Question

Priceless Treasures is an antique jewelry retailer. Priceless Treasures' owner, Sally Thornton, wishes to replace the printed catalog with an online catalog.

Ms. Thornton decides to conduct a market research project to explore how Priceless Treasures' target customers would respond to the online catalog approach.

From data collected by the retail jewelers' trade association, Ms. Thornton learns that sales of antique jewelry are rising and that the most common purchasers are older, upper-income couples. Though initially reluctant to purchase online, these customers are beginning to overcome their concerns. From United States Census Bureau data, she learns that this population segment is growing in number and will continue to do so throughout the next two decades. At this point what should Ms. Thornton do?

a) Summarize the research findings and recommend implementing the online catalog as the firm's market is clearly growing.
b) Collect primary data to determine whether these trends and preferences are reflected in
Priceless Treasures' customer base.
c) Collect primary data on competitors to determine whether the online market for antique jewelry is saturated.
d) End the study and retain the current system as the major customer segment is clearly skeptical of online retailers.

Answer 1

To make an informed decision on whether to switch to an online catalog, Priceless Treasures should collect primary data on customer preferences and conduct a competitive analysis to understand the saturation of the online antique jewelry market.

Step-by-step explanation:

The student's question pertains to a business decision by Priceless Treasures, an antique jewelry retailer, regarding the transition from a printed catalog to an online catalog. To address the task, primary data should be collected to understand current customer preferences and trends in the antique jewelry market. This can be done through surveys, observations, or interviews with current customers and potential new market segments to discern their interest in online shopping for antique jewelry.

Further, to gauge the level of market saturation, competitive analysis is essential. This involves collecting primary data on competitors, which can include reviewing their online presence, the range of products offered, pricing strategies, and market reach. It would be beneficial to evaluate advancements in technology, changes in consumer behavior, and the historical transition from physical catalogs to digital platforms in retail as contextual factors.

Ultimately, based on the collected data and analysis, Sally Thornton can make an informed decision whether to proceed with the new online catalog or retain the current system, considering the skepticism of the major customer segment towards online retailers.