Edexcel IGCSE Business: Market research and the market (4BS1) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover Topic 4, sections 4.1 Market research and 4.2 The market, in the Pearson Edexcel International GCSE in Business (4BS1) specification, Issue 2, February 2026. Use the study guide and revision notes first if you need them. Course links: the Edexcel IGCSE Business hub, the printable checklist and the free diagnostics. Every business is invented and amounts are in dollars. Give percentages as stated, rounded to 1 decimal place if needed.

Questions

1. A new cafe is about to open. Identify two purposes of market research for the owner. [2]

2. A garden centre uses (i) a questionnaire given to its customers and (ii) a government report on household incomes.

(a) State whether each is primary or secondary research. [2] (b) Explain one advantage of secondary research. [2]

3. Brindle Garden Centre sold 27,600 of plants in a town market worth 184,000 last year. This year the market is worth 208,000 and Brindle sold 31,200.

(a) Calculate Brindle’s market share last year. [2] (b) Calculate Brindle’s market share this year. [2] (c) Analyse what the figures show about Brindle’s performance. [3]

4. Fenwick Gym questioned 500 people outside its own entrance. 125 said they would join a new yoga class, 210 said no and 165 were undecided.

(a) Calculate the percentage who said they would join. [2] (b) Explain why the owner should be cautious about relying on this result. [3]

5. A bakery asked 600 local people what they cannot find nearby. 150 wanted late-night delivery, 90 wanted vegan cakes, 60 wanted gluten-free bread and the rest wanted nothing new.

(a) Calculate the percentage who wanted late-night delivery. [1] (b) Identify the biggest gap in the market and explain how this helps the owner’s decision. [3]

6. Explain one benefit and one limitation of using social media to collect market research data. [4]

7. Average weekly household spending on restaurant meals in Quarnby Vale fell from 520 to 468.

(a) Calculate the percentage change. [2] (b) Recommend one way a local restaurant could respond to this change, giving a reason. [4]

8. Hadleigh Pianos builds each instrument to its owner’s own design and then looks for buyers.

(a) Define product orientation. [1] (b) Explain one risk of Hadleigh’s approach. [2] (c) Explain one advantage of niche marketing for Hadleigh. [2]

9. Ostrava Shoes has sales of 63,000 in a market worth 840,000. The market is not expected to change.

(a) Calculate its market share. [2] (b) Calculate the extra sales needed to reach a 10% share. [2]

10. Zephyr Sportswear sells running clothing. Its owner wants to divide the market into segments.

(a) Identify two bases for segmenting a market. [2] (b) Explain how one of them could help Zephyr. [3]

11. Marlow Cycles is a small business with 30 employees. Last year its sales were 600,000 in a market worth 5.0 million. This year the market is worth 5.2 million and Marlow’s sales are 650,000. A large rival has just opened nearby. The owner can either carry out test marketing of a new electric bike in one shop, or rely on a market report and government reports. Test marketing would cost more and take longer.

(a) Calculate Marlow’s market share in each year. [3] (b) Evaluate which research approach Marlow should use. [9]

Answers

1. Any two of the following, one mark each: to identify and understand customer needs [1]; to identify gaps in the market; to reduce risk; to inform business decisions [1]. Examiner insight: A “state” or “identify” answer gains credit from the purpose itself. Adding a cafe example does not earn more here.

2. (a) (i) Primary, because the business collects it first-hand [1]. (ii) Secondary, because someone else collected it [1]. (b) One advantage, such as lower cost [1], developed: the report already exists, so the garden centre does not pay to design and run its own research [1]. Accept speed with a development. Examiner insight: Advantages gain credit when they are explained. The single word “cheap” is usually too thin for a two-mark “explain”.

3. (a) 27,600 / 184,000 [1] x 100 = 15% [1] (b) 31,200 / 208,000 [1] x 100 = 15% [1] (c) Sales rose by about 13.0% (3,600 on 27,600) [1], but so did the market (24,000 on 184,000) [1], so Brindle only kept its share and did not gain on rivals [1]. Examiner insight: “Analyse” answers tend to gain credit by connecting two figures, here sales growth and market growth, instead of describing one.

4. (a) 125 / 500 [1] x 100 = 25% [1] (b) The sample was taken outside the gym [1], so respondents are mostly people who already exercise and may not represent the wider market [1]. Many (165) were undecided, so the true figure could differ from 25% in either direction [1]. Examiner insight: Reliability points are stronger when tied to the scenario detail, such as where people were questioned.

5. (a) 150 / 600 x 100 = 25% [1] (b) Late-night delivery is the biggest gap (25%, against 15% and 10%) [1]. It shows demand for a service no one nearby provides [1]. The owner can use this to decide where to spend, lowering the risk of launching a product few want [1]. Examiner insight: Using the figures from the data to identify the largest gap is what separates the answer from a general one.

6. Benefit: it is cheap and quick [1], because a poll or comments reach many customers without printing or interviewing [1]. Limitation: respondents may not represent all customers [1], so the results could be biased towards younger or more active users [1]. Examiner insight: Each side needs a reason attached. A list of two bare words does not show the reasoning that “explain” asks for.

7. (a) (468 - 520) / 520 [1] x 100 = -10% (a fall of 10%) [1] (b) Recommendation: introduce a lower-priced set menu [1]. Reason: customers are spending less, so a cheaper option keeps them eating there [1]. Support from the data: a 10% fall is large enough to affect sales [1]. A drawback or condition: profit per meal falls, so costs should be checked first [1]. Examiner insight: A recommendation is stronger with a reason from the data and a limit, because it shows judgement and not only a suggestion.

8. (a) Making the product first and then looking for buyers, instead of starting from what customers want [1]. (b) Risk: the pianos may not match what buyers want [1], so instruments could stay unsold and money would be tied up [1]. (c) Advantage: a niche has fewer competitors [1], so buyers who value custom design may pay higher prices [1]. Examiner insight: Definitions that contrast with the opposite (market orientation) are clear. Advantages should be linked to the stated business.

9. (a) 63,000 / 840,000 [1] x 100 = 7.5% [1] (b) 10% of 840,000 = 84,000 [1]. Extra sales = 84,000 - 63,000 = 21,000 [1] Examiner insight: Showing the target sales figure first helps an answer that contains a slip, since the method is visible.

10. (a) Any two of the following, one mark each: location [1]; demographics; lifestyle; income; age [1]. (b) For example, age: Zephyr could target runners aged 18 to 30 [1] with bright, low-priced clothing sold online [1], which reduces wasted advertising on people unlikely to buy [1]. Accept any other basis explained in the same way. Examiner insight: Naming a basis is only the first step. Credit comes from showing what the business would then do differently.

11. (a) Last year: 600,000 / 5,000,000 x 100 = 12% [1]. This year: 650,000 / 5,200,000 x 100 = 12.5% [1]. Share has risen by 0.5 percentage points [1]. (b) Points for test marketing: it gives real buying evidence for a costly new product [1]; it reduces the risk of launching an electric bike that does not sell [1]; and it is primary data suited to Marlow’s own customers, so the rival cannot use it [1]. Points against: it costs more and takes longer [1]; the rival can see the product early and respond [1]; one shop may not represent all customers [1]. Points for secondary research: cheaper and faster, and shows how the 5.2 million market is growing [1], but it is not specific to Marlow’s customers [1]. Judgement [1], for example: use the reports first, because they are cheap and the market is growing, then test market in one shop if they show demand, since the electric bike is a large investment and the new rival makes a wrong choice more costly. Accept a justified alternative. Examiner insight: High-level “evaluate” answers weigh both approaches using the scenario data and end with a decision that follows from the weighing, not a repeat of the points.

Where marks are usually lost

• Naming a purpose or method and not applying it to the business.
• Writing “cheap” or “quick” with no reason.
• Calling government or market reports primary research.
• Using the firm’s sales as the divisor in market share.
• Treating a rise in sales as a rise in market share.
• Ignoring where and who a sample came from when asked about reliability.
• Giving a response to a market change with no drawback.
• Naming a segmentation basis and not saying how it helps.
• Ending an evaluation without a decision tied to the scenario.

Next steps

• Revisit the study guide and revision notes.
• Course hub: Edexcel IGCSE Business and the printable checklist.
• Try all free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

What do these market research and the market questions cover? They follow Pearson Edexcel International GCSE Business (4BS1) sections 4.1 and 4.2: the purpose and methods of market research, using data, why marketing matters, market share, niche and mass marketing, responding to change and segmentation.

Are government reports primary or secondary research? Government reports and market reports are secondary research, because the business did not collect the data itself. Calling them primary is a common error.

How do you calculate market share? Divide the business’s sales by the total market sales and multiply by 100. Using the firm’s own sales as the divisor is a frequent mistake.

How should you answer a question about the reliability of research data? Consider the sample size, whether the sample represents the target market, any bias in the questions, the age of the data and its source, and say where and who the sample came from.

Official syllabus

Pearson Edexcel International GCSE in Business (4BS1), Specification, Issue 2, February 2026, published by Pearson Education Limited. Topic 4: Marketing, sections 4.1 Market research and 4.2 The market.