Evaluate Edexcel Business primary market research methods by comparing surveys, interviews, focus groups, product trials and test marketing for decisions.
Sources for use with Section A
Extract A The soft drink industry is dominated by Coca-Cola and PepsiCo Two brands of soft drinks, Coca-Cola and PepsiCo, have dominated the non-alcoholic drinks market for many years. The brands are well known and recognised around the world. Coca-Cola is the larger of the two companies with more than 500 brands. The companies do not have major threats from competition because they both have high levels of brand loyalty, extensive distribution networks and huge economies of scale. They spend enormous amounts of money on innovation, advertising, marketing, and strengthening their distribution channels. Extract B Coca-Cola: Who we are We are the world’s largest soft drinks company. Our brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, Powerade, Minute Maid and Gold Peak. Over 1.9 billion of our drinks are enjoyed by consumers in more than 200 countries each day. Our market research on Diet Coke We focus on the needs of our consumers by going into the market to listen to their views and collect feedback on new drinks. One of our recent research projects focused on Diet Coke, known as Coca-Cola light in most international markets. The drink is sold in more than 110 countries. Our aim is to offer new flavours and a modern look to the product to attract new consumers as well as maintaining the brand loyalty of our current fans. As part of the research, we used face-to-face surveys to gather data from more than 10,000 people. We wanted their ideas and views on new packaging and new flavours, including Ginger Lime and Twisted Mango. These new products will be available in 2019. Our rewarding work environment: benefits and rewards We value our workers and understand working is not just about pay and benefits. We provide a positive working environment to enable staff to build a career and also maintain a good work-life balance. We regularly assess our benefits programs to ensure employees receive the benefits they value. The financial benefits include competitive pay, annual bonuses and performance-related pay.
Assess the advantages for a company, such as Coca-Cola, of using face-to-face surveys when collecting market data.
Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.
Knowledge, Application, Analysis, Evaluation – indicative content
•
A face-to-face survey is a research method used where the
interviewer communicates directly with the respondent using
a questionnaire.
•
As part of the research Coca-Cola surveyed more than 10,000
people to get their ideas on new packaging and flavours of
Diet Coke.
•
Face-to-face interviews are a type of primary research and
should provide new and specific data for Coca-Cola about its
drinks. This data can be used to ensure Coca-Cola meets
customer needs.
•
As part of the face-to-face survey Coca-Cola can incorporate
taste tests to trial new flavours. The new packaging designs
can also be shown to those surveyed to ascertain the
reaction of consumers to ensure they meet consumer needs.
This will reduce the risks of unpopular flavours being
launched.
•
The interviewer can clarify any queries the consumers have
about the questions asked in the survey, and keep the
respondent on track to completion, unlike online and postal
surveys which suffer from low response rates.
•
However, cost is the major disadvantage for face-to-face
interviews. Coca-Cola would require many people to conduct
the 10,000 interviews.
•
If Coca-Cola used online or postal surveys it would have been
able to target more people.
•
10,000 are only a small fraction of Coca-Cola’s customer base
and may not be representative.
•
The quality of data received will depend on the ability of the
interviewer to gather data well and not influence the
responses of those interviewed in any way, otherwise the
results may be bias/inaccurate.
Level
Descriptor
0
A completely inaccurate response.
Level 1
1–2
Isolated elements of knowledge and understanding – recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2
3–4
Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3
5–7
Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
Level 4
8–10
Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information and shows an awareness of
competing arguments/factors, leading to a supported judgement.