How does a business find out what its customers want?
Market research: primary and secondary research, quantitative and qualitative data, methods of collecting data, sampling, the use and reliability of research, and market segmentation and targeting.
A focused answer to the WJEC GCSE Business content on market research, covering primary and secondary research, quantitative and qualitative data, methods of collection, sampling, reliability, and market segmentation and targeting.
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What this dot point is asking
WJEC wants you to know how a business finds out what customers want through market research. You need the difference between primary and secondary research, between quantitative and qualitative data, the main methods of collecting data, the idea of sampling, the reliability of research, and how a business uses market segmentation to split the market and target the right customers. Research is the tool that makes the rest of marketing possible.
Primary and secondary research
Quantitative and qualitative data
Quantitative data is good for spotting trends and patterns; qualitative data is good for understanding why customers behave as they do. A business often uses both together.
Sampling and reliability
A business cannot ask every possible customer, so it uses a sample.
Market segmentation and targeting
Segmentation lets a business target the group its product best suits, and design the marketing mix to appeal to that group.
Why this matters
Market research underpins every other marketing decision: it tells a business which market to aim at (mass or niche), how to build the marketing mix, and whether a new product will sell. It links to enterprise (research turns a gamble into a calculated risk) and to aims (good research helps hit sales and growth targets). Exam questions often ask you to choose a research method or analyse the benefits, where the cost, speed, reliability and fit of the method are the deciding points.
Try this
Q1. State one method of primary research and one method of secondary research. [2 marks]
- Cue. Primary: a questionnaire (or interview, survey, focus group, observation). Secondary: government statistics (or market reports, competitors' websites).
Q2. Explain why a business uses a sample in market research. [2 marks]
- Cue. It cannot afford to ask every possible customer, so it asks a smaller group chosen to represent the whole market, saving time and money while still giving useful results.
Exam-style practice questions
Practice questions written in the style of WJEC exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
WJEC (Unit 1)3 marksExplain the difference between primary and secondary market research.Show worked answer →
A 3-mark AO1 explain question. Reward a clear contrast with development.
Primary research is new, first-hand information collected directly by the business for its own purpose, for example through questionnaires, interviews or observation. It is up to date and specific but costs time and money to gather.
Secondary research uses information that already exists and was collected by someone else, for example government statistics, market reports or competitors' websites. It is cheaper and quicker but may be out of date or not exactly fit the firm's needs. Markers reward the definition of each plus the key contrast.
WJEC (Unit 1)6 marksA new gym wants to research its local market before opening. Analyse the benefits to the gym of carrying out market research.Show worked answer →
A 6-mark AO1, AO2 and AO3 question. Apply the benefits to the gym.
Benefit one: research tells the gym what local people want (such as classes, opening hours or prices), so it can design its offer to match demand and attract members rather than guessing.
Benefit two: it reduces risk, because the gym can find out whether there is enough demand and what rivals charge before spending heavily on equipment and the lease, avoiding an expensive mistake.
Chain and judgement: market research helps the gym make better decisions and lowers the risk of failure, though it costs money and is only as good as the sample used, so it must be done carefully. Markers reward developed, applied benefits plus a balanced comment.
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Sources & how we know this
- WJEC GCSE Business specification (Wales) — WJEC (2025)
- WJEC GCSE Business (Wales) specification (3510) — WJEC (2017)