CAIE IGCSE Business Studies 3.2 Market Research Questions
Use this market-research page to define research, choose primary methods, explain sampling and judge how evidence supports decisions.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Define market research as gathering, analysing and interpreting information about a market.
- Identify primary methods such as questionnaires, surveys, interviews or focus groups.
- Explain why sampling reduces time and cost while still giving useful customer evidence.
Covered syllabus points
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]
Question 2
[Maximum number: 6]
Amir and Carla are business partners. They own a luxury hotel which operates in a niche market. The business has a short hierarchical structure. Amir and Carla use Herzberg's theory of motivation to keep their 5 employees well motivated. Amir and Carla are considering opening another hotel in a different city. They will need to identify a suitable source of finance if they decide to expand. Secondary market research can be used to help a business decide whether it should expand.
Do you think secondary market research is the most appropriate type of market research for a business to use when deciding whether it should expand? Justify your answer.
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].
Question 3
[Maximum number: 4]
Alana opened a restaurant in the city centre 5 years ago. The restaurant provides plant-based meals using a range of vegetables. Alana uses primary market research to help identify changes in consumer spending patterns. Market research can also be used to help segment a market. The restaurant has 16 employees. Each employee is paid the legal minimum wage. In 2023 the business made a profit of $ 80000. Alana wants to know how an increase in interest rates might affect her business.
Outline two methods of primary market research Alana might use.
Method 1:
Method 2:
Award 1 mark for each relevant method (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Points might include:
- Focus groups [k] from her customers over the past 5 years [app]
- Observations [k] by her 16 employees [app]
- Interviews [k] by asking people in the city centre [app]
- Surveys [k] about the restaurant [app]
- Questionnaires [k] about her plant-based meals [app]
Other appropriate responses should be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Restaurant such as menus, cooking
- Plant/vegetable-based meals or related words such as food, cooking
- City centre
- 16 employees
- Market segment/segmentation
- 5 years ago
- Consumer spending patterns
- $ 80000 (profit)
Other appropriate examples can be credited.
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