O-LevelBusiness StudiesMarketing7115/11 · May/June 2022 · Q120 Marks

Pamela is a successful entrepreneur. She is the owner of a gift shop selling celebration cards, toys and candy (sweets). When Pamela started her business 30 years ago she had no help to manage the shop. She now has 5 employees. Pamela knows maintaining customer loyalty is important. She uses competitive pricing. Most of her marketing budget is spent on sales promotion. Pamela does not use e-commerce.

(a)Define 'competitive pricing'.[2]
(b)Define 'marketing budget'.[2]
(c)Outline two possible threats to Pamela's business of using e-commerce. Threat 1: Threat 2:[4]
(d)Explain two methods Pamela's business can use to maintain customer loyalty. Method 1: Explanation: Method 2: Explanation:[6]
(e)Do you think being a risk-taker is a more important characteristic of a successful entrepreneur than being creative? Justify your answer.[6]

Mark scheme

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

[2] When a product is priced in line or just below competitors' prices (to try to capture more of the market)
[2] Setting a price similar to that of competitors products which are already established in the market.
[2] When the price of a good is set at the same level as other products in the market and at a level customers expect or are willing to pay
[1] Partial definition e.g. have similar prices to other businesses
[1] bases their prices on the competitors pricing

On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.