2nd test revision

Question 1

What is Market research?

Answer 1

the process of collecting and processing information about the market that a business operates in. Market research gathers information on: target market, competition and demand

Question 2

What are the aims of market research?

Answer 2

identify and understand the needs of customers relating to price, quality, choice, and convenience.

Question 3

What does identifying the needs of customers do?

Answer 3

Reduce risk for the business and make more successful business decisions.

Question 4

What is the purpose of identifying gaps in the market?

Answer 4

Spotting a gap in the market gives a new business a good chance of success as there will be little competition to begin with.

Question 5

Why is market research done?

Answer 5

To reduce risk and enable business to make better decisions.

Question 6

What is primary research and how is it done?

Answer 6

Primary research is conducted by the business and done in ways like surveys, questionnaires (open questions/closed questions), focus groups

Question 7

What are some advantages of primary research?

Answer 7

Advantages of primary research: specific, relevant, up to date. .

Question 8

What are some disadvantages of primary research?

Answer 8

Disadvantages of primary research: time consuming, expensive

Question 9

What is secondary research?

Answer 9

Secondary research is when business gather data that is already existing and is found on the internet, market reports, newspapers, books.

Question 10

What are some advantages of secondary research?

Answer 10

Advantages of secondary research: quick and easy, easy to analyse

Question 11

What are some disadvantages of secondary research?

Answer 11

Disadvantages of secondary research: could be out of date, inaccurate, easily accessible so could have been used by many businesses, not specific

Question 12

What is qualitative data?

Answer 12

Qualitative data is usually peoples’ opinions which is usually very descriptive and is gained by open-ended questions.

Question 13

What is quantitative data?

Answer 13

Quantitative data is usually numerical data, can be expressed in a graph or chart and is gathered by closed questions.

Question 14

What are the benefits of using social media for Market research?

Answer 14

Some business use social media for market research the benefits are it is cheaper than other forms of market research, it can save time and allows the business the spot the latest trends and monitor the competition.

Question 15

What are advantages of having reliable research?

Answer 15

Advantages of having reliable market research is the business can make informed decisions, reduces risk, less money wasted, higher chance of business success

Question 16

What are consequences of not having reliable market research?

Answer 16

Consequences of unreliable market research is the business making unwise decisions, cost the business more money, could lead to failure and loss of sales.

Question 17

What is market segmentation?

Answer 17

Market segmentation in the process of splitting a business’ target market in different groups

Question 18

What are the different market segmentations?

Answer 18

The different segmentations are demographic, behavioral, lifestyle, income

Question 19

What is demographic segmentation about?

Answer 19

Age, race, gender, nationality

Question 20

What is behavioral segmentation about?

Answer 20

How people behave at different times of the year

Question 21

What is lifestyle segmentation about?

Answer 21

Hobbies and how people live their lives

Question 22

What is income segmentation about?

Answer 22

How much money people earn

Question 23

What is market mapping used for?

Answer 23

Market mapping is used to find gaps in the market.

Question 24

What is a business competitor?

Answer 24

A competitor is any business that sells the same or similar products or services

Question 25

What might a business want to know about their competitor?

Answer 25

Business may want to know some things about the competitors such as USP, price, quality, convenience, location, product range and customer service

Question 26

Why is competition good for customers?

Answer 26

Competition is good between businesses for customers because it means that businesses have to offer good-quality products and services at the right price.

Question 27

What is product range?

Answer 27

Product range is the number of products sold by business.

Question 28

What are the 4 main customer needs?

Answer 28

There are four main customer needs that an entrepreneur or small business must consider: price, quality, choice and convenience.

Question 29

What are the types of market research data?

Answer 29

Quantitative and qualitative

Question 30

What variables can be used to segment customers in a market?

Answer 30

Income, age, gender and income

Question 31

What are the 4 ways that we could split market research data?

Answer 31

Primary and secondary research and quantitaitve and qualittative