IB DP Business Management: Market research – 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 – the IB holds copyright in its own papers. Use these alongside the official past papers available through your school or the IB store.

These questions practise section 4.4 Market research of the IB Business management guide, first assessment 2024. The content is SL and HL. All businesses and figures are invented. Learn the content first from the study guide or the revision notes. Course pages: the Business Management hub and the checklist. For wider Unit 4 practice, see the Unit 4 practice set.

Questions

1. Define the term primary market research. [2]

2. Identify two types of secondary market research and state one limitation of one of them. [3]

3. Distinguish between qualitative and quantitative market research, giving one example of each. [4]

4. Orrinsgate Climbing Gym has 2,400 members: 1,440 adults, 600 teenagers and 360 children. It will survey a quota sample of 80 members.

(a) Calculate the quota for each group. [3] (b) Explain one limitation of quota sampling for this survey. [2]

5. Ambrelow Language Academy emailed a satisfaction survey to 180 students and received 63 replies. Of the 63 respondents, 45 said that online lessons were important to them. Overall satisfaction was rated from 1 (very poor) to 5 (very good):

Rating	5	4	3	2	1
Respondents	12	21	15	9	6

(a) Calculate the response rate. [1] (b) Calculate the percentage of respondents who said online lessons were important, to one decimal place. [2] (c) Calculate the mean satisfaction rating, to three significant figures. [2] (d) Explain one concern the academy should have before relying on these results. [2]

6. Explain two reasons why a business might carry out market research before launching a new product. [4]

7. Wendlemoor Loom sells handwoven rugs online. Its owner wants to know why many visitors leave the website without buying. Explain one strength and one limitation of using observation to find out. [4]

8. Saltburn Quay Outdoor Supply read a market analysis. The total market for hiking equipment was USD 30 million last year and USD 33 million this year. The firm’s own sales were USD 2.1 million last year and USD 2.31 million this year.

(a) Calculate the percentage growth of the market. [1] (b) Calculate the firm’s market share in each year. [2] (c) Explain one reason why the firm might still want primary research. [2]

9. Wendlemoor Loom (see question 7) compares two approaches. An online survey costs USD 1,200 and produces 400 responses. A series of 20 interviews costs USD 45 per interview.

(a) Calculate the cost per response for the survey and the cost per interviewee. [2] (b) Analyse why the owner might choose interviews despite the higher cost per person. [4]

10. Plumbridge Soap Works makes handmade soap and plans a vegan shaving soap. It has a list of 600 customers, 70% women and 30% men. It has three weeks and a small budget. One option is a quota sample of 60 customers taken from the list. Another is to ask visitors at a two-day craft fair, where about 900 people are expected.

(a) Calculate the number of women and men in a quota sample of 60. [2] (b) Evaluate the two sampling options and justify which the business should use. [8]

11. Mallowfield Tea Company is considering a move into a new city. It plans to invest USD 150,000 in a launch. Possible research costs USD 2,000. Available secondary sources include a government publication on household incomes, a market analysis of beverage sales and online reviews of rival brands. Evaluate whether Mallowfield should rely on secondary research alone or also carry out primary research. [8]

Answers

1. Primary research is new data collected [1] directly by or for the business for its own specific purpose [1]. [2] Examiner insight: A definition earns more when it contrasts with secondary data by saying who collects the data and why; naming examples alone does not define the term.

2. Any two from market analyses, academic journals, government publications, media articles, online content [1][1]. A limitation: it was collected for another purpose, so it may not match the business’s question [1], or it may be out of date or biased. [3] Examiner insight: “Identify” asks for names only, so spend your effort on the limitation and tie it to the specific source you chose.

3. Quantitative research gives numerical data [1], for example sales figures or rating scores [1]. Qualitative research gives descriptive data about opinions, attitudes or reasons [1], for example comments from a focus group [1]. [4] Examiner insight: “Distinguish” needs a stated difference, not two separate definitions; a sentence using “whereas” shows the contrast directly.

4. (a) Adults: 1,440 / 2,400 × 80 = 48 [1]. Teenagers: 600 / 2,400 × 80 = 20 [1]. Children: 360 / 2,400 × 80 = 12 [1]. [3] (b) Within each quota, staff choose whom to ask [1], so those chosen may differ from other members, for example they may be the most active climbers, which biases the results [1]. [2] Examiner insight: Show the fraction before the answer; a total of 80 across the quotas is a good check but showing the working lets a reader see where a slip occurred.

5. (a) 63 / 180 = 35% [1]. [1] (b) 45 / 63 × 100 [1] = 71.4% [1]. [2] (c) Total of ratings: 5 × 12 + 4 × 21 + 3 × 15 + 2 × 9 + 1 × 6 = 60 + 84 + 45 + 18 + 6 = 213 [1]. Mean = 213 / 63 = 3.38 [1]. [2] (d) Only 35% replied [1], and those who did may hold stronger views than those who did not, so the results may not represent all students [1]. [2] Examiner insight: Percentages are usually taken of the people who answered, not of everyone contacted, so state which base you used; and give the rounding asked for.

6. Reason 1: it reduces the risk of launching a product nobody wants [1], because the business learns about customer needs before spending heavily [1]. Reason 2: it can test price or design [1], so the business can adjust the product or marketing mix cheaply before launch [1]. Accept other developed reasons such as measuring market size or finding segments. [4] Examiner insight: “Explain two” invites two separate, developed reasons; two linked ideas packed into one reason may be read as a single point, so keep them apart.

7. Strength: observation shows what visitors actually do on the site, such as where they stop or which page they leave [1], so it is not affected by what people say they do [1]. Limitation: it shows behavior but not the reasons [1], so the owner may still need to ask visitors why they left [1]. [4] Examiner insight: A limitation that names the specific gap (no reasons) in this website case scores better than a generic “it takes time”.

8. (a) (33 − 30) / 30 × 100 = 10% [1]. [1] (b) Last year: 2.1 / 30 = 7% [1]. This year: 2.31 / 33 = 7% [1]. [2] (c) The analysis shows the firm’s share is unchanged, but not why customers buy or what they want next [1], so primary research such as interviews could explain the reasons behind the numbers [1]. [2] Examiner insight: Reading a result such as “share unchanged” and saying what it implies earns more than repeating the figures.

9. (a) Survey: 1,200 / 400 = USD 3.00 per response [1]. Interviews: USD 45 per interviewee [1]. [2] (b) Interviews allow the interviewer to probe and follow up [1], which gives detailed reasons for abandoning purchases [1]. This depth can guide a change to the website that raises sales [1]. The extra cost may be justified if the change is valuable, though a sample of 20 is small and may not represent all visitors [1]. [4] Examiner insight: “Analyse” rewards a chain of reasoning from method to benefit to decision, and a brief limit on the sample shows balance.

10. (a) Women: 0.70 × 60 = 42 [1]. Men: 0.30 × 60 = 18 [1]. [2] (b) Quota from the list: it matches the known gender mix [1] and draws on people who already know the brand and can be contacted within three weeks [1]. It is also low cost because the list exists [1]. Limitations: staff choose who to ask within each quota [1], and existing customers may not represent people who might buy a vegan product [1]. Craft fair: cheap and quick, with a large pool of 900 people that may include new customers [1], but it is a convenience sample that is probably less representative, since visitors choose to attend a craft fair and are not typical of all shavers [1]. Judgment: the quota sample is the better choice because the target market is known and the aim is to learn about likely buyers [1]. The fair could be a cheap supplement for early reactions to the idea. [8] Examiner insight: An evaluation needs both options weighed against the facts given (time, budget, list) and a clear final choice with a reason; summarizing each option without choosing leaves the judgment mark unearned.

11. For secondary only: it is cheap and fast [1], and the government publication and market analysis show incomes and market size without new data collection [1]. For also doing primary research: secondary data was collected for other purposes and may not show local tastes for premium tea [1], and reviews of rivals may come from unrepresentative users [1]. Weighing the stakes: the research costs USD 2,000 against an investment of USD 150,000, which is about 1.3% of the investment [1], so the cost of research is small compared with the cost of a wrong decision [1]. A suitable plan is to start with the secondary sources to size the market, then use a survey or focus group in the city to test taste and price [1]. Judgment: do both, because primary research is a small cost for reducing a large risk, though it should be kept modest and focused on the gaps secondary sources leave [1]. [8] Examiner insight: Using numbers from the stem, such as the ratio of research cost to investment, shows how you reached the judgment and tends to separate stronger answers from general ones.

Where marks are usually lost

• Defining a term without contrasting it with its pair, such as secondary data.
• Giving a list for “explain” or “analyse” and not developing each point.
• Skipping the working in calculations and losing credit if one figure is wrong.
• Using the wrong base for a percentage, such as dividing by everyone contacted instead of those who replied.
• Stating that quota sampling is random.
• Giving a limitation that is true of all research and not of the method in the case.
• Evaluating without a final decision or without a reason for it.
• Ignoring figures in the stem, such as cost, time or sample size.

Next steps

• Revise with the revision notes and the study guide.
• See the Business Management hub and the printable checklist.
• Try all free 10-minute diagnostics at /diagnostics/.
• Book a free trial class at /trial/.

Frequently asked questions

Is quota sampling random? No. In quota sampling the population is split into groups and fixed numbers are filled from each group, but the researcher chooses whom to ask inside each group. In random sampling every member of the population has an equal chance of selection.

What base should you use for a percentage of survey results? Use the number who actually replied, not everyone who was contacted, unless you are calculating the response rate. Using the wrong base is a common way to lose marks.

What are common mistakes on market research practice questions? Students often define a term without contrasting it with its pair, give a list where “explain” or “analyse” needs developed points, skip working in calculations, and give limitations that apply to all research rather than the method in the case. Evaluating without a final decision also loses marks.

Which part of the IB Business Management guide covers market research? Market research is section 4.4 in Unit 4 (Marketing) of the IB Business management guide, first assessment 2024. It covers why and how organizations carry out research, primary and secondary methods, qualitative and quantitative research, and sampling.

Official syllabus

IB Diploma Programme Business management guide, first assessment 2024, published by the International Baccalaureate Organization. This set covers section 4.4 Market research.