1.1.2 Market Research

Which of the following best describes the term, market research?

• A measure of the size of a market

• The process of gathering and analysing data

• A group of consumers with similar needs

• The sales of a business in a market compared to total market sales

Which of the following is the most suitable method to gather in depth views, from a small group of consumers, regarding the name and packaging of a business’ new product?

• Observation

• Questionnaire

• Internet

• Focus group

Market research can help businesses to identify where the exact needs of customers are not being fully met with existing product offerings. This is best described as:

• Informing business decisions

• Reducing risk

• Identifying gaps in the market

• Organising resources

Which of the following statements best describes the term secondary market research?

Research using data that has been gathered:

• First-hand by the business itself

• Already

• For a specific purpose for the first time

• By a market research agency that has not been previously collected

A start-up business wants to find out about the number of competitors in the local area. Which of the following is the most suitable way for the business to quickly gather this information?

• Internet

• Questionnaire

• Focus group

• Survey

Which of the following statements best describes the term, quantitative data?

• Data based on opinions, beliefs and attitudes

• Data collected using primary research

• Data based on numbers that can be analysed statistically

• Data collected using secondary research

Which of the following statements relates directly to quantitative data?

• What motivates a customer to buy a product

• How a customer feels when they buy a product

• The number of customers that buy a product

• Why a customer chooses one branded product over another

Which two of the following are methods of primary market research?

Select two answers:

• Internet

• Government reports

• Market reports

• Questionnaires

• Observation

It is important that any market research data collected is reliable. Which two of the following are most likely to be examples of unreliable data?

(Select two answers)

Data that is:

• Collected from a group of friends

• Out of date

• Typical of the target market

• Specific to the business

• Free from bias