Celine wants to start an online business selling baby products. She will have to find a wholesaler to buy products from and set up a website.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2023). The mark or mark type is shown in brackets.

1. [1] Letter
2. [1] Email
3. [1] Text
4. [1] Fax
5. [1] WhatsApp / other messenger app examples
6. [3] Yes - Immediate/quick contact is made / saves time (1) compared to email/letter (1) convenient to use (1) a discussion can take place (1) direct / one-to-one communication (1) she can find out if the items are in stock (1) where an urgent / quick decision needed (1) can confirm details (1) avoids misunderstanding/confusion (1) with a more personal approach / possibly more co-operation (1) can use bargaining (1) instant feedback can be given (1) when emails are not checked / replied to (1) it is cheap to use (1)
7. [3] No - Person called may not be available (1) no record/proof of conversation (1) errors might be made in hearing the order / may forget points (1) risk of miscommunication / not hearing points/distorted message (1) signal may be poor (1) message cannot be carried out (1) can be more costly than an email (1) better to have sent a written / visual communication (1) e.g. text / email message / videoconferencing (1) can refer back to email (1) have proof / evidence (1)
8. [2] 5% discount / discount / 5% off (1) if payment received within 30 days / within the days (1)
9. [4] Bad debts (1) payment not made by the retailer (1)
10. [4] Delay in payment (1) leading to cash flow problems / losses made (1) wholesaler may be unable to buy new stock (1)
11. [4] More administration/documents needed (1) leading to extra costs (1)
12. [4] Need to check references / credit history (1) time-consuming (1)
13. [4] Cost of offering discounts (1) reduces the margin on sales (1)
14. [4] Risky (1) as Celine lacks experience in trading (1)
15. [4] Wholesaler cannot repossess the goods (1) if payment not made (1)
16. [6] A website is a central location of web pages that are related and accessed by visiting the home page of the website using a browser.
17. [6] A website would provide information about the baby products that Celine wants to sell. It would include prices, descriptions and photographs that will persuade consumers to buy her products.
18. [6] To give her visibility on the internet. If someone is searching for a particular baby product, the name of all retailers supplying that product will be listed by the search engine or price comparison website.
19. [6] Websites provide secure and efficient payment systems so that when the shopper arrives at Celine's checkout there is smooth transaction process to avoid any lost sale.
20. [6] Her website can be easily changed to offer sales promotions at short notice when sales are slow moving.
21. [6] Celine will be able to use her website to collect information about shoppers and see where shoppers spend the most and least amount on her site. She could then target customers more effectively.
22. [6] The website can attract shoppers internationally which gives her access to new markets and greater potential sales.
23. [6] Low set-up costs as cheaper than setting up a physical store as no rent to pay
24. [6] Can collect feedback to improve her service
25. [6] Evaluation: A website will allow Celine to spread the word about her business. It will be accessible to anyone, anywhere, anytime. Even during non-business hours, customers can access her website to get the information they need and buy her goods. There is no limit to the sales that could be generated by her website with the potential revenue reaching sky high if customers demand her goods. In fact, if Celine wants to do business, she will not be able to operate without one.