A large shopping centre will have many different types of retailers.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2016). The mark or mark type is shown in brackets.

1. [2] (a) (i) 1 mark for each type of retailer stated to a maximum of two types of retailer • Department store • Multiple chain store • Kiosks • Discount store • Supermarket • Unit retailer/independent retailer • Speciality store • Pop-up shops • Small scale retailers • Large scale retailers. Accept any other relevant points.
2. [4] (a) (ii) 1 mark for stating an advantage and a further mark for an explanation to a maximum of two advantages or 4 × 1 marks • Car parks (1) which is usually free (1) • Wide choice of shops (1) giving choice of shops to visit (1) which are in walking distance (1) • Consumers can easily compare prices (1) in different shops (1) that are close to each other (1) • One-stop shopping (1) can carry out all shopping wants in one place (1) saving time (1) • Additional services/facilities provided (1) such as play areas/restaurants/cinemas (1) • Wide variety of goods (1) giving choice (1) • Air-conditioned (1) • Use of credit/debit cards/multiple payment methods (1) Accept any other relevant points.
3. [2] (b) (i) Valid points include (Any × marks): Chain of distribution is the movement/transferring/stages/journey of goods/services from the primary/producer/manufacturer (1) through a distribution channel or visual e.g. (1) up to the final consumer (1) and the movement of payment (1) back to the producer/manufacturer/supplier (1) Accept any other relevant points.
4. [4] (b) (ii) 1 mark for brief description with a further mark for a fuller description to a total of two services (Any 2 × 2) (1 + 1 marks) • Wholesaler will break bulk (1) and will split a bulk purchase into smaller quantities (1) • Wholesalers will carry a variety/range of goods (1) from different producers (1). • Can provide advice to the retailer (1) e.g. of what products sell well (1) • Prepare goods for sale (1) e.g. processing/packaging/labelling (1) • Provide trade discount (1) lowering retailer costs/enables retailer to make a profit (1) • Can provide a warehouse (1) where goods will be stored (1) • Risk-bearing (1) will buy ahead of demand/losses for damaged goods (1) • Transport (1) deliver goods (1) • Display (1) so retailers can inspect (1) Note. No marks for credit. Accept any other relevant points.
5. [2] (c) (i) 1 mark for each characteristic identified to a maximum of two characteristics • Low cost building • Large/big shops or size measurements given • Car park • Wide variety of goods/brands • On the edge/outskirts of towns • Open long hours • Accept credit/debit cards or multiple payments • Long opening hours • Many facilities or an e.g. such as food court/petrol station Accept any other relevant points.
6. [6] (c) (ii) Level 2 (4–6 marks) Has discussed negative or positive effects on local retailers of the opening of the new hypermarket has explained effects. Level 1 (1-3 marks) Has commented on likely effects on local retailers of the opening of the new hypermarket with/without explanation • Consumer will be attracted to hypermarket by low prices and variety of goods. This will reduce sales of retailer unless he can find another competitive advantage • Hypermarket has bulk purchasing power, therefore, retailer unlikely to be able to compete on price • Hypermarket does not offer personal service, therefore, retailer must emphasise his personal service • Hypermarket only sells fast-moving lines, so retailer might specialise in special lines of goods (niche market) • Hypermarket opens long hours, which small retailer is unlikely to do. Therefore, he must carefully choose hours when maximum number of customers can visit • If small retailer does not find some competitive advantage to keep customers loyal to him, then he will probably close • Depends where the hypermarket is/issue of traffic congestion in a busy place Accept any other relevant points.