CAIE IGCSE Business Studies 3.2 Market Research Questions

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]

Do you think secondary market research is the most appropriate method of market research for a business to use when deciding whether it should expand? Justify your answer.

Award 1 mark for each relevant point [max 2].

Award 1 mark for each relevant explanation [max 2].

Award up to 2 marks for a justified decision as to whether secondary market research is the most appropriate method of market research for a business to use when deciding whether it should expand.

Points might include:

Secondary market research:

- Low cost [k] so more funds to spend in other areas of the business [an]

- Quick to obtain [k] so may speed up decision-making [an]

- Data may be out of date [k] so may not make appropriate decisions [an]

- Wide range of data [k]

- Data may not be relevant [k]

- Data is available for all businesses [k]

Primary market research [k]

- More in-depth information [an]

- Specific / only available to the business [an]

- Up to date [an]

- May not have the necessary skills to collect data [an]

- Expensive [an]

- Takes time to collect [an]

Other appropriate responses should be credited.

This is a general question so there are no marks for application.

Some points can be [k] or [an] but do not accept the same point twice.

Some points can be written as advantages or disadvantages of each method, but only award once.

For evaluation to be awarded justification will usually follow on from relevant analysis of points.
Justification might include:

Secondary market research is cheap [k] so more funds can be invested into other areas of the business [an]. However, the data may be out of date [k] so may make inappropriate decisions [an]. Secondary market research is not the most appropriate method to use because although it is cheap, the wrong decisions about expansion can cost the business even more money in the long run [eval] [eval].

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 whether the advantages to a business of using primary market research are greater than the disadvantages.

Points might include:

Advantages:

- Up to date/new (data) [k] which can help make better/informed decisions/able to satisfy customer demand [an] increasing sales [an]

- Business specific/relevant data can be gathered [k] so should help the business find out only what it needs to know [an]

- Only available to own business / not available to the competition [k]

Disadvantages:

- Expensive [k] as need to recruit experts to assist [an] which increase cash outflows/increase costs [an]

- Time to collect [k] which could mean opportunities are missed [an]

Other appropriate points should also be credited.

Justification might include:

It allows for business specific data to be gathered [k] helping the business find out exactly what it wants to know [an]. However, it does take time to collect [k] which may mean opportunities are missed [an].

This is a general question so there are no marks for application.

To access [eval], must discuss a valid advantage and a valid disadvantage.

For analysis:

Can explain the effect of the advantage/disadvantage Reason why the advantage/disadvantage arises
The advantages are greater because the time spent now to gather specific information is likely to help the business make better decisions [eval] which could save the business from wasting resources in the future [eval].