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 collaborate with competitors.
C) To understand competitor strategies and strengths.
D) To sue competitors for infringement.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

12. Why is market research important for product development?

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

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

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

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