CIE IGCSE Topical Past Paper 1

3.2 Market Research

0450/11/O/N/2024

Mitchell is an entrepreneur. He wants to start up a business selling books. As part of his business plan Mitchell has carried out some market research. An extract is shown in Fig. 2.1. Mitchell will use microfinance as a source of finance. He wants to know whether the opportunities of using ecommerce for a new business are greater than the threats.

Explain how the market research data in Chart 1 and Chart 2 in Fig. 2.1 could help Mitchell when making decisions. [6]
Chart 1:
Explanation:

Chart 2:
Explanation:

045/12/F/M/2024

PLY manufactures hats in its factory in country X. The economy of country X is in a recession. PLY sells its hats online to the mass market. It uses email to communicate with its customers. PLY uses market research when making decisions. The Managing Director is considering ways for PLY to
become more environmentally friendly as she is aware of new legal controls over business activity. She is also aware of the role of pressure groups.

(e) Explain two reasons why a business uses market research. Which reason is likely to be the most important? Justify your answer. [6]

045/13/M/J/2023

Meena wants to leave her job as a teacher to become a successful entrepreneur. Her business will produce handmade jewellery. Meena knows that there is government support for business start-ups. She plans to use market research to help identify a market segment for her jewellery. Meena’s brother has offered to become her business partner but she cannot decide whether it would be better to operate as a sole trader.

Do you think accessing government sources, such as statistics, is the best method of market research for a start-up business to use? Justify your answer. [6]