lesson 2

Question 1

benefit of primary research (6)

Answer 1

-primary research involves collecting new data
-which is up to date and specific to the business
-e.g questionnaires and focus groups
-allows the business to effectively identify customer wants and needs
-create a product which effectively meets needs
-link to PED

Question 2

Drawback of primary research (5)

Answer 2

-However primary research can be expensive
-may need to hire specialist researchers
-e.g questionnaires and focus groups using a large sample size
-in order to find out wants and needs
-leads to increased cash outflows on wages

Question 3

Benefit of using a market map (5)

Answer 3

-market maps help identify gaps in the market
-once identified can conduct R&D
-and design a product that matches the characteristics of
-product is likely to be unique
-link to PED

Question 4

Drawback of market map (6)

Answer 4

-market maps are based on customer opinions
-to ensure decisions based on opinions are valid
-business needs to collect data from a large sample
-this may require a large number of researchers
-to collect and analyse data and display in a market map
-if business recruits researchers it will significantly increase wages