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Date November 2019 Marks available 4 Reference code 19N.1.SL.TZ0.2
Level Standard level Paper Paper 1 Time zone Time zone 0
Command term Describe Question number 2 Adapted from N/A

Question

Refer to the Accord case study (SL/HL paper 1 Nov 2019). 

Describe two reasons why secondary market research may not be useful to Accord.

[4]
a.

Explain possible economies of scale that may apply to ABC but not to Accord.

[6]
b.

Markscheme

Secondary market research – exploring data that has been already collected for a different purpose.

Accept any other reasonable reason.

Award [1] for each reason up to a total of [2].

Award [1] for putting the reason into context up to a total of [2].

a.

Refer to Paper 1 markbands for May 2016 forward, available under the "Your tests" tab > supplemental materials.

Economies of scale: Reduction in the average costs of a business as the scale of production increases. In this context, “scale” means productive capacity (ie, the physical size of the business) rather than the actual level of production.

ABC is a large multinational so it can:

Accept any other reasonable explanation/application of EOS.

Marks should be allocated according to the paper 1 markbands for May 2016 forward section A.

Award a maximum of [2] if the discussion is only about ABC or Accord but not both.

Award maximum [3] for a theoretical answer.

Award maximum [5] if the analysis is mainly descriptive but in context.

N.B. Some textbooks refer to average costs going down when production goes up (because of fixed costs being spread out more). Technically this is incorrect, as this is about production efficiency rather than scale so should not be allowed.

b.

Examiners report

[N/A]
a.
[N/A]
b.

Syllabus sections

First exams 2024 » Unit 4: Marketing » 4.4 Market research » 4.4.1 Why and how organizations carry out market research
Last exams 2023 » Unit 4: Marketing » 4.4 Market research » The following methods/techniques of secondary market research: market analyses, academic journals, government publications, media articles
Last exams 2023 » Unit 4: Marketing » 4.4 Market research
First exams 2024 » Unit 4: Marketing » 4.4 Market research
First exams 2024 » Unit 4: Marketing
Last exams 2023 » Unit 4: Marketing
Last exams 2023
First exams 2024

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