EDEXCEL GCSE BUSINESS · PAPER 1
Exam Practice: Market Research
Market research · Spotting a business opportunity · Lesson 2 of 5 · 12 marks · 25 minutes
Name Date
Answer all questions. Show your working in calculations.
Question 1 DEFINE [1 mark]
Define the term 'secondary market research'.
Question 2 STATE [1 mark]
State one method of primary market research.
Question 3 CALCULATE [2 marks]
A gym surveyed 400 people. 120 said they would join if the gym opened 24 hours a day. Calculate the percentage of people who said they would join. You are advised to show your working.
Question 4 OUTLINE [2 marks]
Outline one benefit to a business of using social media for market research.
Question 5 EXPLAIN [3 marks]
Explain one disadvantage to a business of using primary market research.
Question 6 EXPLAIN [3 marks]
Explain one reason why the size of a sample affects the reliability of market research.
Answers
Check your answer only once you have written one.
Question 1 [1 mark]
Research using information that already exists, which has been collected by someone else.
▸ Using existing data / data collected by others 1 mark
Question 2 [1 mark]
A focus group.
▸ Any one of: survey / questionnaire; focus group; observation; interview; product testing 1 mark
Question 3 [2 marks]
(120 ÷ 400) × 100 = 30%
▸ Correct method: (120 ÷ 400) × 100 1 mark
▸ Correct answer: 30% 1 mark (award 2 marks for the correct answer with no working)
Question 4 [2 marks]
It is cheap (1), because the business can run polls and read customers' comments for free instead of paying a research company (1).
▸ A benefit identified, e.g. cheap / quick / reaches many customers / real-time feedback 1 mark
▸ Developed: why this helps the business 1 mark
Question 5 [3 marks]
It is expensive (1). The business must pay for staff time or a research company to design, carry out and analyse surveys or focus groups (1). This increases the business's costs, which a small business with limited finance may not be able to afford (1).
▸ A disadvantage identified, e.g. expensive / time-consuming / risk of bias with a small sample 1 mark
▸ First linked point of explanation 1 mark
▸ Second linked point of explanation 1 mark
Question 6 [3 marks]
A small sample may not represent the whole market (1). The views of a few people could be very different from those of most customers (1). This means the business could make the wrong decision, such as launching a product that few customers actually want (1).
▸ A reason identified, e.g. small samples are less representative 1 mark
▸ First linked point of explanation 1 mark
▸ Second linked point of explanation 1 mark