Which term describes the process of collecting and analysing information about a particular market, a good or a service?
Market research
Entrepreneurs carry out research before launching a product in order to reduce risk. What does this mean?
Finding out whether buyers will want the product before it is made
Market research findings help an entrepreneur choose what price to charge and where to sell the product. Which purpose of market research does this describe?
To aid decision making
What is meant by using market research to inform product development?
Using the findings to improve the design and features of a good or service
Market research can be used to gain customers' views and understand their needs and wants. What does this mean?
Asking buyers what they think and what they want from a product
What is meant by using market research to understand the market?
Finding out about the competitors, the trends and any gaps in the market
What is meant by understanding how a good or service complements others on the market?
Finding out how a product fits with other items that customers buy
Why do entrepreneurs carry out market research before starting a business?
To reduce the risk of the business failing
A café asks customers what they think of a new cake. Which purpose does this mainly meet?
To gain customers' views and understand their needs and wants
A shop owner researches rival shops to find out what products they sell. Which purpose does this mainly meet?
To understand the market
A software company asks users which features they want in a new app. What is this research most likely to inform?
The design of the product
When should market research usually be carried out for a new product?
Before developing the product
A tea shop checks whether selling cakes would appeal to its current customers. What is this research mainly checking?
How cakes and tea complement each other
Which of these is NOT a purpose of market research?
To guarantee a business will make a profit
A new business finds that most of its target customers use one social media site. How is this finding most useful?
It helps the business decide where to advertise
A café finds that its customers are ordering more plant-based food. Why is this finding useful when planning the menu?
It shows which food is becoming more popular
A shopkeeper finds that no other shop in her area sells vegan cakes. What has her research identified?
A gap in the market
A sandwich shop asks local workers how often they buy their lunch out. Why is this finding useful?
It helps the shop plan how much stock to order
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