Explain one objective that Coastline Kayaks could set to support its aim of increasing market share. The business hires kayaks to tourists and has recently ...
Question 1 Report
Explain one objective that Coastline Kayaks could set to support its aim of increasing market share. The business hires kayaks to tourists and has recently faced competition from two new rental firms. Its manager is considering lower prices, better online booking and employee training before the summer holiday season.
(a) Explain one suitable market-share objective for Coastline Kayaks. [2]
(b) Which method is most likely to provide information on whether customers value online booking? [1]
A Customer questionnaire
B The manager's personal opinion
C A list of staff wages
D Last year's electricity bill
(c) Identify one possible disadvantage of reducing hire prices to meet the objective. [2]
Answer Details
(a) Coastline Kayaks could set the objective: increase market share from 18% to 22% by the end of summer. [1] Market share is the proportion of total sales in a market made by one business, so this target measures whether the business has attracted a greater proportion of kayak-hire customers. [1]
(b) A customer questionnaire is most likely to provide useful information about whether customers value online booking, because it asks the customers directly. [1]
(c) Reducing hire prices lowers the revenue received from each hire. [1] If costs do not fall, or the number of hires does not rise enough to compensate, total profit may decrease. [1]
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