TOPIC 4.1: Market Research

What is the purpose of market research?

- A) To increase employee motivation

- B) To identify and understand customer needs, identify gaps in the market, reduce risk, and inform business decisions

- C) To reduce production costs

- D) To increase the number of employees

- E) To calculate profit margins

To identify and understand customer needs, identify gaps in the market, reduce risk, and inform business decisions

Which of the following is a method of primary research?

- A) Internet research

- B) Government reports

- C) Questionnaires

- D) Market reports

- E) Published statistics

Questionnaires

Which of the following is a method of secondary research?

- A) Survey

- B) Focus group

- C) Observation

- D) Government reports

- E) Test marketing

Government reports

What is qualitative data?

- A) Data that can be measured numerically

- B) Data based on opinions, feelings, and attitudes

- C) Data from government sources

- D) Data from the internet

- E) Data that is always reliable

Data based on opinions, feelings, and attitudes

What is quantitative data?

- A) Data based on opinions and feelings

- B) Data that can be measured numerically

- C) Data from focus groups

- D) Data from observation

- E) Data that is always unreliable

Data that can be measured numerically

A focus group involves:

- A) Observing customers in a store

- B) A small group of people discussing a product or service in detail

- C) Sending questionnaires to a large number of people

- D) Using internet data

- E) Test marketing a product

A small group of people discussing a product or service in detail

Test marketing is used to:

- A) Reduce production costs

- B) Launch a product nationally without testing

- C) Test a product in a small area before launching nationally

- D) Increase employee motivation

- E) Reduce marketing costs

Test a product in a small area before launching nationally

Research that involves gathering new data that has not been collected before is called ____________________ research.

Primary

Research that uses existing data that has already been collected is called ____________________ research.

Secondary

Data based on opinions, feelings, and attitudes is called ____________________ data.

Qualitative

Data that can be measured numerically is called ____________________ data.

Quantitative

What are the purposes of market research?

To identify and understand customer needs

- To identify gaps in the market

- To reduce risk

- To inform business decisions

What is the difference between primary and secondary research?

Primary research** - New data collected specifically for the research purpose (surveys, questionnaires, focus groups, observation, test marketing)

- Secondary research - Existing data that has already been collected (internet, market reports, government reports)