Question 1: Define market research and explain its main purpose in a business context.

Answer: Market research involves gathering and analyzing information about customers, competitors, and the market environment. Its main purpose is to help businesses make informed decisions about products, pricing, promotion, and location.

Question 2: Identify two different types of market research and describe how each is conducted.

Answer: Primary research involves collecting new data directly from sources, such as surveys or interviews. Secondary research involves analyzing existing data, like industry reports or market statistics.

Question 3: Describe a scenario where a business might choose to conduct primary research instead of secondary research.

Answer: A new restaurant wants to understand local customer preferences for menu items, so it conducts surveys to gather specific opinions rather than relying on general market data.

Question 4: Explain one advantage and one disadvantage of using questionnaires for market research.

Answer: An advantage is that questionnaires can collect large amounts of data quickly and cost-effectively. A disadvantage is that response rates may be low, and answers might not always be accurate or truthful.

Question 5: Imagine a clothing retailer wants to find out what styles are popular among teenagers. Describe a suitable method of market research they could use.

Answer: They could conduct surveys or questionnaires in schools or on social media platforms popular with teenagers to gather their preferences.

Question 6: Draw a simple flowchart that shows the steps involved in conducting primary market research, including planning, data collection, analysis, and decision-making.

Answer: A clear flowchart with four boxes labeled: 1) Planning (defining objectives and methods), 2) Data Collection (surveys, interviews), 3) Data Analysis (interpreting results), 4) Decision-Making (acting on findings).

Question 7: Why is it important for a business to understand its target market before launching a new product?

Answer: Understanding the target market helps ensure the product meets customer needs and preferences, increasing the chances of success and reducing the risk of failure.

Question 8: List three questions that a business might include in a customer survey about a new mobile phone.

Answer: 1) What features are most important to you in a mobile phone? 2) How much would you be willing to pay? 3) Would you recommend this phone to others?

Question 9: Sketch a simple diagram to illustrate the difference between primary and secondary market research.

Answer: The diagram should depict two boxes: one labeled 'Primary Research' with arrows pointing to tools like surveys and interviews; the other labeled 'Secondary Research' with arrows pointing to sources like reports and online data. The boxes are connected with a brief note explaining they are different types of data collection.

Question 10: Explain how market research can help a business identify new market opportunities.

Answer: Market research reveals unmet customer needs, emerging trends, and gaps in the market, allowing businesses to develop new products or enter new segments to expand their market share.

Question 11: What ethical considerations should a business keep in mind when conducting market research involving customers?

Answer: Businesses should ensure customer data is collected with consent, kept confidential, and used only for the stated purpose, respecting privacy and avoiding misleading or intrusive questions.