How does a business find out what its customers want?
The purpose of market research, the difference between primary and secondary research and between quantitative and qualitative data, the main methods used, and the importance of reliable data.
A focused answer to AQA GCSE Business 3.5.1, covering the purpose of market research, primary and secondary research, quantitative and qualitative data, the main methods, and the importance of reliable data.
Reviewed by: AI editorial process; not yet individually human-reviewed
Have a quick question? Jump to the Q&A page
Jump to a section
What this dot point is asking
AQA wants you to explain why businesses do market research, distinguish primary from secondary research and quantitative from qualitative data, describe the main methods, and explain why reliable data matters.
The purpose of market research
It helps a business understand customer needs, spot gaps in the market, set prices, test new products and reduce the risk of decisions failing. Research is most valuable before a big, risky decision, such as launching a product or entering a new market, because it replaces guesswork with evidence. The link AQA wants you to make is from research to the rest of marketing: what the research finds shapes the whole marketing mix (the product designed, the price set, the promotion chosen and where it is sold). A firm that skips research risks launching something nobody wants, which is especially dangerous for a small business that cannot absorb a costly failure.
Primary and secondary research
Quantitative and qualitative data
The importance of reliable data
Research is only useful if the data is reliable. Data should be up to date, from a large enough sample, and gathered without bias in the questions. Poor or biased data leads to poor decisions. A sample is the group of people questioned to represent the whole market; too small or unrepresentative a sample, or leading questions, can produce misleading results. Quantitative data is good for spotting trends and measuring how many customers feel a certain way, while qualitative data explains the reasons behind those numbers, so many businesses combine both for a fuller picture.
Try this
Q1. State two methods of primary market research. [2 marks]
- Cue. For example, a survey and a focus group (also interviews and observation).
Q2. Explain one benefit of carrying out market research before launching a product. [2 marks]
- Cue. It reveals what customers want, reducing the risk of the product failing.
Exam-style practice questions
Practice questions written in the style of AQA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
AQA 20193 marksExplain one disadvantage to a small business of using primary market research. (Paper 2, Section B)Show worked answer →
A 3-mark explain question: one disadvantage developed through a chain.
Primary research is collected first-hand through surveys, interviews or focus groups, which takes time and money to design, carry out and analyse. For a small business with limited funds and staff, this cost can be significant, so it may only be able to survey a small sample, which makes the results less reliable. The consequence is that decisions based on weak data may still be risky.
Markers reward one clear disadvantage (cost, time, small sample, risk of bias) developed with a consequence for the small firm. A bare disadvantage caps at one mark.
AQA 20229 marksA new business is planning to launch a product. Analyse why market research is important to the business before the launch. (Paper 2, Section C)Show worked answer →
A 9-mark analyse question rewarding developed chains applied to a start-up.
Chain one, reducing risk: research reveals whether customers actually want the product, at what price, so the business avoids the costly mistake of launching something that does not sell. For a new firm with little cash, avoiding a failed launch can be the difference between survival and collapse.
Chain two, shaping the marketing mix: research informs the product features, price, promotion and place, so the launch is aimed at the right customers in the right way, raising the chance of strong early sales. Develop each chain to a consequence. A strong answer notes the value depends on the data being reliable and from a large enough sample. Markers reward developed application to the new business, not a list of research methods.
Related dot points
- The meaning and purpose of market segmentation, the main ways a market can be segmented (age, gender, income, location, lifestyle), the idea of a target market, and the benefits of segmentation to a business.
A focused answer to AQA GCSE Business 3.5.2, covering the meaning and purpose of market segmentation, the main bases for segmenting a market, the target market, and the benefits of segmentation.
- Two elements of the marketing mix (the four Ps): product, including the product life cycle and the Boston Matrix, and price, including the main pricing strategies and the factors that affect price.
A focused answer to AQA GCSE Business 3.5.3, covering the product element of the marketing mix (the product life cycle and Boston Matrix) and the price element (pricing strategies and the factors affecting price).
- Two elements of the marketing mix (the four Ps): promotion, including advertising, sales promotion and digital methods, and place, including the main channels of distribution, and how the four Ps work together as an integrated mix.
A focused answer to AQA GCSE Business 3.5.3, covering the promotion element of the marketing mix (advertising, sales promotion and digital methods) and the place element (channels of distribution), and how the four Ps work together.
- The meaning and importance of good customer service, the methods used to provide it (including after-sales service), the benefits of customer loyalty, and the consequences of poor customer service.
A focused answer to AQA GCSE Business 3.3.4, covering the meaning and importance of good customer service, the methods used to provide it, the benefits of customer loyalty, and the consequences of poor service.
- The factors that influence where a business locates (proximity to market, labour, materials and competitors, and cost), the purpose and main contents of a business plan, and how planning supports a new business.
A focused answer to AQA GCSE Business 3.1.5 and 3.1.6, covering the factors that influence business location, the purpose of a business plan, and the main sections a plan should contain.
Sources & how we know this
- AQA GCSE Business (8132) specification — AQA (2017)