01:Identify and explain two methods of market research that GKA could use?[4]

[Dania]

GKA is a food retailer. It has 300 shops located in areas where average consumer incomes are low. GKA sells a limited range of own-label products including breakfast cereal and toothpaste. GKA does no promotion or market research. The Managing Director said: ‘Last year our market share increased to 5%. Profit increased by 40%. Keeping costs low means GKA can offer customers quality products at low prices.’ GKA is planning to open 100 shops in areas with high average consumer incomes.The Managing Director must decide whether GKA should change its pricing strategy (method) as the business expands.

01:Identify and explain two methods of market research that GKA could use?[4]

Possible KN Points:
>observation / visiting competition.
>Questionnaires.
>Surveys.
>experiments / free samples / test marketing.
>Interviews.
>access government statistics.
>focus groups / consumer panels.