Component 1 Booklet 5

Question 1

What is Market research?

Answer 1

The process of collecting information and data about a businesses customers,the market place and the activities of competitors within that marketplace

Question 2

What is secondary research?

Answer 2

Secondary research involves analysing data that already exists from within the business or from outside.

Example-Company’s sales figures

Question 3

What is primary research?

Answer 3

The process of gathering the data directly from the target market

Example-Questionnaires

Question 4

What is quantitative research?

Answer 4

Gathers information based on facts that can be tested

Question 5

What is qualitative research?

Answer 5

Gathers opinions and views

Question 6

What is random sampling?

Answer 6

Every member of the population has an equal chance of being interviewed

Question 7

What is quota sampling?

Answer 7

The population is segmented into a number of groups which share specific characteristics

Example-50% female

Question 8

What is a sampling bias?

Answer 8

The sample chosen is not representative of the population studied.

Question 9

How does sampling help the business?

Answer 9

• helps make sure data is being collected that reflects the whole population
• saves time and money
• enabling the business to gain a clear view of the market