Business Studies AS Level: Chap. - 15: Revision Questions with Correct Answers 2024.

State THREE ways in which a sports-shoe retailer could use market research. - Correct Answers 1. To reduce the risks associated with new product launches. 2. To predict future demand changes. 3. To explain patterns in sales of existing products & market trends. Distinguish between primary and secondary market research data. - Correct Answers 1. Primary market research data: The collection of first-hand data that is directly related to a firm's needs. 2. Secondary market research data: The collection of data from second-hand sources (ex: the internet & books) Why is it important to use secondary data, when available, before investing in expensive primary market research? - Correct Answers Secondary data research should be undertaken first only if data exists, because of the benefits that it offers over primary methods. However, they may not have it if the planned product is so different/unique that no second-hand data exists. List TWO reasons why secondary data might prove to be inaccurate for a firm's specific purposes. - Correct Answers 1. May be out-of-date as it may not be updated frequently 2. Data may not be available for completely new products development. What advantages does primary research data have over secondary research? - Correct Answers 1. Up-to-date and more useful than secondary data. 2. Relevant - collected for specific purpose - directly answers the questions the business wants to have. 3. Confidential - Other businesses are not allowed/do not have access to the data. Outline TWO reasons why primary research data might be inaccurate. - Correct Answers 1. Primary data might prove to be inaccurate because of the need to use sampling. 2. The risks that the samples used may not be fully represented of the population. Explain why it is important to consider the type of of market that a new product is aimed at before starting primary research, - Correct Answers ...? Why is sampling so frequently used in consumer surveys? - Correct Answers In order to undertake Primary research data, a sample of the potential market will need to be chosen. The larger, the better the results will be. A sample of 100+ will produce results that will reflect much more of the total preferences of the whole survey population. Giving a lower chance of distorting the results. Explain the difference between a quota and a stratified sample. - Correct Answers 1. Quota sample: When the population has been stratified & the interviewer selects an appropriate no. of respondents from each stratum. 2. Stratified sample: This is a sample from a specific sub-group or a segment of the population & uses random sampling to select an appropriate no. from each stratum. Outline the advantages and disadvantages of using a small sample. - Correct Answers 1. Advantages: a) Less time consuming - takes time to organize for more results of samples. b) Low cost - The bigger the size...the more expensive 2. Disadvantages: a) Results will not reflect as accurately as bigger sample sizes. b) Higher risk of disorienting the results unlike larger samples. Explain THREE features of effective questionnaire design. - Correct Answers xD What are the differences between qualitative and quantitative research? - Correct Answers 1. Qualitative research: Research into the in-depth motivations behind consumer buying behaviors/options 2. Quantitative research: Research that leads to numerical results that can be statistically analyzed. :* - Correct Answers ...? ... - Correct Answers 1. Used to visually present frequency data when the range of data has been broken into class ranges.