SAFE-APM practice question 6 of 15

What is the primary data used in market research?

Full set: 60 questions
Answer options
A: Developing hypotheses
B: Market sizing
C: Market structuring
D: Testing hypotheses Correct answer
Correct Answer:
D. Testing hypotheses
Explanation

In a Lean-Agile context, market research is not simply about gathering data but about reducing uncertainty and validating assumptions. The primary use of data collected through research is to test hypotheses about customer problems, needs, and potential solutions. This scientific approach of forming a hypothesis, conducting an experiment (e.g., survey, interview, A/B test), and analyzing the data to prove or disprove the hypothesis is central to Continuous Exploration. It ensures that development efforts are focused on building things that customers truly value.

Why Incorrect

A. Developing hypotheses is the step that precedes data collection and analysis; it is what guides the research, not what the data is used for.
B. Market sizing is an analysis or output derived from market data; it is one possible use, but not the primary, foundational purpose in a hypothesis-driven framework.
C. Market structuring is a method of organizing market information. It is an analytical activity performed on data, not the primary purpose of the data itself.

References

1. Scaled Agile, Inc. (2023). Continuous Exploration. Scaled Agile Framework. Retrieved from https://www.scaledagileframework.com/continuous-exploration/. The article describes the cycle of "Hypothesize," "Collaborate and Research," and "Architect," which frames research as a means to validate hypotheses.

2. Ries, E. (2011). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Crown Business. (This is a foundational text for SAFe's Lean-Agile principles). Chapter 4, "Experiment," details the build-measure-learn loop, where the purpose of measurement (data) is to test hypotheses.

Scroll to Top