KT2: 1.1.1 The market, 1.1.2 Market Research

Question 1

Economies of scale

Answer 1

factors that cause costs per unit to fall when a firm operates at a higher level of production

Question 2

Franchise

Answer 2

a business that sells the rights to the use of its name and trading methods to local businesses

Question 3

Generic brands

Answer 3

brands that are so well known that customers say the brand when they mean the product (eg; I’ll hoover the floor’)

Question 4

Product differentiation

Answer 4

the extent to which consumers perceive your brand as being different from others

Question 5

Bias

Answer 5

a factor that cause research findings to be unrepresentative of the whole population- for example, bubbly interviews or misleading survey questions

Question 6

Primary research

Answer 6

finding out information first-hand - for example, Coca Cola designing a questionnaire to obtain information from people who regularly buy diet products

Question 7

Secondary research

Answer 7

finding out information that has already been gathered - for example the governments estimations of the number of 14-16 year olds in Wales

Question 8

Sample size

Answer 8

the number of people interviews; this should be large enough to give confidence that the findings represent the whole population