Business 0450 · IGCSE · Marketing, competition and the customer
Marketing, competition and the customer — practice question
Mabel is planning to launch her own hairdressing business. To do this, she must develop strong customer relationships. She has already carried out some secondary market research to discover possible demand and to decide which methods of promotion to use. She has chosen to purchase her inventory (stock) from a wholesaler. Mabel is now searching for the best location for her business. She believes that location will matter more than the price charged in determining the success of her business.
(a)[2]
Identify two ways that a business could develop strong customer relationships.
(b)[2]
What is meant by ‘secondary market research’?
(c)[4]
Identify and explain two methods of promotion (other than promotional pricing) that Mabel might use.
(d)[6]
Identify and explain two possible disadvantages to Mabel of buying her inventory from a wholesaler.
(e)[6]
Do you think that the right location is more important than the prices she charges to the success of Mabel’s business? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Provide good or personal service” …