Market Research

Question 1

Why is market research used?

Answer 1

• To reduce risks of not knowing your customers
• To understand the market which you’re operating in
• To promote the organisation
• To aid decision making
• To gain customers’ views and understand their needs
• To inform product development

Question 2

What are the two types of market research?

Answer 2

Primary and Secondary research

Question 3

What form of market research is the most reliable?

Answer 3

Primary / Field research

Question 4

Which form of market research is the least reliable?

Answer 4

Secondary / desk research

Question 5

Name some methods of primary / field research

Answer 5

Observations, questionnaires, surveys, focus groups, consumer trials, interview

Question 6

Name some methods of secondary / desk research

Answer 6

Internal data, books, newspaper, magazines, competitor data, government publications, statistics, purchased research material, internet browsing or social media browsing

Question 7

What are the benefits of primary / field research?

Answer 7

• The gathering of data which does not exist therefore the data is new and first hand
• You know where the data has come from
• Greater control
• Reliable as you haven’t relied on old data

Question 8

What are the benefits of secondary / desk research?

Answer 8

• Quicker to gather than primary research as already been gathered
• Cheaper than primary research
• Can easily gathered on a large scale

Question 9

What are the drawbacks of secondary / desk research?

Answer 9

• Information gathered may be outdated
• Data gathered may be bias
• Data gathered may be inaccurate
• Not always relevant data compared to what is intended

Question 10

What are the drawbacks of primary / field research?

Answer 10

• Can be expensive to gather

- Can be time consuming to gather