1.1.2 market research

Question 1

1.1.2

what is qualitative data?

Answer 1

information collected by obtaining people’s opinions, judgements and attitudes

Question 2

1.1.2

what is quantitative data?

Answer 2

is the process of collecting and analysing numerical data

Question 3

1.1.2

how can businesses analyse customers buying habits?

Answer 3

• observation and surveys
• finding information about customers
• using their own experience

Question 4

1.1.2

how is social media useful to a business doing market research?

Answer 4

• provides numerous ways to analyse data and trends

- more specific to objectives

Question 5

1.1.2

what is the benefits of using ICT for market research?

Answer 5

• broad reach
• fast { info can quickly be collected from a large number of people }
• ability to target more specifically

Question 6

1.1.2

what are the limitations of market research?

Answer 6

• collecting data is very time-consuming
• it is not always accurate
• high costs
• a small sample size limits the reliability of the research

Question 7

1.1.2

what is market segmentation

Answer 7

dividing customers within a market into distinguishable groups based on their characteristics and needs

Question 8

1.1.2

what is the difference between product and market differentiation?

Answer 8

product - the product is the most important factor when providing products for a market

market - focuses on consumer needs, develops products that meet their needs

Question 9

1.1.2

what is primary research?
give examples

Answer 9

primary research is original data gathered by the researcher

• questionnaires + surveys
• observations

Question 10

1.1.2

what is secondary data?
give examples

Answer 10

secondary research is research that already exists, involves gathering existing data that already has been produced.

• market research reports
• government statistics
• internet/ websites

Question 11

1.1.2

pros and cons of primary research

Answer 11

pros 
- more accurate
- effective at collecting qualitative data
- specific to needs
- latest info
cons
- time- consuming
- difficult to conduct a large sample size
- high costs

Question 12

1.1.2

pros and cons of secondary data

Answer 12

pros
- fast + less time- consuming
- effective at collecting quantitative data
cons
- not specific to needs
- more genera