Market Research (Edexcel IGCSE Business): Exam Questions

[case-study] Posh Pets Spain (PPS) is a pet hotel in the village of Alhaurin el Grande, Spain. It is run by Rachel Goutorbe, an animal enthusiast, and her team of four pet specialists. *PPS *offers overnight accommodation with room for seven dogs or cats, a pet grooming service and a shop selling pet products, such as dog coats and dog leads. Pet grooming involves washing, cutting and combing a pet’s coat.

Outline one method of primary market research that *PPS *could use to gain feedback on its services.

Which one of the following is an example of secondary research?

Select one answer.

Define the term qualitative data.

[case-study] The LEGO Group is a privately-owned business in Denmark that manufactures toys, games and art materials for children of all ages. LEGO continually reviews its products to meet the demands of its customers and is currently considering the development of a new range of toys.

State one purpose of market research for LEGO when developing new toys.

Which one of the following is an example of primary market research?

Select one answer.

Which one of the following is an advantage of primary market research?

Select one answer.

Which one of the following is a method of primary market research?

Select one answer.

Define the term primary research.

[case-study] GreenLeaf Garden Centre (GGC) is a small garden centre located in the town of Harrogate, North Yorkshire. It is owned by Tom Ellison, a keen horticulturist, and employs three part-time staff. GGC sells a range of indoor and outdoor plants, gardening tools and seasonal gifts. It also offers a landscaping consultation service for domestic customers looking to redesign their gardens.

Outline one method of secondary market research that GGC could use to understand current gardening trends.

[case-study] As We Grow (AWG) is a clothing business in Iceland that uses natural materials to produce environmentally friendly products. AWG's increasing product range includes jumpers, dresses, shirts and baby clothes. The business is considering expanding its product range further and wants to find out about current trends in the clothing market.

State one method of secondary research AWG could use to find out about trends in the clothing market.

[case-study] Posh Pets Spain (PPS) is a pet hotel in the village of Alhaurin el Grande, Spain. It is run by Rachel Goutorbe, an animal enthusiast, and her team of four pet specialists. *PPS *offers overnight accommodation with room for seven dogs or cats, a pet grooming service and a shop selling pet products, such as dog coats and dog leads. Pet grooming involves washing, cutting and combing a pet’s coat.

*PPS *wants information on its customers’ spending patterns.

Analyse the importance of reliable market research to obtain this information.

[case-study] *Saha *is a small business in Türkiye (formerly known as Turkey) that opened in 2020 with 15 employees. It designs and manufactures robots which are used in hospitals, hotels and restaurants. In hospitals its robots are used to move medical supplies between departments. In hotels and restaurants, the robots are used to welcome customers as they arrive and deliver food and drinks to hotel rooms and restaurant tables. *Saha *provides a seven day a week customer service for all businesses buying its robots.

Many new businesses are entering the global robot market and are competing for market share. Competitors in Türkiye include *NIO, Zoox *and Vention.

*Saha *has ambitious growth plans and has started to design robots that will be used in the home to help people with cleaning, shopping, security and entertainment. It aims to become a multinational business within five years to manufacture robots in all continents of the world.

Analyse two methods of primary research that could be of benefit to *Saha *when developing its products.

Explain one advantage of using focus groups when carrying out market research.

Explain one way a business could use market research information.

[case-study] Most people recognise Heinz for the phrase ‘57 varieties’ even though it now produces many more than the original 57 varieties. H J Heinz, the founder of the Heinz business, believed the phrase sounded lucky.

Kraft Heinz is a world-wide producer of food products. It was formed from the merger of Kraft Foods and Heinz in 2015. This created the third largest food and drinks business in the USA and the fifth largest food and drinks business in the world.

Kraft Heinz has over 24 different brands, including Greenseas in Australia and Nutri+Plus in New Zealand. America has the largest number of brands from Maxwell House to Cool Whip. Kraft Heinz produces many different products including tomato sauce, ‘Mac&Cheese’, pasta and its famous baked beans that are used and eaten by many people.

Kraft Heinz uses many methods to advertise its products. These include posters, billboards and leaflets in supermarkets.

Kraft Heinz is introducing a new variety of tomato sauce and has made changes to the recipe for its Mac&Cheese.

Analyse the benefits to Kraft Heinz of using social media to collect market research data.

Explain one disadvantage of using questionnaires as a method of market research.

Explain one benefit to a business of using secondary market research.

Explain one reason why a business would use primary research.

[case-study] *TUI *is a holiday business that has over 100 years of experience. It offers customers a variety of holidays including staying in hotels, and river and ocean-going cruises. There are many extras that it offers to holiday makers including: car hire, extensions to the holiday and arranging day trips at all its holiday destinations.

The business is well known and flies its customers to over 180 destinations around the world, including Greece, Turkey and Spain. It has 1,600 travel agencies and 27 million customers. Holidays can be booked by visiting a travel agency or online.

*TUI *has holidays to meet the needs of all its customers: families, children, couples and those with disabilities.

*TUI *constantly checks for customer feedback and comments on its holidays, including hotel stays and cruises. It is considering the following two options to gain the most up-to-date views:

• Option 1: using the internet
• Option 2: asking customers to complete a questionnaire.

Justify which one of these two options *TUI *should use.

[case-study] The Better Toy Store (TBTS) is a children’s toy shop. *TBTS *has three shops in Singapore. Two of the shops are located in busy shopping malls, and the third is located at the Jewel Changi Airport. *TBTS *has a website for customers looking to buy toys online.

*TBTS *selects toys to sell that are excellent for play, value, design and quality. All *TBTS *toys are environmentally friendly.

*TBTS *is planning to introduce a new range of toys for four-year-old children. It will need to carry out some research from its customers, including children and parents, to find out what they want.

*TBTS *is considering two options:

• Option 1: hand out questionnaires to customers that visit the shops
• Option 2: hold focus group meetings with parents and their children.

Justify which one of these two options *TBTS *should choose.

[case-study] Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm shop and offers accommodation with breakfast. It was set up by Amanda and Ken Edwards in West Wales, UK.

*NOF *supports farmers by selling local organic produce in its farm shop. The produce from the farm shop is served to the visitors staying overnight at the farm.

*NOF *is committed to being environmentally friendly by recycling, avoiding the use of packaging and reducing the use of electricity.

*NOF *is looking to increase the number of visitors to the farm. It will need to carry out some research as to what potential visitors will want.

To do this *NOF *is considering two options:

• Option 1: handing out questionnaires at local retailers
• Option 2: using the internet to research other farms.

Justify which one of these two options *NOF *should choose.

[case-study] *Huawei *is a leading global provider of information and communications technology, infrastructure and smart devices. In March 2011, over one million of its C8500 smartphones were sold in China following its launch.

It now manufactures a wide variety of different products including *Huawei *smartphones, watches and tablets. In recent years *Huawei *has won many awards. In 2018 it was named the 68th most valuable brand by Best Global Brands. In 2019 it introduced a smartphone which had new photographic technology.

*Huawei *has to maintain the quality of its products to be able to compete with other businesses, as well as generating profit. It must also ensure that the products it produces meet the needs of its customers as well as introducing new and different forms of technology. On its website it states ‘*Huawei *are committed to bringing digital to every person, home and organisation for a fully connected, intelligent world’.

Evaluate why *Huawei *would carry out market research before designing a new product. You should use the information provided as well as your own knowledge of business.

[case-study] In 1985 *Emirates *started its airline business with just two aircraft. It is now a well‑known airline with over 265 aircraft flying to over 180 destinations around the world.

*Emirates *has won many awards for service and reliability. Until 2016 passengers rated *Emirates *the leading airline to travel with. However, in 2017 its rating dropped from first to fourth.

*Emirates *wants to improve its popularity among passengers and become the leading airline again. It needs to carry out market research. It is considering two options:

• Option 1: questionnaires
• Option 2: focus groups.

Justify which one of these two options *Emirates *should use.