Fig. 5.1 shows a convenience store in a petrol station. The petrol station owner has decided to install a drinks vending machine outside the convenience store. PETROL STATION AND CONVENIENCE STORE Fig. 5.1 Petrol station and convenience store Use Fig. 5.1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

1. [1] Often situated close to homes/offices/factories
2. [1] Typically, the size will be relatively small/small-scale retailer
3. [1] Off-street parking and/or convenient pedestrian access
4. [1] Long opening hours/some with many open 24/7
5. [1] Limited range of goods/product mix includes grocery items, beverages, snacks, confectionery and often tobacco products
6. [1] May provide delivery e.g. delivering newspapers
7. [1] May give informal credit
8. [1] Usually self-service
9. [1] Goods with high sales turnover are stocked/sold
10. [1] Small quantities/small bulk goods sold
11. [1] Personal service provided
12. [1] A cash and carry is a type of warehouse used by the owner of the convenience store. - FALSE
13. [1] Customs authorities levy duty on petrol. - TRUE
14. [1] Using more packaging is one way to deal with environmental pollution. - FALSE
15. [1] Yes: It can offer 24-hour service when the convenience store is shut
16. [1] No labour needed / reduces wage costs / as it is self-service
17. [1] Customer may prefer to use vending machine as they want a drink for speed / no need to queue up in store
18. [1] Customers are tempted to purchase drink while waiting for refuelling
19. [1] Customers may then be tempted to go into the store which would increase sales
20. [1] No: They can be vandalised leading to extra costs of replacement
21. [1] Cause problems with litter adding to pollution
22. [1] Might reduce store sales / no impulse purchases
23. [1] Vending machines can be expensive / adds to costs e.g. electricity
24. [1] Customers might prefer 24-hour toilets instead so wasting money
25. [1] There is already a store there so why use the vending machine
26. [1] The convenience store is already selling a variety of drinks so no need to use the vending machine
27. [8] Level 3 (7-8) The candidate is able to offer a recommendation with a thorough evaluation of both using online and cash and carry.
28. [8] Level 2 (5-6) Candidate offers satisfactory analysis of using online or cash and carry, with or without a recommendation.
29. [8] Level 1 (1-4) Candidate demonstrates some knowledge and understanding of using online or cash and carry purchasing.
30. [8] Level 0 (0) No creditable response.
31. [8] Online purchase: More choice/variety of accessories. Accessories may be cheaper online. Less time and money travelling to the cash and carry. Delivery direct to the petrol station. He could make the purchases while managing the petrol station. He could purchase on credit. May be delays in delivery. Damaged goods may be delivered. Danger of dealing with dishonest traders/fraud. Time spent surfing. Problems of importing.
32. [8] Cash and carry purchase: Lower prices - no credit offered to buyers and no delivery so a cash and carry can offer goods at cheaper rates to buyers. Saves time - retailers can have immediate access therefore no waiting for goods to arrive, especially if there is an increase in demand for particular goods. Able to physically view products. May not stock what is wanted. Opening times may be limited. May be a cost of membership.
33. [8] Evaluation example: It depends whether the petrol station owner is prepared to risk not being able to view the products compared to having to visit the cash and carry and transport the goods bought back to the petrol station to sell. The local cash and carry may stock items that local customers want to buy but if the decision comes down to price, the petrol station owner would probably get cheaper products online nowadays.