Question 3: Business Concept Application

Corepath Fitness: why members leave

Unit 2
3 points
About 13 minutes

You can use a calculator on this question, just like on exam day.

A short scenario about a business gathering evidence for its plans: you describe how it did its research, describe what the data show, and explain how the business could use that finding to reach a goal. On the exam: Question 3 of 4, Section IIB (Questions 2–4 share 65 minutes); suggested time 12–13 minutes, 5% of the score. Assesses Skill Category 1. Section II has 4 free-response questions in 90 minutes (40% of the score). The exam is fully digital in Bluebook, and only a 4-function calculator is allowed (handheld or the built-in Desmos 4-function calculator).

The question and its sources

Respond to parts A, B, and C.

Corepath Fitness

Corepath Fitness runs five gyms in one metro area and offers group classes such as cycling, yoga and strength training. Its monthly membership cancellations have risen for three straight quarters, and managers have set a goal of keeping more of their current members.

To learn why members leave, Corepath emailed a survey to all 3,200 members; 640 responded. It also held three focus groups with eight members each who had recently cancelled, and it reviewed its own class sign-up records. Table 1 shows the survey results, and Table 2 shows how full classes were, on average, at different times of day.

In the focus groups, several members said they had joined for the 5:30 p.m. classes but often found them full, and one said, 'I'd come at 7:00 p.m. if there were a class.'

Source: Hypothetical scenario written for this practice question

Table 1. Survey: 'What is the most important reason you might cancel your membership?'

Reason	Percent of responses
Class times don't fit my schedule	34%
Equipment is too crowded at busy times	26%
Monthly fee is too high	22%
Moving away	8%
Other	10%

Source: Hypothetical data written for this practice question

Table 2. Average class attendance as a percent of available spots, by start time

Class start time	Spots filled
6:00 a.m.	85%
12:00 p.m.	40%
5:30 p.m.	98%
8:00 p.m.	31%

Source: Hypothetical data written for this practice question

Suggested time: 13 minutes

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Part (A)

1 point

Describe a primary-source research method Corepath used to gather the information in the scenario.

Your answer to part (A)

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Part (B)

1 point

Describe a finding revealed by the research.

Your answer to part (B)

0 / 2,500 characters

Part (C)

1 point

Explain how Corepath could use a finding from the research to achieve its goal of keeping more of its current members.

Your answer to part (C)

0 / 2,500 characters

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