A speciality store has opened on a busy street.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2014). The mark or mark type is shown in brackets.

1. [1] 1 mark for • Provides a specific range of products • May cater for a particular market • Offers expert product knowledge. Any other relevant point.
2. [2] Any one difference with comment on both types of store × 2 marks – • Speciality store may be a small unit, department store is a large shop • Speciality store may be located in town, city centres or shopping centres, department Stores will be in city centres or shopping centres • Speciality store may sell one range of goods; department store will offer a range of goods • Speciality store may offer a few extra services, department store will offer a range of services • Speciality store may do limited advertising, department store uses national advertising • Speciality store may be part of a chain of shops, department store may be only one shop • Speciality store has one manager; department store has several departmental managers. Any other relevant difference.
3. [4] Any two ways described × 2 marks • Internet website to advertise itself • Email to contact customers / order goods • Bar coding goods to assist stock control • Computerised till to speed up transactions and record information • Computerised security system to guard against shop lifting • Printing of notices, forms used in the shop • Computer software to assist accounting. Any other relevant point.
4. [4] Any two circumstances × 1 mark each and two reasons × 1 mark each – • To answer an enquiry because the shopkeeper can give specific details and answer any questions • To deal with a complaint because it is a more personal approach and the shopkeeper can discuss any issues that arise • To inform a customer that goods required have arrived because the shopkeeper will know that the customer has received the message and to find out when the customer is likely to collect them • When the customer has no email address so that the customer does not feel ignored. Any other relevant circumstance.
5. [3] Any three points × 1 mark each and up to 3 marks for a well-developed point – • Because the consumer may have a complaint about the shop or its products and may take the matter further if it is not dealt with • Because the shopkeeper could be breaking the law e.g. if goods not fit for purpose are supplied, false descriptions are given, incorrect weights are given • Otherwise the shop will have a poor reputation and so sales will suffer • Because the shop may have to honour guarantees or warranties if goods break down • Because the shopkeeper wants customers to return to the shop and recommend it to others. Any other relevant reason.
6. [6] Level 2 (4-6 marks) Has discussed the acceptance of credit cards as a means of payment in the shop and has given a reasoned opinion. (One-sided argument = 4 marks max) Accepting credit cards means that the customer is able to buy and pay later. It should mean that the shop will achieve more sales as many customers wish to postpone payment until the following month. Whether or not it will give the shop a competitive edge is debatable as most shops now accept credit cards. If the shopkeeper decided not to accept credit cards, it would certainly give its competitors an advantage. Another advantage to the shopkeeper is that not too much cash is held on the premises so reducing the chance of theft. Accepting credit cards can be costly to a business. Commission is charged on each credit card transaction. This may be passed on to customers in the form of higher prices or it may be absorbed by the business. There may be delays in payments by the credit card companies so affecting the cash flow of the business. Credit card fraud is an issue. Shopkeepers need to be watchful about stolen cards and credit limits and complete careful checks because of fraud. If the speciality store sells goods that are quite expensive, it is important that it accepts credit cards as it is likely to benefit from sales due to impulse buying. If it sells low priced goods such as fruit and vegetables, credit cards would not be necessary. Level 1 (1-3 marks) Has commented on the acceptance of credit cards as a means of payment with / without an opinion. Customers who use credit cards buy now and pay later. This will increase sales at the speciality store. The shopkeeper will have to pay commission. The shopkeeper may have to wait for payment from the credit card company. The owner of the business should accept credit cards. Most shops accept them.