Theme 1

Question 1

Quantitive / secondary research examples

Answer 1

Government
Trade unions
Internet
Newspaper/magazine
Market research organisations

Question 2

Limitations of market research

Answer 2

1. Past data and trends may not be a fair indicator for the future
2. Accuracy of research- if the information is online then anyone could change it
3. Bias (e.g primary data like questionnaires- questions can be lead on or only asked to specific people to reach the desired hypothesis)

Question 3

What is stock market flotation

Answer 3

When a public limited company (PLC) offers shares to the public (investors) so anybody can buy their shares

Question 4

What does product orientation mean

Answer 4

Creating the best product possible

Question 5

Market share formula?

Answer 5

Total sales of the business, product or brand / total sales in the market
X 100

Question 6

Price Elasticity of Demand equation:

Answer 6

%change in quantity demanded
/ %change in price

Question 7

Income elasticity of demand equation:

Answer 7

%change in quantity demanded/ %change in income

Question 8

Unit cost formula

Answer 8

Total costs/ number of units

Question 9

Define market orientation

Answer 9

An outward looking approach where a business conducts product development based off what the consumer needs or wants

Question 10

Product orientation

Answer 10

An inward approach where a business conducts product development based off improving its quality and features