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  • What features would you like to have?

    1. more variety of colours

    1. ability to use the mp3 player with goggles as well as separately

    1. colour screen

    1. ability to measure the depth of the water

    1. stopwatch (ability to record laps when swimming)

    1. Bluetooth swimming gloves with special sensors (ability to change tracks when swimming, measuring the pulse, heart rate, calories and etc.)

    Thank you very much for spending time filling in this questionnaire :=)))) Have a nice day!

    PEST Analysis

    Firstly I would like to describe what the PEST analysis is. Basically, it is a way of analyzing organization’s or governmental external environment by grouping all factors and influences, which affect the external environment of certain businesses and countries into the four main groups: Political, Economic, Social and Technological. It involves identifying key factors and influences on external environment as well as analyzing them and considering different effects on the economy, which they might have.

    Political

    Political factors are usually governmental decisions which influence businesses decisions. For example, one of the political influences can be legal and fiscal policies, taxation and laws, which the government might introduce. This can directly change supply and demand on certain products, which can then have an effect on different organizations, which produce products which are affected. For example, recently the UK government has prohibited smoking in the pubs and most of the other public places, and increased the legal age of smoking up to 18. This had a direct impact on the companies, which produce cigarettes, as the demand for their products decreased. Less people became able to buy their products, which had an impact on their profits. As a result, some of the cigarette produces have lost a lot of money. Another example can be an increase in tax rates.

    For example, there are fears, that Europe may drive VAT increase to 20%. If the VAT is increased to from 17.5% to 20%, some of the products will become more expensive, which might decrease the demand for these products. However, this might not affect other types of products, like food for which the businesses don’t have to pay VAT tax. There are many

    other effects of rise in taxes.

    Another example of the political factors can be the effect of rise in income tax which can lead to the decrease in the output of different companies, which can then lead to the rise in unemployment. As the income tax raises the demand for certain products decreases, and as the demand for certain products decreases, companies are tend to charge lower prices, which then results in the inflation which is very bad for the economy of the country.

    If the UK government suddenly decides to encourage healthy eating and prohibit junk food, then the fast food producers will suffer, as they will have to develop new, healthier products if they want to stay in the market, which will cause high costs for the companies who produce fast food or fast moving products, like crisps.

    At the moment taxation is controlled by the UK government, so it will influence my product and Apple, but it will be an economic factor. If the British government decides to take European constitution, then it would be taxing the products in exactly the same way as all other European countries do. Therefore, it will still influence Apple, but it in this case it will be a political factor.

    A very important political factor as well as economic, is changes in the availability of raw materials. This factor can have a major effect on the Apple products. For example, if the UK oil and plastic supplier decides to charge higher prices due to the scarcity of this resource or whatever reason, the prices on plastics are likely to increase. Apple uses large quantities of plastic in order to make its products, so it will have to spend more money buying plastic and their production costs will increase. As the production costs of Apple will increase, prices on Apple products will be likely to rise. Therefore, if the prices on oil increase, they can potentially increase prices on all plastic products like Apple. This might, as a result, cause a decrease in demand for Apple products.

    Economic

    Economic factors are also very important as they determine prices on certain products, supply and demand of certain products, changes in inflation and unemployment, which can also have an effect on people’s living standards. For example, if the rate of inflation increases, then it can effect individual businesses and organizations as well as affect the consumers and the economy of the whole country. If the rate of inflation in the UK is higher than in the other countries, then the products produced by UK firms become less competitive in price, and businesses in the UK suffer. High rate of inflation in the UK, can then cause a fall in the number of UK exports, which then affects the balance of payments leading to unbalance and rise in the import penetration. As a result, this can cause the rate of economic growth to fall, so the country becomes less competitive as a whole. In order to cope with the new prices, some companies in the UK may have to make some employees redundant, which will cause the rate of unemployment to rise, which will not be good for the UK economy, as they will have to pay more benefits to the people who don’t work, and there will be less people in the country who will actually contribute to the UK economy. This will have a major effect on Apple products, as there will be less people who will be willing to buy Apple products due to the low wages or the fact that people are unemployed and don’t have enough money anyway. As the growth of the UK economy decreases, there will be fewer incentives from the businesses from the other countries to invest money into the UK businesses and UK economy. If there are restrictions made on trade, then some poor countries like Kenya might suffer, as their products might become less competitive on the foreign markets. Restrictions on trade might also mean that some of the UK products can become less competitive on the markets in the other countries, which will affect UK firms’ profits and economy as a whole.

    Below there are some graphs and data, which I will use to analyse and show different effects of economic growth, rate of inflation and unemployment on the economy.

    GDP rose by 0.7 per cent in the third quarter of 2007, down from 0.8 per cent in the second quarter and revised down by 0.1 per cent compared with the preliminary estimate. The level of GDP is now 3.2 per cent higher than the third quarter of 2006. The output of the production industries was flat in the latest quarter compared with a rise of 0.7 per cent in the previous quarter. The decrease in growth was due to weakness in mining and quarrying, down 1.3 per cent and flat growth in manufacturing. Growth in the service industries rose by 0.9 per cent in the third quarter, the same rate recorded in the previous quarter. Growth continues to be dominated by the business and financial services sector, however growth slowed a little to 1.5 per cent following growth of 1.7 per cent in the previous quarter.

    It is evident from this graph that there was an increase in GDP by 3.2 percent in the third quarter of 2007, comparing to the third quarter in 2006. From what it’s evident in the text, growth in the service industries rose by 0.9 per cent. Economic growth means, that it stimulates employment. If there are more people employed, there’s more contribution to the economy, which is good for the country as it helps to raise people’s living standards. As there are more people in work, there are more people who pay taxes, which is good for the government as it brings more money to them, so that they can spend it on further research, and invest money into development of new products, rather than supporting unemployed people who don’t work and contribute to the economy. This also allows a large number of people to have more spending power, which means they are more likely to buy luxury goods. This means that the demand for such products will increase. Larger outputs encourage businesses to expand and invest money into buying new machinery.

    Rise in incomes results in businesses becoming more confident, which might have a good impact on certain firms and their profits. As the employment increases, and people get more spending power, living standards rise, so that people have more time to look after themselves. So as the GDP rises, living standards rise as well.

    However, there are also some disadvantages and risks involved. For example, if the economy grows very rapidly, there’s a high risk of having the inflation. This can also be affected by some external factors. For example, if somebody suddenly gets a high pay rise, he would not necessarily choose to buy a very expensive car, as the congestion taxes need to be paid due to the congestion tax policy.

    Unemployment is another very important aspect, which affects the economy.

    UNEMPLOYMENT (www.statistics.gov.uk)

    The trends in the employment and inactivity rates are broadly flat but the trend in the unemployment rate is falling. There has been a further fall in the number of people claiming Jobseeker's Allowance benefit. The number of job vacancies has increased. Growth in average earnings excluding bonuses is unchanged, but earnings growth including bonuses has increased. The employment rate for people of working age was 74.4 per cent for the three months to September 2007, unchanged from the previous quarter but down 0.1 over the year. The number of people in employment for the three months to September 2007 was 29.22 million. This is the highest figure since comparable records began in 1971; it is up 69,000 over the quarter and up 178,000 over the year. Total hours worked per week were 937.8 million, up 0.3 million over the quarter and up 10.4 million over the year. The unemployment rate was 5.4 per cent, unchanged over the previous quarter but down 0.2 over the year. The number of unemployed people increased by 6,000 over the quarter but fell by 47,000 over the year, to reach 1.67 million. The claimant count was 824,800 in October 2007, down 9,900 over the previous month and down 130,300 over the year.

    It is evident from the data given above, that the rate of unemployment in the UK was decreased by 0.2 per cent in 2007, which suggests that economy is doing better as there are more people employed. Unemployment causes many problems, such as: fall in economic growth, decrease in the living standards, waste of scarce resources and decrease in the national output, which makes businesses in one country less competitive to the other businesses in the world. As the rate of unemployment rises, it results in the increase in the number of people who claim unemployment benefits, which means that the government has to spend more money on poor people or unemployed instead of investing money into the research. Usually, high rate of unemployment causes taxation level to go up. Also, if there are less people working on the country, it means there are less people in the country who pay taxes, so the amount of money received from taxation is likely to decrease. In this case unemployed people don’t work, receive benefits from the government and don’t contribute to the economy, which is bad. In addition to this, high rate of unemployment means, that people have less spending power, which means there are less people in the country who can afford to buy luxury products, so the demand for these products decreases. The rise in government spending and fall in tax revenues is likely to result in the government borrowing more money from the other countries.

    The main factors economic factors, which can affect my chosen business and product, are:

    • Changes in VAT taxes

    • Rate of employment

    • Economic growth

    • Living standards

    Apple is a technological product, and VAT is being paid for almost all products, apart from food and child clothing. For example, if the European government decides to increase the VAT taxes, this will mean that prices on Apple products will be affected. As the VAT increases, the Apple can either keep the prices the same, but pay VAT by themselves, which will decrease their profits, or increase the prices on Apple products. As the prices on Apple products will increase, it might result in a decrease in demand for their products, which will still affect Apple profits. In this case the company will suffer anyway. This also means that Apple might have to design new pricing strategies, invent new products or change their design, in order to make their products more attractive, or increase promotion in order to encourage more sales and encourage their customers to buy their products for higher prices.

    Rate of unemployment, economic growth, and living standards are the other three factors, which are linked together and have a major affect on Apple and the products they produce. For example, if the rate of employment decreases, or there’s an increase in the rate of unemployment, it means there will be less people with a spending power and ability to buy luxury products such as Apple. When there’s a lot of unemployment, people are desperate for a job, so the employers offer lower wages. Due to the fact that on average people’s wages decrease, they are less likely to buy luxury goods like Apple, so the demand for their products is likely to decrease.

    In addition to this, it also relates to the economic growth. If there’s an increase in the economic growth, people’s incomes increase, so their living standards are also likely to increase. As this happens, people become get more spending power, which allows them to purchase luxury goods, like Apple products. Therefore, if there’s an increase in the economic growth, the demand for Apple products will likely to be increased as well.

    Social

    One of the examples of social factors can be: population changes, healthy eating, obesity, education and etc.

    For example, if the population increases, it means there will be more potential consumers for your products.

    Making sure that the good level of education is provided, helps to increase the number of well educated, highly trained employees. This then increases the efficiency, so high quality products and services are provided. This makes sure, that in the future young employees will contribute a lot to the economy and bring more money to the government by paying taxes.

    Encouraging people to eat healthy food, improves health provision and health care. If people are healthier, there is less need in spending more money into NHS and hospitals, so the money can be spend on other things. This, as a result increases living standards.

    These factors have a direct effect on the Apple and their products. For example, if the population increases, there’s a potential that there will be more customers in the future, meaning that there’s some potential for the increase in profits of Apple, if it stays in the market and carries on developing new products.

    Another social factor can be an increase over the years in the use of technology. If the customers start buying more technological products, there’s likely to be an increase in the demand for Apple products in the future.

    Change in the preferences or image of the customers can also be a very important factor for Apple. As soon as people grow up, they are less likely to buy and use technological products, because they might simply be too complicated for them and seem to be difficult to use. Also, sometimes as the person gets older, he sometimes stops using certain products. For example, when I was a child a used to play ‘Lego’ and my parents bought it for me, but as I got older I stopped playing and using ‘Lego’ products, and started to consume and use more complicated products like CD and mp3 players. Every company aims their products at a certain age group. Apple is usually aiming at the young audiences, so their products have modern design, are colourful and involve using new technology. Similar situation might happen with Apple. Those customers who used to consume their products and buy for example, iPods, have now grown up so that they want to buy and use something more expensive and interesting. E.g. these customers might now be interested in buying cars, or they might now think that iPods are a bit childish for them. Therefore, Apple needs to think about other products, which can be aimed at the older age groups. For example, selling Apple TV’s. Recently introduced Apple TV is a more expensive product, and only those people can buy it who work and can afford it. In my case I want to introduce new Apple swimming goggles, so the situation with this particular product is different. People of different ages do swimming, and it is evident from my research that even those customers who are 40 or 60 who do swimming, would still like to listen to the music while swimming. In this case changes in preferences due to the changes in age would not necessarily affect my product.

    Sometimes there’s a simple change in customers’ preferences. For example, they can switch from buying Apple products to buying Creative products, as they might become more attractive products than Apple in the future. There is also a possibility that other company than Apple invents a completely new technological product, which will be unique and attractive, so people might switch from buying Apple to buying something different. Sometimes people lose their interest in the product completely due to the change in fashion or other influences. For example, a new type of music player might be invented in the future, so the customers might stop buying not only Apple mp3 players, but all other mp3 players completely.

    Technological

    Basically, there might be new methods of production introduced into the business or new machinery being bought, which can help firms to produce more efficiently, which means bringing more profits into the business. This can reduce the costs of production of certain products, which can increase profit margin for the company. If Apple introduces new technology, it means that it might be producing more products in a shorter period of time. This, however, might also mean, that Apple might make some workers redundant. Making workers redundant won’t be very good for both, economy and the image of the business itself.

    Although, the some businesses like Apple might have to make some workers redundant, if they introduce new technology, they will be producing more efficiently so making more profit. This means, that certain businesses will be contributing a lot to the economy, as they will be paying more taxes. As a result government’s taxation revenue will increase, which will, as a result, make UK firms and the country more competitive. Introducing new technology, will not only benefit Apple from an economic and social point of view, but will make it more competitive on the market, which means customers will be more likely to give their preferences to Apple products.

    Inventing or using new materials for packaging can also be an important factor for Apple, as it might help it decrease their pollution to the environment and decrease the costs of recycling. This might not only decrease Apple costs of recycling, but make it more environmentally friendly, and improve its image, which might make their products more popular amongst those people.

    • Use of internet

    Makes it easier for firms to trade, sell goods and provide services.

    Focus Group

    Basically, focus group is a group of potential consumers used in a market research effort, which is usually designed to determine the likely effectiveness of a product or advertising strategy. When using Focus group method, qualitative data is being gathered from targeted groups of consumers. It involves encouraging a group of 6 to 12 targeted individuals to seat and discuss some topics selected by the business, in order to identify people’s opinions about new products. There’s usually a moderator, or a person who asks the questions and makes a record of the response and reaction of each individual in the group to specific questions about products or particular features of the new product.

    Limitations and disadvantages of using Focus group methods:

    • It is very difficult to obtain relevant information about new products and analyse it.

    • It is very difficult to measure the results accurately and objectively.

    • It might be very expensive to do and might lead to high costs.

    Advantages of using Focus group method:

    • Only those people are asked the questions, who are in the target group and who can provide relevant information about the new products.

    • Can help businesses make the right decision or choose the right marketing strategy, pricing strategy and promotional campaigns.

    • Provides businesses with the ability to learn about consumer design and brand preferences and product usage.

    Topics which will be discussed, and questions which participants will be asked:

    • In the real world, businesses do sometimes ask focus group participants to sign a special document, which obliges them not to tell anyone, what they have heard, seen and discussed during the focus group discussion. This is usually done, because some businesses do not want experience the leak of information from their company to their competitors’. This should be done before the participants take a part in the discussion.

    • Usage of the product (Question will be asked, how often would participants use my new product and how often do they think other people who are interested would be using a new product)

    • Features of the product (Discussing possible features of the product and asking participants whether they would like to have some particular features)

    • Design of the new product (Participant will be asked whether they have any particular ideas about the new design of the product. They will told all current designs of the new product and asked to discuss all potentials designs and choose the one, which they think will be the most attractive design)

    • Competitors’ products (Talking about competitors’ products, whether there might be more competition from the other companies, which are more specialised at producing sports accessories. Participants will also be asked, whether they think it would be a good idea to start cooperation with Speedo, Nike, Umbro, and other firms, which are specialised at producing sports accessories, particularly the ones for swimming.)

    • Pricing and promotional strategies (It will be discussed with participants what particular promotional and pricing strategies, from their point of view, will work best)

    • Place (Participants will required to discuss advantages and disadvantages of selling new products at particular places. For example, it might be discussed, whether it’s better to use in the sports shops or electronic shops.)

    How Focus Group should be organised.

    Firstly, business needs to choose an appropriate targeted group of people, according to their age, gender, knowledge and usage of the product. When selecting participants, business (moderator) needs to choose those people who they can discuss advantages, disadvantages, and all trends of the product with. These should be the people who can provide high quality information which is relevant to their research. In other words, businesses need to be looking for those participants, who suit their target consumers.

    When selecting participants in order to discuss my product, I will be choosing only those people, who do swimming and who are interested in having mp3 player build into their swimming goggles. I believe that these people will be more likely to provide with relevant ideas about new product, will be able to discuss potential advantages and disadvantages of the new iGoggles, and suggest what strategy would be best to use for advertising my new product. Usually, big businesses use huge data bases, which contain specific information, such as people’s lifestyle, preferences and etc. of a large number of consumers. By looking at characteristics of particular people, those participants can be selected, who suit businesses requirements best. In addition to this, in order to make it easier to select the right participants, a business can make a list of participants with desired characteristics.

    If Apple, for example, wanted to introduce my new product and would like to find out more about what people think about it, Apple could have encouraged professional swimmers and those people who do swimming for leisure to come and discuss it with them. By encouraging professional swimmers, they would find out whether or not they would like to have a new product and what from their point of view are the main strengths and weaknesses of a new product. By encouraging to come those people who do swimming for leisure, it might give Apple an opportunity to compare two types of consumers professionals and normal swimmers and see whether they tastes and preferences change. For example, professional swimmers might not like the new idea of having swimming goggles with an mp3 player build in; as they can’t listen to the music whole they are participating in certain competitions. By using them, they would simply lose their concentration, but if they swim while they’re training, or swim for leisure, then they might consider it to be a good idea, as they don’t need high level of concentration.

    I live and study in the school. Therefore, when I will be using focus group methods, I will be selecting those students who are in the school swimming team and who would like to buy and use my new product. I’m also going to encourage about 4-6 people in my group. The reason why I’m doing this is because if I encourage more than 6 people into my focus groups, it will be make the process more complicated. I will need to ask more people, it will take longer time to do it, and it will be more difficult to analyse data gathered from them. I believe that it’s better to obtain a better quality data, rather than quantitative. Another, very important aspect when selecting the applicants for focus group is that they should be in mixed gender and age. I will only have an opportunity to do it in the school, which means I will not have an opportunity to ask people of different age, which might make my research inaccurate. However, I can encourage people with different genders.

    When working as a moderator or a person who asks the questions and organises the discussion, which I will be, I that I try to stimulate the discussion and motivate the participants to discuss the problems by themselves, only putting them in the right direction and starting the discussion of only those topics, which can be related to the research. I think it would be better to start off the discussion by talking about general topics and asking the participants some general questions, in order to make them think and concentrate their attention on particular topics. When talking about some general topics, it might be sometimes good to mention specific areas of the topics, which will be discussed later on. In addition to this, after introducing ourselves to each other, it would a good idea to do some brainstorm exercises. I’m going to put the titles of the main topics, which I will discuss with participants, on the A4 sheets of paper, and ask them to put as many of their ideas, which can be relevant to the topic, as they can. This might also give the participants some kind of exercise, so they will know what to talk about. This also encourages group work, and will make the participants discuss their ideas together. After all topics that were supposed to be discussed, are covered, I will go into the final stage, where I will be asking participants to provide me with some extra ideas about the new product and they ways, in which it can be sold.

    When selecting the place for the discussion, this place has to be geographically convenient for all participants. For example, it might be located in the office, which is close to the bus or underground stations. This will make it easier for participants to find the place and will make sure, that participants come on time. The facility should also be big enough to access all participants and express good impression or express the image of the company. In some cases, it would useful to have waiting room and rooms, equipped with sound recorders or video cameras, so the data can be further analysed. Generally everything should be done, so participants feel comfortable when assessed, and so it’s easy to obtain and analyse gathered data. If the business wants to have more detailed information, is very serious about the discussions, the results and the reasons why some participants gave certain answers to particular questions, data and psychological experts can be encouraged to do a further analysis of work. However, this would lead to higher costs for the business to do the focus group session.

    I will be doing my focus group sessions in the classroom in the school, which means it will be relatively convenient for participants to come to this place. This place is big enough for all participants, is well equipped with a certain number of available computers, projector, and the screen, which means I can also do some presentations, in order to attract participants’ attention to a particular topic. However, there are some limitations in my method, because only students and teachers have an access and opportunity to come to this classroom in order to have a discussion.

    Advert No.1

    What do you like about this advert?

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    What do you dislike about this advert?

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    Do you like the design of this advert? (If yes, what in particular do you like about it?)

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    How memorable was this advert?

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    Do you like the background and font use in this advert? (If yes, why?)

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    Would this advert encourage you to buy the product?

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    How does this advert make you feel about the product being advertised?

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    Do you think this advert outlines the main strengths of the product or its main characteristics?

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    Does it tell you a lot about the product?

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    Do you think that use of people in this advert or use of celebrities would make it make attractive and encourage you to buy the product?

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    Do you like the phrases/text/slogans used in this advert? (If yes, why?)

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    Do you think there are some other better adverts of the same company or brand?

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    Do you find other adverts (different company/different brand) more competitive than this one? (If yes, briefly explain why?)

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    How would you rank this advert out of 5? 1-useless, 2-poor, 3-satisfactory, 4-pretty good, 5- excellent

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    Advert No.2

    What do you like about this advert?

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    What do you dislike about this advert?

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    Do you like the design of this advert? (If yes, what in particular do you like about it?)

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    How memorable was this advert?

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    Do you like the background and font use in this advert? (If yes, why?)

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    Would this advert encourage you to buy the product?

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    How does this advert make you feel about the product being advertised?

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    Do you think this advert outlines the main strengths of the product or its main characteristics?

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    Does it tell you a lot about the product?

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    Do you think that use of people in this advert or use of celebrities would make it make attractive and encourage you to buy the product?

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    Do you like the phrases/text/slogans used in this advert? (If yes, why?)

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    Do you think there are some other better adverts of the same company or brand?

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    Do you find other adverts (different company/different brand) more competitive than this one? (If yes, briefly explain why?)

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    How would you rank this advert out of 5? 1-useless, 2-poor, 3-satisfactory, 4-pretty good, 5- excellent

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    Advert No.3

    What do you like about this advert?

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    What do you dislike about this advert?

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    Do you like the design of this advert? (If yes, what in particular do you like about it?)

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    How memorable was this advert?

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    Do you like the background and font use in this advert? (If yes, why?)

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    Would this advert encourage you to buy the product?

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    How does this advert make you feel about the product being advertised?

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    Do you think this advert outlines the main strengths of the product or its main characteristics?

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    Does it tell you a lot about the product?

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    Do you think that use of people in this advert or use of celebrities would make it make attractive and encourage you to buy the product?

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    Do you like the phrases/text/slogans used in this advert? (If yes, why?)

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    Do you think there are some other better adverts of the same company or brand?

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    Do you find other adverts (different company/different brand) more competitive than this one? (If yes, briefly explain why?)

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    How would you rank this advert out of 5? 1-useless, 2-poor, 3-satisfactory, 4-pretty good, 5- excellent

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    Advert No.4

    What do you like about this advert?

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    What do you dislike about this advert?

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    Do you like the design of this advert? (If yes, what in particular do you like about it?)

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    How memorable was this advert?

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    Do you like the background and font use in this advert? (If yes, why?)

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    Would this advert encourage you to buy the product?

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    How does this advert make you feel about the product being advertised?

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    Do you think this advert outlines the main strengths of the product or its main characteristics?

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    Does it tell you a lot about the product?

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    Do you think that use of people in this advert or use of celebrities would make it make attractive and encourage you to buy the product?

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    Do you like the phrases/text/slogans used in this advert? (If yes, why?)

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    Do you think there are some other better adverts of the same company or brand?

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    Do you find other adverts (different company/different brand) more competitive than this one? (If yes, briefly explain why?)

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    How would you rank this advert out of 5? 1-useless, 2-poor, 3-satisfactory, 4-pretty good, 5- excellent

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    Which is your preferable advert from the ones given to you? Briefly explain why do you prefer this particular advert and what do you find special about it?

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    Do you prefer TV adverts of the same company/brand or magazine adverts? (Briefly explain the reasons why you prefer a particular type of advert)

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    How does it encourage you to buy the product?

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    Which advert did you find the least useful? Why?

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    How would you improve it?

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