Enterprise and Marketing LO1 MCQ

Which of the following is a method of primary (field) market research?

• (a)Consumer trials

• (b)Government statistics

• (c)Internal data

• (d)Mintel report

A sole trader carries out secondary (desk) market research when preparing to set up a new business.One benefit of using this method is that:

• (a)It cannot be accessed by competitors

• (b)It is relatively quick to obtain

• (c)It is always up-to-date

• (d)The data is tailored to the needs of the individual business

Which of the following may be a reason for a small business to complete market research?

• (a)To advertise for a new sales manager

• (b)To aid decision-making about their product

• c)To help track stock levels

• d)To inform staff of changes to their product

As a new business owner you may use ‘desk research’ to research competitors’ products. Which of the following is a benefit of using ‘desk research’?

• It allows you to gain information about your specific product

• It allows you to gain the views of a large number of potential customers

• The cost of accessing information is usually low

• The information available is always accurate

Which of the following is a reason why a business needs to segment its market?

• Its customers all live in London

• Its customers require different benefits from a product

• To benefit from limited liability

• To benefit from unlimited liability

Dividing a market by age, occupation or income is a technique known as:

• Customer service

• Marketing

• Market research

• Market segmentation

Which of the following is a method which a customer may use to give feedback to a business?

• After sales service

• Customer comment card

• Loyalty scheme

• Purchase shares in the business

Which of the following is a stage of the product lifecycle?

• Advertising

• Competition

• Growth

• Recession

Desk market research is another name for:

• Primary market research

• Qualitative market research

• Quantitative market research

• Secondary market research

Which of the following is a potential benefit arising from market segmentation?

• Allows for targeted marketing

• Decreases customer retention

• Lower prices can be set

• Reduces the cost of advertising