How do businesses find out what their customers want?
Market research: primary and secondary research, qualitative and quantitative data, methods of research, the use of sampling, the reliability of data, and how research informs marketing decisions.
A focused answer to OCR GCSE Business J204 topic 2.2, covering primary and secondary research, qualitative and quantitative data, research methods, sampling and reliability, and how research informs decisions.
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What this topic is asking
OCR J204 topic 2.2 wants you to distinguish primary from secondary research and qualitative from quantitative data, know the main research methods, understand sampling and why data may be unreliable, and explain how research informs marketing decisions. The exam often asks you to recommend or evaluate a research method for a particular business.
Primary and secondary research
Primary research is relevant and up to date but costly and slow. Secondary research is cheaper and quicker but may be out of date, less specific, or available to rivals too. Many businesses use both: secondary first to get a picture cheaply, then primary to fill the gaps.
Qualitative and quantitative data
A questionnaire with tick-box answers produces quantitative data; a focus group discussing how a product makes people feel produces qualitative data. OCR likes you to recognise that the two answer different questions: "how many?" versus "why?".
Sampling
The bigger and more representative the sample, the more reliable the results, but the more it costs. A small or biased sample (for example surveying only friends, or only people in one town) can give misleading results that do not reflect the real market. Choosing a sensible sample size and mix is a balance between cost and reliability.
The reliability of data
Research is only useful if it is reliable. Data can mislead if the sample is too small or unrepresentative, if questions are leading (pushing people towards an answer), if secondary data is out of date, or if respondents do not answer honestly. A business should treat research as a guide that reduces uncertainty, not as a guarantee, and check findings against more than one source.
How research informs decisions
Market research feeds straight into marketing decisions: it shapes the product (features customers want), the price (what they will pay), the place (where they shop) and the promotion (which messages and media reach them). It also estimates likely demand, helping the business forecast sales and decide whether a new product is worth launching, which reduces the risk of an expensive failure.
Try this
Q1. State one example of secondary research. [1 mark]
- Cue. Government statistics, a published market report, or the firm's own past sales records.
Q2. In a sample of customers, prefer a new flavour. Calculate the percentage who prefer it. [2 marks]
- Cue. .
Exam-style practice questions
Practice questions written in the style of OCR exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
OCR J204/01 20182 marksState the difference between primary and secondary market research. (Paper 1, Section A)Show worked answer →
A 2-mark AO1 question. Primary research is the gathering of new, first-hand data for a specific purpose (for example a survey or focus group run by the business), while secondary research uses data that already exists and was collected by someone else (for example government statistics or competitors' published reports). One mark for the idea that primary is new and first-hand, one for the idea that secondary is existing and second-hand. Examiners reward a clear contrast.
OCR J204/01 20226 marksA small bakery is launching a new product and is deciding between using a customer questionnaire and existing industry reports. Analyse one benefit and one drawback of using primary research for this decision. (Paper 1, Section B)Show worked answer →
A 6-mark "analyse" needing a benefit and a drawback developed for the bakery. Benefit: a questionnaire gives data specific to the bakery's own customers and new product, so the findings are directly relevant, which means the bakery can design the product around what its real customers say they want. Drawback: primary research is time-consuming and costly to design, run and analyse, and a small sample may not represent all customers, so the bakery risks basing the launch on misleading data and spending money it can ill afford. Markers reward one developed benefit and one developed drawback, each chained and applied to the bakery, not a generic list.
Related dot points
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A focused answer to OCR GCSE Business J204 topic 2.3, covering the bases of segmentation, the benefits of targeting segments, market mapping, and how segmentation shapes the marketing mix.
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A focused answer to OCR GCSE Business J204 topic 2.4 on product and price, covering the product life cycle and extension strategies, the Boston Matrix, and the main pricing strategies.
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A focused answer to OCR GCSE Business J204 topic 2.4 on promotion and place, covering methods of promotion, distribution channels, e-commerce, and how the four elements of the marketing mix work together.
- Business planning: the purpose and content of a business plan, the benefits and drawbacks of planning, and how a plan supports raising finance and reducing risk.
A focused answer to OCR GCSE Business J204 topic 1.2, covering the purpose and content of a business plan, its benefits and drawbacks, and how it helps a business raise finance and reduce risk.
Sources & how we know this
- OCR GCSE Business (J204) specification — OCR (2017)