Future Business Leaders of America (FBLA) Advertising Practice test

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Which of the following statements about marketing research is not true?

Helps companies track their progress.
Helps a company identify threats and opportunities.
Increases the risk of doing business.
Guides a company's communication with consumers.

The correct answer is: Increases the risk of doing business.

The statement regarding marketing research that is not true is that it "increases the risk of doing business." In reality, marketing research serves primarily to reduce risk rather than increase it. By providing valuable insights into consumer behavior, market trends, and competitive dynamics, marketing research enables companies to make informed decisions. This process helps businesses to identify potential threats and opportunities, track their progress, and tailor their communications more effectively. By understanding the market better, companies can minimize uncertainties and avoid costly mistakes, which highlights the purpose of marketing research as a tool for risk management and strategic planning. Therefore, stating that it increases risk contradicts the fundamental role of marketing research in guiding businesses towards safer, more successful outcomes.