Consumers are affected by the actions of manufacturers, wholesalers and retailers.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2011). The mark or mark type is shown in brackets.

1. [3] (a) Any three points × 1 mark each:
2. • example such as car manufacturer, furniture maker, clothing manufacturer (1)
3. • a manufacturer is someone who makes goods
4. • from raw materials
5. • usually in a factory
6. • in secondary production.
7. Any other relevant point.
8. [4] (b) Any two ways described × 2 marks each:
9. • wholesalers deal in bulk, retailers deal in small quantities
10. • wholesalers sell to retailers, retailers sell to consumers
11. • wholesalers buy from manufacturers, retailers may buy from wholesalers
12. • wholesalers have shed-like storage premises where rents are cheap
13. • retailers have well-appointed premises in areas where consumers will visit
14. • wholesalers clear production lines, retailers purchase a variety of goods
15. • wholesalers may deal with several manufacturers, retailers may deal with only one or two wholesalers
16. • wholesalers have large-scale storage, retailers may have only small storerooms
17. • wholesalers deliver goods, many retailers do not
18. • wholesalers do not display goods, retailers emphasise display.
19. Any other relevant way.
20. [4] (c) Any two ways × 2 marks each:
21. • the number of wholesalers has declined in some countries because large-scale retailers buy direct
22. • large-scale retailers perform wholesale functions themselves and buy direct from manufacturers
23. • some wholesalers have established themselves as cash and carry warehouses used by small-scale retailers and other small businesses
24. • some wholesalers have set up voluntary chains with themselves as the buying agent and small-scale retailers buying advantageously from them
25. • some wholesalers have become specialist wholesalers, e.g. electrical wholesaler offering a wide range of one particular kind of merchandise
26. • wholesalers have looked for ways to cut costs, e.g. computerisation of warehouses
27. • wholesalers have less business because small-scale retailers have gone out of business.
28. Any other relevant point.
29. [3] (d) 1 mark for the method of safeguarding the consumer and 2 marks for description:
30. (NB answers will differ from country to country. Accept any plausible answer.)
31. • consumer council/association/agency
32. • laws such as sale of goods acts – goods should be fit for sale – trade descriptions acts relating to how goods and services are described
33. • publications such as Which? magazine – give advice on which products and services provide value for money
34. • standards organisations – test products and label them
35. • government – may be a consumer department – to promote consumer protection and offer advice on pricing, safety, labelling
36. • television and radio programmes – offering information to consumers and showing examples of bad practice and what happened
37. • guarantees/warranties
38. • non-government organisations.
39. Any other relevant method.
40. Consumer protection/insurance/refunds = 0 marks.
41. [6] (e) Level 2 (4-6 marks)
42. Candidate has presented a reasoned argument either agreeing with the statement or disagreeing with it or offering a balanced view.
43. Consumer spending has increased as many consumers have more disposable income. More goods and services have become available, people's expectations have become greater and the global economy has become increasingly important. As people buy more, the chances of them buying unsatisfactory goods and services increases. Consumers, therefore, need protection. As individual consumers they have a poor bargaining position against unscrupulous traders. They need the backing of laws, consumer organisations and the government. On the other hand, they also need consumer protection to help them overcome mistakes they have made. They may lack knowledge of what they are buying. They may buy goods dangerous to their health. They may buy faulty goods. Consumer protection is now more important because people spend more but it is also necessary to protect consumers against themselves. Consumers have rights and consumers are also gullible.
44. Level 1 (1-3 marks)
45. Candidate has made some statements either about consumer spending or about why consumers need protection but with little or no reasoning.
46. Consumers are spending more. Consumers often buy goods that are broken or faulty. They need protection so that they do not lose money. They need protection against false advertising.