Questionnaire (3)

Answer 33

Detailed qualitative answers. Customer opinions. Can be done face to face, by paper or on computer.

Question 34

Disadvantages of Primary Research Type: Questionnaire (3)

Answer 34

Poor questions may not give good enough answers. Costly to implement. Time consuming to analyse.

Question 35

Advantages of Primary Research Type: Focus Groups (3)

Answer 35

Immediate opinion- e.g. food, you can see their facial reactions. Opportunity to discuss and draw out reasons for consumers’ responses. Detailed opinions given.

Question 36

Disadvantages of Primary Research Type: Focus Groups (2)

Answer 36

Poor sample size and type wont give good information. Some people can have their opinions swayed by others.

Question 37

Advantages of Primary Research Type: Interview (2)

Answer 37

Interviewer can explain questions. Can draw out better answers.

Question 38

Disadvantages of Primary Research Type: Interview (2)

Answer 38

Interviewer could lead consumer into desired answers. Time consuming to do and requires workers to do the interviews.

Question 39

Advantage of Primary Research Type: Observations (1)

Answer 39

Can be inexpensive with use of IT systems.

Question 40

Disadvantage of Primary Research Type: Observations (1)

Answer 40

Basic information only provided.

Question 41

Advantages of Primary Research Type: Experiments (2)

Answer 41

Can be easy to set up and control. Immediate responses from consumers.

Question 42

Disadvantages of Primary Research Type: Experiments (2)

Answer 42

May not get real opinions. Sample may not represent the market.

Question 43

What is Quantitative Research?

Answer 43

Numerical data, or information that can be converted into numbers, eg ‘Data shows that 2,000 people bought the product last month’.

Question 44

List 3 examples of research tools that can properly collect Quantitative research.

Answer 44

Questionnaires, surveys, and measurements.

Question 45

What is Qualitative Research?

Answer 45

Generates non-numerical data and focuses on feelings and opinions; eg ‘Packaging made from recyclable materials is preferable to other sorts of packaging’.

Question 46

List 5 examples of research tools that can collect Qualitative research.

Answer 46

- focus groups - individual in-depth interviews - consumer panels - analysis of documents - observation

Question 47

What is a sample size? What is the general rule for sample sizes?

Answer 47

The group of people taking part in the business' research. Generally speaking the bigger the sample the more accurate the result.

Question 48

What does the sample size depend on? So...

Answer 48

Sample size depends on the market size, so it needs to be proportionate to the size of your market. I.e. a sample size of 5 will never give an accurate result.

Question 49

The larger the sample...

Answer 49

The larger the sample the more costly the exercise and the longer it will take to administer.

Question 50

What is the sampling method: Probability sampling

Answer 50

The selection of a sample from a population based on random chance.

Question 51

What is the sampling method: Simple Random Sampling

Answer 51

Each member of the Target Population has an equal chance of being included in the sample. Asking anybody and everybody for responses. Less bias, but variable responses.

Question 52

What is the sampling method: Systematic Sampling

Answer 52

The sample is selected by taking every 5th person or similar until your sample size is reached.

Question 53

What is the sampling method: Stratified Sampling

Answer 53

The target population is made up of different groups with different opinions. To be more accurate it must break down more ie age group, sex etc.

Question 54

What is the sampling method: Quota Sampling

Answer 54

Chosen based on same/similar characteristics that are a make up of the whole target population.

Question 55

What is the sampling method: Cluster Sampling

Answer 55

Chosen based on location of respondents such as using one town or region rather than the whole population. (This may not be representative of the market).

Question 56

What is the Non-probability Sampling Method: Convenience Sampling

Answer 56

Members of population are chosen based on there ease of access i.e. friends.

Question 57

What is the Non-probability Sampling Method: Snowball Sampling

Answer 57

the first respondent refers another and so on.

Question 58

What is the Non-probability Sampling Method: Judgemental Sampling

Answer 58

sample based on who would be appropriate to study.

Question 59

What is the Non-probability Sampling Method: Ad-Hoc Quotas

Answer 59

quota established and any respondent chosen till quota is met.

Question 60

what is an Open Question? What is a Closed Question?

Answer 60

Respondents can answer in many ways. A limited number of pre set answers, easier for analysis.

Question 61

What is Bias?

Answer 61

Bias means that a person prefers an idea/option and may not give an equal chance to a different idea. When given a choice, a person will answer whatever option they feel stronger about.

Question 62

What can Bias be influenced by? What is bias based on?

Answer 62

Bias can be influenced by a number of factors, such as popularity, and is usually based on emotions.

Question 63

What is the generlization of Sampling Bias?

Answer 63

you will never be 100% accurate because you can’t sample the whole population. Great care needs to be taken in picking your sample.

Question 64

What is Questionnaire Bias?

Answer 64

Questions that lead respondents in a certain way.

Question 65

What could be another source of bias?

Answer 65

Respondents not answering truthfully to not look bad.

Question 66

What are Loyalty Cards? What type of tool is it?

Answer 66

Get scanned so businesses know what consumers want and can target them specifically. Market research development tool.

Question 67

How can cellphones be useful as a market research tool?

Answer 67

Greater access to consumers, cheaper and quick, results sent straight to computers.

Question 68

Market Research Results: What three scenarios should a table be used in?

Answer 68

When a wide range of results needs to be recorded. When the results need to be analyzed by statistical means and it's essential to have the numbers themselves. When there is a lot of text to include with the results.

Question 69

What are Tables usually used for? How can we use the summarised data in a Table?

Answer 69

Usually used to summarise simple data from questionnaires to be used in graphs and charts. We use the summarised data from tables to calculate our proportions and percentages so that we can analyse what it shows.

Question 70

Market Research Results: What three scenarios should a Line Graph be used in?

Answer 70

When time is one of the variables. When the trend and regular variations need to be identified. When two or more sets of time series data need to be compared.

Question 71

Market Research Results: What two scenarios should a Bar Graph be used in?

Answer 71

When the absolute size or magnitude of results needs to be presented and compared. When component and percentage component charts can be used to show how the total figure is comprised of different sections.

Question 72

What 3 reasons would you have to use a bar graph?

Answer 72

When you want to show relationships over time. When there is not too much data that needs to be displayed. To visually compare between different things and how they differ or are the same.

Question 73

Market Research Results: How are pie graphs useful? How are pie graphs not useful?

Answer 73

Visually useful to show the relative importance of sections or segments out of a total result. They are less effective when comparisons between totals are needed or when precise comparisons of segments over time are required.

Question 74

Market Research Results: How is a Histogram useful?

Answer 74

Visually presents frequency data when the range of the data has been broken into class ranges.

Question 75

Market Research Results: How is a Pictogram useful?

Answer 75

Particularly useful when the user wants to attract the reader towards looking at the data.

Question 76

What 4 reasons would you use charts for?

Answer 76

Presenting proportions rather than data e.g. Percentages of the market. Showing data that has already been summarised. Explaining your decisions. Can easily see relationships by size.

Question 77

When analyzing the results...

Answer 77

...the analysis needs to be easy to interpret so obvious trends can be explained.

Question 78

List the 3 most frequently used averages to interpret data. (Define "averages", and the three most frequently used)

Answer 78

Averages – the typical representative measure of a set of data. Three most frequently used: - Mean: Calculated by totaling all the results and dividing by the number of results. Ie 1st year data 1,2,3,4 = 10/4 = 2.5 - Mode: The value that appears most frequently in a set of data. Grouping your data in order is important for finding the mode. - Median: The value of the middle item when data has been ordered or ranked. Divides the data into two equal parts.

Question 79

Interpreting Data: What rule applies to the Mean of a set of data? What rule applies to the Mode of a set of data? If the data has an odd set of numbers...

Answer 79

All calculations are only as accurate as the data that has been collected. The mode is often of limited value, and meaningless when the data contains results that appear only once. ...formula is as follows. Number of values + 1 / 2

Question 80

Interpreting Data: When should Frequency Data be used?

Answer 80

When your sample size is large it is unrealistic to report each individual result, so you can group it together in a Frequency Data table.

Question 81

Interpreting Data: What is Range? How should the range be altered to maintain accuracy?

Answer 81

The difference between the highest and lowest value. The highest and lowest result is often omitted when extreme results happen. Ie 1 student scores 95% and another 12% the range would be 83%.

Question 82

Interpreting Data: What is the Inter Quartile Range? How does maintain accuracy?

Answer 82

The range of the middle 50% of data. This ignores the top 25% and bottom 25% results therefore avoids extreme results causing inaccurate results.

Question 83

List some examples of the types of questions that should be considered to design a questionnaire? (6)

Answer 83

What do I want to find out? Who am I going to ask? (Market : Age, Gender, Income range, Occupation) How many people need to be asked? Anonymous, do we need data about who answered this? Does the place I ask my questions affect who will answer? What method is most suitable?

Question 84

Give an example of how a sample is a representative of the whole market.

Answer 84

"This information shows that 25% of the market likes to have Burger King for breakfast."

Question 85

What is proportion as a question?

Answer 85

Out of the whole group, what amount of them chose a certain answer?

Question 86

Write out the proportion and percentages formula method:

Answer 86

Formula: relevant portion divided by total = decimal = percentage E.g. There are 100 people surveyed and 25 of them said yes, what proportion was that? 25/100 = 0.25 = 25%

Question 87

What does Analyse mean?

Answer 87

Looking at information and drawing a conclusion. Understanding what the information shows us and then making a decision about our market based on that.

Question 88

What questions should be answered when writing up the analysis of your market research? (6)

Answer 88

The results of our survey show that 25% (e.g.) of the market …. We found that …… Based on the results of ….. We have decided …….. We need to …… because we found …… 73% (e.g.) of the market said ….. So we will …..