Market Research

Question 1

What is risk?

Answer 1

The probability of winning or losing something worthy is known as risk. This is measurable and can be controlled.

Question 2

What is uncertainty?

Answer 2

A situation where the future events aren’t known these are not measurable and uncontrollable

Question 3

What is uncertainty influenced by?

Answer 3

1) the market
2) the economy
3) the government
4) geopolitical events

Question 4

What is the first-mover advantage?

Answer 4

The advantage that the first business gets when entering a new market

Question 5

What is market research?

Answer 5

The collection and analysis of information to inform a business about its market.

Question 6

Why is market research useful?

Answer 6

Help:
Identify and anticipate customer demands
Find out likely demands
Learn about trends

Question 7

What is primary research?

Answer 7

First hand data that didn’t exist before that hasn’t been collected.

Question 8

What is secondary research?

Answer 8

Information that has already been collected and found by another organisation / person.

Question 9

What are some examples of primary research?

Answer 9

Survey
Questionnaires
Focus groups
Observations

Question 10

What are some examples of secondary research?

Answer 10

National + local governments 
ONS - Office national statistics
Professional bodies ACAS
Trade unions
Internet 
Newspaper + magazines

Question 11

What is a focus group?

Answer 11

A form out qualitative research where people are asked about their perceptions

Question 12

What are positives and negatives of primary research?

Answer 12

\+ up to date
\+ tailored to the business
\+ rivals don’t have data 
- expensive 
- time consuming
- some methods require some skills

Question 13

What are positives and negatives of secondary research?

Answer 13

\+ quick and available immediately 
\+ free or very cheap 
- out of date
- might be inaccurate 
- rivals can access it

Question 14

What is a market-orientated business?

Answer 14

An outward approach by a business to a new product where focus is on the consumer before making any decisions. This is achieved by adapting to the customer needs

Question 15

What is a product orientated product?

Answer 15

An inward approach to a new product development where key focus is on products can be made and the production process

Question 16

What are positives and negatives of a product orientated business?

Answer 16

+ likely to have less market research to do
+ can spend money in RandD
+ can be more innovativ
+ Harder for rivals to copy
- often lead to unsuccessful products in well established markets

Question 17

What are positives and negatives of a market orientated business?

Answer 17

+ more likely to produce a product/service customers want
+ gives business a competitive advantage
+ brand loyalty is more likely to be increased
+ word of mouth marketing
+ may be easier to charge a higher price
- time consuming (build up relationships)
- costly
- changing consumer trends