Market Research

1. Market research is the process of collecting, analyzing, and interpreting information about a market, including customers, competitors, and industry trends. This information helps businesses understand the needs and preferences of their target audience, identify potential opportunities and threats, and make informed decisions about product development, marketing strategies, and business growth. Market research involves a variety of techniques, such as surveys, focus groups, and data analysis, to gather insights that can drive business success and ensure a competitive edge in the marketplace.

What is the purpose of competitor analysis in market research?

A) To ignore competitors in the market.
B) To sue competitors for infringement.
C) To understand competitor strategies and strengths.
D) To collaborate with competitors.

2. A target market is:

A) A group of competitors in the market.
B) A specific group of consumers a business aims to reach with its products.
C) The total number of products a business sells.
D) The overall economy of a country.

3. What does a PESTEL analysis assess in market research?

A) Competitor performance in the market.
B) Customer preferences in different market segments.
C) Product, Price, Place, Promotion, People, Process, and Physical evidence.
D) Political, Economic, Social, Technological, Environmental, and Legal factors.

4. What is meant by the term 'market segmentation'?

A) Ignoring consumer preferences.
B) Selling products in different countries.
C) Dividing the market into smaller, homogenous groups based on characteristics.
D) Competing solely on price.

5. What is 'data mining' in the context of market research?

A) Surveying a small group of customers.
B) Gathering data only from primary sources.
C) Analyzing large sets of data to discover patterns and insights.
D) Ignoring data analysis in research.

6. What is the goal of a market researcher in a competitive analysis?

A) To identify opportunities for competitive advantage.
B) To collaborate with competitors.
C) To ignore competitors' strategies.
D) To copy competitors' products.

7. Why is market research important for product development?

A) To develop products based on intuition.
B) To ensure that products meet customer needs and preferences.
C) To increase production costs.
D) To ignore market trends.

8. What role does technology play in modern market research?

A) Enabling faster data collection and analysis.
B) Slowing down the research process.
C) Eliminating the need for data analysis.
D) Increasing manual data entry.

9. How can a company use market research to improve customer satisfaction?

A) By identifying areas for improvement based on customer feedback.
B) By ignoring customer complaints.
C) By selling products without consideration for quality.
D) By only focusing on profits.

10. How can market research help a business identify new opportunities?

A) By ignoring customer feedback.
B) By focusing solely on existing products.
C) By analyzing market trends and consumer behavior.
D) By avoiding competitor analysis.

11. Which of the following is considered a primary research method?

A) Internet Research
B) Market Segmentation
C) Data Analysis
D) Surveys

12. Which of the following is an example of secondary research?

A) Reading industry reports
B) Observing consumer behavior
C) Conducting focus groups
D) Testing new product concepts

13. Which of the following is a demographic factor that can be analyzed in market research?

A) Age
B) Customer satisfaction
C) Market share
D) Product color

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