1.2.2 Market Research

Question 1

Primary Research

Answer 1

Precise first-hand research completed by the business tailored for their needs. The research can be carried by asking existing customers, potential customers and researching markets to understand better

Question 2

Primary Research Advantage

Answer 2

More accurate than secondary research

Question 3

Primary Research Disadvantage

Answer 3

More time consuming than secondary research

Question 4

Types of Primary Research

Answer 4

Surveys
Questionnaires
Focus Groups
Observation

Question 5

Surveys

Answer 5

Online surveys are cheap, useful ways of getting a limited amount of feedback

Question 6

Surveys advantage

Answer 6

Can be used regularly (eg. can be used monthly to check on customer satisfaction)

Question 7

Surveys disadvantage

Answer 7

Overwhelmingly answered by people with lots of spare time, usually older people so may not be perfectly accurate

Question 8

Questionnaire

Answer 8

A business could carry out a questionnaire to assess potential demand for a product / service. Can be done in person, online or over the phone

Question 9

Questionnaire advantage

Answer 9

A business can identify its target customers as there can be targeted promotion and selling prices can be influenced by the target market

Question 10

Questionnaire disadvantage

Answer 10

Very time consuming and can be expensive and may not be fully useful as the questions could be biased giving misleading results

Question 11

Focus Groups

Answer 11

A group conversation of people selected from the target market drawing on psychology to give qualitative insight into customers attitudes

Question 12

Focus Groups advantage

Answer 12

Give businesses an insight into customer perception and behaviour, helping the firm decide of branding and promotion

Question 13

Focus Group disadvantage

Answer 13

Time consuming and expensive. The interviewer could influence the results

Question 14

Observations

Answer 14

Watching where and how long customers spend in shops

Question 15

Observations advantage

Answer 15

Can show where people are interested but still do not buy - this could be due to layout or need entirely meeting customer needs

Question 16

Observations disadvantage

Answer 16

Time consuming and expensive

Question 17

Secondary Research

Answer 17

Research that has already been carried out for general purpose by another business which is available for free or purchase. Second-hand information

Question 18

Secondary Research advantage

Answer 18

Saves time as research is already done

Question 19

Secondary research disadvantage

Answer 19

Could not be entirely relevant and is often out of date

Question 20

Types of secondary research

Answer 20

Internet Research
Market Reports
Government reports

Question 21

Internet research

Answer 21

Data taken from competitors websites, news articles and social media to provide an overview of the market

Question 22

Market Reports

Answer 22

Industry specific to show the whole industry not just the target market

Question 23

Government reports

Answer 23

General information about the industry that is still useful for the business. May be used to understand how much to pay employees

Question 24

Qualitative research

Answer 24

In depth research into people views often to get opinions. These are often open questions. Eg. what people like on pizza

Question 25

Quantitative Research

Answer 25

Collecting lots of answers to specific closed questions, providing factual information. It is usually carried out in surveys / questionnaires Eg. Do you like pizza? Yes or No.