Business Studies Q2c – Promotion | HSC HSC Practice – StudyPulse
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Business Studies HSC HSC Practice Question 2c – Promotion

Q2c Business Studies Promotion Module 2 - Outcome 4

CivicLoop is a mid-sized Australian social enterprise that operates an app-based membership program for local public transport and bike-share. Members pay a monthly fee and can also add optional “family passes”.

CivicLoop has experienced negative online discussion after a commuter posted a viral video showing a bike-share docking station out of order during peak hour. Several local journalists have contacted the business for comment.

CivicLoop is planning a 6-week promotion to support a new service promise: “Docking fixed within 2 hours or your next day is free.” The promotion must rebuild trust and increase membership renewals (not just one-off sign-ups).

The marketing team has gathered the following information:

  • Target market: 25–45 year olds in inner suburbs who commute 3–5 days per week and participate in local community groups.
  • Recent member survey (n = 600):
  • 41% said they are “more likely to believe” information about CivicLoop if it is shared by a local community leader (e.g., suburb group admin, cycling club organiser).
  • 34% said they first tried CivicLoop because a friend or colleague recommended it.
  • 15% said they first tried CivicLoop after seeing paid outdoor advertising.
  • 10% said they first tried CivicLoop after reading a news article.
  • Budget for the 6-week period: \$120,000.
  • Proposed promotional actions:
  • Action A: A paid outdoor advertising campaign near train stations highlighting the 2-hour fix promise.
  • Action B: A “Renew & Refer” offer: renewing members receive a free family pass upgrade for one month (normally \$12) if they refer a friend who starts a paid membership within 14 days.
  • Action C: A media briefing and site tour for transport journalists, including access to CivicLoop’s operations dashboard and an interview with the head of maintenance.
  • Action D: Training for customer service staff and field technicians to use a short script when speaking with commuters during disruptions, plus follow-up messages to affected members within 24 hours.

CivicLoop’s CEO is concerned that heavy discounting could damage the brand’s credibility and that the business must demonstrate reliability rather than “spin”.

Question 2c

7 marks

Evaluate the risk that Action B could undermine CivicLoop’s objective to rebuild trust and credibility. Make a judgement and support it with two arguments: one focused on the promotion mix and one focused on the communication process (including potential noise).

Your Answer

0 words

About This Business Studies Question

This is a free HSC HSC Business Studies practice question worth 7 marks, testing your understanding of Promotion. It falls under marketing strategies in Module 2: Marketing. Submit your answer above to receive instant AI-powered marking and personalised feedback.

Subject
Business Studies – Higher School Certificate (NSW) HSC
Module 2
Marketing
Outcome 4
marketing strategies
Content Point
Promotion

Content Point Detail

promotion - elements of the promotion mix – advertising, personal selling and relationship marketing, sales promotions, publicity and public relations - the communication process – opinion leaders, word of mouth

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