Exam code: 0450, 0986 & 0264, 0774
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Define primary market research.
Primary market research is the process of gathering information directly from consumers in the target market that does not already exist and is specific to the business’s needs.
Give a common method of primary market research.
A common method used in primary market research is the survey, which uses questionnaires to organise research questions and responses.
Define secondary market research.
Secondary market research involves the collection, compilation, and analysis of data that already exists.
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Define primary market research.
Primary market research is the process of gathering information directly from consumers in the target market that does not already exist and is specific to the business’s needs.
Give a common method of primary market research.
A common method used in primary market research is the survey, which uses questionnaires to organise research questions and responses.
Define secondary market research.
Secondary market research involves the collection, compilation, and analysis of data that already exists.
Name two sources of secondary market research.
Two sources of secondary market research are competitor websites and government sources.
True or False?
Secondary market research data is always completely reliable.
False.
The reliability of secondary market research can vary depending on the source, and businesses must consider factors such as cost, relevance, and accuracy of the data.
Define sampling.
Sampling is conducting market research with a small representative sample of the market to draw accurate conclusions about customer preferences and behaviour.
Why do businesses use sampling in market research?
Businesses use sampling to save time and money and to gain reliable insights about the market without surveying every potential customer.
Give two factors influencing the accuracy of market research data.
Two factors influencing the accuracy of market research data are question phrasing and sample selection.
True or False?
The time and place of research can affect the usefulness of market research data.
True.
When and where research is conducted can influence results, as customer tastes and conditions can change over time and between locations.
Define quantitative data.
Quantitative data is statistical, numeric data that can be used to support business decision making.
Define qualitative data.
Qualitative data consists of opinions, insights, feelings, and preferences and often needs skillful interpretation to draw conclusions.
Give two common sources of quantitative data used in business decision making.
Common sources of quantitative data include financial reports, survey findings, marketing or sales data, and statistical research from government or research organisations.
True or False?
Qualitative data is mainly collected from secondary sources such as published reports.
False.
Qualitative data is mainly collected from primary sources such as focus groups, detailed surveys or interviews, and test marketing.
How can both quantitative and qualitative data help business managers?
Both quantitative and qualitative data can help managers forecast sales, identify trends, and make decisions about product development, promotional planning, pricing, and other marketing mix elements.
What is a tally chart?
A tally chart is a simple table used to record data in its original form and is especially useful for counting frequency as events happen.
True or False?
Pie charts show the relationship between two variables.
False.
Pie charts are used to show proportions or breakdowns of a whole, while scatter graphs show the relationship between two variables.
What is the purpose of a line of best fit in a scatter graph?
A line of best fit allows known data on a scatter graph to be extrapolated to identify likely values for one variable based on the other.