NLR produces a variety of branded skincare items, including hand cream, and how the products are packaged matters. As with many firms, NLR uses market segmentation. The Marketing Director understands that the stage of the product life cycle can affect NLR’s pricing decisions. He is studying market research evidence, which indicates that 85% of consumers expect businesses to act in response to environmental pressures.
(a)[2]
Identify two factors that could lower the accuracy of market research.
(b)[2]
Identify two advantages to a business from using market segmentation.
(c)[4]
Outline two ways NLR may respond to environmental pressures.
(d)[6]
Explain how NLR’s pricing decisions may change at two different stages of the product life cycle.
(e)[6]
Do you think strengthening brand image is the most important purpose of packaging? Justify your answer.
Worked solution & mark scheme
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