Market research & segmentation

Explain one method the Competition and Markets Authority (CMA) could use to research the music streaming industry.

Using a supply and demand diagram, illustrate the impact on the market for traditional music formats following the increase in music streaming.

Using the data from Extract B calculate, to two decimal places, the percentage of revenue spent on research and development (R&D) by Spotify in 2021. You are advised to show your working.

Analyse two possible reasons why Spotify might have increased its spending on R&D.

Discuss the benefits for Spotify of using price discrimination.

Using a supply and demand diagram, assess the likely impact on the market for live music if the UK Government reduced VAT on tickets for live music events.

Assess the implications of a fall in unemployment for firms within the music industry.

Assess the benefits for consumers of the music streaming industry being an oligopoly.

Using Extract A, calculate to two decimal places the 5‑firm concentration ratio for the UK car manufacturing industry. You are advised to show your working.

Explain one reason why there is less likely to be price competition in the car industry.

Using Extract B, calculate to two decimal places the profit for the year margin for Stellantis in 2020. You are advised to show your working.

Using a suitable diagram, analyse the likely impact on the market for new petrol and diesel cars if the government increases the subsidy on new electric cars.

Of all the vehicles made in the UK, 81% are exported, with over half going to the EU.

Discuss the likely impact on UK car exports following a depreciation of the pound against the euro.

Assess the likely benefits for Stellantis of selling a range of different car brands.

Assess the benefits to the UK economy of subsidising the Vauxhall car plant in Ellesmere Port.

Assess the likely impact on the UK economy of the Government banning the sale of new petrol and diesel cars from 2030.

In July 2008 the jet fuel price per gallon was $3.89. In January 2018 it was $1.95.

Calculate, to two decimal places, the percentage decrease in the price of jet fuel between July 2008 and January 2018. You are advised to show your working.

A company that refits aircraft for airlines was charging a price of £300 000 to refit an aircraft and demand was six refits per year. When the company reduced its price to £298 000 per aircraft the demand increased to seven aircraft per year.

Calculate the marginal revenue gained from the decrease in price for refitting an aircraft.

Using a supply and demand diagram, illustrate the likely impact on BA of further bad publicity for the business.

Analyse two ways secondary market research may be used by airlines, such as BA, to help increase sales.

Discuss the importance to BA of survival as a business objective.

Assess the government’s decision to reduce air passenger duty (APD) as part of its vision for UK aviation.

Assess the possible impact of rising fuel prices on an airline business.

The European Commission has fined BA for its involvement in a cartel.

Assess the extent to which this may negatively impact BA.

In July 2008 the jet fuel price per gallon was $3.89. In January 2018 it was $1.95.

Calculate, to two decimal places, the percentage decrease in the price of jet fuel between July 2008 and January 2018. You are advised to show your working.

A company that refits aircraft for airlines was charging a price of £300 000 to refit an aircraft and demand was six refits per year. When the company reduced its price to £298 000 per aircraft the demand increased to seven aircraft per year.

Calculate the marginal revenue gained from the decrease in price for refitting an aircraft.

Using a supply and demand diagram, illustrate the likely impact on BA of further bad publicity for the business.

Analyse two ways secondary market research may be used by airlines, such as BA, to help increase sales.

Discuss the importance to BA of survival as a business objective.

Assess the government’s decision to reduce air passenger duty (APD) as part of its vision for UK aviation.

Assess the possible impact of rising fuel prices on an airline business.

The European Commission has fined BA for its involvement in a cartel.

Assess the extent to which this may negatively impact BA.

The European Union (EU) imposes a tariff of 14% on bicycles entering the EU from outside Europe. (Extract F)

Using a suitable diagram, discuss the impact of this tariff on sales of Indian bicycles imported into the EU.

Assess the benefits of market segmentation for the global bicycle manufacturer Avocet.

Assess Hero Cycles ’ decision to open its Global Design Centre in Manchester.

Evaluate the extent to which Hero Cycles should adapt its marketing strategy for global markets.