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O-LevelCommerceRetail trade7100/21 · Oct/Nov 2013 · Q620 Marks

The table in Fig. 2 shows the number of retail outlets in a town. 1 department store 2 supermarkets 3 variety chain stores 12 multiple chain stores 28 independent shops 1 street market [Figure 2] Use the information given in Fig. 2 to help you to answer the following questions.

  1. (a)(i)State two features of: a department store[2]
  2. (a)(ii)State two features of: a street market.[2]
  3. (b)What is the difference between a variety chain store and a multiple chain store?[2]
  4. (c)(i)Calculate the number of large-scale retailers in this town. Show your working.[2]
  5. (c)(ii)Explain two possible reasons why there are more independent shops in this town than other types of retailer.[4]
  6. (c)(iii)Why do some of the shops in the town offer after-sales service to their customers?[2]
  7. (d)The two supermarkets in the town are owned by large retail businesses who also own many other supermarkets. How important is transport for the successful operation of these supermarkets? Give reasons for your answer.[6]

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Mark scheme

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

  1. [2] found in city centres
  2. usually multi-storeyed
  3. provide extra services or example
  4. offer delivery service for large items
  5. organised in sections/departments
  6. offer credit accounts/store cards
  7. provide one-stop shopping
  8. offer online service
  9. any other relevant feature
  10. [2] often held in the open air
  11. traders usually sell one particular line
  12. traders hire stalls from local council
  13. may attract tourists in some places
  14. traders have low overheads
  15. consists of stalls
  16. usually once/twice a week in a location
  17. may sell seconds/unbranded goods
  18. success subject to weather conditions
  19. may be covered daily markets
  20. bargaining may take place
  21. any other relevant feature
  22. [2] multiple chain store sells one particular product line
  23. variety chain store sells wide variety of goods
  24. any other relevant point
  25. [2] 1 + 2 + 3 + 12 (1 mark) = 18 (1 mark)
  26. (N.B. no marks for OFR as the candidate will not have identified all the large-scale retailers)
  27. Award full marks for the correct answer without working.
  28. [4] many consumers in the town may prefer to shop at the independent retailers who are offering what they require
  29. some of the independent retailers may be speciality stores offering goods/services the large-scale retailers are not offering (+ an example)
  30. the town council may have encouraged independent shops to stay in business by offering them low rates/car parking schemes
  31. the independent shops may have formed an organisation to promote themselves to shoppers
  32. the population of the town and surrounding area is sufficient to sustain all kinds of shops both large and small
  33. independent shops are easy to set up and easy to run (points relating to this 2 max)
  34. any other relevant point
  35. [2] to encourage repeat business
  36. to gain competitive edge
  37. because they are sell goods that need maintenance/delivery
  38. may produce additional income for the retailer
  39. any other relevant point
  40. [6] Level 2 (4-6 marks)
  41. Has discussed the importance of transport to large retail businesses owning supermarkets and has given a reasoned answer as to how important transport is to these businesses.
  42. Transport is needed to move people and to move goods. A large retail business such as a supermarket will rely on people using their cars to come shopping and so provide large car parks. These people are likely to buy food and household products in large quantities and load their cars from trolleys. Many employees of supermarkets come to work in their own cars.
  43. Most supermarkets own their own transport. They may have delivery vans to deliver shopping to customers who have ordered their groceries online. This is a growing trend in some countries.
  44. These supermarkets will certainly have trucks that are used to carry goods from regional distribution centres often located close to motorways to deliver to surrounding supermarkets. Without this kind of transport, supermarkets would not be able to keep their supermarkets supplied. They would have to have large warehouses attached to each supermarket and rely on deliveries to these supermarkets either directly from manufacturers or from various wholesalers.
  45. Transport is therefore very important for the successful operation of supermarkets. If there was no transport, supplies on supermarket shelves would soon run out.
  46. Level 1 (1-3 marks)
  47. Has commented on the importance of transport in relation to a large retail business.
  48. Transport is needed to bring goods from the supermarket's warehouse to the supermarket. Transport is needed to keep the supermarket supplied. Supermarkets do not have much storage. They buy directly from manufacturers who supply to large warehouses. Trucks are used between these warehouses and the supermarkets.

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About this question

Topic
Retail trade, O-Level Commerce (syllabus 7100). Structured question, 20 marks.
Source
O-Level Commerce, Oct/Nov 2013 Paper 2 Variant 1, question 6.

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