IGCSE Enterprise: Specimen Questions with Answers 47 - 48 of 49

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Case Study -2

Pottery Barn & Sherwin-Williams

Co-Branding Campaign: Color Your Room

  • One of the biggest benefits of co-branding campaigns is the opportunity to expose your product or service to a brand-new audience. that՚s exactly what home furnishing store Pottery Barn and paint company Sherwin-Williams did when they partnered together back in 2013.
  • Together, the two brands created an exclusive product line of paints, and then added a new section of Pottery Barn՚s website that helped customers easily select paint colors to complement their furniture choices.
  • Customers could coordinate paint colors with picture-perfect Pottery Barn furniture for a mutually beneficial partnership – and style assistance for both brands customers to boot. “Paint Landing,” Pottery Barn՚s landing page for the partnership, contains helpful blog posts and how-to ideas for do-it-yourself painting and decorating.

Question 47 (10 of 12 Based on Passage)

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Short Answer▾

What are the reasons of retaining customers?

Explanation

Customer retention refers to the process of maintain the current customers on whom a business has already spent on acquiring them. Attracting new customers to a firm costs five times more than retaining the old customers. Customer retention helps to increase the profitability of the firm.

Reasons for customer retention are:

  • To save money spent on marketing as acquiring new customers costs a lot more to the firm.
  • To encourage repeat purchases from loyal customers or repeat customers and to earn more profit.
  • Firms get free word of mouth advertising from loyal customers.
  • Firms also gets valuable feedback from retained customers. Customers who make regular purchases from a brand will know about the areas where improvement is required.

Question 48 (11 of 12 Based on Passage)

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Explain two different types of primary data collection method

Explanation

Primary source of data collection refers to data collected directly from the market place-customers, traders, and suppliers often being the major sources. These are often reliable data sources and help in overcoming the limitations of data collection through secondary method. Primary sources are important and more than 90 percent of data in marketing research is collected through primary data research.

Types of Primary Data

  • Census: Census refers to the collecting of data from entire population. The most common form of census is the population census or compilation of voter՚s list in an area. Census takes long time and hence is not suitable for most marketing researches.
  • Sample: Sample refers to a small unit taken from an entire population. If this unit is drawn carefully, the conclusions can be extrapolated to the entire population and generalizations can be made. The key then is representative sample. Some of the decisions to be taken are the size of the sample and how their responses will be tabulated.

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