Fig. 5.1 shows self-service checkouts that a supermarket chain has introduced into its stores. This is part of its new technology developments. [Figure 5.1] (a) State two characteristics of a supermarket, apart from self-service checkouts.

Mark scheme

Marking points from the official mark scheme (May/June 2022). The mark or mark type is shown in brackets.

1. [1] Sell food and household goods/variety of goods
2. [1] Goods displayed on shelves / in freezers
3. [1] Use of trollies/baskets
4. [1] Competitive/low prices
5. [1] Sales promotions/loss leaders
6. [1] Use of store cards/credit cards
7. [1] Car parking
8. [1] Large site
9. [1] Air conditioning
10. [1] Vending machines
11. [1] After-sales service or example
12. [1] Long opening hours
13. [1] Online/home delivery
14. [1] Security/CCTV
15. [1] ATMs
16. [2] Reduces labour (1) less wages to pay / lower costs (1)
17. [2] Better use of space (1) can repurpose extra floor space to increase sales (1)
18. [2] Better use of labour (1) one supervising member of staff can replace five to six cashiers / reducing labour cost (1)
19. [2] Some people prefer them (1) so more likely to use supermarkets that have them / stay competitive / greater customer satisfaction (1)
20. [2] Fewer errors/greater accuracy (1) less mistakes in undercharging customers (1)
21. [2] Keeps some supermarkets ahead of competition (1) gives competitive edge (1)
22. [2] Some customers prefer to shop where there are these machines (1) leading to increased sales/profits (1)
23. [2] No need to train staff (1) can use staff to do other jobs in supermarket (1)
24. [2] Faster (1) than normal checkouts/cashier tills (1)
25. [1] Yes - self-service checkouts (1) can increase speed of transaction / save customers' time / more efficient (1) less need to queue (1) less errors (1) no overcharging (1)
26. [1] Yes - scan and shop devices (1) give a real-time overview on spending (1) save money (1)
27. [1] Yes - improves customer satisfaction (1) some customers do not want social interaction (1)
28. [1] Yes - Online ordering (1) goods delivered directly to customers (1) saves time for customer (1)
29. [1] Yes - Can result in lower costs (1) which can be passed on in lower prices to customers (1)
30. [1] No - sometimes an item may not scan (1) there may be a problem with the barcode (1) an assistant must resolve the issue (1) increasing time spent at checkout (1) no assistance with packing (1) some customers prefer social interaction (1)
31. [1] No - Some groups of people/such as the elderly (1) may find difficulty in using technology (1)
32. [1] Department stores locate in neighbourhood areas: FALSE
33. [1] Shopping centres locate near to transport routes: TRUE
34. [1] Hypermarkets locate where car parking is available: TRUE
35. [1] Shelf life - perishable items will have a shorter shelf life than locally sourced products
36. [1] Tariffs/cost of importing – additional costs of custom/import duties so charging higher prices to customers
37. [1] Distance - items will take longer to arrive causing shortages in the supermarket if there are delays
38. [1] Language - need for translators increasing costs
39. [1] Risk in transit – perishables may be damaged
40. [1] Quotas on some imported goods - may not be able to buy as many as required to meet demand
41. [1] Documentation – exporters have to keep more documents/records which increases their selling price to the supermarket
42. [1] Exchange rate differences – fluctuations make transactions more complicated
43. [1] Difference in economic conditions – supply chain may be inconsistent e.g. low wages may mean that overseas products are cheaper but that may change in the future e.g. fairtrade initiatives
44. [1] Ethical and moral issues – bad publicity for not using home producers / using 'cheap' overseas labour
45. [1] Evaluation: The risk of not receiving goods on time to stock the supermarket is probably the biggest difficulty the supermarket has because they do not want to have empty shelves and lose customers. The price that the overseas suppliers charge the supermarket may well be cheaper, but the supermarket will have to carefully consider whether, with the additional costs of importing, they can still be competitive. Importing helps the supermarket to diversify its product range, compared to competitors who may only sell local brands, which may help it to increase profits and overcome the other difficulties of this supply chain.