Edexcel GCSE Business 1.2.1 - BBC Bitesize Content

• What is the purpose of market research?

  To collect information that helps a business be more successful and spot gaps in the market.
• Why is it important for a business to identify customer needs?

  It helps ensure the right product is provided at the right price, in the right place, at the right time.
• How can identifying customer needs through market research reduce business risk?

  By enabling businesses to make decisions that are more likely to be successful.
• What happens to customer needs over time, and why is this significant for businesses?

  Customer needs change over time, making it important for businesses to stay up to date and innovative.
• What is a gap in the market?

  An area where there is demand for a product or service that is not being met.
• How can spotting a gap in the market benefit a new business?

  It gives the new business a good chance of success due to little competition.
• What is one of the main purposes of conducting market research?

  To reduce risk and enable businesses to make better decisions.
• What type of risk do entrepreneurs face when setting up a business?

  They risk their own money, with many businesses failing within the first year.
• What information can market research provide to entrepreneurs?

  It can provide insights on customer wants, unmet needs, competition, target market, and pricing.
• Why might a business conduct market research before changing a product?

  To find out whether customers will respond positively to the change.
• What are the two main types of market research?

  Primary and secondary research.
• What is primary market research also known as?

  Field research.
• What is the main advantage of primary research?

  It provides customized research specific to the business's circumstances.
• What are some methods of conducting primary research?

  Surveys, questionnaires, focus groups, and observations.
• What is the purpose of a survey in market research?

  To ask questions to get opinions and learn about customers' experiences.
• What is a questionnaire?


  A set of questions to find out customers' opinions.
• What are open questions in a questionnaire?

  Questions that aim to get detailed opinions and allow customers to respond in their own words.
• What are closed questions in a questionnaire?

  Questions that do not allow respondents to give reasons for their responses.
• How does a focus group differ from a questionnaire?

  A focus group is a group interview that provides more in-depth information than questionnaires.
• What is the importance of the size of a focus group?

  If the group is too small, not enough opinions will be gathered; if too big, some may not contribute.
• What do observations in market research involve?

  Watching customers to find out their reactions to certain products or services.
• What are the advantages and disadvantages of primary research?

  Advantages:

  • Specific to the business
  • Provides detailed information
  • Relevant and up to date
  • Can gather a mixture of quantitative and qualitative data

  
  

  Disadvantages:

  • Time consuming
  • Expensive
  • Sometimes difficult to collect
• What is secondary market research also known as?

  Desk research.
• What does secondary market research involve?

  Gathering existing data that has already been produced.
• What are the sources of secondary research?

  Internal data from within the business and external data from outside sources.
• What is internet research in the context of secondary research?

  Data taken from competitors' websites, newspaper articles, and social media.
• What are market reports?

  Industry-specific reports that provide specific information about an industry as a whole.
• How can government reports be useful for businesses?

  They provide general information that can help businesses decide on pay levels, target markets, or product development.
• What are the advantages and disadvantages of secondary research?

  Advantages:

  • Quick and easy to gather
  • Can provide industry-specific information
  • Often easy to analyze

  
  

  Disadvantages:

  • Not specific to the business
  • Could be out of date
  • May be biased or inaccurate
• What types of data does market research produce?

  Qualitative and quantitative data.
• What is qualitative data?


  Data usually expressed as opinions and includes descriptive information.
• What is quantitative data?

  Numerical data that can generally be expressed in a graph or chart.
• What are the benefits and drawbacks of qualitative data?

  Qualitative data provides detailed information but can be time-consuming and costly to gather and analyze.
• What are the benefits and drawbacks of quantitative data?

  Quantitative data is simple and quick to analyze but lacks specific opinions.
• How do businesses gather market research data from social media?

  By reaching large numbers of customers and conducting research cheaply and on a large scale.
• What are the benefits of using social media for market research?

  • Cheaper than other forms of research
  • Saves time in data compilation
  • Allows businesses to spot trends and monitor competition
• How can a hairdresser use social media for market research?

  By asking followers to complete a questionnaire in exchange for a chance to win a free haircut.
• Why is reliable market research data essential?

  Because basing decisions on unreliable research can be very costly to a business.
• What does high validity in market research data mean?

  It means that the facts and evidence gathered are accurate.
• What are the advantages and consequences of having reliable market research data?

  Advantages:

  • Properly informed decisions
  • Reduces risk
  • Less money wasted
  • Higher chance of business success

  
  

  Consequences of unreliable data:

  • Unwise decisions
  • Potential financial loss
  • Products that don’t sell
  • Business failure