Market Research Fundamentals

Primary data is data that has already been collected for another purpose.

Market segmentation involves dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics.

Focus groups are a type of quantitative research method used to gather statistical data.

A survey's response rate has no impact on the reliability of the study's findings.

Trend analysis involves examining historical data to identify patterns and make predictions about future events.

Market research is only relevant for large corporations, not small businesses.

Brand loyalty cannot be measured through market research techniques.

A test market involves launching a product in a limited area to assess its potential before a full-scale rollout.

The Net Promoter Score (NPS) measures customer satisfaction through only one question: 'How easy was your checkout process?'

Ethnographic research involves observing and interacting with subjects in their real-life environment.

The margin of error only applies to qualitative data collected in focus groups.

Data mining is the process of discovering patterns and insights from large datasets.

Mystery shopping involves recruiting participants to act as auditors of employee work quality.

A perceptual map displays consumer information geographically.

Predictive analytics involves using historical data and statistical techniques to forecast future outcomes.

The purpose of A/B testing is to compare two versions of the same restaurant for customer satisfaction.

A longitudinal study involves collecting data from the same subjects at multiple points in time.

The key difference between exploratory and conclusive research is that the conclusive research helps to gather preliminary information.

Correlation implies causation, indicating that if two variables are correlated, one variable causes the other.

A sampling error decreases with the sample size.