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Assess the possible limitations of secondary market research to restaurant chain companies, such as Jamie Oliver’s. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Question 1
Assess the possible limitations of secondary market research to restaurant chain companies, such as Jamie Oliver’s.
Worked Solution & Example Answer:Assess the possible limitations of secondary market research to restaurant chain companies, such as Jamie Oliver’s. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Step 1
Limitations of secondary market research
Answer
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Cost Issues: Secondary market research can be expensive to obtain, for example, market intelligence reports like those from MINTEL, which can cost over £1,000.
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Accuracy Concerns: There is no guarantee of accuracy with secondary data. The timeliness and relevance of the information can be difficult to ascertain, as noted in sources like Wikipedia.
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Insider Access: Jamie Oliver’s was a private limited company, meaning that rivals such as Leon could access certain information like company accounts, leading to potentially incomplete or biased data.
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Specificity Problems: The secondary research might not be specific to Jamie Oliver’s, as it tends to provide general trends that do not accurately capture the unique behaviors of Jamie Oliver’s target consumers.
Step 2
Possible Counter-Balance
Answer
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Availability and Cost: Secondary market research can often be obtained quickly and may be available for free, reducing barriers for businesses like Jamie Oliver’s.
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Dynamic Market Environment: The fast-paced nature of the restaurant industry means that up-to-date secondary data can influence operational changes, reflecting current consumer preferences.
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Data from Competitors: Insights from rivals in the casual dining sector can provide an indication of market conditions when those competitors are public or privately traded businesses.
Step 3
Evaluation of Market Research Purpose
Answer
- Use of Data: The ultimate value of secondary market research heavily depends on the intended objectives behind the data collection. If the goal is to discover the spending habits of potential customers, leveraging free government market research could be more effective for Jamie Oliver’s compared to relying on potentially expensive secondary data.