The advertisement in Fig. 2 has been placed in a local newspaper. [Figure 2.0] Fig. 2 Local newspaper advertisement ABC SHOPPING CENTRE 1 July 2018 GRAND OPENING at 9.00 am Many opening day sales promotions DO NOT MISS OUT! Use Fig. 2 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. [2] (a) 1 mark for each feature up to a maximum of 2 marks
2. [2] (a) Range of shops/one-stop shopping
3. [2] (a) Range of goods/brands
4. [2] (a) Large building/area
5. [2] (a) Several floors
6. [2] (a) Lifts/escalators
7. [2] (a) Information desks/customer service
8. [2] (a) Food courts/restaurants
9. [2] (a) Restrooms
10. [2] (a) Play areas/entertainment
11. [2] (a) Cinema/bowling alley
12. [2] (a) Car parking
13. [2] (a) Security guards
14. [2] (a) Cash dispensers
15. [2] (a) Petrol station
16. [2] (a) ATMs/phone booths
17. [2] (a) Air conditioning
18. [2] (a) Long opening hours
19. [2] (a) Can be located in town/out-of-town centres
20. [4] (b) Up to 4 marks for justified reasoning (reasoning can be two-sided)
21. [4] (b) Yes as it is a cheap form of advertising (1) compared to national advertising or e.g. (1) which can provide information (1) such as the Grand Opening 9.00 start (1) linked to local/target audience (1) if it was a free paper then all houses in the local area will receive it (1) They are published on a regular basis (1) and advertisements can be kept for reference (1) and as the main objective was to attract local people, it is the most suitable choice (1)
22. [4] (b) No as a local newspaper would have a limited audience (1) as less people are reading newspapers (1) and only suitable for literate people (1) whereas it would be much better other media (1) such as social media/radio/TV/billboards/internet (1) where colour/jingles can be used (1) and bigger audiences (1) which is more attractive than newspapers (1) to promote the shopping centre to a wider/different audience (1).
23. [2] (c) 1 mark for example and 1 mark for description
24. [2] (c) Competition/draw (1) win a car/could be linked to buying a product before entering (1)
25. [2] (c) Free gift/gift card (1) a cheaper product given along with buying a more expensive item/could be linked to buying a goods over a certain amount/e.g. spend $100 and you will receive a free toaster(1)
26. [2] (c) Coupons (1) given when after a sale is made/save 20% off first order (1)
27. [2] (c) Special offers/discounts (1) such as buy-one-get-one-free/25% off/vouchers (1)
28. [2] (c) Loss leader (1) goods sold at below cost price (1)
29. [2] (c) Loyalty cards (1) customers can exchange points for goods/money
30. [2] (c) Point of sale (1) goods displayed at checkouts (1)
31. [6] (d) Up to 2 marks for describing debit and/or credit cards in purchasing a fridge freezer
32. [6] (d) Up to 2 marks for analysing reasons for the use of debit and/or credit cards in purchasing a fridge freezer
33. [6] (d) Up to 2 marks for evaluating whether a debit card or a credit card should be used to purchase a fridge freezer
34. [6] (d) Debit cards:
35. [6] (d) Allows instant payment – so no need to save up/spread repayments
36. [6] (d) Money automatically deducted from bank current account – will reduce cash flow
37. [6] (d) Can obtain cash-back when shopping – which is useful if shopping without cash
38. [6] (d) Helps to control spending – so customers can budget for what they can afford/ cannot overspend more than they have in their current account
39. [6] (d) No credit is offered – so no interest is paid
40. [6] (d) Need to have sufficient money in bank current account – or cannot purchase fridge freezer
41. [6] (d) Credit cards:
42. [6] (d) Provide instant credit – as fridge freezers can be expensive/can now afford to buy
43. [6] (d) Free credit allowed up to a month so can use fridge freezer without paying immediately
44. [6] (d) Can be used in a wide range of outlets/countries – not just in one or two stores
45. [6] (d) Cardholders have a credit limit – which helps with cash flow
46. [6] (d) Receive monthly statements – to see what is owed
47. [6] (d) Interest is charged if amount owed on statement is not paid off - makes it expensive
48. [6] (d) Risk of becoming a bad debtor – going to court if credit card bill not paid off
49. [6] (d) Example of evaluation: Credit card should be used to purchase a fridge freezer as they are expensive items and you may not have enough money on your debit card in your bank to pay immediately for it.