CourseCourseQ BankQuestion BankDocsDocuments

3.2. Market research

Syllabus
0264–2027–2028
Topic
3.2
Level
—

Learning objectives

3.2.1Methods of market research• why businesses use market research• primary research methods, e.g. questionnaires or surveys, interviews, focus groups, observation• the concept of sampling and why it is useful to businesses• advantages and disadvantages of primary market research methods• secondary research methods, e.g. competitor websites, government sources, market reports, trade magazines• advantages and disadvantages of secondary market research methods• factors influencing the accuracy of market research data• analyse simple market research data

Choose and judge market research

Market research gathers and analyses information about customers, competitors and markets. It reduces uncertainty when choosing a target market, product, price, promotion, location or forecast, but it cannot remove risk.

Source / method Main strength Main limitation
questionnaire or survey many standardised responses wording and low response can bias results
interview detailed answers and follow-up slow, costly and interviewer bias
focus group discussion reveals motives and reactions small group may be unrepresentative or dominated
observation records actual behaviour does not explain motives
competitor websites current prices, products and claims selective information and rapid change
government sources broad, often reliable statistics may be old or too general
market reports specialist analysis and trends expensive and methods may be unclear
trade magazines sector news and expert context possible commercial bias

A sample is a smaller group selected to represent the target population, saving time and cost. Accuracy improves when the target population is defined, the sample is large enough and representative, questions are clear and neutral, researchers are trained, data are current and responses are recorded consistently.

Analyse data by calculating totals, percentages or averages; compare groups and patterns; identify anomalies; then link the finding to the business decision. Check sample size and method before generalising.

Primary means collected first-hand for the present purpose; secondary means previously collected by someone else. Neither type is automatically more accurate—the source, sample, design and date matter.