1.2.2 Market Research

• There are two main types of market research: primary and secondary
• What is a key drawback of primary research?

  It can be time-consuming
• What is a disadvantage of using industry reports in secondary research?

  Data may be outdated
• Match the primary research method with its benefit:

  Surveys ↔️ Tailored insights

  Interviews ↔️ In-depth understanding

  Focus Groups ↔️ Rich qualitative data
• What is a key advantage of primary data over secondary data?

  Tailored insights
• Interviews allow for in-depth understanding of customer needs but require significant time and resources.

  True
• Qualitative data involves identifying common themes and customer sentiments to understand customer behaviors.


  True
• When structuring a research presentation, it is essential to state the research objectives and methods used.

  True
• What is the purpose of market research for small businesses?

  To understand their target market
• Order the steps involved in conducting primary research:

  1️⃣ Identify research objectives

  2️⃣ Design data collection methods

  3️⃣ Collect data from customers

  4️⃣ Analyze data to draw conclusions
• Match the primary research method with its benefit:

  Surveys ↔️ Tailored insights about target market

  Focus Groups ↔️ Generates rich qualitative data

  Interviews ↔️ Allows in-depth understanding
• What is a key drawback of primary research interviews?

  Requires significant time
• Secondary research is quick and cost-effective because it uses existing data.
• Surveys in primary research provide tailored insights but can be time-consuming and expensive
• Government statistics provide reliable, unbiased data about the broader market.


  True
• Quantitative data is analyzed by calculating averages, identifying trends, and performing statistical analysis
• A coffee shop could use a bar chart to show the average customer spending across different age groups.
• Match the type of research with its example:

  Primary Research ↔️ Survey to understand customer preferences

  Secondary Research ↔️ Using government statistics on income
• Primary research methods include surveys, interviews, and focus groups.
• Primary research surveys provide tailored insights but are time-consuming to design.
• Why is market research crucial for small businesses?

  To understand their market
• What do businesses often combine to understand their target market comprehensively?

  Primary and secondary research
• Secondary research using industry reports is quick and cost-effective but may not be specific or up-to-date
• What are the two main types of data in market research?

  Quantitative and qualitative
• Match the data visualization technique with its benefit:

  Bar Charts ↔️ Compare values across categories

  Line Graphs ↔️ Illustrate trends over time

  Pie Charts ↔️ Show proportional breakdown

  Scatter Plots ↔️ Identify relationships between variables
• Order the steps for structuring a research presentation:

  1️⃣ State research objectives

  2️⃣ Highlight key findings

  3️⃣ Provide clear recommendations

  4️⃣ Summarize main takeaways
• Primary research is quicker and cheaper than secondary research.

  False
• Why is secondary research considered cost-effective?

  It uses existing data
• Secondary research involves analyzing market trends from industry reports.
• Industry reports in secondary research may not be specific to the business's unique needs.


  True
• Secondary data may not always fit specific research questions.

  True
• What type of data do focus groups generate about customer attitudes and reactions?

  Qualitative data
• Order the following data collection methods from primary research based on their increasing resource requirements:

  1️⃣ Surveys

  2️⃣ Interviews

  3️⃣ Focus Groups
• What can small businesses achieve by analyzing both quantitative and qualitative data?

  Strategic decision-making
• What should a research presentation summarize in its conclusion?

  Main takeaways