A new hypermarket is about to open close to a shopping mall.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2021). The mark or mark type is shown in brackets.

1. [2] (a) Large shops;
2. [2] (a) Self-service;
3. [2] (a) Large site;
4. [2] (a) Car parking;
5. [2] (a) On the edge/outskirts of towns;
6. [2] (a) Sell a large variety/wide range of goods;
7. [2] (a) Low prices;
8. [2] (a) One-stop shopping/all goods under one roof;
9. [2] (a) Delivery;
10. [2] (a) Credit/credit cards/store cards;
11. [2] (a) After-sales service;
12. [2] (a) Use of checkouts;
13. [2] (a) Lifts/escalators;
14. [2] (a) Long opening hours;
15. [2] (a) ATMs;
16. [2] (a) Security/CCTV;
17. [2] (a) Many facilities or e.g. restaurants/toilets
18. [4] (b) Loss of business (1) customers go to the hypermarket (1) leading to less sales/profits (1)
19. [4] (b) Closure of some shops (1) leading to unemployment (1)
20. [4] (b) Shopping mall may have empty shops (1) with run-down appearance/vandalised premises (1)
21. [4] (b) Need to compete with hypermarket (1) to attract customers (1) might have to offer different goods/services (1)
22. [4] (b) Might have to offer lower prices (1) reduces profit margin (1)
23. [4] (b) Market share declines (1) reduces number of sales (1)
24. [4] (b) More congestion on local roads (1) making travel more difficult for retailers/customers (1)
25. [4] (b) May decide to sell items not sold at the hypermarket (1) to beat competition (1)
26. [4] (b) May bring more customers to shopping mall (1) because they will visit both (1)
27. [3] (c) Yes - some customers cannot afford expensive goods (1) attracts customers/encourages them to buy (1) impulse buying (1) increases sales/profits (1) increases rate of inventory turnover (1) so inventory is moved faster (1) creates customer loyalty (1) more repeat business (1) gains profit from interest (1) receives cash monthly (1) can always repossess goods if customer fails to pay (1)
28. [3] (c) No - can be delays in payments (1) increased administration/paperwork (1) keeping records (1) there is the danger of bad debts (1) if customer does not keep up with repayments (1) difficulty in disposing of second-hand goods (1) capital is tied up (1)
29. [6] (d) Location is important: Convenience – shoppers can buy all needs/wants in one place; Close to market – hypermarkets want to locate within easy travelling distance of large numbers of consumers; Competition - it might be difficult for a new hypermarket to break customer loyalty from the nearby shopping mall; Size of land - large car park area and petrol station; Cost of land – land is cheaper away from city centres; Transport links/infrastructure – easy access for customers and supplier/deliveries; Close to utilities – e.g. electricity; Secure area - less theft
30. [6] (d) Location is not important: Convenience – if customers only want a few items they are more likely to go to their local convenience store; Online shopping – as customers do more of their shopping online, it does not matter where the hypermarket is located
31. [6] (d) Evaluation: Location is very important because customers will only travel to a hypermarket if it offers easy transport links, car parking, lower prices and a wide range of goods not offered by other local retailers.