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Free response · 2.1 Marketing to Customers
Exam-style concept-application task: apply the topic to a new business scenario. Suggested time 12–13 minutes.
FRQ 3 — Concept application (3 points)
Summit Gear, a ski-rental shop, collected data from its online booking system: 58% of renters are aged 25–40, 70% book from cities more than two hours away, most rent for exactly two days, and comments frequently mention 'first time skiing' and 'nervous about equipment.' Summit Gear spent $3,000 on online ads last season and gained 250 new renters. A typical renter returns twice more over three years, spending about $110 per visit.
(A) Identify ONE demographic and ONE psychographic characteristic from the data. 1 pt
(B) Calculate Summit Gear's customer acquisition cost last season and explain ONE way a customer-relationship tactic could lower it. 1 pt
(C) Describe a customer profile for Summit Gear's target customer and explain how it would make marketing more effective and less costly. 1 pt