Market Research

Market Research - Exam

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

2. A target market is:

A) The total number of products a business sells.
B) A specific group of consumers a business aims to reach with its products.
C) A group of competitors in the market.
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) Political, Economic, Social, Technological, Environmental, and Legal factors.
D) Product, Price, Place, Promotion, People, Process, and Physical evidence.

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

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

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

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

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

A) By ignoring customer complaints.
B) By only focusing on profits.
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) Market share
C) Age
D) Customer satisfaction

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

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

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

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

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

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

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

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

12. Why is market research important for product development?

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

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

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

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