Fig. 1.1 shows an eshop shopping cart for a customer of an online shoe retailer. [Figure 1.1] Use Fig. 1.1 to help you answer the following questions.

Mark scheme

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

1. [2] Total cost = $102 (2)
2. [1] Method: 50 × 2 = 100 + 2 (1)
3. [1] Continue to complete/finalise/confirm order/go to payment/checkout/pay in next window/move forward in transaction/leave the shopping/online cart/go/move to billing or go to payment/ready to pay
4. [3] Up to 3 marks for justified reasoning of yes and/or no responses
5. Yes - Attracts customers (1) impulse buying (1) encourages them to buy (1) can increase sales/profits (1) as shoppers are likely to spend more (1) to save delivery costs (1) buy more items (1) e.g. extra shoe cleaner (1) leading to customer loyalty (1) for future/repeat orders (1) giving competitive edge/advantage (1) good marketing strategy (1)
6. No - Increases costs (1) reduces profit margin (1) may have to increase prices to cover the cost (1) this may mean cutting back on other services (1) losing customers (1) and some customers will not be able to afford buying goods over $100 (1) on one order (1) might be better to offer free delivery under $100 (1) more likely to attract customers (1) increase sales/profits (1)
7. [4] Any 2 disadvantages and explanation of each to a maximum of 4 marks
8. Commission/fees/interest is charged (1) cuts/affects profits (1)
9. Paperwork is increased (1) more time to process/more record keeping (1)
10. Payment delays (1) may affect cash flow / need to buy stock (1)
11. Credit card fraud (1) may result in losses / retailer unable to receive product back (1)
12. Using credit card terminals (1) extra costs / errors in reading data /machine malfunctions (1)
13. [2] 1 mark for each correct circled answer
14. Coupons are a type of sales promotion.
15. Expensive running shoes are an example of a human want.
16. [6] Up to 2 marks for describing branding/retailing
17. Up to a further 2 marks for analysing the importance of branding to a shoe retailer
18. Up to a final 2 marks for evaluating whether branding is important to shoe retailers
19. A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers.
20. Brands inspire customer loyalty leading to repeat sales
21. Brands encourage online selection as a brand is easy for consumers to recognise making buying easy
22. Shoe retailers want to stock top selling brands to increase sales
23. Customers trust the quality of branded goods so the retailer will sell more
24. So they can use the brand name to advertise and promote their business
25. Makes it easier to introduce new shoes because customers already know/remember the brand
26. Evaluation: As online retail markets become more competitive it is more important than ever for shoe retailers to focus on branding. Not only by selling branded goods but by developing its own website as a brand that consumers will form an emotional attachment to.