Home shopping is becoming more popular.

Mark scheme

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

1. [2] (a) (i) Any two types × 1 mark each – Mail order or catalogue/telephone shopping/television shopping or telesales or telemarketing/online shopping (shopping using the Internet) or websites or e-commerce or e-tailing/party selling/pedlars/door to door selling/radio (3).
2. [6] (ii) Level 2 (4-6 marks) Has discussed whether or not home shopping benefits retailers and has given a reasoned opinion. (A one-sided argument – 4 marks max) Over recent years there has been significant growth in home shopping especially in online shopping. For many reasons consumers often shop from home. They may be housebound, they may work full-time or they may not like to go to shopping centres or live near towns and city streets where most shops are situated. Some retailers have benefited from this. Online retailers like Amazon have developed global businesses. Many retailers such as supermarkets have changed their methods of trading and developed online selling along-side traditional methods of retailing. Online retailing other types of home shopping have enabled some retailers to save on labour costs and the costs of renting/owning expensive high street sites for shops. On the other hand the growth of home shopping has not assisted many retailers. Many small-scale retailers located in high streets have closed. Some multiple chains have experienced difficult trading conditions and reduced profits and have had to close branches or close completely. They have had to look at other ways of maintaining sales better service, different range of goods, more advertising or developing their own home shopping services. In some parts of the world, however, home shopping has not had an impact. Where there are difficulties in delivering goods and security issues regarding payment, people still prefer to shop locally and so these retailers have neither benefited nor been affected by the growth of home shopping. It is true to say that home shopping has benefited some retailers who have made huge profits from it but it has certainly not assisted all retailers. Level 1 (1-3 marks) Has commented on home shopping in relation to retailers with/without an opinion. Home shopping is growing in importance. Many people like to shop from the comfort of their homes. Many high street shops have had to close. Some retailers have benefited and made profits. They have developed online retailing businesses. Other retailers have changed how they trade. They are offering different goods. They offer online shopping alongside traditional shopping. They may provide after-sales service.
3. [3] (b) 1 mark for name of means of payment and 2 marks for explanation – Credit card - enables the postponement of payment, card number can be given by phone/on Internet/can be used for any amount up to credit card limit/safeguards against fraud/can be used internationally. Debit card - gives immediate payment, money is automatically deducted from buyer's account/can be used internationally/replaced cheques/useful where buying on credit is not generally acceptable/no bad debts/card rejected if no funds available. Cash on delivery – cash collected on doorstep/no bad debts/helps retailer's cash flow. Accept PayPal Accept cheques. Any other relevant point.
4. [4] (c) (i) Any two points × 1 mark each and any two examples × 1 mark each – A method of boosting sales Attempts to bring products to the attention of consumers immediately/attracting customers/persuading customers to buy May be used to introduce new products May be used to dispose of old stock Two examples such as offers, loyalty cards, competitions, buy one get one free, samples, games, free gifts, loss leaders, sponsorship, discounts/reduced prices. Any other relevant point.
5. [1] (ii) One mark for – Colour, endorsement by famous people, love of food, love of animals, appeal to emotions, ambition, romance. Any other device (allow a description).
6. [4] (d) Any two ways described × 2 marks each – By parcel post – charge according to weight, may be guaranteed next day delivery for an extra fee, may be insured, delivered by postal service, may be signed for on delivery By letter post – if lightweight goods By overseas parcel post – either by air or surface mail if goods to go to another country By courier - using delivery van, motor cycle, signed for on delivery, often offer a nation-wide service By freight forwarder/named examples – if sent overseas, company organises all the documentation Allow one method of transport described × 2 marks max. Any other relevant point.