IGCSE Business Studies 4.1 Market research Topic Practice

Backyard Shoez is a retail business located in Nairobi, Kenya. It sells a wide range of shoes, handbags and accessories for ladies only. Backyard Shoez has three shops in Nairobi. The shops are located in a busy shopping centre where there are other shoe shops.
(Source adapted from: https://backyardshoez.co.ke/)

Tata Motor Company began trading in 1868, and is now part of a large group of companies that is estimated to be worth $ 100 billion. Tata Motor Company manufactures a wide range of cars, buses and trucks. It is India's largest maker of vehicles with manufacturing centres in many countries including Korea, Italy and the UK.

One of the main aims of Tata Motor Company is to produce goods that the public want and need. It is currently working on electric cars that are more environmentally friendly. Tata Motor Company plays an active role in community development such as building schools, houses and investing in the health and welfare of local people.
(Source adapted from: https://www.tatamotors.com/about-us/)

Which one of the following could be used to gather data for a business?

Select one answer.

The Alternative Drum School (TADS) was set up in the wealthy area of Cricklade, England in 2008 by Ollie Tanner who had a passion for and enjoyed drumming. Ollie invested all of his savings into the drumming school. He saw the potential of being located away from other drumming schools.

Ollie promotes his business by writing columns in local papers, performing at local music festivals and by word of mouth recommendations. He has invested heavily in computer technology to allow students to produce the music they enjoy playing.

Ollie finds it difficult to maintain a good work-life balance. Ollie currently works 60 hours a week in a business that does not have reliable profits.

Which one of the following is a method of primary market research?

Select one answer.

Loaf, a bakery and cookery school, was set up by Tom Baker in Birmingham, UK. The aim is to promote real food and healthy living. It wants to use its skilled chefs to bring real food to the kitchens of the local community. It uses its cookery courses and bakery to help restore the local high street. Loaf also hosts pop-up events (one-off events) in different parts of the city where it shows off its products. Any profit made through these events is directed towards furthering Loaf's charitable work.

Loaf operates a scheme called 'Waste Not'. At the end of the day Loaf donates any leftover food to charities who distribute it to local people. In addition, Loaf provides a recycling hub for the local community.

Loaf is a social enterprise with nine members of staff; six of whom are directors.

Define the term quantitative data.

Which one of the following is an advantage of primary market research?

Select one answer.

What is the percentage increase, to two decimal places, of online customers from 2017 to 2018?

Select one answer.

Can Culleretes is a restaurant based in the Spanish city of Barcelona. Opening in 1786 it is the second oldest restaurant in Spain. It has been run by the Agut-Manubens family since 1958 and serves a variety of Mediterranean food. Sisters Montserrat and Alicia are co-owners of the restaurant with six members of the family working for them. The restaurant is near to popular tourist attractions and close to many other restaurants. It opens for lunch and dinner only.

The LEGO Group is a privately-owned business in Denmark. The business was founded in 1932 by the Kristiansen family. The family still owns it. The name LEGO is an abbreviation of two Danish words, 'leg godt' which means 'play well'. It is now one of the world's largest manufacturers of toys with 15 factories and over 18,000 employees around the world.

LEGO manufactures toys, games and art materials for boys and girls of all ages, and products from films such as Star Wars and Harry Potter. It believes that children are the role models of the future and playing with LEGO can support children in a developing and complex world.

Explain one disadvantage of using questionnaires as a method of market research.

Cadbury was founded in 1842 when John Cadbury opened a shop in Birmingham in the UK. The shop sold cocoa and drinking chocolate. Cadbury is now one of the major chocolate manufacturers in the world.

In 1918 the first overseas Cadbury factory was opened in Hobart, Tasmania in Australia. Another factory opened in South Africa in 1938. Cadbury chocolates are sold across the world and other factories have been opened. Cadbury produces many well-known brands, such as Dairy Milk, Buttons and Crunchie. It also produces ice cream and cakes.

Cadbury is now part of Mondelez, the largest snack business in the world.

Which one of the following is an example of secondary market research?

Select one answer.

Irsi Chocolatier is a chocolate shop in Brussels, the capital city of Belgium. There are many other chocolate shops nearby. Opened in 1989 by the Corne family the business now has four directors and three employees. Florent Corne is the Managing Director with three other family members as Directors. Irsi Chocolatier opens from Tuesday till Saturday. The shop sells a variety of handmade chocolates and jelly fruit sweets. It delivers locally and has a website for information purposes only.

Explain one benefit for a business that uses test marketing.