SS Sofas is a multiple chain store that sells sofas. One of its advertisements is shown in Fig. 3. Fig. 3 advertisement SS Sofas OUR MOST INCREDIBLE WEEKEND SALE EVER WAS $820!! 25% OFF STOREWIDE Up to 5000 extra store loyalty points Free draw for all customers Special hire purchase terms OUR PRICES WILL NOT BE BEATEN FIRST 100 CUSTOMERS WILL RECEIVE A FREE FOOTSTOOL Check out the SS app for more details Use Fig. 3 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

1. [1] Romance Sex appeal Love of a bargain
2. [1] Six
3. [3] $615 (3) Method 820 × 25 / 100 = 205 (1) 820 – 205 (1)
4. [2] Any 2 x 1 marks Arranged by finance companies / contract with finance company Type of credit Cooling-off period Deposit paid Instalments Good can be used before ownership Ownership on last instalment Buyer cannot sell the goods until final repayment Goods can be repossessed Will need a court order for repossession if one-third of amount owed is already paid Used for goods with a resale value / example
5. [1] By downloading the app (from an app store / app provider) onto a smart phone/tablet/TV/watch
6. [2] Up to 2 marks for explanation Furniture does not sell quickly (1) to keep / store goods (1) as furniture is a bulky good, it needs space (1) so it will not be damaged (1) so it can buy ahead of demand (1) so the store does not run out of stock (1) To obtain goods quickly (1) in order to replace furniture / increase income (1) so as not to lose / attract more customers (1) especially for popular / quick selling goods (1) To protect the furniture (1) from theft/weather (1)
7. Positive implications: Convenience of shopping from any computer or mobile device, 24/7, avoiding the need to travel, pay for parking, queue in-store
8. Positive implications: Greater variety of goods as all styles/sizes are shown on more websites than any high street or shopping centre
9. Positive implications: Cheaper goods due to increased competition between retailers (for some on a global scale) brings down prices
10. Positive implications: Greater accessibility for those people living in rural areas or those with a disability that limits their mobility, can choose to have goods delivered
11. Positive implications: Comparably easier to research products or services thoroughly, comparing prices and product details to get the best deal
12. Negative implications: Security concerns surrounding payments over the internet
13. Negative implications: Not being able to physically inspect the goods before purchase
14. Negative implications: Goods getting damaged during transport / not arriving in time or at all
15. Negative implications: Concerns over what information retailers are storing about customers e.g. buying habits
16. Evaluation: Online shopping has made shopping easier for many consumers. Many people shop online rather than going to physical stores because it saves time and money. However, some people in some countries lack internet access and/or still want to visit shops for personal service and want to see/feel goods before buying. Overall, online shopping offers consumers another way of shopping so they have more choice.