1. MARKETING RESEARCH
Q1: Why is marketing research is important to business?
Ans: Marketing research is a development, interpretation, and
communication of decision- oriented information to be used in
all phases of marketing process. It is a systematic design,
collection, analysis and reporting of data relevant to a specific
marketing situation facing an organization. Every organization
needs a research. It is important because it plays a role in all
phases of business. It recognizes the researcher’s responsibility
to develop information, which includes defining problems,
gathering and analyzing data, interpreting results, and
presenting the information in such a way that it is useful to
managers.
Q2: Explain the difference between descriptive research,
predictive research and explanatory research.
Ans: Explanatory Research:
Marketing research to gather preliminary
information that will help define problems and suggest
hypothesis.

2. Descriptive Research:
Marketing research to better describe marketing
problems, situations or markets such as the market potential
for a product for the demographics and attitudes of consumers.
Predictive Research:
Marketing research to predict what is likely to happen
in the future. It tests hypothesis about cause and effect
relationship.
Q3: State five areas that marketing research could concentrate
on.
Ans: Five areas on which marketing research can concentrate
on are The Market, Competition, Promotion, The Product,
Distributing the Product, Pricing the Product.
Q4: What is meant by Desk research?
Ans: Desk research involves the use of secondary data. This is
information or available data, already gathered for some other
purpose. For example, the data in a study by the food
marketing institute, an industry trade group, that reported the
difference in food preferences and shopping behavior of men
and women are secondary data. It may include marketing
research reports sales figures, annual reports and accounts and
stock movements.
Q5:What is meant by field research?
Ans: Field research involves collecting primary data. Primary
data are new data gathered specifically for the project at hand.
When researchers at a mid western super market chain

3. watched 1600 shoppers move through the stores, and
discovered that 80% of the traffic was in 20% of the store (the
produce, dairy and meat sections) they were collecting primary
data.
Q6: Why might field research be a benefit to a business?
Ans: It is benefited to a business because it can produce results
quickly. The test can be done secretly, without competitor’s
knowledge or interference. The cost may be lower then
traditional market. The main advantage of field research is the
firm which collects it initially will be the only one with access to
it. It will provide the latest information about trend of market
which will be more useful for any organization. It is usual to
carry out a survey of a sample of people who are thought to be
representative of the total market. So more benefits can get
through this method of research.
Q7: In what circumstances might; postal surveys;
questionnaires; observation be useful?
Ans: It can be useful when the people are not directly
interacted with any organization. These three methods can give
accurate and direct information when there is no suitable
condition for other methods. Postal surveys can be useful when
you have to cover wide geographical area with less expense.
And questionnaires can be useful to know balanced between
closed and open questions. And to know the clarity of question,
the use of leading questions.
Q8: What is meant by sampling?

4. Ans: The fundamental idea about sampling is that a small
number of items – a sample - if properly selected from a larger
number of items – a universe- will have the same
characteristics and in about the same proportion as the larger
number. Obtaining reliable data with this method requires the
right technique in selecting the sample. Business still, needs to
collect enough primary data to have a clear idea of the views of
consumers. This can be done by sampling.
Q9: why might a stratified random sampling be preferred to a
random sample?
Ans: Stratified random sampling may be preferred because it
is more representative. It ensures greater accuracy. Greater
geographical concentration reduces the time and expenses.
When the original population is badly skewed, this method is
appropriate one. For non-homogeneous population it may
yield more reliable results. So stratified random sampling is
more preferred on a random sampling.
Q10: Briefly explain how a business might obtain a quota
sample.
Ans: Quota Sampling
Quota sampling is taken as a special type of purposive
sampling. In this method, investigator is assigned a fixed
number of quota of persons from within certain well-defined
class, e.g. sex, occupation, age, income, etc. Within the quotas,
the selection of the sample items depends on personal
judgment. The investigators are free to select within the quota.
They usually select those persons who are well-familiar to them
or they agree to their opinion. It is quick method of
investigation and is widely used in public opinion polls.

5. Q11: Suggest 3 benefits of marketing research to a business.
Ans:
1. An aid to decision making perhaps the main benefit of
marketing research is that it allows a business to make
more informed decisions.
2. The size of markets as markets become ever larger and as
new markets open up, marketing research becomes ever
more important. In international and global markets it is
impossible for businesses to operate without precise
information about the needs of their customers. This is
because of the huge number of customers and the large
differences in their tastes.
3. Public relation carrying out market research may be
good for the image of a business. Consumers may feel that
their views are being considered. They may also think
that the business is concerned that its customers are
happy. This may lead to cooperate brand loyalty.
Q 12: Why might sampling result in statistical bias?
Ans: Statistical Bias
Bias means a systematic component of error due to which
a statistical result is not of its true representation.
Sampling result is Statistical Bias due to
Deliberate selection
Deliberate selection is based upon personal judgment and
person judgment introduces Bias.
Substitution
Sometimes it becomes difficult to make contact with certain
members or information is not obtained from certain units,
then we substitute members or units that are conveniently
available. Such substitutions introduce bias.
Incomplete coverage

6. Bias also introduces when we fail to cover the whole of the
selected samples.
Haphazard Selection
Haphazard human selection can also introduce bias as every
human being has a tendency away from random in his choices.
Inadequate Interviewing
Bias also enters when the interviewing is hasty, incomplete and
misleading.