A manufacturer of solar garden lights is deciding whether to enter a neighbouring country's market. It has a limited budget and needs information about hous...
Question 1 Report
A manufacturer of solar garden lights is deciding whether to enter a neighbouring country's market. It has a limited budget and needs information about household incomes, the number of homes with gardens and existing competitors. The manufacturer has not yet visited the country.
(a) Identify one source of secondary market research the manufacturer could use. [1]
(b) What is meant by a competitor? [1]
(c) Explain one reason why information about household incomes is relevant before setting pricing. [1]
Answer Details
(a) The manufacturer could use government statistics as secondary market research. [1] Market reports, trade journals, and competitors' websites are also acceptable sources. Secondary research is information already collected by another organisation.
(b) A competitor is a business selling the same or a similar product to the same customers. [1]
(c) Household income indicates customers' likely ability or willingness to pay. [1] This helps the manufacturer set a price that the target market can afford.
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