Fig. 1 shows an advertisement with a sales promotion. POPPO LTD SWEATERS FOR EVERY OCCASION All sizes available in black, blue or red BUY NOW WHILE STOCKS LAST Only $12.50. Second one half price. Postage and Packing $4. Rapid ordering service using telephone number 123456789 or order online at www.poppo.com. All credit cards accepted. [Figure 1] Use the information given in Fig. 1 to help you to answer the following questions.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2013). The mark or mark type is shown in brackets.

1. [1] only $12.50
2. second one half price
3. buy now while stocks last
4. all credit cards accepted
5. sweaters for every occasion
6. [3] $12.50 + $6.25 (1 mark) + $4 postage and packing (1 mark) = $22.75 (1 mark)
7. OFR applies. Award full marks for the correct answer without working.
8. [2] to attract increased sales
9. because many people order and pay online
10. because people can use them when ordering over the telephone
11. because it would not be able to accept other means of payment
12. any other relevant reason
13. [3] debit card (1 mark)
14. enables the customer to make instant payment
15. payment is guaranteed to the retailer
16. there are no bad debts to the retailer
17. if there is no money in the customer's account, the debit card will be rejected
18. developed as a substitute for cheques
19. any other relevant point
20. [5] will have premises which are cheap to rent such as on a trading estate - multiple chain will require premises in busy streets where rents are expensive
21. will not need to employ large numbers of shop assistants
22. mail order catalogue companies may offer a wider variety of goods than a multiple chain who will specialise in one retail area e.g. shoes
23. mail order catalogue companies have wide appeal among consumers and so the catalogue company can tap into this market
24. many catalogues are now available on the Internet so there are savings in costs of printing catalogues and advertising costs of using other media
25. catalogue companies appeal to particular groups of customers particularly the housebound
26. catalogue companies appeal to consumers who prefer Internet shopping rather than visiting multiple chain stores and other retail outlets in shopping areas
27. any other relevant point
28. [6] Level 2 (4-6 marks)
29. Has discussed both ordering goods by telephone and ordering online and has given a reasoned opinion.
30. (If a candidate discusses only one method of ordering, award 4 marks max)
31. If a customer orders using the telephone, the customer is promised rapid service by the company. The customer will know if the order has been received and will be able to discuss any aspect of the order or ask questions about the order. It is likely that there will be quite long opening hours when the telephone will be answered or there may be an after-hours automated service. The customer is also likely to be told if the goods are available or not and when the goods will be delivered.
32. On the other hand mistakes may be made because the operator mishears what is required. The order line may be busy and it may be difficult to make contact.
33. If a customer orders online, the customer will be able to study the goods on offer before making a decision. The customer will be able to order goods at any time because the Internet is available 24/7. The customer will know if goods are available or not and can look for alternatives. Some goods supplied by the company may be available only online or there may be special offers for those ordering online.
34. Some customers may consider the Internet insecure for placing orders and paying for them. This can be overcome by using secure websites.
35. Many customers prefer to order online. It may be easier and cheaper than using the telephone. They will be given written confirmation of the order by email. Others prefer to use the telephone because they wish to speak to someone. It is probably sensible for the company to offer both means of ordering. On balance it is preferable to order online. Any difficulties that customers may encounter will be overcome as more and more people use the Internet for their everyday requirements.
36. Level 1 (1-3 marks)
37. Has commented on ordering goods by telephone and/or ordering online with/without an opinion.
38. More and more people order goods online. The Internet is available all the time. It is possible to view the goods available. People can pay using credit cards. Telephone ordering is useful. You need a catalogue or advert to use telephone ordering.