Table 1 shows results from a laundry subscription business. Customers were grouped by household size after a trial of a weekly collection service. The busin...
Question 1 Report
Table 1 shows results from a laundry subscription business. Customers were grouped by household size after a trial of a weekly collection service. The business is considering whether to offer a lower-priced package for smaller households.
(a) Which household segment has the highest average weekly laundry weight? [1]
(b) Identify one reason why a one-person household may not buy the largest package. [1]
(c) Explain why the business could use household size to segment its market. [2]
(d) Show how a package priced at $18 for 6 kg of laundry has a price per kg of $3. [2]
Answer Details
(a) The four-or-more-person household segment has the highest average weekly laundry weight. [1]
Note: the table values are not included in the supplied question material; the identified segment follows the supplied mark scheme.
(b) A one-person household may have less laundry than the largest package allows, or the package may be too expensive for its needs. [1]
(c) Household size affects how much laundry customers need washed. The business can therefore create package sizes and prices that match different households more closely, increasing likely sales. [2]
(d) Price per kilogram is calculated by dividing the package price by its weight:
\[\frac{\$18}{6\text{ kg}}=\$3\text{ per kg}\]
The price is $3 per kg. [2]
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