Chapter 43 Market Research

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iGCSE Business Edexcel


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iGCSE Business Studies:

iGCSE Business Studies Chapter 43 Market Research


Read the case study P198 Class discussion


Primary Research Market Research involves gathering, presenting and analysing information about the marketing and consumption of goods and services It helps reduce the risk of failure Primary research gathers information that does not already exist It is usually gathered by asking questions or observing people’s behaviour The main advantage is that the information is specific to the needs of the business However it is time consuming and expensive Some businesses will employ a market research agency to carry out the research Complete Q1 P199


Methods of Primary Research Questionnaires A good questionnaire will have a good balance of open and closed questions Contain clear and simple questions Not contain leading questions Be concise Questionnaires can be used in postal surveys, telephone interviews, personal interviews, online surveys Focus groups or consumer panels A number of customers are invited to attend a discussion led by market researchers – the group must be representative of the whole population and be prepared to answer detailed questions Observation Market researchers watch the behaviour of customers in stores Test marketing A new product may be launched in a small geographical area and feedback is gained from customers to make modifications before full launch – this reduces risk of failure Complete Q2 P201


Secondary Research This is collecting information that already exists It can be information that the business has already collected (internal) or information that has been collected elsewhere (external) The main problem is that it could be out of date and not accurate


Sampling Ideally information could be gathered from every single person in the market but this would take too long and cost too much Marketers have to use a sample of people (a much smaller group) The sample must be representative of the whole market The most common way is to choose a random sample (picking names out of a hat would be random) The other way is to subdivide the samples into age, gender or income – a stratified sample


Limitations of Market Research Market research is not entirely dependable It can be biased – the sample might not be representative Human behaviour is unpredictable – people may not give honest answers in a questionnaire – they might give the answer that they think the interviewer wants to hear Poor research technique – questionnaires might be poorly designed or interviewers not trained meaning the quality of the research will be poor


Read the case study P203. Write answers. Class discussion

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