Photo AI
5 (a) What is meant by the term **qualitative market research**? (b) Travelodge pays its hotel managers a salary - Edexcel - GCSE Business - Question 5 - 2016 - Paper 1
Question 5
5 (a) What is meant by the term **qualitative market research**? (b) Travelodge pays its hotel managers a salary. (c) State one advantage and one disadvantage t... show full transcript
Worked Solution & Example Answer:5 (a) What is meant by the term **qualitative market research**? (b) Travelodge pays its hotel managers a salary - Edexcel - GCSE Business - Question 5 - 2016 - Paper 1
Step 1
What is meant by the term **qualitative market research**?
Answer
Qualitative market research refers to the collection of non-numeric information that includes opinions, attitudes, and judgments. Unlike quantitative research, it does not focus on statistical data but rather on understanding the underlying reasons and motivations behind consumer behavior.
Step 2
State one advantage to Travelodge from its decision to remunerate its hotel managers using a salary.
Answer
One advantage of paying hotel managers a salary is that it ensures salaries are fixed costs and do not change. This allows Travelodge to better manage its overall budget and financial planning as salaries will not fluctuate unnecessary.
Step 3
Explain the likely effect on Travelodge.
Answer
Having fixed salary costs will allow Travelodge to maintain consistent financial management. Managers will be more motivated to work effectively, as their salaries provide a stable income. This motivation may lead to better service and operational efficiency, ultimately enhancing customer satisfaction and loyalty.
Step 4
Step 5
Explain the likely effect on Travelodge.
Answer
If the hotel does not perform well, fixed salary costs can place undue pressure on Travelodge's finances. This may limit available budget for other essential areas of operation, potentially leading to cost-cutting measures elsewhere, which could adversely impact service quality and staff morale.