Market Research

Question 1

What is market research?

Answer 1

The process of gathering information about a new service or product through research conducted with target markets and potential customers

Question 2

What is primary market research?

Answer 2

Gathering information directly from consumers to gather new data

Question 3

What are the primary research methods?

Answer 3

Surveys, observations, test marketing, focus groups, interviews

Question 4

What are the advantages of primary market research?

Answer 4

• information is not available to rivals
• in-depth info is gathered
• more up to date and unique to your business

Question 5

What are the disadvantages of primary market research?

Answer 5

-sample size may be too small and unrepresentative of all target customers
- bias- researchers can sway customers to answer questions in a particular way
- process can be expensive and time-consuming

Question 6

What is secondary market research?

Answer 6

The collection and analysis of data that already exists

Question 7

What are secondary research methods?

Answer 7

• market research reports
• government statistics
• books

Question 8

What are the advantages of secondary market research?

Answer 8

• already available so it is quicker
• cheaper to gather
• suitable for small business with a small budget

Question 9

What are the disadvantages of secondary market research?

Answer 9

• info may lack relevance or be incorrect
• may be out dated info
• can be expensive to buy market reports from specialists