Keeya lives in a country that is a member of the SADC. She has an online business selling mobile phones within the SADC and to Europe. Fig. 3.1 shows the postage rates for some postal services. Size/weight | SADC | Europe ------------|------|------- Standard letter | $1 | $2 Large letter | $2 | $4 Registered post | $15 | $23 Packet post 0–1000 grams | $6 | $13 Packet post 1001–2000 grams | $12 | $20 Fig. 3.1 Postage rates Use Fig. 3.1 to help you answer the following questions.
- (a)(i)What is the cost of sending a large letter within SADC?[1]
- (a)(ii)What is the cost of sending a packet weighing 750 grams to Europe?[1]
- (a)(iii)Which postal service would Keeya use to provide proof of delivery?[1]
- (b)Keeya issues invoices to her customers before posting the mobile phones. Explain two differences between orders and invoices. 1 2[4]
- (c)(i)Define the term tariff.[1]
- (c)(ii)Explain the effect of a $2 dollar tariff on each mobile phone sold by Keeya.[2]
- (d)Discuss whether or not the internet is an effective advertising medium to promote her mobile phones.[6]
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2021). The mark or mark type is shown in brackets.
- [1] (a)(i) $2
- [1] (a)(ii) $13
- [1] (a)(iii) Registered post
- [4] (b) An order is sent from the buyer to the seller (1) whereas an invoice is sent from the seller to the buyer (1)
- [4] (b) An order is a request for goods to be supplied/goods wanted (1) whereas an invoice is a demand/bill/request for payment/payment for goods/goods purchased (1)
- [4] (b) An order does not include the total cost (1) whereas an invoice shows the total cost/amount due (1)
- [1] (c)(i) Tax on imported goods
- [2] (c)(ii) The price of each phone will increase (1) because of the $2 tariff added to the selling price (1) increases Keeya's expenses (1) which may lead to less demand/sales/reduce profit (1) Keeya may decide to increase the prices of the phones (1) customers may decide to buy mobile phones in their own country (1)
- [6] (d) Arguments for internet advertising: Cost - compared to TV and newspapers, internet advertising is inexpensive; Wide coverage – easy to reach global market; Measurement – easy to track how effective the internet advertising is using online surveys, etc. so Keeya knows how to increase effectiveness; Target consumers – to particular groups of consumers based on customer profiling
- [6] (d) Arguments against internet advertising: Advertising overload – too many banners and popups appear so consumers ignore them; Scope - there are consumers who prefer not to view or buy over the internet; Blocking - some consumers block adverts on their browser so the advert will not be seen; Distractions – consumers can get distracted by other items they see on the internet such as the news and forget about the advert
- [6] (d) Evaluation: Internet advertising can be very effective for Keeya, especially if her own website can be easily found by a search engine and she also uses social media adverts. Keeya will need to measure the responses to her internet advertising and if it is not effective, create a better/different style of advertisement.
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