U2 AOS2 KK3 Market Research

Question 1

What is market research?

Answer 1

The process of finding and analysing information about customer wants and needs and the nature of the market.

Question 2

Why do businesses undertake market research?

Answer 2

To help them make decisions that will appeal to customers and allow them to compete.

Question 3

How does market research assist in the establishment of a customer base and brand identity?

Answer 3

Market research allows businesses to understand the needs and wants of customers. This information can be used to guide decision making and build a customer base and brand identity.

Question 4

Two types of market research include…

Answer 4

Primary research
Secondary research

Question 5

Primary research is…

Answer 5

The collection of information first hand by a business for a specific purpose.

Question 6

Two examples of primary research include…

Answer 6

Surveys
Questionnaires
Interviews
Observations

Question 7

Secondary research is…

Answer 7

The use of information that has already been collected previously either by another organisation or for a different purpose.

Question 8

Two examples of secondary research include…

Answer 8

Newspapers
Reports
Websites
Journal articles
Statistics

Question 9

Provide two advantages and two disadvantages of primary research.

Answer 9

Advantages:

• Data is accurate and up to date.
• Information collected is specific to the purpose or cause.

Disadvantages:

• Conducting primary research is time consuming
• Conducting primary research is expensive
• The information collected could be biased if the business lacks experience in carrying out research.
• The information / data may lack validity if the sample size was too small or not relevant.

Question 10

Provide two advantages and two disadvantages of secondary research.

Answer 10

Advantages:

• Cheaper than primary research
• Quicker than primary research

Disadvantages:

• Not completely applicable to the specific requirements of the business
• The business is not aware of the conditions under which the research has been conducted.

Question 11

List the 5 steps involved in the market research process.

Answer 11

1. Determine research objectives.
2. Perform secondary research and analyse data.
3. Decide on primary research methods.
4. Conduct primary research and analyse data.
5. Present data and produce report.

Question 12

Define qualitative data and provide an example.

Answer 12

Qualitative data is non-numerical data including opinions or written responses.
Eg. How could we improve our pizza restaurant?

Question 13

Define quantitative data and provide an example.

Answer 13

Quantitative date is numerical data such as figures and statistics that can be more easily analysed.
Eg. What is your favourite type of pizza topping?
a. Pepperoni
b. Mushroom
c. Sausage
d. Pineapple