ch2 grid qs

Question 1

Why do businesses use market research?

Answer 1

Market research is used:
- To identify who the consumers are and what prices they are willing to pay.
- To increase the demand for a product.
- To become more competitive.
- To advertise efficiently.
- To develop better products.
- To identify which products are profitable and which prices are consumers willing to pay.

Question 2

How is primary research different from secondary research?

Answer 2

Primary research is conducted by the business itself and it answers a specific purpose. It is more accurate and specific. It includes quantitative and qualitative data that is genuine.

Question 3

How does a business benefit from using market research?

Answer 3

It allows to identify potential consumers, know what they prefer, and supply products that allow the firm to better compete in the market and make profit. Through market research, the firm can plan better on the four elements of the marketing mix, especially the price.

Question 4

What are the benefits and limitations of primary market research?

Answer 4

Benefits: data is up to date and serves a specific purpose
Drawbacks: time consuming and expensive, involves a certain degree of bias and data may not be useful if the employees who are collecting it are inexperienced.

Question 5

Why might secondary not be as useful as primary data?

Answer 5

Secondary data might not answer a specific purpose and hence could not be used as it will be irrelevant or outdated. Primary research is more time consuming and more expensive than secondary data. However, it collects first hand data that is more accurate and that serves a specific purpose.

Question 6

What is the difference between primary research and secondary research?

Answer 6

Primary research is more time consuming and more expensive than secondary research. However, it collects first-hand data that is more accurate and that serves a specific purpose.

Question 7

Why might data collected from the market be inaccurate?

Answer 7

• Data is being collected for another purpose.
• The sample chosen might not be representative of the whole population.
• Bias.
• Questions asked might be misleading or not well prepared.
• The researcher might not have the skills and experience to conduct research.

Question 8

What are the features of secondary research?

Answer 8

• Less expensive and less time consuming than primary data, but it serves another purpose.
• It includes articles from magazines, newspapers, and the web.
• It can be used to complement primary research.

Question 9

Classify each of the following as primary market research or secondary market research method:
a. The Internet
b. Competitors’ publications
c. Questionnaires
d. Focus groups

Answer 9

a) The Internet: secondary
b) Competitors’ publications: secondary
c) Questionnaires: primary
d) Focus groups: primary

Question 10

What can a business do to guarantee a greater accuracy of data collected through market research?

Answer 10

Use clear language, no jargon, and hire experienced employees who know how to develop clear questions in questionnaires and analyze data without bias. Also, by making questions short, easy to understand and easy to answer.

Question 11

What are the benefits of hiring an agency that specializes in market research?

Answer 11

Specialized research agencies have the know-how and the ability to increase the accuracy of the data. They can also provide information about competitors’ products and advise managers on how to increase competitiveness. They also save time for the business.

Question 12

What are the ways through which data could be presented?

Answer 12

Tables, charts (line and bars), pictograms, and maps