Reliability of market research data

• What is the purpose of market research?

  To collect information about the market or what customers want to help a business be more successful.
• How can market research be conducted?

  It can be done by the company itself or taken from elsewhere.
• What are the advantages of having reliable market research data?

  • The business can make properly informed decisions
  • Reduces risk
  • Means less money is wasted
  • Gives a higher chance of business success
• What are the consequences of relying on unreliable market research data?

  • The business making unwise decisions
  • It could ultimately cost the business money
  • The business could bring out products that don’t sell
  • The business could fail
• What is essential for market research to be reliable?

  It must have a high level of validity.
• What does high validity in market research mean?

  It means that the facts and evidence gathered are accurate.
• How does reliable market research impact business decisions?

  It allows businesses to make informed decisions, reducing risk and waste.
• If a business relies on unreliable market research, what might happen?

  The business could bring out products that don’t sell.
• What is market research?


  The process of collecting information about the market or what customers want.
• Why is it costly for a business to base decisions on unreliable research?

  Because it can lead to unwise decisions that ultimately cost the business money.
• What might be a gap in the market that market research helps to identify?

  A need or demand for a product or service that is not currently being met.
• What is the definition of data in the context of market research?

  Facts and statistics collected together for reference or analysis.
• How does market research help in spotting business opportunities?

  By identifying gaps in the market that can be filled with new products or services.