Business 7115 · O Level · Marketing, competition and the customer
Marketing, competition and the customer — practice question
Pamela runs a thriving business. She owns a gift shop that sells celebration cards, toys and candy (sweets). When Pamela launched the business 30 years ago, she had no help with running the shop. Today, she employs 5 workers. Pamela understands that keeping customers loyal matters. She uses competitive pricing. She spends most of her marketing budget on sales promotion. Pamela does not use e-commerce.
(a)[2]
Define what is meant by ‘competitive pricing’.
(b)[2]
Define what is meant by ‘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 more important than being creative for a successful entrepreneur? 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 product is priced to match or sit just below competitors’ prices in order to win a bigger share of the market” …