Practice 4.4 Market research with authentic IB Business Management exam questions for both SL and HL students. This question bank mirrors Paper 1, 2, 3 structure, covering key topics like systems and structures, human behavior and interaction, and sustainability and ethics. Get instant solutions, detailed explanations, and build exam confidence with questions in the style of IB examiners.
Paper
Level
Question 1
HLPaper 3
LuminaCare
Resource 1 – Company profile and financial context
LuminaCare is a Ghana-based, for-profit social enterprise that manufactures solar-powered medical devices for rural clinics and maternal health centers across Sub-Saharan Africa. Its flagship product is a solar fetal heart monitor, which allows midwives to detect complications during pregnancy without relying on grid electricity. The company raised seed capital from impact investors but has now reached an inflection point: demand has grown by 300%, and LuminaCare must decide whether to pursue a $2.5M Series A equity round or take on $1.2M in concessional debt from a development bank.
Resource 2 – CFO’s internal memo (Finance)
“Our burn rate is steady, but we’ve reached our credit limit with suppliers. We operate on 90-day payment terms with clinics, so cash flow is always tight. Series A equity gives us the scale to meet demand and build a second facility—but would dilute founder control and introduce board-level oversight. The concessional loan is low-interest and non-dilutive but comes with covenants: quarterly EBITDA targets, strict capex limits, and donor-style reporting. Any miss could trigger loan restructuring or early repayment.”
Resource 3 – HR performance dashboard (Q1–Q2 2025)
| Metric | Value |
|---|---|
| Staff turnover (last 6 months) | 22% |
| Time to fill technical roles | 49 days (↑ 24%) |
| % of roles with formal job descriptions | 58% |
| Managerial span of control | Avg. 12 direct reports |
| Avg. team engagement score | 67/100 (↓ from 78) |
| The head of HR notes that burnout and unclear career paths are leading to attrition, especially among product engineers and field deployment staff. |
Resource 4 – Marketing team proposal
“Clinics love our mission—but most have no idea who we are until we show up at trade shows. We need to invest in inbound marketing, including a multilingual website, CRM tools, and a referral rewards program for midwives. More crucially, we’re perceived as a donor-funded nonprofit, not a serious tech company. To attract hospital procurement officers and larger buyers, we must reposition the brand to emphasize product quality, not just affordability and ethics.”
Resource 5 – Email thread: CEO to CFO and Marketing Lead
Resource 6 – Feedback from key field partners
“We rely on LuminaCare’s devices, but their response time for repairs has worsened.” “Sometimes we get different pricing from different reps. There’s no standard process.” “I love the mission—but our procurement officer wants a brand that feels serious. A logo change isn’t enough.”
1.[2]
With reference to Resource 3, describe one HR issue that may be impacting LuminaCare’s ability to scale sustainably.
2.[6]
Explain one financial challenge and one marketing challenge LuminaCare may face if it accepts the concessional loan.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for LuminaCare over the next five years.
Question 2
SLPaper 2
BeanBar Ltd.
BeanBar Ltd. is a medium-sized company that sells gourmet coffee beans online and in retail stores. The business recently launched a new premium coffee blend and carried out primary market research to better understand customer preferences before the launch. The findings helped inform the company’s updated marketing plan, which included promotional discounts and revised packaging.
Although initial sales were strong, the marketing manager is concerned that poor internal communication between the finance and sales teams may be affecting financial performance. The finance team has noted rising costs, while the operations team wants to reinvest in product development.
Table 1 shows selected financial data for the past two months.
Table 1: Selected financial data for BeanBar Ltd. for 2024
| Item | Month 1 ($) | Month 2 ($) |
|---|---|---|
| Revenue | 100,000 | 90,000 |
| Cost of goods sold | 40,000 | 42,000 |
| Expenses | 30,000 | 35,000 |
| Net profit | ? | ? |
| Current assets | 60,000 | 50,000 |
| Current liabilities | 30,000 | 40,000 |
1.[2]
Calculate the net profit for Month 1 and Month 2. Show all your working.
2.[2]
Calculate the current ratio for Month 2. Show all your working.
3.[2]
Explain one reason why a fall in net profit might concern the finance team.
4.[2]
Identify one method of primary market research used by businesses like BeanBar Ltd.
5.[2]
Outline one problem that may arise from poor internal communication between departments.
Question 3
HLPaper 3
SolvoHealth
Resource 1 – Business model and service offering
SolvoHealth is a rapidly growing mobile health company based in Vietnam. It operates a network of telehealth pods—solar-powered kiosks placed in rural communities that allow patients to consult doctors remotely, order basic diagnostics, and schedule medicine delivery.
Each pod includes a screen, smart diagnostic tools, and a local “health navigator” who guides users. SolvoHealth employs:
40 health navigators (frontline staff)
15 remote doctors (contracted)
30 staff at its operations HQ in Ho Chi Minh City (marketing, product, supply chain, HR)
SolvoHealth positions itself as affordable, hyper-local, and technology-enabled. The leadership team now plans to launch 60 pods in Indonesia and Bangladesh over the next 18 months.
Resource 2 – Internal HR report
“Navigator turnover remains high at 28% annually. Interviews cite poor training, emotional fatigue, and a disconnect between field roles and central ops decisions. Navigators receive basic onboarding but no career pathway or local adaptation in training. They also report being treated more as hardware support than as care professionals.
Headquarters recently introduced a CRM-linked performance bonus system based on call completion and upsell conversions—but this has increased pressure on already fatigued staff.”
Resource 3 – Weekly Ops Brief (March 2025)
Visual suggestion: This operations table can be converted into a bar chart or dashboard screenshot to test interpretation skills.
| Metric | Vietnam (live) | Indonesia (pilot) |
|---|---|---|
| Avg. pod uptime | 94% | 71% |
| Avg. medicine delivery time | 26 hours | 61 hours |
| Navigator-reported escalations | 9.2/week | 18.4/week |
| Inventory out-of-stock events | 3.1/week | 7.5/week |
Resource 4 – Brand perception audit (external)
In Vietnam, SolvoHealth scores high for accessibility and usefulness, but low for empathy and personalisation. Many patients feel “talked to” by doctors, not “heard.”
In Indonesia (pilot), users were confused by medical terms and unable to complete video sessions. 47% believed the navigator was “just a receptionist.”
A competitor, SehatNow, offers similar services but invests heavily in navigator-patient relationship-building and community health workshops to build trust.
Resource 5 - Email from Head of Marketing to CEO
Resource 6 – Slack thread
@Linh (HR): “One navigator resigned mid-shift—said she felt like a vending machine operator.”
@Dara (Marketing): “How are we still pushing bonuses on upsells when trust is crumbling?”
@Tung (Ops): “I’ll review the KPIs. But we can’t rebuild loyalty with posters.”
@Dara: “Maybe not. But we can’t scale a service that feels robotic either.”
*Note Slack is an internal team communications tool
1.[2]
With reference to Resource 2, describe one HR issue that may impact SolvoHealth’s service performance.
2.[6]
Explain one marketing challenge and one operations challenge SolvoHealth may face as it expands across Indonesia and Bangladesh.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for SolvoHealth over the next five years.
Question 4
HLPaper 3
Global Solar Solutions (GSS)
Resource 1 – Background of the social enterprise
Three years ago, electrical engineer and entrepreneur Nadira Khan founded Global Solar Solutions (GSS) as a social enterprise in Morocco. Her goal was to provide affordable, modular solar lighting kits to off-grid rural communities. These kits, manufactured at GSS’s urban facility, include rechargeable LED lights and mobile charging ports. GSS reinvests 100% of profits into R&D and local hiring.
GSS operates in partnership with local NGOs and community councils. Its workforce includes 40 technicians and 20 community trainers who educate households about solar usage and maintenance. GSS applies lean production, Kaizen, and maintains a strong internal emphasis on quality control and after-sales support.
Resource 2 – Recent internal report on workforce issues
"High staff turnover and trainer burnout have increased over the past 12 months. Trainers, who work in remote villages for weeks at a time, report fatigue and a lack of recognition. Some have requested additional health support and clearer promotion opportunities."
The HR department suggested non-financial incentives such as increased job rotation and monthly feedback sessions but reported mixed engagement.
Resource 3 – Email from the Director of Rural Development (DRD)
To: nadira.khan@GSS.org
Subject: Expansion proposal
Dear Ms. Khan,
We are impressed by GSS’s impact. The Ministry would like to propose a contract to expand the solar program to 80,000 homes across North and West Africa over five years. Your team would need to train local technicians and build capacity in three new countries. Please note, the contract requires local sourcing of at least 60% of parts.
We will require an initial trial rollout in 5,000 homes and evidence of social impact.
Regards,
Director, DRD
Resource 4 – Extract from a marketing audit summary
GSS currently relies on word-of-mouth and NGO referrals. Its brand is associated with trust and affordability. However, a 2024 brand perception survey in new markets revealed low awareness and concerns about product durability compared to larger multinationals such as SolarX.
GSS’s marketing team is small (3 staff) and has no formal digital strategy. There is also no localized messaging for francophone West African markets.
Resource 5 – Operations update from the Head of Production
Our current facility is operating at 92% capacity. To meet a major scale-up, we would need to either expand production or outsource subassembly. We have identified two regional partners with experience in sustainable component manufacturing. However, we are concerned about quality assurance if we lose full process control.
Resource 6 – Excerpt from a local newspaper article
“Access to solar power has transformed daily life in remote villages. Children now study at night, families charge phones to access mobile banking, and kerosene usage has dropped. However, NGOs report that replacement parts for some GSS kits have been slow to arrive, creating frustrations in isolated regions.”
1.[2]
With reference to business management motivation theory, describe one need that GSS satisfies for rural households requiring solar lighting.
2.[6]
Explain one human resource challenge and one operations challenge GSS may face if it accepts the DRD expansion contract.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for GSS over the next five years.
Question 5
SLPaper 2
BioNatura Ltd.
BioNatura Ltd. produces plant-based cosmetic products made from ethically sourced ingredients. The company targets environmentally conscious consumers who value transparency and sustainability. Following a detailed market research campaign, BioNatura adjusted several elements of its marketing mix, including packaging, pricing, and distribution strategy, to better appeal to Gen Z consumers.
To track financial performance and inform its next marketing plan, the finance department has compiled partial data for the end of Q2 2024. A new intern has been asked to complete the statement of financial position shown in Figure 1.
Table 1: Financial data for BioNatura Ltd. – as at 30 June 2024
| Item | Amount ($) |
|---|---|
| Property, plant and equipment | 130,000 |
| Accumulated depreciation | (30,000) |
| Cash | 20,000 |
| Debtors | 25,000 |
| Stock | 35,000 |
| Bank overdraft | 10,000 |
| Trade creditors | 18,000 |
| Short-term loan | 22,000 |
| Long-term loan | 60,000 |
| Share capital | 90,000 |
| Retained earnings | 80,000 |
Figure 1: BioNatura Ltd – Statement of financial position as at 30 June 2024 (incomplete)
Figure 1: BioNatura Ltd – Statement of financial position (incomplete)
As at 30 June 2024
| Item | $ |
|---|---|
| Non-current assets | |
| Property, plant & equipment | 130,000 |
| Accumulated depreciation | (30,000) |
| Net non-current assets | ____________ |
| Current assets | |
| Cash | 20,000 |
| Debtors | 25,000 |
| Stock | 35,000 |
| Total current assets | ____________ |
| Total assets | ____________ |
| Current liabilities | |
| Bank overdraft | 10,000 |
| Trade creditors | 18,000 |
| Short-term loan | 22,000 |
| Total current liabilities | ____________ |
| Non-current liabilities | |
| Borrowings – long term | 60,000 |
| Total liabilities | ____________ |
| Net assets | ____________ |
| Equity | |
| Share capital | 90,000 |
| Retained earnings | 80,000 |
| Total equity | ____________ |
1.[2]
Explain how BioNatura’s use of market research may have helped inform recent changes to its marketing mix.
2.[2]
Identify one element of the marketing mix that BioNatura has changed to help reach its target audience.
3.[2]
Using Table 1, calculate the missing fields in the statement of financial position shown in Figure 1. Show all your working.
4.[2]
Calculate BioNatura’s current ratio and acid test ratio. Show all your working.
5.[2]
Comment on what the liquidity ratio results implies about BioNatura Ltd.’s short-term financial position.
Question 6
SLPaper 2
GlowTea Ltd.
GlowTea Ltd. is a business that sells bottled herbal iced tea made with natural ingredients. The marketing team recently conducted market research through surveys and product sampling to understand customer preferences for flavour and price sensitivity. Based on the findings, the business created a marketing plan for a new product line aimed at health-conscious young adults.
GlowTea has adjusted elements of its marketing mix, including the packaging design and pricing strategy, to reflect the preferences of this new market segment. The finance team has produced a break-even chart to assess whether the new line is financially viable before its official launch.
Figure 1: Break-even chart for GlowTea Ltd.’s new product
1.[2]
Using Figure 1, identify the break-even level of output for the new product.
2.[2]
Explain one reason why market research was important before launching the new product line.
3.[2]
Outline one element of the marketing mix that GlowTea Ltd. changed and explain how it may support the success of the product.
4.[2]
Explain one reason why creating a marketing plan is useful for the launch of a new product.
5.[2]
Using Figure 1, calculate the profit or loss GlowTea Ltd. would make if it sells 7,000 units.
Show all your working.
Question 7
SLPaper 2
NovaShades Ltd.
NovaShades Ltd. produces customisable smart sunglasses that adjust tint based on sunlight. The company is in its third year of operations and is seeking to expand its presence into two new markets. A recent round of market research revealed a growing demand among athletes and frequent travellers, prompting changes to the marketing plan, including new promotional strategies and adjusted pricing.
To fund the launch, the business secured a short-term bank loan and reinvested a portion of last year’s retained profit. The leadership team promotes a task-oriented management style, focused on achieving efficiency, though recent internal feedback shows that some employees feel undervalued and disconnected from the company’s vision.
The finance team has provided partial data for Q2 2024 and asked the marketing interns to complete the missing values in the statement of profit or loss using the table below.
Table 1: Financial data for NovaShades Ltd. (Q2 2024)
| Item | Amount ($) |
|---|---|
| Units sold | 2,000 |
| Selling price per unit | 120.00 |
| Variable cost per unit | 45.00 |
| Salaries (marketing + operations) | 40,000 |
| Advertising and promotion | 18,000 |
| Office rent and utilities | 15,000 |
| Loan interest | 2,500 |
| Tax rate | 25% |
| Dividends paid | 10,000 |
**Figure 1: NovaShades Ltd. statement of profit or loss for the quarter ended 30 June 2024
| $ | |
|---|---|
| Sales revenue | _______ |
| Cost of sales | _______ |
| Gross profit | _______ |
| Expenses: | |
| Salaries | (40,000) |
| Advertising and promotion | (18,000) |
| Office rent and utilities | (15,000) |
| Profit before interest and tax | _______ |
| Interest | (2,500) |
| Profit before tax | _______ |
| Tax (25%) | _______ |
| Profit for the period | _______ |
| Dividends | (10,000) |
| Retained profit | _______ |
1.[2]
Suggest one possible reason why the leadership style at NovaShades Ltd. might be contributing to employee demotivation.
2.[2]
Explain how the findings from NovaShades Ltd.’s market research could be used to adjust its marketing planning.
3.[2]
Outline one element of the marketing mix that appears to have been updated based on the case and how it supports the new market strategy.
4.[2]
Using the data in Table 1, construct the full statement of profit of loss in Figure 1. Show your working.
5.[2]
Suggest whether the business appears financially stable based on its retained profit and reliance on short-term finance.
Question 8
SLPaper 2
VibeAudio Ltd.
VibeAudio Ltd. is a company that designs and sells high-end wireless speakers targeted at design-conscious music enthusiasts. The business recently underwent a brand refresh and developed a new marketing plan targeting younger consumers. Based on insights from focus groups and competitor analysis, the company adjusted several elements of its marketing mix, including the product design, pricing strategy, and promotional platforms.
To support the launch of a new speaker model, the business secured a medium-term bank loan and allocated funds from retained profit to cover upfront development costs. The finance team is preparing a statement of profit or loss to evaluate the performance of the new speaker and is also assessing the viability of investing in a new flagship showroom.
Table 1: Financial data for VibeAudio Ltd. – New Speaker Product (Q1 2024)
| Item | Amount ($) |
|---|---|
| Units sold | 1,200 |
| Selling price per unit | 180.00 |
| Variable cost per unit | 75.00 |
| Advertising and promotion | 25,000 |
| Salaries (marketing/admin) | 40,000 |
| Loan interest | 3,500 |
| Office rent and utilities | 12,000 |
| Tax rate | 25% |
| Dividends paid | 5,000 |
1.[2]
Explain how the insights from VibeAudio Ltd.’s market research could shape its marketing planning.
2.[2]
Suggest one element of the marketing mix that appears to have been prioritised in the launch
3.[2]
Using the data in table 1, construct a statement of profit or loss for the new speaker product
4.[2]
Based on your statement, explain whether the new speaker model appears to be financially sustainable.
5.[2]
The company is considering investing $90,000 in a flagship showroom. The showroom is expected to generate annual net cash inflows of $35,000 for three years.
Calculate the payback period for this investment. Show all your working.
Question 9
SLPaper 2
FreshFizz Co.
FreshFizz Co. is a partnership that produces and sells sparkling fruit drinks made from natural ingredients. The partners recently carried out market research by surveying local gym members about their drink preferences. Based on the results, they plan to launch a low-calorie product with new packaging and promote it through social media.
FreshFizz has gathered financial data to help decide whether to invest in a new production machine.
Table 1 shows key financial information from last year.
Table 1: Financial data for FreshFizz Co.
| Item | Amount ($) |
|---|---|
| Gross profit | 60,000 |
| Revenue | 120,000 |
| Current assets | 40,000 |
| Current liabilities | 20,000 |
Table 2 shows estimated returns from the new machine.
Table 2: Estimated returns from machine
| Year | Net cash inflow ($) |
|---|---|
| 1 | 5,000 |
| 2 | 10,000 |
| 3 | 15,000 |
Initial cost of machine: $25,000
1.[2]
Identify two characteristics of a partnership.
2.[2]
Calculate the gross profit margin for FreshFizz Co. Show all your working.
3.[2]
State the payback period for the new machine. Show all your working.
4.[2]
Identify two elements of the marketing mix FreshFizz is changing based on the case.
5.[2]
Explain one reason why market research is important when launching a new product.
Question 10
SLPaper 2
AeroPure Ltd.
AeroPure Ltd. is a mid-sized manufacturer of compact air purification systems for homes and offices. It has recently restructured into a matrix organisational structure to improve project collaboration between product development, sales, and marketing. The head of HR introduced a new performance appraisal system to increase motivation and accountability, but some staff have expressed concerns about fairness and inconsistent feedback.
The leadership team uses a democratic management style, regularly consulting middle managers for input on marketing campaigns and operational changes. A recent market research report revealed rising demand for quiet, minimalist air purifiers, especially among remote workers. In response, AeroPure adjusted its product design, pricing, and promotion strategy, targeting health-conscious professionals.
The finance team has shared the company’s statement of financial position as at 30 June 2024. The managing director has asked a group of interns to analyse its implications on financial performance and workforce strategy.
Figure 1: AeroPure Ltd – Statement of financial position
AeroPure Ltd. Statement of financial position as at 30 June 2024
| Item | $ |
|---|---|
| Non-current assets | |
| Property, plant and equipment | 420,000 |
| Accumulated depreciation | (100,000) |
| Net non-current assets | 320,000 |
| Current assets | |
| Cash | 25,000 |
| Debtors | 42,000 |
| Stock | 53,000 |
| Total current assets | 120,000 |
| Total assets | 440,000 |
| Current liabilities | |
| Bank overdraft | 7,000 |
| Trade creditors | 36,000 |
| Short-term loan | 27,000 |
| Total current liabilities | 70,000 |
| Non-current liabilities | |
| Borrowings — long term | 90,000 |
| Total liabilities | 160,000 |
| Net assets | 280,000 |
| Equity | |
| Share capital | 200,000 |
| Retained earnings | 80,000 |
| Total equity | 280,000 |
1.[2]
Comment on one implication this balance sheet may have for AeroPure Ltd.’s working capital and cash flow strategy.
2.[2]
Calculate AeroPure Ltd.’s current ratio and acid test ratio. Show all your working.
3.[2]
Suggest how the company’s liquidity position might affect its ability to invest in employee motivation initiatives.
4.[2]
Explain one way the recent marketing mix adjustments may support AeroPure’s ability to remain competitive.
5.[2]
Describe how the organisational structure and leadership style at AeroPure Ltd. might affect the implementation of its HR appraisal system.