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Explain the term market research - Leaving Cert Business - Question B - 2019
Question B
Explain the term market research. Explain, using an example in each case, the difference between primary research and secondary research. Outline three factors Joa... show full transcript
Worked Solution & Example Answer:Explain the term market research - Leaving Cert Business - Question B - 2019
Step 1
Explain the term market research.
Answer
Market research is the systematic process of gathering, recording, and analyzing data about consumers, competitors, and the overall market. The primary aim of market research is to gain a better understanding of the needs and preferences of customers. By conducting market research, businesses can make informed decisions regarding their products, services, and overall strategy.
Step 2
Explain, using an example in each case, the difference between primary research and secondary research.
Answer
Primary research involves collecting new data directly from sources. This is often done through surveys, interviews, or observational studies. For instance, Joanie could conduct a survey to gather customer feedback on their favorite ice cream flavors, gaining first-hand insights.
In contrast, secondary research entails analyzing existing data that has already been collected. This could include reviewing industry reports or market analyses. For example, Joanie might explore existing market reports on ice cream trends to understand competitive pricing and customer demographics.
Step 3
Outline three factors Joanie should consider when deciding on the price of her ice cream.
Answer
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Cost of Production / Research & Development: Joanie needs to account for expenses associated with sourcing ingredients, production processes, and any research related to product development.
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Target Market: It is essential for Joanie to identify her target customers (e.g., families with children, health-conscious individuals) and ensure that the pricing aligns with their willingness to pay.
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Competition: Joanie should research her competitors' pricing strategies to either position herself competitively or differentiate based on unique selling points, such as premium ingredients or innovative flavors.