After a recession in country X has ended, Beena intends to start a hairdressing business. One possible route is to buy a franchise from an established hairdressing business. Beena has $800 in savings and realises that sufficient working capital will matter for her business. She plans to use market research to support her decisions. Beena knows that a market can be segmented in many different ways.
(a)[2]
Define ‘recession’ in an economic context.
(b)[2]
Identify two methods used to segment a market.
(c)[4]
Outline two reasons why having sufficient working capital could matter for Beena’s business.
(d)[6]
Explain two possible advantages for Beena of buying a franchise.
(e)[6]
Do you think a start-up business should always choose primary market research instead of secondary market research when making decisions? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A time of declining gross domestic product (GDP)” …