Bonusprice is a multiple chain store selling men's and women's clothing nationwide. Bodelight is a unit retailer in a small town, also selling men's and women's clothing.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2012). The mark or mark type is shown in brackets.

1. [4] (a) (i) Any four points x 1 mark each - a group of shops with at least 10 branches, offering the same kind of goods, managed from a head office, central purchasing, each branch looks the same/similar shop front/layout, each branch has a manager, stock can be moved from branch to branch, spreads risk as losses made in one branch can be covered by the profits of others, any other relevant point
2. [4] (a) (ii) Any four points x 1 mark each - one individual shop, found everywhere, may be run by a family, may operate as a sole trader, who may employ staff, many sell one kind of product, or a variety of products, may be located in neighbourhoods, any other relevant point
3. [2] (b) Any two reasons x 1 mark each - easy to set up, may not cost too much to set up, may be located close to home, needed in many places in the world especially where large-scale retailing does not exist, liked by many consumers, can be flexible in opening hours, offer a personal service, any other relevant reason
4. [6] (c) Level 2 (4-6 marks) Has discussed both multiple chain stores and unit retailers and has given a reasoned opinion. (If a candidate has discussed only multiple chain stores or unit retailers award 4 marks max.) Multiple chain stores consist of many branches so risk can be spread among the branches. Goods can be moved between branches if they do not sell. If one branch makes a loss, this loss may be covered by the profits made in other branches. The organisation of a multiple is centralised so economies of scale such as bulk buying can be achieved. On the other hand unit retailers will have low overheads. They can be located anywhere whereas multiple chain stores are more likely to be sited where there are considerable numbers of consumers. Unit retailers can serve local areas and are convenient for everyday shopping and save consumers having to travel. Both kinds of shops are successful. Multiple chain stores are more likely to be successful in developed town and city centres where consumers like to shop at stores with well known brands. Unit retailers cater for all kinds of consumers. They may not make huge profits but they fulfil consumer needs in many parts of the world. Level 1 (1-3 marks) Has commented on multiple chain stores and/or unit retailers with/without an opinion. Unit retailers are found in all countries of the world. They are often successful. Multiple chain stores have many branches. They are often well known and very successful. They sometimes put the unit retailer out of business.
5. [4] (d) Any four points x 1 mark each or two well explained points x 2 marks - lower their prices so that they are lower than Superfashion's prices, hold promotions to sell slow moving lines, stage special events e.g. fashion shows, review their costs, close any loss making branches, advertise more to attract more customers, review what they are selling and look for more attractive lines, increase/develop their online selling, open shops where there is no branch of Superfashion, improve their service, introduce loyalty scheme, improve window displays to catch people's attention, provide pleasant shopping atmosphere, do nothing, any other relevant point