Business 0450 · IGCSE · Marketing, competition and the customer

Marketing, competition and the customer — practice question

Economic growth in country X has opened up many opportunities for new businesses such as TGH. TGH produce a range of personalised mobile (cell) phone cases by using job production. Quality assurance matters to all 8 employees. TGH operate in a niche market. The Marketing Manager uses e-commerce as TGH’s channel of distribution. She is thinking about ways to strengthen customer relationships.
(a)[2]

Define the term ‘economic growth’.

(b)[2]

Define ‘quality assurance’.

(c)[4]

Outline two reasons why building customer relationships could be important to TGH.

(d)[6]

Explain one advantage and one disadvantage for TGH of using job production.

(e)[6]

Do you think cost-plus is the most suitable pricing method for a new business selling products in a niche market? 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: When a country’s GDP is higher than in the previous year

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