Chapter 11: Market research

Which of these is the best definition of a market-oriented business?

1) The firm does market research after launching a product on the market

2) The firm produces a good that it believes will be successful in the market

3) The firm does market research before designing a new product

4) The firm produces a high quality product that has always been successful in the

market

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Which of the following questions is market research not likely to find an answer to?

1) Would consumers be likely to buy my product?

2) Which method of production should I use?

3) What price would consumers be likely to pay?

4) Which businesses will be the main competitors?

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Which of the following best defines primary market research?

1) It is data collection that always produces quantitative (number based) results

2) It uses information that has already been collected

3) It is also known as desk research

4) It gathers original data by contacting consumers directly

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One of the claimed advantages of primary data is that:

1) it is quick and easy to collect

2) it is usually up-to-date

3) it is always 100% accurate

4) it is cheap because it has already been collected

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One of the claimed advantages of secondary data is that:

1) it is always 100% accurate as the firm undertakes its own data collection

2) it is usually up-to-date

3) it is often cheap as the research has been conducted by others

4) it will not be available to rival businesses

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One possible advantage of questionnaires to gather primary data is that:

1) they are cheaper than all other forms of primary data collection

2) the response to questionnaires sent through the post is always very good

3) consumers can fill them in during their own time and give much detail

4) the questions are always clear to consumers and there will be no misunderstanding.

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7 In market research, a sample is defined as:

1) a free gift to the consumer

2) a trial of the product so that consumers can test it at home and then give their opinions

3) all of the potential consumers of a product

4) a group selected from all of the potential consumers of a product

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Which of the following is a reason for using a random sample of the population in

market research?

1) It is more accurate than asking the whole population

2) It is more expensive than asking the whole population

3) It gives everyone in the population an equal chance of being questioned

4) It concentrates research on consumers who share similar characteristics, e.g. all of

the same age

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Which of the following is an example of secondary data collection?

1) A traffic count to see how many vehicles passed by a shop in one day

2) A postal questionnaire researching into consumer tastes

3) A market research agency report that the business had asked for to investigate

why sales were falling

4) A newspaper report on the sales figures of a competitor’s new product

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Which of the following will be likely to make a firm’s market research more accurate?

1) A smaller sample to save costs

2) Greater use of secondary rather than primary data

3) Testing a questionnaire on a small group of consumers

4) Taking all consumer samples on the same day of the week rather than on different

days

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