Table 1 shows findings from market research by TrailStep, a manufacturer of walking shoes. It is considering replacing its normal shoe box with recycled car...
Question 1 Report
Table 1 shows findings from market research by TrailStep, a manufacturer of walking shoes. It is considering replacing its normal shoe box with recycled card packaging. The manager needs to balance the environmental benefit against the possible effect on pricing and costs.
| Customer response | Percentage of 200 customers |
|---|---|
| Would prefer recycled packaging | 68% |
| Would pay 50p more for it | 39% |
| Think packaging does not affect their choice | 21% |
(a) What percentage of customers would prefer recycled packaging? [1]
(b) Which one of the following is the strongest evidence that the change may raise sales: 21%, 39%, 68% or 200? [1]
(c) Explain one environmental benefit of using recycled card. [2]
(d) Identify one limitation of using this market research before making the decision. [1]
Answer Details
(a) 68% of customers said they would prefer recycled packaging. [1]
(b) The strongest evidence is that 68% of customers would prefer recycled packaging. This is the largest proportion indicating a positive response to the change, although preference does not guarantee a purchase. [1]
(c) Recycled card uses material that has already been processed, reducing demand for virgin timber. This can mean fewer natural resources are used and less material is sent to landfill. [2]
(d) A limitation is that only 200 customers were surveyed, so the sample may not represent all TrailStep customers. Also, what customers say they intend to do may differ from their actual purchase decisions. [1]
Download The App On Google Playstore
Everything you need to excel in your exams
