Lesson 2.2.1-2

2.2.1-2 Primary & Secondary Research Quiz: NCFE Business & Enterprise, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Market research gathers information on customers and competitors so decisions rest on evidence. This lesson compares primary research, collected first-hand through surveys, interviews, focus groups and observation, with secondary research drawn from existing sources, and weighs cost, speed, relevance and depth for each method.

Key points

  • Market research looks outwards at customers and rivals, so promotion, pricing and production decisions are not guesses.
  • Primary research is collected first-hand by the business for its own question; secondary research was gathered by someone else.
  • Questionnaires reach many people cheaply and quickly, but give short answers rather than rich detail.
  • Observation records what customers really do, though it cannot explain the reasons behind their behaviour.
  • Focus groups and interviews give in-depth opinions but take time and use samples too small for reliable numbers.
  • Primary research is current and exactly fitted to the question, but costs more and takes longer.
  • Secondary sources such as trade magazines, government statistics and rivals' websites are cheap but may be out of date.

Key terms

Market research
Collecting information about customers, competitors and trends to support business decisions.
Primary research
New data gathered first-hand by a business to answer its own question.
Secondary research
Existing data collected by someone else, such as published statistics or trade magazines.
Questionnaire
A set of fixed questions given to many people to gather answers cheaply and quickly.
Focus group
A small guided discussion used to explore customers' opinions and attitudes in depth.
Observation
Watching how customers behave to record what they really do rather than what they say.

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The 20 questions

  1. What is the primary definition of market research?

    • Managing staff payroll
    • Auditing annual accounts
    • Gathering customer data
    • Paying corporation tax

  2. Which task is an example of primary market research?

    • Reading industry reports
    • Studying rival websites
    • Downloading census data
    • Running customer surveys

  3. A firm uses data that someone else has already collected. What is this called?

    • Qualitative research
    • Primary research
    • Quantitative research
    • Secondary research

  4. What is the main advantage of using questionnaires for research?

    • Guaranteed response rates
    • Reaching many quickly
    • Zero question bias
    • Providing deep insights

  5. What is the main benefit of using observation as a research method?

    • Being extremely cheap
    • Capturing real behaviour
    • Requiring no planning
    • Explaining consumer motives

  6. Why would a business run a focus group?

    • Measuring market share
    • Testing pricing limits
    • Exploring deep opinions
    • Calculating exact sales

  7. What is a major drawback of face-to-face research interviews?

    • Low data accuracy
    • Excessive digital costs
    • Lack of detail
    • High time consumption

  8. What is the main advantage of choosing primary research?

    • It takes no time
    • Completed by rivals
    • It is always free
    • Data fits exact needs

  9. Which of these is a major drawback of primary research?

    • High cost and time
    • Collected by competitors
    • Always completely outdated
    • Zero relevance to firm

  10. What is a key disadvantage of relying solely on secondary research?

    • Collected by yourself
    • May be outdated
    • Takes too long
    • It is too tailored

  11. What is the primary purpose of conducting market research?

    • Designing factory layouts
    • Calculating corporation tax
    • Setting company wages
    • Understanding customer needs

  12. How is primary research defined compared to secondary research?

    • Published in journals
    • Sourced from textbooks
    • Written by governments
    • Gathered first-hand

  13. Which of these is an example of secondary data?

    • Your own focus group
    • Direct observation logs
    • Trade magazine statistics
    • New customer survey

  14. Which research method is best for surveying 500 customers cheaply?

    • Detailed observation
    • Physical focus group
    • Face-to-face interview
    • Online questionnaire

  15. Why might a business use observation instead of surveys?

    • It costs no money
    • It takes zero time
    • Customers prefer it
    • Records true behaviour

  16. What is the main benefit of holding a focus group?

    • Exact numerical market share
    • Detailed qualitative opinions
    • Low cost mass data
    • Instant nationwide sales

  17. Why pay for a bespoke survey instead of using published data?

    • Faster to complete
    • Answers exact questions
    • Always completely free
    • Broader global coverage

  18. What is a primary limitation of using secondary market data?

    • Aimed at different purpose
    • Impossible to find online
    • Too expensive to buy
    • Always completely outdated

  19. What do official government statistics help a new gym owner determine?

    • Specific equipment faults
    • Local demographic profile
    • Competitor daily pricing
    • Individual fitness goals

  20. Why study rival business menus and online reviews?

    • Reduces staff turnover
    • Lowers supplier costs
    • Spots market gaps
    • Guarantees patent protection

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