Mabel is planning to open her own hairdressing business. To succeed, she will have to develop strong customer relationships. She has carried out some secondary market research to discover possible demand and the promotion methods she might 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 she charges for the success of her business.
(a)[2]
Identify two methods that a business could use to build strong customer relationships.
(b)[2]
What does the term ‘secondary market research’ mean?
(c)[4]
Identify and explain two promotion methods, other than promotional pricing, that Mabel could use.
(d)[6]
Identify and explain two disadvantages that Mabel might face from buying her inventory from a wholesaler.
(e)[6]
Do you agree that the correct location matters more than the prices she charges for 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: “Deliver good / personal service” …