Study Material
Study Material: Chapter 11 – Market Research
Definition of Market Research
Market research involves collecting and analyzing data about customers, competitors, and market trends to
make informed business decisions.
Role of Market Research
1. Identifying Customer Needs: Helps tailor products/services to meet market demands.
2. Analyzing Market Trends: Tracks changes in consumer behavior and preferences.
3. Supporting Business Decisions: Guides pricing, promotion, and product strategies.
Product-Oriented and Market-Oriented Businesses
● Product-Oriented Businesses: Focus on producing high-quality products with little emphasis on
customer needs.
○ Example: A tech company designing advanced hardware without considering usability.
● Market-Oriented Businesses: Focus on identifying and meeting customer needs.
○ Example: A fast-food chain adapting its menu based on local tastes.
Who Carries Out Market Research?
1. Businesses: To understand customer behavior and improve products/services.
2. Market Research Firms: Professional agencies hired to conduct in-depth research.
3. Government Agencies: To gather data for economic and social planning.
4. Educational Institutions: For academic research and analysis.
Types of Market Research
Primary Research (Field Research):
Directly collecting new data for specific purposes.
Methods:
● Surveys
● Interviews
● Focus Groups
● Observations
Advantages:
● Provides specific, up-to-date information.
● Data is relevant to the business's objectives.
Disadvantages:
● Time-consuming and costly.
● Requires expertise to design and interpret.
Secondary Research (Desk Research):
Using existing data from other sources.
Sources:
● Online articles
● Government reports
● Commercial research firms
Advantages:
● Cost-effective and quicker to obtain.
● Provides a broad market overview.
Disadvantages:
● Data may be outdated or not specific enough.
● Limited control over data accuracy.
Sampling in Market Research
Sampling involves selecting a portion of the population to represent the whole.
Methods:
1. Random Sampling: Every individual has an equal chance of being selected.
2. Stratified Sampling: Population is divided into groups, and samples are taken from each group.
3. Quota Sampling: A specific number of individuals are selected based on certain characteristics.
Importance:
● Reduces cost and time.
● Provides reliable insights when conducted correctly.
Factors Influencing the Accuracy of Market Research Data
1. Sample Size and Selection Method: Larger and well-selected samples increase accuracy.
2. Clarity and Neutrality of Research Tools: Questionnaires and surveys must be unbiased.
3. Respondents’ Honesty and Willingness: Ensures reliable data.
4. Consistency in Data Collection: Reduces errors and discrepancies.
How to Design and Use a Questionnaire
Steps for Designing:
1. Define the objective clearly.
2. Identify the target audience.
3. Use simple, unbiased language.
4. Include both open-ended and closed-ended questions.
5. Pilot test the questionnaire.
Steps for Usage:
1. Select a distribution method (online, in-person, etc.).
2. Set clear instructions and deadlines.
3. Analyze the data using graphs and charts.
Writing the Questions
● Avoid leading or biased questions.
● Keep questions short and clear.
● Use a mix of question types (e.g., multiple choice, Likert scale, open-ended).
● Ensure logical flow between questions.
Carrying Out the Questionnaire
1. Determine the sample size and target group.
2. Choose a method to distribute the questionnaire (e.g., email, face-to-face).
3. Collect responses within a set deadline.
4. Organize and validate data for analysis.
Presenting Market Research Data
● Bar Graphs: Compare quantities across categories.
● Pie Charts: Show proportions within a whole.
● Line Graphs: Display trends over time.
● Tally Charts: Record raw data in an organized way.
● Tables: Present detailed numerical information.
Uses of Market Research Results
1. Identify gaps in the market.
2. Improve product and service offerings.
3. Develop pricing and promotional strategies.
4. Understand competitors' strengths and weaknesses.
Marketing Research Process
1. Identify the Problem: Define the purpose and scope of research.
2. Set Research Objectives: Clarify what needs to be achieved.
3. Develop the Research Plan: Choose methods and tools.
4. Collect Data: Conduct primary and/or secondary research.
5. Analyze Data: Interpret results to draw conclusions.
6. Report Findings: Present results to stakeholders with actionable recommendations.
Flow Chart: Market Research
Market Research
├── Role of Market Research
│ ├── Identifying customer needs
│ ├── Analyzing market trends
│ └── Supporting business decisions
│
├── Types of Market Research
│ ├── Primary Research
│ │ ├── Surveys
│ │ ├── Interviews
│ │ ├── Focus Groups
│ │ └── Observations
│ ├── Secondary Research
│ │ ├── Online sources
│ │ ├── Government data
│ │ └── Commercial reports
│ └── Sampling (Need and Methods)
│
├── Accuracy of Data
│ ├── Sampling size and method
│ ├── Reliability of tools and techniques
│ ├── Clarity of purpose
│ └── Consistency in data collection
│
├── Presentation of Data
│ ├── Bar Graphs
│ ├── Pie Charts
│ ├── Line Graphs
│ ├── Tally Charts
│ └── Tables
│
└── Use of Market Research Results
├── Identifying gaps in the market
├── Refining products and services
├── Setting pricing strategies
└── Analyzing competitors
Story
Market Research: The Superhero Meeting
(Scene: Justice League Headquarters. The team is gathered around a table. Spider-Man bursts in, looking
worried.)
Spider-Man: Guys! I missed the class on market research. And now I’m clueless about it. Can someone
explain?
Batman: (adjusting his cowl) Market research is simple, Peter. It’s like being a detective but for businesses.
You gather clues about customers, competitors, and the market to make smart decisions.
Spider-Man: So, it’s like preparing before launching my Spider-Man brand mobile phone?
Superman: Exactly! Imagine you’re releasing your phone. You need to know:
1. Who will buy it?
2. What features they want.
3. How much they’ll pay.
Market research answers these questions.
Wonder Woman: Without research, you’d be like Batman without gadgets—clueless!
Batman: (grumbling) Let’s stick to the topic.
The Role of Market Research
Superman: Market research helps businesses:
1. Identify customer needs—like knowing what features people want in a phone, such as long battery
life or great cameras.
2. Analyze market trends—like tracking changes in what people expect from smartphones.
3. Support business decisions—like deciding between focusing on durability or affordability.
Types of Market Research
Wonder Woman: There are two main types: primary research and secondary research. Let’s start with
primary research.
Primary Research (Field Research)
Batman: This is when you collect new data yourself. It’s specific and fresh but requires effort.
Spider-Man: What are the methods?
Superman: Glad you asked!
1. Surveys: Ask people questions. For example, “Would you prefer a phone with a better camera or
longer battery life?”
2. Interviews: Talk one-on-one to understand preferences deeply, like what they think about existing
phones.
3. Focus Groups: Gather a small group to discuss. Like asking users, “What do you think of
Spider-Man’s new phone design?”
4. Observations: Watch people use smartphones to see what features they value most.
Wonder Woman: Primary research gives specific insights, but it’s time-consuming and expensive.
Secondary Research (Desk Research)
Batman: Secondary research uses existing data. It’s faster and cheaper but less specific.
Spider-Man: Like reading tech reviews online?
Wonder Woman: Exactly! Sources include:
1. Online Articles: Like reviews comparing phones in the market.
2. Government Reports: Statistics on phone usage trends.
3. Commercial Research Firms: Reports you can buy for detailed analysis.
Superman: But remember, this data may not be current or entirely accurate.
Marketing Research Process
Batman: Research isn’t just random; it follows a process:
1. Define the Objective: Know what you want to find out—like which features will make your phone
stand out.
2. Plan the Research: Choose between primary or secondary research.
3. Collect Data: Use surveys, focus groups, or gather industry reports.
4. Analyze Data: Use graphs or charts to make sense of the findings.
5. Take Action: Use the insights to improve your phone’s features and marketing.
Spider-Man: So, it’s like planning, acting, and then learning from the results?
Superman: Spot on!
Sampling in Market Research
Wonder Woman: You can’t ask everyone, so we use sampling:
1. Random Sampling: Pick anyone. Like asking random people on the street about phone features.
2. Stratified Sampling: Divide into groups, like gamers and photographers, and pick a few from each.
3. Quota Sampling: Decide beforehand, like “I’ll survey 50 students and 50 professionals.”
Spider-Man: That saves time and effort. But what if the sample doesn’t represent everyone?
Batman: That’s a risk, so the sample must be chosen carefully.
Presenting Data
Wonder Woman: Once you have the data, present it well. Use:
● Bar Graphs: Compare quantities, like how many people want a better camera versus battery life.
● Pie Charts: Show proportions, like what percentage of users prefer large screens.
● Tables: For detailed numbers, like comparing features people value most.
Spider-Man: And tally charts?
Superman: For raw data, like counting how many people answered each option in a survey.
Real-Life Example
Batman: Remember when Wayne Enterprises launched a phone accessory? We used surveys to ask
users about durability and style. We checked government reports on phone sales and analyzed
competitors. Result? The product was a hit.
Spider-Man: So, good research leads to success.
Wonder Woman: Exactly! Bad research is like jumping into a fight without knowing the villain.
Superman: And remember, research helps you adapt. If trends change, your Spider-Man brand phone
must evolve too!
Conclusion
Spider-Man: Thanks, team! Market research is all about planning like Batman, analyzing like Superman,
and connecting with people like Wonder Woman.
Wonder Woman: And never forget, Peter, good research is the key to saving the day—whether it’s in
business or on the streets!
(They all laugh as Spider-Man grabs his notebook to start planning his phone launch.)
Questions
Group 1
Case Study 1: TechGear Inc.
TechGear Inc. is a product-oriented business that produces high-tech hardware. The company has
conducted limited market research but focuses on developing cutting-edge features. Recently, sales have
been declining due to customer complaints about usability issues.
Questions:
1. (2 Marks) Define the term "product-oriented business."
2. (2 Marks) State two advantages of conducting primary research for TechGear Inc.
3. (4 Marks) Explain two reasons why market research is important for TechGear Inc. to address
declining sales.
4. (6 Marks) Evaluate whether TechGear Inc. should shift to a market-oriented approach to improve
sales.
5. (6 Marks) Discuss how conducting primary and secondary research together could help TechGear
Inc. improve its product usability and sales.
Group 2
Case Study 2: GreenGro Ltd.
GreenGro Ltd. is a small, market-oriented business selling organic food. The company uses surveys and
focus groups to understand customer preferences. Recently, a competitor launched a similar product line at
a lower price, impacting GreenGro's sales.
Questions:
1. (2 Marks) Define the term "primary research."
2. (2 Marks) State two methods of primary research GreenGro Ltd. can use.
3. (4 Marks) Explain two factors influencing the accuracy of GreenGro's market research data.
4. (6 Marks) Comment on whether GreenGro Ltd. should reduce its prices to compete effectively.
5. (6 Marks) Evaluate how using sampling methods could help GreenGro Ltd. gather reliable data to
make informed pricing decisions.
Group 3
Case Study 3: AeroFuel Co.
AeroFuel Co. specializes in manufacturing aircraft fuel. The company recently used secondary research to
explore trends in renewable energy. Management now considers investing in a new eco-friendly product
line but is unsure whether the data is reliable enough.
Questions:
1. (2 Marks) Define the term "secondary research."
2. (2 Marks) State two advantages of secondary research for AeroFuel Co.
3. (4 Marks) Explain two limitations of using secondary research for AeroFuel Co.'s decision-making.
4. (6 Marks) Justify whether AeroFuel Co. should proceed with investing in an eco-friendly product
line.
5. (6 Marks) Comment on the role of market research in helping AeroFuel Co. ensure the success of
its eco-friendly product line.
Answers
Group 1
Case Study 1: TechGear Inc.
1. Define the term "product-oriented business." (2 Marks)
Answer (AO1 – Knowledge):
A product-oriented business focuses on creating high-quality products with little consideration of customer
needs or market demand.
2. State two advantages of conducting primary research for TechGear Inc. (2 Marks)
Answer (AO1 – Knowledge):
1. Provides specific and relevant data to address the usability issues of the product.
2. Collects up-to-date information tailored to TechGear Inc.’s market.
3. Explain two reasons why market research is important for TechGear Inc. to address declining
sales. (4 Marks)
Answer (AO1 – Knowledge, AO2 – Application):
1. Understanding customer needs: Market research helps TechGear Inc. identify usability issues,
such as confusing product interfaces, which can be rectified to meet customer expectations.
2. Improving product design: Analyzing trends and customer feedback ensures future products are
more user-friendly and competitive in the market.
4. Evaluate whether TechGear Inc. should shift to a market-oriented approach to improve sales. (6
Marks)
Answer (AO1 – Knowledge, AO2 – Application, AO3 – Analysis, AO4 – Evaluation):
● Advantages:
○ A market-oriented approach ensures products meet customer needs, leading to increased
satisfaction and loyalty.
○ It helps the company remain competitive by adapting to market trends.
● Disadvantages:
○ Additional costs involved in conducting extensive market research.
○ Risk of slower innovation due to prioritizing customer preferences over new ideas.
● Evaluation:
○ TechGear Inc. should adopt a market-oriented approach, as it aligns with addressing
usability issues and adapting to changing customer needs. The costs of research are
justified if it prevents further sales decline.
5. Discuss how conducting primary and secondary research together could help TechGear Inc.
improve its product usability and sales. (6 Marks)
Answer (AO1 – Knowledge, AO2 – Application, AO3 – Analysis):
● Primary Research: Surveys and interviews provide direct customer feedback on usability issues.
● Secondary Research: Industry reports and competitor data can identify trends and best practices.
● Link: By combining both methods, TechGear Inc. gains a holistic view of the market, enabling them
to design products that balance innovation with user-friendliness.
Group 2
Case Study 2: GreenGro Ltd.
1. Define the term "primary research." (2 Marks)
Answer (AO1 – Knowledge):
Primary research is the process of collecting new, first-hand data directly from respondents for specific
research purposes.
2. State two methods of primary research GreenGro Ltd. can use. (2 Marks)
Answer (AO1 – Knowledge):
1. Conducting customer surveys to gather insights on preferences for organic food.
2. Organizing focus groups to discuss the impact of competitors' pricing on purchasing behavior.
3. Explain two factors influencing the accuracy of GreenGro's market research data. (4 Marks)
Answer (AO1 – Knowledge, AO2 – Application):
1. Sample Size and Selection: If GreenGro selects a large and diverse group of respondents, the
data is more likely to represent its entire customer base.
2. Clarity of Questions: Well-designed survey questions ensure that the responses accurately reflect
customer preferences without bias.
4. Comment on whether GreenGro Ltd. should reduce its prices to compete effectively. (6 Marks)
Answer (AO1 – Knowledge, AO2 – Application, AO3 – Analysis, AO4 – Evaluation):
● Advantages of Reducing Prices:
○ Attracts cost-conscious customers who may switch to GreenGro instead of competitors.
○ Boosts short-term sales during the price-sensitive period.
● Disadvantages:
○ Lower prices may reduce profit margins.
○ Can harm GreenGro’s premium, organic image.
● Conclusion:
○ GreenGro should focus on highlighting its organic and high-quality products rather than
reducing prices. If needed, limited-time promotions may attract price-sensitive customers
without impacting the brand’s long-term positioning.
5. Evaluate how using sampling methods could help GreenGro Ltd. gather reliable data to make
informed pricing decisions. (6 Marks)
Answer (AO1 – Knowledge, AO2 – Application, AO3 – Analysis, AO4 – Evaluation):
● Random Sampling: Ensures unbiased data collection, representing a wide range of customers.
● Quota Sampling: Helps target specific customer segments (e.g., income groups) to understand
their price sensitivity.
● Conclusion: GreenGro should prioritize quota sampling for its research, as it can identify which
groups are most affected by pricing strategies, allowing for targeted decision-making.
Group 3
Case Study 3: AeroFuel Co.
1. Define the term "secondary research." (2 Marks)
Answer (AO1 – Knowledge):
Secondary research involves analyzing existing data from sources such as government reports, industry
publications, and online articles.
2. State two advantages of secondary research for AeroFuel Co. (2 Marks)
Answer (AO1 – Knowledge):
1. Cost-effective, as the data is already available.
2. Provides insights into trends in renewable energy without requiring significant time or resources.
3. Explain two limitations of using secondary research for AeroFuel Co.'s decision-making. (4
Marks)
Answer (AO1 – Knowledge, AO2 – Application):
1. Data Accuracy: The information may not be specific to AeroFuel’s eco-friendly product line.
2. Outdated Information: Trends and market demands may have changed since the data was
published.
4. Justify whether AeroFuel Co. should proceed with investing in an eco-friendly product line. (6
Marks)
Answer (AO1 – Knowledge, AO2 – Application, AO3 – Analysis, AO4 – Evaluation):
● Reasons to Invest:
○ Aligns with global trends in renewable energy and sustainability.
○ Opens opportunities for premium pricing and niche market leadership.
● Risks:
○ Significant investment required to develop and market eco-friendly products.
○ Market acceptance of renewable fuels is uncertain without further research.
● Conclusion:
○ AeroFuel Co. should proceed cautiously by conducting further primary research to validate
customer interest and assess market potential.
5. Comment on the role of market research in helping AeroFuel Co. ensure the success of its
eco-friendly product line. (6 Marks)
Answer (AO1 – Knowledge, AO2 – Application, AO3 – Analysis, AO4 – Evaluation):
● Role of Market Research:
○ Identifies customer preferences for renewable energy products.
○ Analyzes competitors’ strengths and weaknesses in eco-friendly products.
● Application:
○ Use sampling to gauge potential demand and willingness to pay a premium.
○ Combine primary and secondary research to validate market opportunities.
● Evaluation:
○ Effective market research minimizes risks and ensures AeroFuel’s investment aligns with
customer and market needs, leading to better product adoption.
MCQ
1. What is market research?
A. Collecting and analyzing data about customers and competitors
B. Producing and distributing goods
C. Marketing products online
D. Selling products at discounted rates
2. Which of the following is NOT a primary research method?
A. Surveys
B. Interviews
C. Focus groups
D. Government reports
3. What is one advantage of primary research?
A. It is always quick to conduct.
B. It is more accurate than secondary research.
C. It provides specific and up-to-date information.
D. It is less expensive than secondary research.
4. What does random sampling involve?
A. Selecting participants based on specific criteria
B. Selecting participants entirely by chance
C. Selecting participants based on their income levels
D. Selecting participants who volunteer
5. Which of the following is an example of secondary research?
A. Conducting a focus group
B. Reviewing government reports
C. Observing customer behavior in-store
D. Surveying a group of customers
6. What type of graph is best for showing proportions?
A. Bar graph
B. Line graph
C. Pie chart
D. Tally chart
7. What is the purpose of piloting a questionnaire?
A. To distribute it to a larger audience
B. To identify and fix any issues before full use
C. To finalize the design
D. To ensure it is anonymous
8. Which factor can reduce the accuracy of market research data?
A. A large sample size
B. Unclear questions in a survey
C. Using multiple research methods
D. A focus on customer needs
9. What is quota sampling?
A. Selecting participants randomly
B. Dividing participants into groups and selecting from each group
C. Selecting participants based on set characteristics
D. Observing customers’ behavior in a natural setting
10.Which research method involves direct observation?
A. Surveys
B. Focus groups
C. Interviews
D. Observations
11.What is one limitation of secondary research?
A. It is more expensive than primary research.
B. The data may be outdated or not specific enough.
C. It always requires professional expertise.
D. The results are too detailed.
12.What does stratified sampling involve?
A. Selecting participants entirely by chance
B. Selecting participants who are easy to access
C. Dividing the population into groups and randomly selecting from each group
D. Selecting participants based on predefined quotas
13.Which research method is best for gathering qualitative insights?
A. Surveys
B. Focus groups
C. Tally charts
D. Bar graphs
14.Why are open-ended questions used in a questionnaire?
A. To collect numerical data
B. To allow respondents to provide detailed answers
C. To restrict the range of responses
D. To simplify analysis
15.What is one limitation of using online sources for market research?
A. It is too expensive.
B. The information is always biased.
C. The data may not be accurate or reliable.
D. It requires extensive travel.
16.How does market research support business decisions?
A. By guessing customer needs
B. By analyzing competitors' actions
C. By eliminating competition
D. By providing data to make informed decisions
17.What is the role of a bar graph in presenting market research data?
A. Showing trends over time
B. Comparing quantities across categories
C. Illustrating proportions within a whole
D. Recording raw data
18.Which sampling method is best for a small budget?
A. Random sampling
B. Stratified sampling
C. Quota sampling
D. Convenience sampling
19.What type of sampling involves dividing the population into specific groups?
A. Random sampling
B. Stratified sampling
C. Convenience sampling
D. None of the above
20.What is one key reason businesses conduct market research?
A. To improve competitors' strategies
B. To identify gaps in the market
C. To reduce operational costs
D. To expand internationally
21.Which factor most affects the reliability of primary research?
A. The cost of the method
B. The clarity of the questions
C. The number of competitors in the market
D. The profit margin of the business
22.Which of the following is an advantage of focus groups?
A. Easy to quantify results
B. Provides in-depth customer opinions
C. Data is readily available
D. Requires no facilitation skills
23.What is the main disadvantage of quota sampling?
A. It is time-consuming.
B. It does not allow for representative data.
C. It is costly to conduct.
D. It may introduce researcher bias in participant selection.
24.What is the primary use of pie charts in market research?
A. Comparing numerical data across categories
B. Showing proportions of different categories
C. Displaying raw data for interpretation
D. Identifying trends over time
25.Why is pilot testing a questionnaire important?
A. To gather the final results.
B. To identify and fix potential design flaws.
C. To simplify data analysis.
D. To distribute the survey faster.
26.What is one factor that influences the accuracy of secondary research?
A. The number of questions used
B. The source of the data
C. The type of business conducting the research
D. The location of the business
27.Why are stratified sampling methods more reliable than convenience sampling?
A. They use a smaller sample size.
B. They ensure representation of specific groups in the population.
C. They rely on pre-existing data.
D. They focus on quick and easy participant selection.
28.What is the key purpose of tally charts?
A. To organize raw data in a systematic way
B. To display trends visually
C. To compare data between categories
D. To show proportions within a dataset
29.Which is a disadvantage of random sampling?
A. It introduces selection bias.
B. It requires a large population for effectiveness.
C. It is costly and time-consuming.
D. It is always inaccurate.
30.Why might businesses prefer secondary research over primary research?
A. To gather specific and detailed information.
B. To reduce time and costs.
C. To ensure data accuracy.
D. To engage directly with customers.
31.Which method of primary research is most suitable for gaining in-depth qualitative data?
A. Tally charts
B. Focus groups
C. Pie charts
D. Random sampling
32.What is the main limitation of small sample sizes in market research?
A. They cost more than large sample sizes.
B. They are less likely to represent the population accurately.
C. They are difficult to analyze.
D. They always lead to biased results.
33.What type of data do bar graphs typically represent?
A. Quantitative data comparing categories
B. Trends over time
C. Proportions of a whole
D. Raw data from surveys
34.How can businesses ensure questionnaires collect reliable data?
A. By including only open-ended questions
B. By using clear, unbiased language
C. By reducing the number of questions
D. By skipping pilot testing
35.What is a major disadvantage of focus groups?
A. They are cost-effective.
B. They are difficult to analyze.
C. They do not provide qualitative data.
D. They are too broad to provide specific insights.
36.Which sampling method ensures all individuals have an equal chance of selection?
A. Quota sampling
B. Stratified sampling
C. Random sampling
D. Convenience sampling
37.Why are closed-ended questions useful in market research?
A. They allow for detailed explanations.
B. They simplify data analysis.
C. They encourage long responses.
D. They eliminate the need for data processing.
38.How does secondary research benefit small businesses?
A. It is tailored to their specific needs.
B. It provides quick, cost-effective insights.
C. It involves direct interaction with customers.
D. It eliminates the need for primary research.
39.What is one way a business could improve the accuracy of their research data?
A. Increase the sample size and diversify participant selection.
B. Use only qualitative data.
C. Focus solely on secondary research.
D. Avoid piloting research tools.
40.Which type of graph would best show sales trends over time?
A. Bar graph
B. Line graph
C. Pie chart
D. Tally chart
MCQ Ans.
1. A (Identifying customer needs)
2. D (Track changes in consumer behavior)
3. C (Surveys, interviews, focus groups, and observations)
4. B (Existing data from other sources)
5. B (Provides specific, up-to-date information)
6. C (Time-consuming and costly)
7. B (Cost-effective and quicker to obtain)
8. B (Sample size and selection method)
9. C (Random Sampling)
10.D (Reduces cost and time)
11.B (Helps identify customer needs and market trends)
12.C (Define the objective clearly)
13.B (Set clear instructions and deadlines)
14.B (Bar graphs, pie charts, and tally charts)
15.C (Show proportions within a whole)
16.D (Track changes in customer preferences)
17.B (Identify gaps in the market)
18.D (Bar graphs)
19.B (Clarity and neutrality of research tools)
20.B (Pilot test the questionnaire)
21.B (Primary research involves collecting new data directly)
22.B (Methods include surveys, interviews, and observations)
23.D (Includes online sources and government data)
24.B (Cost-effective but may be outdated)
25.B (Analyzing consumer behavior and preferences)
26.B (Random sampling involves selecting a sample at random)
27.B (Quota sampling divides the population into groups)
28.A (Market research involves collecting and analyzing data)
29.B (Identify gaps and opportunities in the market)
30.B (Track competitors' strengths and weaknesses)
31.B (Open-ended questions allow for detailed responses)
32.B (Line graphs are useful for showing trends over time)
33.A (Tables provide detailed numerical data)
34.B (Pie charts are used to show proportions)
35.B (Improving products and services)
36.C (Define objectives and pilot test the questionnaire)
37.B (Factors influencing accuracy include sample size)
38.B (Consistency in data collection is essential)
39.A (Helps businesses refine marketing strategies)
40.B (Secondary research provides a broad market overview).
Definitions
Key Definitions in Market Research
1. Market research is the process of gathering, analysing and interpreting information about a
market.
2. A product-orientated business is one whose main focus of activity is on the product itself.
3. A market-orientated business is one which carries out market research to find out
consumer wants before a product is developed and produced.
4. A marketing budget is a financial plan for the marketing of a product or product range for
some specified period of time. It specifies how much money is available to market the
product or range, so that the Marketing department knows how much it may spend.
5. Primary research is the collection and collation of original data via direct contact with
potential or existing customers. (Also called field research.)
6. Secondary research uses information that has already been collected and is available for
use by others. (Also called desk research.)
7. A questionnaire is a set of questions to be answered as a means of collecting data for
market research.
8. Online surveys require the target sample to answer a series of questions over the internet.
9. Interviews involve asking individuals a series of questions, often face-to-face or over the
phone.
10.A focus group is a group of people who are representative of the target market.
11.A sample is the group of people who are selected to respond to a market research
exercise, such as a questionnaire.
12.A random sample is when people are selected at random as a source of information for
market research.
13.A quota sample is when people are selected on the basis of certain characteristics (such
as age, gender or income) as a source of information for market research.
