Market Research Competitive Intelligence & Market Analysis 1 — Questions and Answers
Question 1: What is the purpose of a SWOT analysis in market research?
- To analyze Sales, Wages, Operations, and Training performance metrics
- To assess a company's Strengths, Weaknesses, Opportunities, and Threats relative to its competitive environment (Correct answer)
- To evaluate survey responses using the SWOT analytical framework
- To determine sample size using statistical weighting variables
Correct answer: To assess a company's Strengths, Weaknesses, Opportunities, and Threats relative to its competitive environment
SWOT analysis provides a structured framework for evaluating internal strengths and weaknesses alongside external opportunities and threats facing a business.
Question 2: What is 'Porter's Five Forces' analysis used for in competitive market research?
- Identifying the five key forces driving individual consumer purchasing behavior
- Assessing the competitive intensity and attractiveness of an industry using five structural forces (Correct answer)
- Analyzing five key performance metrics used for competitive benchmarking
- Evaluating a company's five core competitive competencies
Correct answer: Assessing the competitive intensity and attractiveness of an industry using five structural forces
Porter's Five Forces analyzes competitive rivalry, supplier power, buyer power, threat of new entrants, and threat of substitutes to assess industry attractiveness.
Question 3: What is 'win/loss analysis' in competitive intelligence research?
- Analyzing a company's financial wins and losses across fiscal quarters
- Researching why prospects chose your company or a competitor when making a purchase decision (Correct answer)
- Tracking wins and losses in competitive pricing and contract negotiations
- Analyzing quarterly market share gains and losses against key competitors
Correct answer: Researching why prospects chose your company or a competitor when making a purchase decision
Win/loss analysis involves interviewing prospects after a purchase decision to understand the factors that led them to choose either your company or a competitor.
Question 4: What is 'share of voice' (SOV) measured in competitive market research?
- The percentage of total industry revenue that a brand captures
- A brand's advertising or media presence as a proportion of the total category spending (Correct answer)
- The percentage of consumers who speak positively about a brand publicly
- A brand's share of total customer service contacts in the market
Correct answer: A brand's advertising or media presence as a proportion of the total category spending
Share of voice measures a brand's advertising or media presence relative to the total spending or impressions in the category, often used as a leading indicator of market share.
Question 5: What does 'mystery shopping' research involve?
- Researching unknown or hidden consumer market segments
- Trained researchers posing as customers to evaluate service quality and brand experience (Correct answer)
- Shopping for the best market research methodologies and vendors
- Surveying customers about mysterious or confusing product features
Correct answer: Trained researchers posing as customers to evaluate service quality and brand experience
Mystery shopping involves trained evaluators acting as regular customers to objectively assess service quality, compliance with brand standards, and competitive benchmarking.
Question 6: What is 'benchmarking' in competitive market research?
- Setting a benchmark price point for newly launched products
- Comparing a company's performance metrics against industry leaders or key competitors (Correct answer)
- Using a standardized benchmark survey instrument across all client studies
- Measuring consumer satisfaction scores against a predefined benchmark threshold
Correct answer: Comparing a company's performance metrics against industry leaders or key competitors
Benchmarking involves systematically comparing a company's products, services, and practices against best-in-class competitors to identify performance gaps and improvement opportunities.
Market Research Competitive Intelligence & Market Analysis 1
What is the purpose of a SWOT analysis in market research?