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O-LevelCommerceRetail trade7100/21 · May/June 2011 · Q320 Marks

The residents of a town have three options for shopping. They could use: • Internet shopping • the new shopping centre that has opened on a main road • shops in the town centre.

  1. (a)(i)Explain what is meant by Internet shopping.[2]
  2. (a)(ii)Are many residents of the town likely to choose Internet shopping? Give reasons for your opinion.[6]
  3. (b)Why are many of the residents of the town likely to use the shopping centre rather than shops in the town centre?[6]
  4. (c)Explain three actions shopkeepers in the town centre might take to attract more customers.[6]

Mark scheme

Marking points from the official mark scheme (May/June 2011). The mark or mark type is shown in brackets.

  1. [2] (a) (i) Any two points × 1 mark each: shopping online; using websites; payment by credit card/debit card; e-commerce; buying and selling using computers = 1 mark. Any other relevant point. NB any 'play on words' such as shopping on the Internet = 0 marks. Shopping from home/anywhere = 0 marks.
  2. [6] (a) (ii) Level 2 (4-6 marks) Candidate has discussed the advantages and/or disadvantages of Internet shopping for residents of a town and has given a reasoned opinion. (No opinion given = 4 marks max.) (NB accept a one-sided argument.) Many shoppers shop online. Internet shopping attracts consumers who do not have much time to go shopping. Goods and services can be paid for by credit card and goods are delivered by post. Internet shopping is available 24/7. It enables shoppers in the town to buy from all over the world. It saves on travel and parking costs and so has appeal for many people. Sometimes prices are lower for online shopping than in town centres to attract customers to online shopping. On the other hand Internet shopping would not be used by some shoppers who are afraid of credit card fraud. If customers have no Internet access, this form of shopping is not available to them. There may be delays in the delivery of some goods as they are coming from a distance. The goods may not be as they appear on the website and you cannot inspect them. Goods may be more expensive because of delivery charges. It is likely that many of the residents will use a mixture of shopping options. They may use the town centre, they may use the shopping centre and they may use the Internet especially when it is cheaper to shop online. They may view goods in shops and then purchase them online. Level 1 (1-3 marks) Candidate has commented on Internet shopping with/without reference to the residents of the town. Internet shopping is shopping by computer. Prices may be lower. Many shoppers like to use their computers to shop. Many goods and services can be bought online. Goods can be bought at any time.
  3. [6] (b) Any three reasons explained × 2 marks or two reasons explained × 3 marks or six points × 1 mark: many shops grouped together so a wide selection of goods; can do their household shopping and at the same time make use of the facilities; likely to be a large car park so easy to load goods; likely to be under cover with covered car park; good road links so easily accessible/less traffic congestion; new building so likely to be attractive and modern; can obtain other services there e.g. bank, post office, restaurant; pleasant place to spend some part of a day; it is new; shopping under one roof so may be quicker shopping; may have access to cheaper goods/discounts. (Allow negative comments about town centre shopping.) Any other relevant point. NB beware comment on hypermarkets.
  4. [6] (c) Any three actions explained × 2 marks each: close down and move to the shopping centre; stage special events or promotions; group together to offer shoppers discounts when using several stores; lobby the town council to tidy up the town centre so that it looks more attractive; make sure that the town centre is safe to visit; try to offer free parking in the town's car parks; offer attractive window displays to catch people's attention; advertise themselves both in the town and in nearby places; offer online shopping; introduce loyalty cards/trading stamps to persuade shoppers to return; make sure that shopping in their shops is as efficient as possible – better/personal service; offer specialist goods/services that the shopping centre does not offer; improve the range of goods offered/offer different goods may be need for some market research; offer after-sales service + example; offer informal credit/credit; convert to self-service – reduce staff expenses; provide pleasant atmosphere/more hygienic surroundings. Any other relevant action.

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About this question

Topic
Retail trade, O-Level Commerce (syllabus 7100). Structured question, 20 marks.
Source
O-Level Commerce, May/June 2011 Paper 2 Variant 1, question 3.

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