The Importance and Limitations of Market Research for Businesses

The video tutorial discusses the importance of market research for business success. It explains the two main types of market research: primary and secondary. Primary research involves collecting new data directly from customers, while secondary research uses existing data. The tutorial highlights the challenges and limitations of market research, such as sampling bias and accuracy issues. It also suggests cost-effective strategies for smaller businesses and emphasizes the importance of ensuring research accuracy to make informed business decisions.

Why is market research crucial for businesses aiming for commercial success?

• It helps in understanding the intricate details of the marketplace.

• It guarantees immediate sales increase.

• It eliminates the need for advertising.

• It ensures a monopoly in the market.

What is a key characteristic of primary market research?

• It is always conducted online.

• It provides direct insights from the target audience.

• It involves collecting data from existing sources.

• It is inexpensive and quick.

Which method is NOT typically used in primary market research?

• Questionnaires

• Government publications

• Surveys

• Focus groups

What is a major limitation of secondary market research?

• It is more expensive than primary research.

• It requires extensive fieldwork.

• It is often too general and not tailored.

• It is too specific to individual businesses.

How can businesses use secondary market research effectively?

• By ignoring it completely.

• By using it as a final step in research.

• By combining it with primary research for deeper insights.

• By relying solely on it for all decisions.

What is a common issue with sampling in market research?

• Sampling always covers the entire population.

• Sampling can be biased if not well-spread.

• Sampling is unnecessary in market research.

• Sampling is always 100% accurate.

Why is it important to consider confidence intervals in market research?

• They eliminate the need for primary research.

• They are only needed for international markets.

• They help in understanding the potential error margin.

• They ensure the research is 100% accurate.