Market Research

Question 1

what is primary research

Answer 1

data collected first hand such as questionnaires, interviews, and focus groups

Question 2

what are advantages of questionnaires

Answer 2

• cheap to carry out
• easy to target certain customers

Question 3

what are disadvantages of questionnaires

Answer 3

• people may not understand the questions
• people uninterested may answer dishonestly

Question 4

what are advantages of interviews

Answer 4

• question can be explained
• easy to target certain customers

Question 5

what are disadvantages of interviews

Answer 5

• expensive to carry out
• not everyone likes being interviewed

Question 6

what are advantages of trialling

Answer 6

• gives an idea if the product is what people want
• reduces the risk involved in producing large quantities

Question 7

what is a disadvantage of trialling

Answer 7

the area tested must represent the total market otherwise the findings will be unhelpful

Question 8

what is an advantage of focus groups

Answer 8

the people chosen will be representative of potential customers

Question 9

what is a disadvantage of focus groups

Answer 9

• will only be a small group
• expensive to carry out

Question 10

what is trialling

Answer 10

selling a product for a short period of time to assess performance, if it sells well the business will go into full production

Question 11

what are focus groups

Answer 11

a group of people are asked to use a product or think about an advertisement to help the business re-design the product or advert

Question 12

what is market research

Answer 12

the collection of data on customer habits to help decision making in marketing

Question 13

why does marketing involve the 4P’s

Answer 13

the information produced helps to decide marketing strategy

Question 14

what information can you find out about the target market when doing market research

Answer 14

age, economic status, culture, location, customer wants

Question 15

what does market research help a business to find out

Answer 15

• the product or service customers want
• the price customers are willing to pay
• the design of the product that will attract customers
• how many products customers will buy
• how to target customers on social media
• where and how to sell its goods and services

Question 16

what happens if a business doesn’t do market research

Answer 16

chances of success are reduced as you don’t know a marketing strategy to meet the target market needs

Question 17

how do you repay money used for market research

Answer 17

if the research is effective, sales revenue will be made

Question 18

what is secondary research

Answer 18

data collected using information provided by others such as magazines, and the internet

Question 19

what is UK Census data

Answer 19

the national census finds information about the number of people living in a household, their income and location

Question 20

what is data from newspapers and magazines

Answer 20

articles often describe people’s interests and current fashions

Question 21

what is data from websites

Answer 21

information about other companies, such as the prices certain products are sold at, can be found

Question 22

what is internal data

Answer 22

data collected by the business about past sales, profits, and customer feedback

Question 23

what are advantages of using Census data

Answer 23

• information comes from a lot of people
• already collected and analysed, reducing costs

Question 24

what are disadvantages of using Census data

Answer 24

• information doesn’t specifically meet business needs
• information will need careful interpretation

Question 25

what is an advantage of using data from newspapers and magazines

Answer 25

cheap to use, and is up to date

Question 26

what is a disadvantage of using data from newspapers and magazines

Answer 26

information isn't specific to the business

Question 27

what are advantages of using data from websites

Answer 27

- cheap to collect and readily available - can help a business decide what to produce - understand what prices to charge based off competitors

Question 28

what are disadvantages of using data from websites

Answer 28

information will need careful interpretation by the business

Question 29

what are advantages of using internal data

Answer 29

- specific to the business - cheap to collect and readily available

Question 30

what is a disadvantage of using internal data

Answer 30

data is historical

Question 31

what is an advantage of using qualitative data

Answer 31

it helps businesses understand what customers are thinking and what they want

Question 32

what is a disadvantage of using qualitative data

Answer 32

information may be provided by a limited number of people

Question 33

what is an advantage of using quantitative data

Answer 33

facts or numbers are easy to analyse and can be gathered from a lot of people

Question 34

what is a disadvantage of using quantitative data

Answer 34

it limits how much people can say about what they like or dislike

Question 35

how does finance influence methods of research

Answer 35

primary research requires large amounts of money whilst secondary research is cheaper

Question 36

how does information influence methods of research

Answer 36

primary research can get opinions about a new product whilst secondary research can learn about competitors

Question 37

how does location influence methods of research

Answer 37

primary research is suitable for information about other countries whilst secondary research is for specific towns

Question 38

how does time influence methods of research

Answer 38

primary research takes longer to prepare whilst secondary research is quicker