Question 1
BloomBox is a small business selling indoor plants through a city-centre shop. The owner, Mina, wants to launch a plant subscription service for office workers but is unsure whether there is enough demand. She plans to carry out market research before deciding on prices and promotional messages.
Define the term market research.
[2]
Outline one reason why BloomBox should carry out market research before launching the subscription service.
[2]
Question 2
PagePod (PP) is an independent bookshop considering whether to add a monthly subscription box for young adult novels. PP has found several secondary market research sources and is deciding which sources to purchase before carrying out any primary research.
The table shows details of possible secondary market research sources.
Source | Cost ($) | Age of data (months) | Sample / coverage | Relevance rating |
|---|---|---|---|---|
Market analysis report | $820 | 3 | Survey of 1,200 young adult book buyers | High |
Government publication | $0 | 12 | National reading habits statistics | Medium |
Media article database | $250 | 1 | Recent trade and news articles | Low |
Online review summary | $140 | 1 | Summary of 2,500 online reviews of similar boxes | High |
Calculate the total cost to PP of buying the market analysis report and the online review summary. Show all your working.
[2]
Comment on whether PP should use only secondary market research for this decision.
[2]
Question 3
PedalPeak rents electric bicycles to tourists in a coastal town. Its marketing manager wants to understand why some tourists visit the website but do not complete a booking. PedalPeak has a limited research budget but has access to tourists who recently visited the website but did not complete a booking.
Explain one advantage and one disadvantage for PedalPeak of using interviews as a method of primary market research.
[4]
Question 4
LumaLunch produces vegetarian ready meals for supermarkets. Before expanding into a neighbouring country, its directors are considering using secondary market research, including government publications and online content, to learn about eating habits and income levels.
Describe two limitations for LumaLunch of using secondary market research before expanding into the neighbouring country.
[4]
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Question 5
LumaLoop (LL) is a small manufacturer of skin-care products. LL is considering introducing refill pouches for its best-selling face wash. Before deciding, LL carried out a short online survey of existing customers. Respondents were asked which packaging option they would most likely buy and whether they would recommend LL to a friend.
The table shows selected results from LL’s survey.
Packaging option | Chosen (respondents) | Would recommend LL (respondents) |
|---|---|---|
Current plastic bottle | 84 | 54 |
Refill pouch | 96 | 72 |
Glass bottle | 60 | 39 |
Total | 240 | 165 |
Calculate the percentage of survey respondents who chose the refill pouch. Show all your working.
[2]
Comment on whether LL should rely only on this survey before launching refill pouches.
[2]
Question 6
BeanBridge (BB) owns three coffee shops in one city. BB wants to redesign its loyalty app. The marketing manager first used convenience sampling by asking customers in the busiest shop during weekday mornings. She then considered using quota sampling to make the sample closer to the age profile of BB’s actual customer base.
The table shows the age profile of BB’s customer base and the number of customers questioned in the convenience sample.
Age group | Customer base (%) | Sample questioned (n) |
|---|---|---|
18-25 | 30% | 12 |
26-35 | 20% | 18 |
36-55 | 25% | 72 |
56+ | 25% | 18 |
Total | 100% | 120 |
Calculate the number of respondents aged 18 to 25 that BB should include in a quota sample of 200 customers. Show all your working.
[2]
Comment on one limitation of BB’s original convenience sample.
[2]
Question 7
FitNest (FN) operates a chain of small gyms. FN is testing a new mobile booking system for exercise classes. The marketing team collected quantitative data through observation and qualitative data through follow-up interviews.
The table shows selected results from the research in one gym.
Measure | Observation | Follow-up interviews |
|---|---|---|
Users involved | 210 observed | 30 interviewed |
Positive result | 168 completed a booking | 18 gave a positive explanation |
Negative result | 42 did not complete a booking | 12 gave a negative/other explanation |
Calculate the booking completion rate for the observed users. Show all your working.
[2]
State whether the observation data is qualitative or quantitative.
[1]
Comment on one advantage to FN of using interviews as well as observation.
[2]
Question 8
CraftWave runs weekend pottery workshops. The owner has received many positive comments on social media but bookings are falling. She wants to understand both the scale of the problem and the reasons why some customers do not return.
Distinguish between qualitative research and quantitative research.
[2]
Explain why CraftWave might use both qualitative and quantitative research to investigate falling bookings.
[4]
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Question 9
FitNest is a gym aimed at young professionals. To research demand for early-morning fitness classes, the manager asks 30 people leaving the gym at lunchtime to complete a questionnaire. The manager says this convenience sample is quick and cheap.
Explain one advantage and one disadvantage for FitNest of using convenience sampling for this research.
[4]
Question 10
TasteTrail is developing a new mobile app that recommends independent restaurants. Before launching, it wants to test the app’s name, logo and main features with potential users aged 18 to 30. The marketing team is considering surveys, focus groups and observation in a trial version of the app.
Outline one reason why a focus group may be suitable for TasteTrail.
[2]
Explain one limitation of using observation to research potential users of TasteTrail’s app.
[2]
Explain one reason why TasteTrail might also use a survey.
[2]
Question 11
CoolCart (CC) sells ice cream from mobile carts in a seaside town. CC is considering adding a vegan flavour. It wants to use random sampling from its loyalty app users, but the owner is also considering quota sampling because the target market includes both tourists and local residents.
The table shows the estimated customer mix for CC during summer and the proposed total sample size.
Customer category / item | Value |
|---|---|
Local residents | 40% |
Day tourists | 25% |
Overnight tourists | 35% |
Total summer customer mix | 100% |
Proposed quota sample size | 160 customers |
Calculate the number of overnight tourists CC should include in a quota sample of 160 customers. Show all your working.
[2]
Calculate the number of local residents CC should include in the same quota sample. Show all your working.
[2]
Comment on one reason why random sampling from loyalty app users may not represent CC’s whole summer market.
[1]
Question 12
EcoRide manufactures scooters made from recycled materials. Its directors believe the business should enter a larger city market immediately because competitors are already advertising there. The marketing manager argues that EcoRide should first follow a formal market research process, including defining research objectives, choosing methods, selecting a sample, collecting and analysing data, and reporting findings.
Analyse the importance to EcoRide of following a formal market research process before entering the larger city market.
[6]
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Question 13
GreenStitch sells school uniforms online. It wants to research parents’ attitudes to a new range made from organic cotton. Its customer database contains 12 000 parents, including information about the age of their children and the region where they live. The marketing manager must choose between random sampling and quota sampling.
Examine the suitability of random sampling and quota sampling for GreenStitch’s market research.
[6]
Question 14
TrailTap (TT) is developing a subscription app for hiking routes. TT conducted a survey of potential users in two segments: occasional hikers and frequent hikers. It also held focus groups to explore the reasons behind survey responses. TT wants to estimate the average monthly price that the combined sample would be willing to pay.
The table shows selected survey results.
Segment | Respondents | Avg price willing to pay ($) | Likely to subscribe (%) | Notes |
|---|---|---|---|---|
Occasional hikers | 150 | $4.20 | — | — |
Frequent hikers | 90 | $7.40 | 70% | — |
Focus groups | — | — | — | Held to explore reasons behind survey responses |
Calculate the weighted average monthly price that the combined sample is willing to pay. Show all your working.
[3]
Calculate the number of frequent hikers who said they were likely to subscribe. Show all your working.
[2]
Comment on one benefit to TT of using focus groups after the survey.
[1]
Question 15
EcoMove (EM) rents electric scooters in a large city. EM is considering entering a neighbouring city. It used secondary market research from a government transport publication and then conducted a small primary survey of commuters at two train stations.
The table shows selected market research data for the neighbouring city.
Research item | Data |
|---|---|
Government commuter figure | 48,000 daily commuters |
Primary survey size | Small |
Primary survey location | Two train stations |
Interested in scooter rental | 18% |
Likely to rent weekly | Of those interested in scooter rental, 25% |
Using the government commuter figure and EM’s survey percentage, estimate the number of daily commuters interested in scooter rental. Show all your working.
[2]
Estimate the number of daily commuters likely to rent weekly. Show all your working.
[2]
Comment on one limitation of EM using these research findings to decide whether to enter the neighbouring city.
[2]
Question 16
QuietQube (QQ) is a small manufacturer of sound-insulated study pods. QQ currently sells to private tutoring centres but is considering entering the university market. The marketing manager, Lana, believes that demand will be high because many students complain online about crowded libraries. The operations manager is concerned that universities may not have enough space or budget for the pods. QQ has limited finance and must decide whether to spend money on market research before adapting the product for universities.
Lana is considering several research methods: an online survey of students, focus groups with university facilities managers, observation of how students use existing library spaces, and secondary research using government publications about student numbers and market analyses of education technology spending.
Evaluate the usefulness to QQ of carrying out market research before entering the university market.
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Question 17
MedMeal (MM) delivers prepared meals to customers with special dietary needs. MM plans to research customer reactions to sharing diet data with the company’s app. Because the data is sensitive, MM is comparing two primary research methods and monitoring informed consent carefully.
The table shows the results and costs of a pilot study.
Research method | Number contacted (people) | Agreed to take part (people) | Withdrew before completion (people) | Total research cost (US$) | Consent procedure |
|---|---|---|---|---|---|
Online survey | 450 | 300 | 75 | 900 | Online tick-box consent before survey begins |
Telephone interview | 150 | 120 | 18 | 1350 | Verbal consent recorded at start of call |
Calculate the number of valid completed responses from the telephone interviews. Show all your working.
[2]
Calculate the cost per valid completed response for the online survey. Show all your working.
[2]
Comment on one ethical issue MM should consider when choosing a research method.
[2]
Question 18
WaveWash (WW) operates six self-service laundries in a large city. WW is considering adding a premium washing service for pet bedding in two of its laundries. The service would require new machines and a separate booking system. Before deciding, WW carried out market research, including an online survey of existing customers, a focus group of pet owners, observation of customers using large machines, and secondary research from local government pet ownership statistics. Table 1 shows selected market research findings and estimated financial data for the proposed service.
Research source | Sample / coverage | Key numerical finding | Estimated annual financial impact | Possible limitation |
|---|---|---|---|---|
Online survey of existing customers | 240 responses across WW's 6 laundries | said they would use a pet-bedding wash at least once a month | About £7,000–£8,000/year if the 72 stated monthly users each purchase 12 washes at £8–£9; unadjusted six-laundry benchmark, not a direct forecast for the two proposed laundries | Only existing customers responded; intentions may not become actual purchases |
Focus group of pet owners | 10 local pet owners | preferred online booking; would pay £8–£9 per wash | Supports premium pricing at about £8–£9 per wash | Very small sample; group discussion can be biased |
Observation in laundries | 120 customer visits over 2 weeks at 3 laundries | used large machines; 14 loads looked like pet bedding or other bulky items | About £2,912–£3,276/year if all 14 observed loads per two weeks were converted at £8–£9 per wash; unadjusted benchmark for the 3 observed laundries, not directly transferable to the 2 proposed laundries | Shows current behaviour, not willingness to pay for the new service |
Local government statistics | Citywide household data | 82,000 households own a pet ( of all households) | Around £6,560–£7,380/year at a market share, assuming one wash per household at £8–£9; this is a citywide benchmark and may not represent WW's catchment area | Citywide data may not match WW's catchment area or customer profile |
Estimated costs and revenue | Proposed service in 2 of WW's 6 laundries | Start-up investment £36,000; annual revenue £72,000; annual operating costs £58,000 | £14,000 annual operating profit before start-up cost; simple payback is approximately 2.6 years if the forecast is achieved | If paid in year 1, simple first-year net cash is approximately −£22,000, excluding financing, tax and other effects; forecast depends on demand, utilisation and pricing assumptions |
Evaluate whether WW should launch the premium washing service for pet bedding.
[10]
Question 19
NomadNibs (NN) sells healthy snacks through vending machines at two universities. NN wants to expand to six more campuses. The marketing manager used convenience sampling by asking students near NN's existing machines to complete a short questionnaire. NN also bought a national market analysis report on student eating habits and conducted interviews with campus catering managers. Table 2 shows selected results from NN's market research and estimated costs of expansion.
Source / method | Sample / coverage | Key quantitative findings | Cost of obtaining data (US$) | Limitation / risk |
|---|---|---|---|---|
Convenience sample questionnaire | 100 students near NN's machines at 2 current universities | 78/100 (78%) said they would buy a healthy snack at least once a week; 52/100 (52%) said at least twice a week | $180 | Convenience sample may overstate demand because respondents were already near NN's machines |
National market analysis report | Secondary report covering 10,000 students at 18 universities | 68% reported buying healthier snacks more often than before; 72% would pay up to 10% more for healthy options | $2,000 | Broad national data may not match NN's six target campuses and may be outdated |
Interviews with catering managers | 6 managers from 5 campuses | 4/6 said suitable vending space was available near study areas; 5/6 said machines would be allowed if healthy options were included | $420 | Managers may not reflect student preferences and may have their own priorities |
Target student population profile | Combined profile of 6 target campuses; about 30,000 students | 62% buy snacks between lectures; average snack spend is $9.50 per week | $0 | Useful background data, but it does not show willingness to buy NN's products |
Financial forecast for expansion | 6 new campuses | One-off setup cost = $24,000; annual operating costs = $60,000; estimated annual revenue = $102,000 | $0 (internal estimate) | Forecast depends on assumptions; sales may differ by campus |
Recommend whether NN should expand to six more campuses based on its market research.
[10]
Question 20
PulsePatch (PP) produces colourful adhesive patches that hold sports sensors on the skin. PP has mainly sold to professional athletics clubs, but it now wants to target recreational runners aged over 45. The marketing director, Omar, needs research evidence before deciding on packaging, promotional messages and distribution channels.
Omar can access a list of customers from specialist running shops, but it does not include all recreational runners. He is considering three sampling methods for a survey: random sampling from the running shop customer list, quota sampling based on age and gender at local running events, or convenience sampling by asking people who already follow PP on social media. PP also plans to carry out short interviews with some survey respondents.
Recommend an appropriate sampling method for PP’s market research into recreational runners aged over 45.
[10]
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Question 21
DataGuard Home (DGH) produces smart home security devices. DGH is considering entering a neighbouring country with a subscription-based doorbell camera. The marketing director wants to rely mainly on online content, including technology review sites, search trends and social media posts, because this is fast and low cost. The operations director argues that DGH should also pay for a specialist market analysis, use a quota sample survey of households and hold focus groups before launch. Because the product records video and stores customer data, DGH must also consider privacy and informed consent when researching potential customers. Table 3 shows selected market research data and estimated launch figures.
Research method / source | Cost / US$ | Coverage / sample | Key numerical finding | Time required / days | Reliability / ethical concern |
|---|---|---|---|---|---|
Online content analysis | US$500 | 9,800 mentions/reviews from review sites, search and social media | 71% positive sentiment; search interest 84/100 | 3 | Self-selected; fake/promotional posts; consent/privacy if scraping |
Specialist market analysis | US$15,000 | Secondary data on 120,000 households; competitor scan | 18,000 target households; 2,100 likely first-year subscriptions | 21 | More reliable; expensive; may use older secondary data |
Quota sample survey | US$4,800 | 240 households; quotas by age and income | 57% would consider buying; 41% would pay US$8/month | 8 days | Non-random sample; limited representativeness |
Focus groups | US$1,500 | 4 groups of 8 participants (32 participants) | Privacy concern ; remote monitoring liked by approximately (20 of 32 participants) | 7 | Small qualitative sample; confidentiality and informed consent needed |
Estimated first-year launch figures | US$180,000 | Planned first-year rollout | 2,100 subscribers; US$176,400 revenue at US$7/month | N/A | Revenue depends on conversion and churn; high fixed cost |
To what extent should DGH rely mainly on online content before deciding whether to launch the doorbell camera in the neighbouring country?
[10]
Question 22
RepairShare Kitchen (RSK) – a social enterprise
Read the resources and answer the questions that follow.
Resource 1 — Background of the social enterprise
RSK is a social enterprise in a large city. It trains unemployed young adults to repair small kitchen appliances and then sells the repaired appliances at low prices to low-income households. RSK’s social objectives are to reduce electronic waste and improve the employability of trainees. RSK is considering launching a mobile appliance-repair subscription service for households and small community cafés. The service would require new booking systems, a second van and a marketing campaign. RSK’s managers are market-oriented, but they disagree about what market research is needed before the launch.
Resource 2 — Table 1: Selected findings from RSK’s pilot market research
Online survey on local community pages: 186 responses; 64% stated they were interested in a monthly repair plan; most respondents were aged 18 to 34.
Focus group with current RSK customers: 8 participants; participants liked the social mission but raised concerns about trusting trainees in their homes; two confident participants dominated the discussion.
Observation at one pop-up repair event: 71 visitors; 47 asked about home collection; the event was held in only one district of the city.
Resource 3 — Secondary market research
A city government publication reports that 38% of rental households had at least one broken appliance unrepaired for more than six months. The data was collected 18 months ago. A recent media article suggests that repair cafés are becoming fashionable among middle-income consumers.
Resource 4 — Social-media statistic
A short RSK video showing a repaired blender received 920 shares and 147 comments in one week. Around 70% of comments asked about prices, service areas or whether repairs would include a guarantee.
Resource 5 — Quotation from RSK’s operations manager
“If we ask only our loyal followers, we may hear what we want to hear. But if we delay too long, another organization may offer the service first.”
Method | Sample/source details | Key findings | Main limitation |
|---|---|---|---|
Online survey | 186 responses from local community pages | 64% were interested in a monthly repair plan; most respondents were aged 18–34 | Self-selected online sample may overrepresent younger, more engaged users |
Focus group | 8 current RSK customers | Participants liked the social mission but raised concerns about trusting trainees in their homes; 2 confident participants dominated | Very small group; dominant voices and group pressure may distort views |
Observation | 71 visitors at one pop-up repair event in one city district | 47 visitors asked about home collection | Only one event in one district, so findings may not represent the whole city |
Using Resource 5, describe one risk of bias in RSK’s market research.
[2]
Explain one advantage and one limitation for RSK of using focus groups as a method of primary market research.
[6]
Using all the resources provided and your knowledge of business management tools and theories, recommend a market research plan for RSK before it decides whether and how to launch the mobile appliance-repair subscription service over the next two years.
[17]
Question 23
ClearSteps Mobility (CSM) – a social enterprise
Read the resources and answer the questions that follow.
Resource 1 — Background of the social enterprise
CSM is a social enterprise that designs low-cost walking aids made from recycled aluminium. It sells mainly through community clinics and uses surpluses to subsidize products for elderly and disabled people on low incomes. CSM wants to improve access in rural areas. Three possible service options are being considered: an app-based ordering system, a telephone ordering service, or formal partnerships with rural clinics. CSM’s marketing manager has been asked to design market research that will be reliable, ethical and useful for decision-making.
Resource 2 — Table 1: Possible secondary market research sources
Government publication: regional population age and disability statistics; large-scale and low cost, but published once every three years.
Academic journal article: research on confidence and independence among walking-aid users; peer reviewed, but based on another country.
Media article: report on rural isolation and clinic closures; very recent, but based on selected interviews.
Online content: reviews of a commercial mobility-aid competitor; detailed comments, but some reviews may be fake or promotional.
Resource 3 — Pilot primary research
CSM carried out a pilot survey using a link posted on its website and social-media page. It received 312 responses. 74% of respondents preferred app ordering. However, only 9% of respondents were aged over 70, even though people over 70 are one of CSM’s main user groups. Some respondents were family carers rather than walking-aid users.
Resource 4 — Social-media statistic
A post in a carers’ online group about CSM’s recycled walking aids received 2 400 views and 310 reactions. The most common comments referred to delivery reliability, ability to speak to a person, and whether clinics could measure users correctly.
Resource 5 — Quotation from a partner clinic manager
“Many users want independence, but some have limited digital access or feel vulnerable when discussing health needs. They must understand how their information will be used.”
Secondary research source | Usefulness for CSM | Limitations for CSM |
|---|---|---|
Government publication | Regional population age and disability statistics; large-scale and low cost. | Published only once every three years, so it may be outdated. |
Academic journal article | Peer-reviewed research on confidence and independence among walking-aid users. | Based on another country, so findings may not fully apply to CSM. |
Media article | Very recent report on rural isolation and clinic closures. | Based on selected interviews, so it may be unrepresentative. |
Online content | Detailed reviews of a competitor’s mobility aids. | Some reviews may be fake or promotional, so reliability is uncertain. |
Outline one difference between primary market research and secondary market research for CSM.
[2]
Analyse the suitability of random sampling and quota sampling for CSM’s market research.
[6]
Using all the resources provided and your knowledge of business management tools and theories, recommend a market research plan to help CSM decide whether to prioritize app ordering, telephone ordering or rural clinic partnerships over the next three years.
[17]
Question 24
CalmPath (CP) is a start-up developing a mobile app that helps teenagers manage exam stress. CP’s founders believe that the app should include mood tracking, short videos and links to local counselling services. Before launch, CP must convince investors that there is demand and that its marketing will be socially responsible.
CP has already reviewed academic journals about teenage wellbeing, government publications about school attendance and mental health services, media articles about exam pressure, and online content from student forums. The founders are now debating whether to spend additional funds on primary research, such as confidential interviews with parents and teachers, surveys of students and focus groups with school counsellors. Some managers are concerned about informed consent, privacy and the risk of causing distress to young participants.
To what extent should CP rely on secondary market research rather than primary market research before launching the app?
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Question 25
Oasis Refill (OR) – a social enterprise
Read the resources and answer the questions that follow.
Resource 1 — Background of the social enterprise
OR is a social enterprise that installs refill stations for cleaning products in apartment blocks. Its social objectives are to reduce single-use plastic and make sustainable products affordable for lower-income households. OR currently operates in one city through partnerships with housing associations. It is considering entering a second city and adding a low-cost refill delivery subscription for residents who cannot easily carry containers. OR has limited funds, so its directors must decide what market research is worth doing before committing to expansion.
Resource 2 — Table 1: Selected pilot research in the second city
Survey at a community housing festival: 240 completed questionnaires; 58% said they were likely or very likely to use a refill station; many respondents already attended environmental events.
Interviews with tenants: 12 semi-structured interviews; several tenants liked lower plastic waste but worried about carrying heavy containers and paying in advance.
Observation at three existing refill locations in OR’s current city: busiest times were early evening and weekends; some customers needed help using dispensers; no data was collected in the second city.
Resource 3 — Secondary market research
A market analysis report estimates that sustainable household products are growing nationally, but the full report costs 1 800 credits and focuses mainly on middle-income consumers. A local government publication shows 55 000 apartments in housing association blocks in the second city, but does not show attitudes to refill products.
Resource 4 — Social-media statistic
A local community influencer posted about OR’s possible expansion. The post received 1 750 likes and 430 comments. The most repeated phrases were “good idea”, “too expensive?” and “how would delivery work?”.
Resource 5 — Quotation from a tenants’ association representative
“Residents are willing to support environmental projects, but they dislike being treated as a convenient sample. Research must be respectful, clear and useful, not just a way to advertise the service.”
Research method | Sample/source | Key finding | Limitation |
|---|---|---|---|
Survey at a community housing festival | 240 completed questionnaires | 58% said they were likely or very likely to use a refill station | Sample may be biased toward people already interested in environmental issues |
Semi-structured tenant interviews | 12 tenants | Several liked lower plastic waste but worried about carrying heavy containers and paying in advance | Small sample; results are qualitative and not easily generalised |
Observation at existing refill locations | Three refill locations in OR’s current city | Busiest times were early evening and weekends; some customers needed help using dispensers | Data comes from the current city only; no data was collected in the second city |
Using Resource 5, describe one ethical issue OR should consider when collecting market research data from tenants.
[2]
Explain one benefit to OR of using qualitative research and one benefit to OR of using quantitative research.
[6]
Using all the resources provided and your knowledge of business management tools and theories, recommend a market research plan for OR to decide whether to enter the second city and how to design the refill station and delivery subscription service over the next three years.
[17]
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