CAIE IGCSE Business Studies 3.2.1 market research methods
Practise market-research questions by defining the process, choosing methods and explaining why a sample is useful to the business.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Define market research as collecting and analysing information about customers or markets.
- Identify research methods such as questionnaires, online surveys, interviews or observation.
- Explain sampling benefits, including lower cost, quicker research and manageable data.
3.2.1—Methods of market research question 1
[Maximum number: 6]
NSL is a business based in country X．It manufactures food products including bread and breakfast cereals．NSL uses lean production in its factory．Maintaining quality is important．NSL imports 15% of its raw materials．Changes in country X＇s exchange rate can affect businesses which import raw materials．NSL＇s Marketing Manager knows the business should respond to changes in consumer spending patterns．She is aware that market research can be used to help make business decisions．
Explain two methods of market research a business could use to help make business decisions. Which is likely to be the best method for a manufacturing business to use? Justify your answer.
Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to which is the best method of market research for a manufacturing business to use to make business decisions.
Points might include:
- Government sources/statistics [k] provide information from a wide number of people [an]
- Using internet/online sources [k] which is free / low cost / immediately available [an]
- Information from trade associations/journals [k] as specifically about the industry [an]
- Market research agency reports [k] can often be expensive/provide detailed information [an]
- Questionnaire [k] as provides up-to-date information / specific to the business [an]
- Interviews [k] to obtain in depth details/opinions [an]
- Survey [k] can reach out to more/large number of people [an]
- Focus group [k] as it provides detailed information / allows for follow-up questions [an]
- Test marketing [k] so the cost of any problem is limited to a smaller number of products [an]
- Observation [k] low cost [an]
- Newspapers/magazines [k]
Other appropriate responses should be credited.
This is a general question so there are no marks for application.
Candidates must identify the method of market research to access the knowledge marks not just state primary/secondary.
Analysis can refer to an advantage/disadvantage of method.
Some development can be used for more point, but only award once.
Justification might include:
Government statistics [k] provide information from a wide number of people [an]. A focus group [k] can provide detailed information about consumer tastes [an].
Government statistics are better because they are based on wide samples whereas a focus group is based on a few existing customers so it may not identify what is happening in the market overall so the business may not produce the right product. [eval] [eval]
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