Question detail
CloudCart serves tourists while improving quality control; the case evidence includes average order value of ?2,490, sales of 180 units, and a 9% change in costs or demand. Which option best applies Explain why businesses conduct market research, including identifying opportunities and understanding customers and competitors?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The purpose and methods of market research
Question
- A. Use market research to judge capacity utilisation, owners impact, and the business objective in Purpose and methods of market research.
- B. Give only a definition of The purpose and methods of market research without using the case evidence.
- C. Treat margin and markup as identical and ignore the effect on owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use market research to judge capacity utilisation, owners impact, and the business objective in Purpose and methods of market research.
Explanation
The option is correct because Use market research to judge capacity utilisation, owners impact, and the business objective in Purpose and methods of market research. The case evidence gives ?3,990, 180 units, and 9%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the owners, or ignore the business objective.
Common mistake
Purpose and methods of market research common mistake 1
Giving a vague answer instead of directly addressing: Explain why businesses conduct market research, including identifying opportunities and understanding customers and competitors..
Answer by clearly explaining how to explain why businesses conduct market research, including identifying opportunities and understanding customers and competitors..
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