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

Answer: Market research involves gathering and analysing information about consumers, competitors, and the market environment. Its purpose is to help businesses make informed decisions about product development, pricing, promotion, and distribution.

Question 2: Identify and describe two different types of market research methods commonly used by businesses.

Answer: Two common methods are primary research, which involves collecting new data directly from sources such as surveys or interviews, and secondary research, which involves analysing existing data like reports, industry publications, or government statistics.

Question 3: List three advantages of conducting market research before launching a new product.

Answer: It helps identify customer needs and preferences, reduces the risk of product failure, and provides insights into competitors' strategies.

Question 4: List three disadvantages or limitations of market research.

Answer: It can be expensive and time-consuming, data collected may be outdated or unreliable, and it may not always predict future market trends accurately.

Question 5: Imagine a company wants to find out the preferences of teenagers regarding a new type of soft drink. Describe two primary research methods they could use.

Answer: They could conduct online surveys targeting teenagers and organize focus group discussions to gather detailed opinions and preferences.

Question 6: Explain the difference between qualitative and quantitative data in market research. Provide an example of each.

Answer: Quantitative data involves numerical information, such as the percentage of customers who prefer a particular product. Qualitative data involves descriptive information, like customers’ opinions or reasons for their preferences.

Question 7: A clothing retailer wants to understand seasonal shopping habits. Suggest one way they could collect secondary data for this purpose.

Answer: They could review industry reports or government statistics on retail sales during different seasons.

Question 8: Sketch a simple diagram to illustrate the process of conducting market research, including four key steps.

Answer: The diagram should show: 1) Define the research problem, 2) Collect data (primary or secondary), 3) Analyse data, 4) Make decisions based on findings.

Question 9: Discuss why market research is crucial for small businesses compared to large corporations.

Answer: Market research helps small businesses understand their niche market, reduce risks with limited resources, and tailor their products or services to customer needs. Large corporations may have more resources and existing data, but market research remains vital for informed decision-making at all levels.

Question 10: Draw a flowchart showing the steps involved in designing a customer survey for market research.

Answer: The flowchart should include: 1) Define objectives, 2) Design questions, 3) Choose survey method, 4) Collect responses, 5) Analyse results, 6) Use insights to inform marketing strategies.