Analyse why primary market research could be more useful to a business than secondary market research.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

1. [8] Level 4: Good analysis of why primary research could be more useful to a business than secondary research. (7-8 marks)
2. Level 3: Some analysis of why primary research could be more useful to a business than secondary research. (5-6 marks)
3. Level 2: Some application of why primary research could be more useful to a business than secondary research. (3-4 marks)
4. Level 1: Understanding of primary research. (1-2 marks)
5. Level 0: No creditable content (0 marks)
6. Answers may include:
7. It may well depend on the type of business and its requirement.
8. Definitions may well be given of both types of market research.
9. Primary research and its advantages will be described.
10. Advantages/disadvantages of primary market research:
11. ∞ Up-to-date information.
12. ∞ Relevant information – collected specifically for a business.
13. ∞ Examples such as evidence for pricing policy, extent and type of market/ customer demand.
14. ∞ A business has a higher level of control over how the information is collected.
15. ∞ Information can be kept hidden from competitors.
16. Advantages/disadvantages of secondary market research:
17. ∞ Information readily available.
18. ∞ Information relatively inexpensive.
19. ∞ Can be substantial information available.
20. ∞ Can be out-of-date information.
21. ∞ Information can be misleading.
22. ∞ Might not be specific to the business' needs.
23. [12] Level 4: Effective evaluation of the advantages and disadvantages of using focus groups to collect market information on a new product. (9-12 marks)
24. Level 3: Limited evaluation of the advantages and disadvantages of using focus groups to collect market information on a new product. (7-8 marks)
25. Level 2: Analysis and some application of the advantages and disadvantages of focus groups to collect market information. (3-6 marks)
26. Level 1: Understanding of focus groups. (1-2 marks)
27. Level 0: No creditable content (0 marks)
28. Answers may include:
29. Define focus groups – a group of people asked about their views on a product.
30. In this context, a new product, views gained on, for example, its price in relation to competition; its promotion/packaging; how it performs/might perform; pros/cons.
31. Advantages of focus groups:
32. ∞ Information considered to be more accurate than consumer surveys (interviews and questionnaires).
33. ∞ The discussion allows perceptions and opinions to be recorded.
34. ∞ More cost-effective than individual interviews.
35. ∞ Offer the opportunity to seek clarification of views.
36. ∞ Can provide ideas for improvement of a product.
37. ∞ Provide information about the reaction of consumers to design and message of the product.
38. ∞ Researcher can interact and stimulate the group.
39. ∞ Researcher can get information from non-verbal responses – facial expressions or body language.
40. Disadvantages of focus groups:
41. ∞ small groups may not be a good representation of the market population.
42. ∞ group discussions can be difficult to steer and control – time can be lost through non-relevant discussion.
43. ∞ respondents can feel peer pressure to give similar answers to questions.
44. ∞ the qualitative information produced can be difficult to analyse and present.
45. ∞ moderator bias may impact upon the outcome of a focus group.
46. ∞ Can be expensive to bring all participants together.
47. Focus groups likely to be used in conjunction with other qualitative / quantitative methods but clearly do offer opportunities to gain important market information on a new product. However, there are limitations and potential disadvantages.