3.5.3 The purpose and methods of market research

Why do businesses conduct market research?

• To increase production costs

• To identify market opportunities and gain insights into customers and competitors

• To reduce employee salaries

• To avoid paying taxes

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

• Internet research

• Printed press

• Surveys

• Government reports

What is the main difference between qualitative and quantitative market research?

• Qualitative research focuses on numbers, while quantitative research focuses on opinions

• Qualitative research is more expensive than quantitative research

• Qualitative research focuses on opinions and feelings, while quantitative research focuses on numerical data

• Qualitative research is faster to conduct than quantitative research

Which of the following is a benefit of using focus groups in market research?

• They provide large amounts of numerical data

• They are inexpensive to conduct

• They offer in-depth insights into consumer attitudes and behaviours

• They require no planning or organisation

What is a drawback of using questionnaires for market research?

• They are time-consuming to analyse

• They provide detailed qualitative data

• They are expensive to distribute

• They are difficult to administer online

Which method of market research involves gathering data from existing sources?

• Interviews

• Focus groups

• Secondary research

• Questionnaires

How can market research findings help in decision making?

• By providing irrelevant data

• By offering insights that can guide business strategies

• By increasing the number of competitors

• By reducing the quality of products

Which of the following is an example of quantitative data?

• Customer opinions on a new product

• The number of units sold in a month

• Employee feedback on workplace culture

• Consumer preferences for packaging design

What is a common tool used to interpret market research data?

• A calculator

• A pie chart

• A typewriter

• A compass

What does market share refer to?

• The total number of products a company produces

• The percentage of total sales in a market captured by a company

• The number of employees in a company

• The amount of money a company spends on advertising