5.2 The purpose and methods of market research

• There are three main types of market research.

  False
• Steps involved in conducting market research

  1️⃣ Identify research objectives

  2️⃣ Choose research methods

  3️⃣ Collect data

  4️⃣ Analyze data

  5️⃣ Draw conclusions
• What are the two main purposes of market research?

  Understand customers and assess competition
• What is a primary research method that uses questionnaires to collect data?

  Surveys
• What are the two main categories of market research methods?

  Primary and secondary
• What is a key difference between primary and secondary research in terms of data source?

  Directly collected vs. existing data
• What is an example of primary research used to understand customer preferences?

  Conducting customer surveys
• What is an advantage of primary research over secondary research?

  More detailed and tailored
• Focus groups are used in primary research to gather feedback from a small group of people.
• What is a disadvantage of primary research in terms of time and cost?

  More time-consuming and expensive
• Primary research provides data that is more detailed and tailored to the specific needs of the business
• What is the purpose of market research?

  To understand customers, competitors, and the market environment
• What is an example of secondary research?

  Government statistics
• Match the type of research with its description:

  Primary Research ↔️ Collecting new data directly

  Secondary Research ↔️ Using existing data
• Primary research is always the preferred method for businesses with limited resources.

  False
• Combining primary and secondary research provides a comprehensive understanding of the market environment.


  True
• Secondary research involves collecting new data directly from the market.

  False
• Market research involves the systematic gathering and analysis of data about a specific market.

  True
• What is the primary purpose of market research?

  To understand customers, competitors, and the market environment
• Businesses use market research to identify new opportunities and minimize risks.
• What is a primary research method that involves collecting data directly from customers through questionnaires?

  Surveys
• Primary research provides a broader market context than secondary research.

  False
• What is the key difference between primary and secondary research in terms of data source?

  Directly collected vs. existing
• Surveys in primary research are inexpensive and easy to conduct.

  False
• What is the main trade-off between primary and secondary research methods?

  Detail vs. cost
• What is the primary goal of understanding customers through market research?

  Develop effective marketing plans
• Why is it challenging to keep market research data up-to-date in rapidly changing markets?

  Markets evolve quickly
• Primary research involves collecting new data directly from the market
• The purpose of market research is to help businesses make informed decisions about their marketing strategies.


  True
• Secondary research is less expensive and quicker to obtain
• Industry reports are a secondary research method that analyzes data published by market research firms
• Primary research often uses surveys to collect data directly from customers.
• Primary research is more time-consuming and expensive than secondary research.
• Match the type of market research with its example:

  Primary Research ↔️ Customer surveys

  Secondary Research ↔️ Industry reports
• Understanding customer needs is a key purpose of market research.


  True
• Secondary research provides broader market trends but may lack specific details.


  True
• What is an example of secondary research that involves analyzing data published by industry associations?

  Industry reports
• A key advantage of secondary research is that it is less expensive than primary research.
• Primary research is typically less expensive and time-consuming than secondary research.

  False
• Primary research methods such as surveys are useful for gathering direct customer feedback