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A business sells luxury cars - HSC - SSCE Business Studies - Question 21 - 2019 - Paper 1
Question 21
A business sells luxury cars. The cars are stylish, high performance and include advanced safety features integrating leading edge technology. (a) Describe ONE fact... show full transcript
Worked Solution & Example Answer:A business sells luxury cars - HSC - SSCE Business Studies - Question 21 - 2019 - Paper 1
Step 1
Describe ONE factor influencing customer choice for this business.
Answer
One significant factor influencing customer choice for this luxury car business is the perception of quality. Customers seeking high-end vehicles often place a premium on their reliability, performance, and the advanced features that ensure safety and technology integration. Vehicles considered to be of higher quality are often associated with prestige and status, influencing affluent customers to choose products that reflect their social standing.
Step 2
Explain the interdependence between marketing and finance for this business.
Answer
The interdependence between marketing and finance is crucial for the success of this luxury car business. Marketing strategies determine how and where to allocate financial resources to maximize sales. For instance, effective marketing campaigns attract customers, increasing sales revenue. Conversely, finance provides the necessary funds for marketing initiatives, such as advertising and promotions. Therefore, a successful relationship between the two ensures not only effective marketing efforts but also optimal financial management.
Step 3
Why is it important for this business to conduct market research?
Answer
Conducting market research is vital for this business to understand customer preferences and trends within the luxury automotive market. It helps identify potential areas for new vehicle features or improvements that can enhance customer satisfaction. Moreover, market research informs the business about competitive strategies, enabling it to position itself effectively. Accurate research facilitates informed decision-making, ensuring that marketing strategies align with market demand and contribute to achieving business goals.