Chapter 11: Market Research

Which of these is the best definition of a market-oriented business?

• The firm does market research after launching a product
• The firm produces a good that it believes will be successful
• The firm does market research before designing a new product

Which of the following questions is market research not likely to find an answer to?

• Would consumers be likely to buy my product?

• Which method of production should I use?

• What price would consumers be likely to pay?

• Which businesses will be the main competitors?

Which of the following best defines primary market research?

• It is data collection that always produces quantitative data

• It uses information that has already been collected

• It is also known as desk research

• It gathers original data by contacting consumers directly

One of the claimed advantages of primary data is that:

• it is quick and easy to collect

• it is usually up-to-date

• it is always 100% accurate

• it is cheap because it has already been collected

One of the claimed advantages of secondary data is that:

• it is always 100% accurate as the firm does the research

• it is usually up-to-date

• it is often cheap as the research has been done by others

• it will not be available to rival businesses

One possible advantage of questionnaires to gather primary data is that:

• they are cheaper than all other forms of primary data

• the response to surveys sentthrough email is always good

• consumers can fill them in, in their own time & give detail

In market research, a sample is defined as:

• a trial of the product so that consumers can test it at home

• a free gift to the consumer

• all of the potential consumers of a product

• a group selected from all of the potential product consumers

Which is a reason for using a random sample of the population in market research?

• It is more accurate than asking the whole population
• It is more expensive than asking the whole population
• It gives everyone an equal chance of being questioned

Which of the following is an example of secondary data collection?

• A traffic count to see how many vehicles passed by a shop

• A postal questionnaire researching into consumer tastes

• A newspaper report on the sales figures of a rival's product

Which of the following will be likely to make a firm's market research more accurate?

• A smaller sample to save costs

• Greater use of secondary rather than primary data

• Testing a questionnaire on a small group of consumers