[Diagram: B&W exam-style line-art flow diagram on white: a coffee shop receipt with QR code, arrow to a smartphone online questionnaire, arrow to a results ...
Question 1 Report
[Diagram: B&W exam-style line-art flow diagram on white: a coffee shop receipt with QR code, arrow to a smartphone online questionnaire, arrow to a results screen, then a separate arrow to a seated customer int]
Fig. 1 shows the customer-research route used by a new independent coffee business, North Quay Coffee. The owner wants to decide whether to offer a subscription for a hot drink each weekday. A QR code on receipts invited customers to complete an online questionnaire. Of 480 customers who received a receipt, 96 completed the questionnaire. The business also plans to ask five customers detailed questions after they have selected an answer. North Quay Coffee has only a small research budget.
(a) Define the term market research. [2]
(b) State two reasons why North Quay Coffee should carry out market research before introducing the subscription. [2]
(c) Calculate the response rate to the questionnaire. Show your working. [3]
(d) State two suitable questions that North Quay Coffee could include in its questionnaire. [3]
(e) Analyse whether questionnaires or detailed customer interviews would be the better method for this business to use as its main source of primary market research. [10]
Answer Details
(a) Market research is the collection of information about customers or a market to help a business make decisions and meet customer needs. [2]
(b) It can identify demand for the subscription, find preferred prices or drinks, reduce the risk of an unsuccessful launch, and identify competitors or market gaps. Any two. [2]
(c) \[\frac{96}{480}\times100=20\%\]
The questionnaire response rate is \(20\%\). [3]
(d) Suitable questionnaire questions include: “How many hot drinks do you buy each week?”, “What weekly price would you pay for a subscription?”, and “Which drink would you want included?” [3]
(e) Questionnaires can reach many receipt customers quickly, produce numerical results that are easy to compare, and are relatively cheap through a QR code. This suits North Quay Coffee's small budget.
However, only customers who choose to respond are represented, so results may be biased. Detailed interviews allow follow-up questions and reveal reasons for preferences or objections, but they are slower and require employee or interviewer time.
Questionnaires should be the main method because they reach more customers cheaply. A small number of detailed interviews should supplement them to explain the numerical findings. [10]
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