---
title: "Short note: market research"
subject: "Engineering Economics"
chapter: 1
key: "semester_6/engineering_economics:short-note-market-research"
source: https://www.bctengineer.com/q/semester_6/engineering_economics/short-note-market-research
site: BCT Engineering
---

# Short note: market research

Engineering Economics · Chapter 1: Introduction

- Asked in: 2068 Jestha, 4 marks; 2067 Mangsir, 4 marks (asked 2 times)
- Video: [How To Do Market Research (Market Research 101)](https://www.youtube.com/watch?v=kFM72UJhW8s) — Adam Erhart
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_6/engineering_economics/short-note-market-research
- Whole chapter: https://www.bctengineer.com/md/semester_6/engineering_economics/chapter-1

## Question

Write a short note on market research.

## Short answer

Market research systematically collects and analyzes data on demand, customers, and competitors to guide production, pricing, and distribution decisions. It uses surveys, secondary data, and statistical analysis to forecast demand for feasibility studies and reduce product-launch risk.

## Answer

Market research is the systematic collection, recording and analysis of data about the market for a product or service, to help management take decisions on production, price, promotion and distribution.

#### Objectives
- Find the size and growth of demand and the potential customers.
- Learn customer needs, tastes, income level and buying habits.
- Study competitors, their prices and market share.
- Reduce the risk of launching the wrong product or entering the wrong market.

#### Steps
1. Define the problem and objectives.
2. Plan the research (type, sources, sample).
3. Collect data: **primary** (survey by questionnaire, interview, observation, experiment, test marketing) and **secondary** (government statistics, trade reports, past sales records).
4. Analyse and interpret the data (statistical tools, regression, trend).
5. Prepare the report and make recommendations.

#### Uses
- Demand forecasting for a new project and feasibility study.
- Product design, pricing and choosing a sales channel.
- Deciding plant capacity.

Its limitations are cost, time and possible sampling or respondent bias.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Market research is:
   A. Systematic collection and analysis of market data to help decisions on production, price, promotion and distribution
   B. Selling the product door to door
   C. Fixing the price after production
   D. Auditing company accounts
   Answer: A. It supports management decisions with market data. (Key point: Definition)

2. Which is primary data?
   A. Past sales records
   B. A questionnaire survey of customers
   C. Trade reports
   D. Government statistics
   Answer: B. Primary data is collected first-hand; the others are secondary. (Key point: Primary data)

3. The correct order of steps is:
   A. Plan, analyse, collect, define problem
   B. Collect data, define problem, report, plan
   C. Define problem, plan research, collect data, analyse, report
   D. Report, collect, analyse, plan
   Answer: C. Research starts with the problem and ends with a report and recommendation. (Key point: Steps)

4. In project feasibility, market research is used for:
   A. Calculating depreciation
   B. Fixing wage rates
   C. Deciding tax rates
   D. Demand forecasting and deciding plant capacity
   Answer: D. It estimates demand and so sizes the plant. (Key point: Uses)