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An overseas factory sells 200 000 teddy bears a year to toy stores across Australia - HSC - SSCE Business Studies - Question 2 - 2013 - Paper 1
Question 2
An overseas factory sells 200 000 teddy bears a year to toy stores across Australia. What type of market is the overseas factory targeting? (A) Consumer (B) Interm... show full transcript
Worked Solution & Example Answer:An overseas factory sells 200 000 teddy bears a year to toy stores across Australia - HSC - SSCE Business Studies - Question 2 - 2013 - Paper 1
Step 1
What type of market is the overseas factory targeting?
Answer
The overseas factory sells a substantial quantity of teddy bears to toy stores, indicating it targets businesses that resell the product. This characteristic suggests that the factory is targeting an intermediate market — specifically, it sells to intermediaries (toy stores) rather than directly to the end consumers. Thus, the correct answer is (B) Intermediate.