Market Research

Question 1

What is market research?

Answer 1

The collection of data to help a business’s decisions.

Question 2

Why is market research important? (3)

Answer 2

1. Helps a business understand its customers (e.g., their needs and how to satisfy them)
2. Identify who the customers are (the target market)
3. Gives an indication of how customer preferences are changing over time

Question 3

How can market research be used? (5)

Answer 3

1. To make informed decisions
2. To predict demand
3. To find gaps in the market
4. To get customer feedback
5. To understand competitors

Question 4

What is primary research?

Answer 4

When information is collected firsthand.

Question 5

What types of primary research are there? (4)

Answer 5

1. Questionnaires
2. Interviews
3. Focus groups
4. Trialling

Question 6

State advantages of primary market research. (2)

Answer 6

1. Up-to-date
2. Specific to the needs of the business.

Question 7

State disadvantages of using primary market research. (2)

Answer 7

1. Expensive
2. Time consuming

Question 8

What is a questionnaire? (2)

Answer 8

1. A series of quick, short response questions that often involves people ticking boxes.
2. They can be completed online, face-to-face or through the post.

Question 9

State advantages of questionnaires. (3)

Answer 9

1. Able to ask as many questions as needed (coverage)
2. Can easily target certain customers.
3. Scalable (can collect a large amount of data)

Question 10

State disadvantages of questionnaires. (3)

Answer 10

1. No way of being sure the questions will be answered.
2. Respondents may have trouble understanding the questions
3. Some customers may get tired of answering questions.

Question 11

What are product trials?

Answer 11

The launching of a product for a short time or to a smaller group of people to gauge their response to the product.

Question 12

State the advantages of product trials. (2)

Answer 12

1. Data is from real customers
2. Reduces the risk of failure when the product is launched.

Question 13

State the disadvantages of product trials. (2)

Answer 13

1. It won’t always be representative of the full market.
2. Costly and time consuming

Question 14

What are focus groups? (2)

Answer 14

1. A small group of people who represent the target market discussing a product that they have tested.
2. They are led by a moderator.

Question 15

What are the different types of focus group questions? (3)

Answer 15

1. Engagement questions
2. Exploration questions
3. Exit questions

Question 16

State the advantages of focus groups. (2)

Answer 16

1. Results are generated quickly
2. Able to adapt questions as participants respond.

Question 17

State the disadvantages of focus groups. (2)

Answer 17

1. Influenced by others
2. Domineering participants

Question 18

What is secondary market research?

Answer 18

Data that has already been collected by your business or another business.

Question 19

State the advantages of secondary market research. (2)

Answer 19

1. Free or very cheap
2. Easily found

Question 20

State the disadvantages of secondary market research. (2)

Answer 20

1. Not always relevant
2. Can be out of date

Question 21

State examples of secondary market research. (2)

Answer 21

1. Printed media (like newspapers and magazines)
2. Websites

Question 22

What is quantitative data?

Answer 22

Data that is facts or figures

Question 23

What is qualitative data?

Answer 23

Data based on facts