IGCSE Travel and Tourism Practice Exam

What process entails gathering, recording, and analyzing data about customers and competitors?

1. Market research

2. Risk analysis

3. Brand assessment

4. Product review

The correct answer is: Market research

The correct choice, market research, involves a systematic process of gathering, recording, and analyzing information about customers and competitors. This process is crucial in understanding consumer preferences, behaviors, and trends, as well as identifying competitor strengths and weaknesses in the market. Market research helps businesses to make informed decisions regarding product development, pricing strategies, marketing campaigns, and overall business strategies based on real data and insights. By understanding the needs and wants of customers, as well as the competitive landscape, businesses can tailor their offerings to better meet market demands and enhance customer satisfaction. In contrast, risk analysis focuses on identifying and assessing potential risks that could impact an organization's objectives, rather than directly examining customer and competitor data. Brand assessment is the evaluation of a brand's position in the market, its recognition, and its reputation, which may be informed by market research but is not a comprehensive process in itself. Product review typically refers to evaluating the performance and features of a specific product, rather than the broader market context involving customers and competitors.