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A-LevelBusiness StudiesMarketingOct/Nov 2017Paper 2 Q230 Marks

Perfik Plumbing (PP) PP is a plumbing business owned and managed by Navpreet. She set up PP as a sole trader three years ago when she qualified as a plumber. The majority of Navpreet's work is repairing and fitting water pipes in customers' homes. However, there is also a growing market for fitting new appliances, such as washing machines and dishwashers, in customers' homes. Navpreet is the only female plumber in her town. This is her Unique Selling Point (USP). Her business has been reasonably successful. Navpreet has relied on recommendations from satisfied customers to promote her business. However, if PP is to grow in the future Navpreet will need to use new promotional methods. In the past, Navpreet has used a cost-based pricing strategy, but she believes she may have been setting her prices too low. Navpreet did a survey of her customers to find out how much they would be willing to pay per hour of labour (see Table 2). Table 2: Survey data Price per hour ($) Number of customers 24 10 30 8 36 7 Navpreet has expanded PP through internal growth and now there is an opportunity to open a small shop on the main street of her home town. The shop would allow Navpreet to expand her product portfolio by selling electrical goods, such as washing machines. Navpreet is considering taking out a mortgage on her own home to provide the finance she needs to expand PP.

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About This A-Level Business Studies Question

This structured question appeared in the Cambridge A-Level Business Studies (9609) Oct/Nov 2017 examination, Paper 2 Variant 3. It tests the topic of Marketing and is worth 30 marks.

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