Study Notes
Market research is the process of gathering, analyzing, and interpreting information about a market to help businesses understand customer needs and make informed decisions.
- Primary Research — collecting original data directly from potential and existing customers. Example: Surveys and interviews are conducted to gather firsthand information.
- Secondary Research — using existing data collected by others for analysis. Example: Market reports and government publications provide useful insights.
- Qualitative Data — subjective information that requires judgment. Example: Customer opinions gathered through focus groups.
- Quantitative Data — numerical information about quantities. Example: Sales figures or the number of customers visiting a store.
Exam Tips
Key Definitions to Remember
- Market Research: the process of gathering, analyzing, and interpreting information about a market.
- Primary Research: collecting original data directly from customers.
- Secondary Research: using existing data collected by others.
Common Confusions
- Mixing up primary and secondary research methods.
- Confusing qualitative data with quantitative data.
Typical Exam Questions
- What is the purpose of market research? To identify customer needs, reduce risk, and inform business decisions.
- What are the benefits of primary research? Provides specific information directly relevant to the business.
- How can secondary research be useful? It is cost-effective and provides a broad range of data.
What Examiners Usually Test
- Understanding of different market research methods.
- Ability to distinguish between qualitative and quantitative data.
- Knowledge of the benefits and drawbacks of primary and secondary research.