ACCA Performance Management (F5) Certification Practice Exam

Why is primary research often used in marketing?

1. It provides a broad understanding of market trends

2. It allows for gathering specific data tailored to particular questions

3. It is less costly compared to secondary research

4. It requires no direct interaction with customers

The correct answer is: It allows for gathering specific data tailored to particular questions

Primary research is often utilized in marketing because it facilitates the collection of specific data that is directly relevant to particular questions or objectives of a business. This approach allows marketers to design studies that target their unique needs, such as understanding customer preferences, analyzing consumer behavior, or testing new product ideas. By focusing on specific issues, companies can gather insights that are actionable and directly applicable to their marketing strategies. Unlike secondary research, which uses pre-existing information that can be broad and not directly tailored to the current needs of the organization, primary research is customizable. This leads to more precise results that directly inform decision-making processes. Consequently, organizations can align their products or marketing strategies closely with what the market demands, enhancing the potential for successful outcomes. While other types of research methods could provide valuable context, they may not always address the nuanced questions that a company is looking to answer. This is particularly important in situations where previous data may be outdated or not fully relevant to emerging market conditions.