Page 164 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 3 Marketing

However, there are also disadvantages, such as:

■ they can be difficult to draw and accuracy depends on choosing appropriate scales
for both axes.
Analysing market research
Using the above presentation methods makes it easier to analyse, and draw
simple conclusions from, market research data. For example bar charts, pie
charts and pictograms make it easier to see the relative importance of
different parts of the data. Line graphs are useful when comparing the trend of
data over time.

ACTIVITY 11.1

Joseph makes scented candles. He has carried out some market research about three new candles he is thinking of adding
to his product range. He surveyed a sample of 50 of his existing customers to find out what they thought about the scent of
each candle. The results of his research are presented in the bar chart below.

Do you like the scent of the candle?
40 38 37
35
30 29
25
162 21
20
15 13
12
10
5
0
Candle A Candle B Candle C
Yes No
Figure 11.8 Bar chart of Joseph’s scented candle research

1 What is meant by ‘sample’?
2 Identify two methods Joseph might have used to survey his customers.
3 Which candle did the sample decide had the least popular smell?
4 Calculate the percentage of people in the sample that said they liked the smell of candle B.
5 Using Joseph’s approach to marketing as an example, what is meant by ‘market-orientated’?
6 Identify and explain two other methods Joseph could have used to present the results of his research.
7 Do you think Joseph’s market research data is useful? Justify your answer.

TEST YOURSELF
1 Identify and explain one benefit of presenting market research data as a bar chart.
2 The market for a product was divided into 15 groups and a sample taken from
each group. Why would it not be appropriate to use a pie chart to present the
market research data of these 15 groups?