Unit 2 - 2.2 - Market Research

Question 1

What is market research?

Answer 1

The collection of data on customer habits to help decision-making in marketing.

Market research can involve surveys, focus groups, and analysis of sales data.

Question 2

Define target market.

Answer 2

A group of customers to whom a business aims to sell its products.

The target market may include both other businesses and consumers.

Question 3

Marketing

Answer 3

Question 4

What is primary research?

Answer 4

Data that is collected first hand, often in the form of questionnaires, interviews, and focus groups

Sometimes referred to as ‘field’ research.

Question 5

What are common methods of collecting primary research data?

Answer 5

• Questionnaires
• Interviews
• Focus groups
• trailing

Question 6

True or False: Primary research is also known as secondary research.

Answer 6

False

Primary research is distinct from secondary research, which involves analyzing data that has already been collected.

Question 7

Fill in the blank: Primary research is sometimes referred to as _______.

Answer 7

‘field’ research

Question 8

What is an interview?

Answer 8

A person asks an individual or a group of people questions and records their answers

Interviews can be conducted in person or on the phone.

Question 9

List two advantages of interviews.

Answer 9

• The questions can be explained.
• It is easy to target certain types of consumers.

Question 10

List two disadvantages of interviews.

Answer 10

• It is an expensive method.
• Not everybody likes being interviewed.

Question 11

True or False: Interviews are a cheap method of gathering information.

Answer 11

False

Question 12

What is a questionnaire?

Answer 12

A set of questions sent out to selected people in the post or asked online.

Questionnaires are commonly used in research to gather information from a specific audience.

Question 13

List two advantages of using questionnaires.

Answer 13

• Cheap to carry out.
• Easy to target customers, for example, people who buy cameras online.

These advantages make questionnaires a popular choice for market research.

Question 14

List two disadvantages of using questionnaires.

Answer 14

• People may not understand the questions.
• People may not be interested in the product, so may answer dishonestly or not at all.

These disadvantages can affect the reliability and validity of the data collected.

Question 15

What is trialling in the context of product sales?

Answer 15

A product is sold for a short period, usually in one region of a country.

Question 16

What happens if a product sells well during the trial period?

Answer 16

The business will go into full production.

Question 17

List two advantages of trialling a product.

Answer 17

• A good way to see if the product is what people want.
• Reduces the risk involved in producing large quantities.

Question 18

What is a disadvantage of trialling a product?

Answer 18

The people or area tested must be representative of the total market.

Question 19

True or False: Trialling a product eliminates all risks associated with large-scale production.

Answer 19

False

Question 20

Fill in the blank: A disadvantage of trialling is that the findings will not help the business if the tested area is not _______.

Answer 20

[representative of the total market]

Question 21

What is a focus group?

Answer 21

A small group of people asked to use a product or think about an advertisement and provide their opinion.

Question 22

What is the purpose of feedback from a focus group?

Answer 22

To help the business re-design the product or advertisement.

Question 23

What is an advantage of using a focus group?

Answer 23

The people chosen will be representative of potential customers.

Question 24

What is a disadvantage of focus groups?

Answer 24

It will only be a small group.

Question 25

What is another disadvantage of focus groups?

Answer 25

It is usually costly to carry out.

Question 26

What is secondary research?

Answer 26

The collection of data using research and information provided by others, such as magazines, journals, and the internet Often called desk research.

Question 27

What are common sources for secondary research?

Answer 27

* Magazines * Journals * Internet ## Footnote These sources provide existing data and insights collected by others.

Question 28

True or False: Secondary research involves gathering new data firsthand.

Answer 28

False ## Footnote Secondary research relies on existing data rather than original data collection.

Question 29

Fill in the blank: Secondary research is often called _______.

Answer 29

[desk research]

Question 30

What type of information do articles in newspapers and magazines often describe?

Answer 30

People's interests and current fashions ## Footnote Articles provide insights into popular trends and societal interests.

Question 31

What are the cost implications of obtaining information from newspapers and magazines?

Answer 31

Cheap; involves only the cost of the newspaper or journal, or may be free on the internet ## Footnote This accessibility makes it a viable option for many readers.

Question 32

What is a key characteristic of the information found in newspapers and magazines?

Answer 32

General and not specific to the business ## Footnote This means the information may not cater to niche or specialized business needs.

Question 33

Fill in the blank: Articles in publications may even be available ______ on the internet.

Answer 33

[free] ## Footnote This increases the accessibility of information for a wider audience.

Question 34

What is a good source of ideas mentioned in the context of newspapers and magazines?

Answer 34

Information from articles ## Footnote Articles can inspire new thoughts and concepts for various purposes.

Question 35

What is a primary source of data mentioned?

Answer 35

Data from newspapers and magazines

Question 36

What are two advantages of using articles in publications for data?

Answer 36

* Up to date * Cheap (involves only the cost of the newspaper or journal or may even be available free on the internet)

Question 37

What type of information do articles in publications often describe?

Answer 37

People's interests and current fashions

Question 38

What is a disadvantage of information from newspapers and magazines?

Answer 38

Information will be general and not specific to the business

Question 39

Fill in the blank: Articles in publications are a good source of _______.

Answer 39

[ideas]

Question 40

What type of information can be found from websites about other companies?

Answer 40

Information about what they sell and the prices they charge ## Footnote This includes details on products and services offered by competitors.

Question 41

What is one advantage of collecting data from websites?

Answer 41

Cheap to collect and readily available ## Footnote This makes it an accessible resource for businesses.

Question 42

How can data from websites assist a business?

Answer 42

Helps decide what to produce and the price to charge ## Footnote This can lead to more informed business decisions.

Question 43

What is a disadvantage of using data from websites?

Answer 43

The information will need careful interpretation by the business ## Footnote Misinterpretation can lead to poor decision-making.

Question 44

What is internal data?

Answer 44

Data collected by the business about its past sales, profits, and customer feedback. ## Footnote Internal data is specific to the business and reflects its own operations and performance.

Question 45

What are the advantages of internal data?

Answer 45

• Cheap to collect • Readily available • Specific to the business ## Footnote Internal data can be gathered without significant costs and is often easily accessible.

Question 46

What is a disadvantage of internal data?

Answer 46

It is historical and looks at what has happened, not what will happen. ## Footnote This limitation means that while internal data provides insights into past performance, it may not be predictive of future trends.

Question 47

What is qualitative data?

Answer 47

Data that involves finding out the opinions of customers who use a product or service ## Footnote Often collected through primary research methods.

Question 48

What is an example of qualitative data collection?

Answer 48

Finding out why people like or dislike the taste of sweets ## Footnote This could involve interviews or focus groups.

Question 49

What is one advantage of qualitative data?

Answer 49

Helps a business to understand what customers are thinking and what they want ## Footnote Provides deeper insights into customer preferences.

Question 50

What is one disadvantage of qualitative data?

Answer 50

Information may only be provided by a limited number of people ## Footnote This can lead to biased results.

Question 51

What is quantitative data?

Answer 51

Data that provides facts about what people do, what they spend, or where they shop ## Footnote Often involves numerical data.

Question 52

What is an example of quantitative data?

Answer 52

How often a person goes to the cinema ## Footnote This can be measured numerically.

Question 53

What is one advantage of quantitative data?

Answer 53

It is easy to analyse and can be gathered from a lot of people ## Footnote Allows for statistical analysis.

Question 54

What is one disadvantage of quantitative data?

Answer 54

Limits how much people can say about what they like or dislike ## Footnote Often lacks depth in understanding customer sentiments.