4.4 Market Research - Business Management

Which of the following is a disadvantage of primary market research?

•   It is not focused enough

•   It does not provide exclusive information for the researcher

•   It is not up to date

•   It is expensive to collect one which will be worth it

Answer explanation

While primary research can provide focused, up-to-date and exclusive data, it can be time consuming and expensive to collect.

Which of the following is not an example of primary market research?

• Surveys

• Interviews

•   Mass media articles

•   Focus groups

Answer explanation

Mass media articles (such as those in newspapers or popular magazines) represent secondary market research as these are already published.

Which sampling method involves selecting several geographical areas and then randomly choosing people within these areas for market research purposes?

•   Quota

•   Cluster sampling

•   Convenience

• Snowballing

Answer explanation

Cluster sampling selects respondents only from a few areas (clusters).

Which term describes marketing activities that attempt to discover the preferences, opinions and beliefs of existing and potential customers?

• Product positioning

• Sales forecasting

• Market research

• Market analysis

Answer explanation

Market research is the process of gathering primary and secondary data about the preferences, opinions and beliefs of existing and potential customers. It also includes analysing this information to support business decision-making. (Also, It is the title of this Unit)

1' CHALLENGE! Which type of market research is undertaken on a regular and on-going basis?

•   Continuous research

•   Secondary research

•   Primary research

•   Ad hoc research

Answer explanation

Continuous market research is undertaken on a regular and on-going basis, such as the most popular music or movies each week.

Which method of primary research involves watching how people behave in and respond to different situations?

•   Focus groups

•   Observations

• Surveys

•   Consumer panels

Answer explanation

Observations are a survey technique that involves the researcher merely watching and recording behaviour, and hence is not dependant on the willingness and ability of respondents to report accurately.

Which term describes the use of small groups of customers, carefully selected from the target market, to gain insights into their attitudes and behaviours?

•   Desk research

•   Primary research

•   Focus groups

• Secondary Research

Answer explanation

Focus groups are usually made up of members who share a common consumer profile. They are guided through discussions in small groups to gain insights into consumer attitudes and behaviours.

Samples created using subjects who are easily accessible (such as students using other students for market research purposes) refers to which method of sampling?

•   Snowballing

•   Stratified

•   Convenience

• Quota

Answer explanation

Students using other students or teachers as they can be easily reached would represent convenience sampling. The findings could however be skewed and unrepresentative of the wider population.

Which option below refers to the use of questionnaires, directly asking customers or potential consumers about their opinions and preferences?

•   Surveys

•   Focus groups

•   Academic journals

• Interviews

Answer explanation

Surveys tend to be the most popular method of primary market research and can yield both qualitative and quantitative data relatively quickly.

Which term is used by researchers to describe all the potential customers of a particular market?

•   Sample

• Cluster

• Population

•   Panels