A confectionery company used to sell its chocolate bars direct to the public - HSC - SSCE Business Studies - Question 15 - 2016 - Paper 1
Question 15
A confectionery company used to sell its chocolate bars direct to the public. Now its products will only be available in supermarkets.
How has the market for the pr... show full transcript
Worked Solution & Example Answer:A confectionery company used to sell its chocolate bars direct to the public - HSC - SSCE Business Studies - Question 15 - 2016 - Paper 1
Step 1
How has the market for the product changed?
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Answer
The market for the product has changed in a significant way. Initially, the confectionery company sold its chocolate bars directly to consumers, indicating a consumer market environment. However, with the shift to only selling their products through supermarkets, they are now relying on intermediaries to reach consumers. Consequently, the market has transitioned from a consumer market to an intermediate market (as supermarkets serve as intermediaries). Therefore, the appropriate answer is (C) From a consumer market to an intermediate market.