5.2 The purpose and methods of market research

• What are the primary methods of primary research?

  Surveys, interviews, focus groups
• Market research is the systematic investigation to gather information about customer preferences and competitors
• What type of data does a survey typically gather in primary research?

  Quantitative and qualitative
• What are the two main types of market research?

  Primary and secondary
• Secondary research analyzes existing data from sources like industry reports and government statistics
• Focus groups provide rich qualitative data

  True
• What is the main purpose of secondary research?

  Gather background information
• What is the primary difference between primary and secondary research in terms of data source?

  New vs. existing data
• Validity in market research refers to the accuracy of the method in measuring what it intends to measure
• The purpose of market research is to understand customer needs and identify market opportunities.


  True
• Secondary research is more expensive than primary research.

  False
• Primary research involves collecting new data directly from customers
• Match the research type with its examples:

  Primary Research ↔️ Surveys and interviews

  Secondary Research ↔️ Industry reports and government data
• What does observation involve in primary research?

  Watching customer behavior
• Secondary research analyzes existing data sources to gather information about the market, industry, and competitors
• Secondary research provides valuable background context at a lower cost
• Match the research method with its reliability and validity characteristics:

  Primary Research ↔️ Generally higher reliability and validity

  Secondary Research ↔️ Generally lower reliability and validity
• Secondary research is more expensive than primary research

  False
• What is the primary goal of surveys in market research?

  Collect structured data
• McDonald's uses customer surveys to understand satisfaction levels.
• Secondary research is more time-consuming than primary research

  False
• Combining primary and secondary research can provide a more comprehensive understanding of the market


  True
• Primary research collects new data directly from customers, while secondary research analyzes existing data sources
• Order the key differences between primary and secondary research:

  1️⃣ Data Source: Primary collects new data, secondary analyzes existing data

  2️⃣ Information Type: Primary is first-hand, secondary provides background

  3️⃣ Examples: Primary includes surveys, secondary uses industry reports
• What type of data source is used in primary research?

  Customers
• Interviews in primary research involve one-on-one discussions to gain insights
• Supermarkets use cameras to observe customer shopping patterns


  True
• Match the secondary research method with its description:

  Industry reports ↔️ Comprehensive analyses of market trends

  Government statistics ↔️ Official data on demographics

  Competitor analysis ↔️ Information on rival businesses

  Online databases ↔️ Access to consumer insights
• What does reliability refer to in market research?

  Consistency of results