Mark Scheme Breakdown
1–2 marksKnowledge: definition of primary market research and methods
3–5 marksApplication: benefits and limitations applied to new product launch context
6–8 marksAnalysis: developed reasoning on why benefits/limitations matter for launch decisions
Model Answer
Para 1
Primary market research involves collecting original, first-hand data directly from consumers or potential customers. K Methods include surveys, interviews, focus groups, observation, and test marketing. K For a business launching a new product, primary research can provide crucial insights into whether the product meets a genuine market need.
Para 2
A key benefit is that the data is specific to the business's needs and up-to-date. A Unlike secondary research (which may be outdated or too general), primary research can be designed to answer the exact questions the business needs answered — for example, a tech start-up could survey 500 potential customers to test reactions to specific product features, pricing, and design before committing to full-scale production. A The data is also exclusive to the firm, giving it a competitive advantage — rivals cannot access the same insights. An This reduces the risk of a costly product launch failure by identifying potential issues early. An
Para 3
However, primary research has significant limitations. It is typically expensive and time-consuming — designing questionnaires, recruiting participants, and analysing results can take weeks or months and cost thousands of pounds. A For a start-up with limited funds, this represents a major opportunity cost. An Furthermore, small sample sizes may not be representative of the wider market, leading to misleading conclusions. Respondents may also give socially desirable answers rather than honest opinions — for example, stating they would buy a product in a survey but not actually purchasing it once launched. An Results may also be misinterpreted if the business lacks expertise in data analysis, leading to flawed product decisions despite the investment in research. An
Examiner Commentary
This answer balances benefits and limitations with developed reasoning rather than simple lists. The tech start-up example grounds the analysis in the new product launch context. Note how limitations are not just stated but explained — social desirability bias is identified and its consequence (stated purchase intent vs actual behaviour) is developed. This depth of reasoning distinguishes top-band responses from mid-band answers that merely list pros and cons.