Business 0450 · IGCSE · Marketing, competition and the customer
Marketing, competition and the customer — practice question
Pamela runs a thriving enterprise. She owns a gift shop that sells celebration cards, toys and candy (sweets). When she launched the business 30 years ago, she had no one to help her run the shop. She now employs 5 staff. Pamela understands that retaining customer loyalty is important. She uses competitive pricing. Most of her marketing budget is spent on sales promotion. Pamela does not use e-commerce.
(a)[2]
Define the term ‘competitive pricing’.
(b)[2]
Define the term ‘marketing budget’.
(c)[4]
Outline two possible threats to Pamela’s business from using e-commerce.
(d)[6]
Explain two methods Pamela’s business can use to keep customers loyal.
(e)[6]
Do you think being a risk-taker is a more important quality for a successful entrepreneur than being creative? 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: “A product is priced at roughly the same level as, or a little under, rival prices so more of the market can be won” …