Mark Scheme

Section A — Structured Questions

QUESTION 1

(a) Define the term 'manufacturer'. (2 marks)

• A manufacturer is a business/person that converts raw materials into finished goods [1 mark]
• Using machinery, labour and other factors of production [1 mark]

Accept: "transforms raw materials"; "produces goods"; "makes products from raw materials"

(b) State TWO factors of production Marlon uses in his business. (2 marks)

Award 1 mark for EACH correct factor (maximum 2):

• Land (premises/workshop/factory space)
• Labour (workers/employees)
• Capital (machinery/equipment/tools/money)
• Enterprise (Marlon's entrepreneurial skill/management)

(c) Explain ONE advantage to Marlon of operating as a sole trader. (3 marks)

Award marks as follows:

• 1 mark for stating a valid advantage
• 2 marks for clear explanation/development

Acceptable advantages with explanation:

• Full control of the business [1] — Marlon can make all decisions quickly without consulting others/partners [2]
• Keeps all profits [1] — Does not have to share profits with partners or shareholders, providing strong financial incentive [2]
• Privacy [1] — Does not have to publish accounts/financial information can be kept confidential [2]
• Easy to establish [1] — Minimal legal requirements/registration procedures/low start-up costs [2]
• Flexibility [1] — Can respond quickly to market changes/customer demands without lengthy decision-making processes [2]

(d) Describe TWO sources of finance Marlon could use to expand his business. (4 marks)

Award 2 marks for EACH source properly described (maximum 2 sources):

Acceptable sources:

• Bank loan [1] — Borrowed money from a financial institution that must be repaid with interest over an agreed period [1]
• Personal savings [1] — Marlon's own accumulated money/capital invested into the business [1]
• Trade credit [1] — Purchasing machinery/materials on credit from suppliers, paying at a later agreed date [1]
• Hire purchase [1] — Buying equipment by paying deposits and instalments over time, with ownership transferring after final payment [1]
• Government grant [1] — Money provided by government to support small business development that does not need to be repaid [1]
• Retained profit [1] — Profit kept in the business from previous years' trading rather than withdrawn [1]

(e) Suggest TWO reasons why Marlon might decide to change his business from a sole trader to a private limited company. (4 marks)

Award 2 marks for EACH reason properly developed (maximum 2 reasons):

Acceptable reasons:

• Limited liability [1] — To protect personal assets/only risk the amount invested in the company if the business fails [1]
• Raise capital more easily [1] — Can sell shares to family/friends/investors to obtain additional finance for expansion [1]
• Continuity [1] — The business can continue to exist even if Marlon dies or leaves/provides permanence [1]
• Business expansion [1] — Easier to attract investors/finance for growth when registered as a company [1]
• Professional image [1] — May gain more credibility with suppliers/customers/banks as a registered company [1]

QUESTION 2

(a) Calculate the Cost of Goods Sold for Best Buy Supermarket. (3 marks)

Cost of Goods Sold = Opening Stock + Purchases – Closing Stock [1 mark for formula] = $45,000 + $180,000 – $35,000 [1 mark for correct substitution] = $190,000 [1 mark for correct answer]

Award 2 marks if answer is correct but no working shown. Award 1 mark if formula is stated but calculation is incorrect.

(b) Calculate the Gross Profit for Best Buy Supermarket. (2 marks)

Gross Profit = Sales – Cost of Goods Sold [1 mark] = $310,000 – $190,000 = $120,000 [1 mark]

OR award 2 marks for correct answer even if working not shown.

(c) Calculate the Gross Profit Percentage (Gross Profit Margin). (2 marks)

Gross Profit Percentage = (Gross Profit ÷ Sales) × 100 [1 mark for formula] = ($120,000 ÷ $310,000) × 100 = 38.71% OR 38.7% OR 39% [1 mark for correct answer]

Accept answers between 38% and 39%.

(d) Explain ONE reason why the manager of Best Buy Supermarket would want to know the Gross Profit Percentage. (3 marks)

Award marks as follows:

• 1 mark for stating a valid reason
• 2 marks for clear explanation/development

Acceptable reasons with explanation:

• To compare performance [1] — With previous years/periods to determine if profitability is improving or declining [2]
• To make pricing decisions [1] — Determine if prices need to be adjusted to increase profitability/remain competitive [2]
• To control costs [1] — Identify if the cost of goods sold is too high and needs to be reduced [2]
• To compare with competitors [1] — See if the business is performing better or worse than similar supermarkets in the industry [2]
• To satisfy stakeholders [1] — Provide information to owners/investors about the profitability and efficiency of the business [2]

QUESTION 3

(a) Define the term 'commission'. (2 marks)

• A payment/reward based on the value/amount of sales made [1 mark]
• Usually calculated as a percentage of sales [1 mark]

Accept: "Extra payment for achieving sales targets"; "Payment based on performance"; "Percentage of sales value paid to employee"

(b) Calculate Sharon's commission for last week. Show ALL working. (3 marks)

Sales above threshold = $12,000 – $5,000 = $7,000 [1 mark] Commission = 5% of $7,000 [1 mark] = 0.05 × $7,000 OR (5 ÷ 100) × $7,000 = $350.00 [1 mark]

Award 2 marks only if answer is correct but incomplete working shown.

(c) Calculate Sharon's total earnings for last week. (2 marks)

Total earnings = Basic wage + Commission [1 mark] = $450.00 + $350.00 = $800.00 [1 mark]

(d) Explain TWO advantages to Sharon of receiving commission in addition to her basic wage. (4 marks)

Award 2 marks for EACH advantage properly explained (maximum 2):

Acceptable advantages:

• Increased earnings [1] — She can earn more money than just basic wage if she sells more, improving her standard of living [1]
• Motivation [1] — Encourages her to work harder/sell more to increase her income/provides incentive for better performance [1]
• Rewards effort [1] — Her income directly reflects her performance/hard work, making payment fair [1]
• Job satisfaction [1] — Provides recognition for good performance/sales achievement, making her feel valued [1]
• Financial security [1] — Still receives basic wage even if sales are low, while having opportunity to earn more [1]

QUESTION 4

(a) Define the term 'quality control'. (2 marks)

• The process of checking/inspecting/testing products [1 mark]
• To ensure they meet established standards/specifications/customer requirements [1 mark]

Accept: "Ensuring products are of acceptable standard"; "Monitoring production to maintain quality"; "System to prevent defective products"

(b) State TWO methods CML could use to ensure quality control in its production process. (2 marks)

Award 1 mark for EACH correct method (maximum 2):

• Inspection of raw materials/ingredients
• Testing at different stages of production
• Final product inspection/testing before distribution
• Using quality standards/specifications
• Employee training in quality procedures
• Regular maintenance of machinery/equipment
• Random sampling/batch testing
• Installing detection systems/sensors

(c) Explain TWO reasons why quality control is important to CML. (4 marks)

Award 2 marks for EACH reason properly explained (maximum 2):

Acceptable reasons:

• Customer satisfaction [1] — Ensures products meet customer expectations, leading to repeat purchases and positive reputation [1]
• Reduce waste [1] — Identifies defects early, preventing wastage of materials and reducing production costs [1]
• Legal compliance [1] — Ensures products meet health and safety regulations/standards, avoiding legal action/fines [1]
• Competitive advantage [1] — High quality products differentiate CML from competitors, increasing market share [1]
• Protect brand image [1] — Prevents damage to company reputation that could result from poor quality products [1]
• Reduce returns [1] — Fewer defective products reach customers, reducing costs of returns/replacements [1]

(d) Discuss TWO ways in which poor quality products could affect CML's business. (4 marks)

Award 2 marks for EACH effect properly discussed (maximum 2):

Acceptable effects:

• Loss of customers [1] — Dissatisfied customers will switch to competitors' products, reducing sales revenue and market share [1]
• Damage to reputation [1] — Negative word-of-mouth/social media reviews will harm the company's image, making it difficult to attract new customers [1]
• Increased costs [1] — Company will incur expenses for product recalls/replacements/refunds and handling customer complaints [1]
• Legal problems [1] — Could face lawsuits/compensation claims if products cause harm to consumers, resulting in financial losses [1]
• Reduced employee morale [1] — Workers may feel demotivated producing poor quality products, leading to lower productivity [1]
• Loss of retail contracts [1] — Retailers may refuse to stock CML products, reducing distribution channels and sales opportunities [1]

QUESTION 5

(a) (i) State the type of tax represented by General Consumption Tax. (1 mark)

• Indirect tax [1 mark]

Accept: "Sales tax"; "Consumption tax" Reject: "Direct tax"; "Income tax"

(a) (ii) Give ONE reason for your answer in (a)(i). (2 marks)

• It is paid/charged on goods and services [1 mark]
• The tax burden can be passed on to/shifted to the consumer [1 mark]

Accept: "It is included in the price of goods"; "Consumers pay it when they purchase goods"; "Collected by businesses on behalf of government" Award maximum 2 marks for a well-developed single reason.

(b) Explain TWO reasons why the Jamaican government would increase taxes. (4 marks)

Award 2 marks for EACH reason properly explained (maximum 2):

Acceptable reasons:

• Raise revenue [1] — To obtain money to finance/fund public services such as healthcare, education, infrastructure [1]
• Reduce imports [1] — To make imported goods more expensive, encouraging consumers to buy local products and protect domestic industries [1]
• Reduce consumption [1] — To discourage purchase of harmful goods like alcohol/tobacco or reduce overall spending to control inflation [1]
• Reduce government deficit [1] — To decrease the gap between government spending and revenue/reduce national debt [1]
• Redistribute wealth [1] — To collect money from consumers to provide benefits/services for lower income groups [1]
• Economic management [1] — To reduce demand in the economy and control inflation when the economy is overheating [1]

(c) Discuss TWO effects that an increase in GCT could have on consumers in Jamaica. (4 marks)

Award 2 marks for EACH effect properly discussed (maximum 2):

Acceptable effects:

• Reduced purchasing power [1] — Consumers can buy fewer goods with the same income because prices are higher, lowering their standard of living [1]
• Change buying habits [1] — Consumers may switch to cheaper alternatives/local products or reduce consumption of non-essential items [1]
• Increased cost of living [1] — Daily expenses increase as most goods become more expensive, particularly affecting low-income families/households [1]
• Reduced savings [1] — Consumers have less money available to save because more income is spent on higher-priced goods [1]
• Budgeting pressure [1] — Households must carefully manage finances/prioritize spending as expenses increase relative to income [1]

Section B — Extended Response

QUESTION 6

(a) (i) Define the term 'marketing'. (2 marks)

• The process of identifying, anticipating and satisfying customer needs/wants [1 mark]
• Profitably/through exchange of goods and services [1 mark]

Accept: "Activities involved in promoting and selling products"; "Getting the right product to the right customer at the right price and place"; "Creating, communicating and delivering value to customers"

(a) (ii) Outline TWO elements of the marketing mix (4 Ps). (4 marks)

Award 2 marks for EACH element properly outlined (maximum 2):

Product [1] — The goods/services offered to satisfy customer needs, including quality, features, design, branding, packaging [1]

Price [1] — The amount charged for the product, which must be affordable to customers while ensuring profitability for the business [1]

Place [1] — The location/channels through which products are distributed/made available to customers, including retailers, wholesalers, online [1]

Promotion [1] — The methods used to communicate with/inform customers about products, including advertising, sales promotion, public relations [1]

(b) Explain THREE ways in which a business could use advertising to increase sales. (9 marks)

Award 3 marks for EACH way properly explained (maximum 3):

• 1 mark for identifying method
• 2 marks for clear explanation with development

Acceptable ways:

Create awareness [1] — Advertising informs potential customers about the product's existence and features [1], reaching a wide audience who may not know about the product, leading to trial purchases and increased sales [1]

Persuade customers [1] — Advertising highlights product benefits and unique selling points [1], convincing customers that the product is superior to competitors, encouraging them to choose it over alternatives and increasing sales [1]

Remind customers [1] — Regular advertising keeps the product in consumers' minds [1], ensuring continued purchases and customer loyalty by preventing them from forgetting the brand or switching to competitors [1]

Improve brand image [1] — Well-designed advertising creates positive perceptions of the product/company [1], building trust and reputation that attracts customers and justifies premium pricing, thereby increasing sales revenue [1]

Target specific markets [1] — Advertising can be directed at particular customer segments through appropriate media [1], reaching the most likely buyers efficiently and effectively, converting prospects into actual customers [1]

Promote special offers [1] — Advertising can communicate price reductions, discounts, competitions [1], creating urgency and incentive for customers to purchase immediately, boosting short-term sales [1]

Demonstrate product use [1] — Advertising (especially video/television) can show how products work [1], overcoming customer uncertainty and building confidence in the product, leading to increased purchases [1]

(c) "Good customer service is more important than low prices in ensuring business success."

To what extent do you agree with this statement? Justify your answer. (15 marks)

Mark allocation using levels of response:

Level 4 (13–15 marks):

• Excellent, balanced discussion showing deep understanding
• Clear arguments for AND against the statement with detailed justification
• Uses relevant business terminology accurately throughout
• Provides specific, realistic business examples
• Reaches a well-reasoned, justified conclusion that synthesizes arguments
• Demonstrates evaluation and critical thinking
• Well-structured response with logical flow

Level 3 (9–12 marks):

• Good discussion with arguments on both sides
• Clear explanation of key points with some development
• Uses business terminology correctly
• Provides some examples or application
• Reaches a conclusion, though may lack full justification
• Shows some evaluation
• Generally well-structured

Level 2 (5–8 marks):

• Satisfactory response with limited discussion
• May be one-sided or unbalanced
• Basic use of business terminology
• Limited examples or development
• Conclusion may be absent or poorly justified
• Descriptive rather than evaluative
• Some structure evident

Level 1 (1–4 marks):

• Limited response with minimal discussion
• Lists points without explanation
• Little or no business terminology
• No examples provided
• No conclusion or unjustified opinion
• No evaluation
• Poor structure

Indicative content — candidates may include:

Arguments supporting the statement (customer service more important):

• Customer loyalty — Good service creates repeat customers who continue buying even when competitors offer lower prices
• Word-of-mouth — Satisfied customers recommend the business to others, providing free marketing
• Competitive advantage — Service quality differentiates businesses when products are similar
• Higher prices justified — Customers willing to pay premium for excellent service
• Reduced price sensitivity — Loyal customers less likely to switch for small price differences
• Long-term sustainability — Customer relationships build stable business foundation
• Positive reputation — Strong service reputation attracts new customers

Arguments against the statement (price more important):

• Price-sensitive customers — Many consumers prioritize low prices, especially in tough economic conditions
• Competitive markets — In highly competitive industries, price may be deciding factor
• Low-income consumers — Budget constraints make price the primary consideration
• Online comparison — Easy price comparison makes customers more price-conscious
• Commodity products — For standardized goods, price matters more than service
• Initial purchase — New customers often attracted by price before experiencing service
• Business survival — Competitive pricing essential to attract sufficient customers

Contextual factors to consider:

• Type of product/service
• Target market/customer demographics
• Industry/market conditions
• Business objectives
• Level of competition
• Economic conditions

Balanced conclusion should:

• Recognize that both factors are important
• Acknowledge that relative importance depends on context
• May argue one is more important but recognize the other's significance
• Show understanding that successful businesses need both competitive pricing AND good service

Sample Answers with Examiner Commentary

Question 6(c) — Sample Answers

Grade I (Distinction) answer

I agree with this statement to a large extent, although I recognize that both customer service and price are important factors in business success.

Good customer service is crucial for ensuring business success for several reasons. Firstly, excellent customer service creates customer loyalty. When customers receive helpful, friendly service and their complaints are handled efficiently, they are more likely to return to the business repeatedly rather than switching to competitors, even if those competitors offer lower prices. For example, a local hardware store in my community charges higher prices than larger retailers, but customers continue shopping there because the staff provide expert advice and personalized service. This demonstrates that customers value the service experience and are willing to pay more for it. Secondly, good customer service generates positive word-of-mouth marketing. Satisfied customers recommend businesses to family and friends, providing free advertising that is more trustworthy than paid promotion. This is particularly important in the Caribbean where personal recommendations carry significant weight in purchasing decisions. Thirdly, customer service provides a competitive advantage that is difficult for competitors to copy. While competitors can easily match prices, building a team of well-trained, motivated staff who consistently deliver excellent service takes time and investment.

However, I recognize that low prices also play an important role in business success. In the current economic climate where many consumers face financial pressures, price remains a critical factor in purchasing decisions. For low-income consumers, price may be the primary consideration as they simply cannot afford more expensive options regardless of service quality. Additionally, for standardized products where there is little difference between brands, such as basic food items or cleaning supplies, customers may prioritize price over service. The growth of online shopping has also made price comparison easier, making customers more price-conscious.

Despite the importance of price, I believe customer service is ultimately more important for long-term business success because it builds sustainable competitive advantage. A business competing only on price can easily lose customers when competitors reduce their prices, leading to a damaging price war that reduces profitability. In contrast, strong customer relationships built through excellent service create loyalty that survives temporary price differences. Furthermore, businesses with reputations for good service can justify premium pricing, actually increasing profit margins rather than reducing them.

In conclusion, while price matters and businesses must ensure their pricing is reasonable and competitive, good customer service is more important for ensuring long-term business success because it creates customer loyalty, generates positive reputation, and provides sustainable competitive advantage that cannot be easily copied. The most successful businesses recognize they need both competitive pricing and excellent service, but when forced to prioritize, investing in customer service delivers greater long-term returns.

Mark: 15/15

Examiner commentary: This is an exemplary response demonstrating all the characteristics of a Level 4 answer. The candidate provides a well-structured, balanced argument that clearly addresses both sides of the debate. The discussion is sophisticated, using accurate business terminology (customer loyalty, competitive advantage, word-of-mouth, premium pricing) throughout. Specific, realistic examples (hardware store) strengthen the argument. The candidate demonstrates critical thinking by acknowledging contextual factors (economic climate, product type, consumer demographics) and reaches a well-justified, nuanced conclusion that recognizes both factors' importance while making a clear evaluative judgment. The response flows logically and shows genuine understanding of business success factors.

Grade III (Pass) answer

I partly agree with this statement because both customer service and low prices are important for business success.

Good customer service is important because customers like to be treated well. If customers receive good service, they will come back to the business again. For example, if a customer goes to a restaurant and the waiters are friendly and helpful, they will want to return even if the food costs a bit more than other restaurants. Good customer service also means that customers will tell their friends about the business, which helps get more customers without spending money on advertising. Also, if a business has good customer service, it can charge higher prices and customers won't mind paying more.

However, low prices are also important for business success. Many customers look for low prices because they want to save money, especially if they don't have a lot of money to spend. If prices are too high, customers will go to competitors who offer cheaper products. For example, people often shop at discount stores because the prices are lower than regular stores. In today's economy, people compare prices easily on the internet, so businesses need to keep their prices competitive.

In conclusion, I think both customer service and low prices are important. A business needs good customer service to keep customers happy and coming back, but it also needs reasonable prices so customers can afford to buy the products. The best businesses have both good service and fair prices.

Mark: 8/15

Examiner commentary: This is a solid Level 2 response that demonstrates satisfactory understanding. The candidate addresses both sides of the argument and provides some relevant points about customer loyalty and price sensitivity. However, the discussion lacks depth and development. While examples are included (restaurant, discount stores), they are generic and not well-integrated into the argument. Business terminology is used but not extensively (e.g., missing terms like "competitive advantage," "profit margins," "market positioning"). The conclusion is present but lacks the sophistication and justification of higher-level responses. To reach Level 3/4, the candidate needed to develop points more fully, use more precise business vocabulary, and demonstrate evaluative thinking about when/why each factor might be more important.

Grade V (Near miss) answer

I agree that good customer service is more important than low prices for business success.

Customer service is important because customers need to be served properly. If the workers are rude or unhelpful, customers will not want to shop there anymore. Good customer service makes customers happy and they will buy more things. Businesses with good customer service are successful because people like them.

Low prices are also good for business because everyone wants to save money. If prices are cheap, more people will buy from the business. But sometimes low prices mean poor quality products, so customers might prefer to pay more for better quality.

Customer service is more important because happy customers are loyal customers. They will always come back and bring other people with them. Price is not as important as how you treat customers.

Mark: 4/15

Examiner commentary: This response falls into Level 1 due to limited development and lack of detailed justification. While the candidate states a position and identifies relevant factors (customer happiness, loyalty, price sensitivity), the points are not explained or developed with sufficient depth. The response lacks specific examples, contains minimal business terminology, and relies on general statements rather than analytical discussion. The argument is one-sided despite a brief acknowledgment of price importance. The conclusion simply restates the opening position without synthesizing arguments or demonstrating critical evaluation. To improve, the candidate should: develop each point with detailed explanation and examples; use precise business vocabulary; provide balanced discussion of both viewpoints; and demonstrate evaluative thinking about contexts where each factor matters more. The response shows some understanding of the topic but insufficient depth for pass-level performance on this demanding question.

Question 6(b) — Sample Answers

Grade I (Distinction) answer

There are several ways businesses can use advertising to increase sales effectively.

Firstly, advertising creates product awareness among potential customers. Many consumers cannot purchase products they do not know exist. Through television, radio, newspaper, social media and billboard advertising, businesses can reach thousands or millions of potential customers, informing them about the product's features, benefits and availability. For example, when a new restaurant opens in Kingston, Jamaica, advertising in local newspapers and on social media platforms informs community members about the location, menu offerings and opening hours. This awareness reaches people who might not otherwise notice the business, bringing in new customers who make trial purchases. Once these customers try the product and find it satisfactory, they may become repeat customers, thereby increasing ongoing sales.

Secondly, advertising persuades customers to choose one product over competitors' alternatives. In most markets, consumers face multiple options, so advertising must convince them that a particular product offers superior value, quality or benefits. Persuasive advertising highlights unique selling points and uses emotional appeals or celebrity endorsements to influence purchasing decisions. For example, advertising for Caribbean soft drink brands often emphasizes local ingredients, authentic taste and regional pride, persuading customers to choose these products instead of international brands. By presenting compelling reasons to purchase, persuasive advertising converts potential customers into actual buyers, directly increasing sales volume.

Thirdly, advertising reinforces brand loyalty and reminds existing customers to continue purchasing. Even satisfied customers may forget about products or be tempted by competitors' offerings. Regular advertising keeps the brand prominent in customers' minds, encouraging repeat purchases. For instance, telecommunications companies in Trinidad and Tobago continuously advertise their services even though they have established customer bases, reminding subscribers of plan benefits and new features to prevent switching to competitors. This reminder advertising maintains sales levels by retaining existing customers and preventing market share erosion.

Mark: 9/9

Examiner commentary: This is an outstanding response earning full marks. The candidate identifies three distinct ways advertising increases sales (creating awareness, persuading customers, reinforcing loyalty) and develops each with thorough explanation. Each point follows a clear structure: method identified, explanation of how it works, specific Caribbean-contextual example, and link to increased sales. The response uses appropriate business terminology accurately (product awareness, unique selling points, brand loyalty, market share). The examples are realistic and well-integrated, demonstrating genuine understanding rather than memorized content. The candidate clearly explains the mechanism by which each advertising approach leads to increased sales, showing analytical rather than just descriptive thinking.

Grade III (Pass) answer

Businesses can use advertising in different ways to increase sales.

One way is to inform customers about the product. Advertising on television, radio or the internet tells people what the product is, what it does and where they can buy it. When people know about the product, they can decide if they want to buy it. For example, a new shop can advertise its opening and what products it sells. This brings customers to the shop and increases sales.

Another way is to persuade customers to buy the product. Advertising shows why the product is good and why customers should choose it instead of other products. Advertisements might show how the product solves problems or makes life easier. This convinces people to purchase the product, which increases sales.

A third way is to use advertising to remind customers about the product. Even if customers have bought the product before, they might forget about it or buy competitors' products instead. Regular advertising reminds them about the brand and encourages them to keep buying it. This helps maintain sales levels.

Mark: 6/9

Examiner commentary: This is a sound Level 3 response showing good understanding of how advertising increases sales. The candidate correctly identifies three valid methods (inform, persuade, remind) and provides explanation for each. However, the development is somewhat basic and the examples lack specificity and contextual detail. The first example ("a new shop") is very generic, and the other two points lack concrete examples entirely. Business terminology is present but limited. The explanations make logical sense but could be deeper—for instance, explaining the psychological mechanisms of persuasion or providing statistics about reminder advertising effectiveness. To reach top marks, the candidate needed: more developed explanations, specific and contextual examples for all three points, and more sophisticated business vocabulary (e.g., "brand awareness," "competitive advantage," "customer retention").

Grade V (Near miss) answer

Businesses use advertising to increase sales in these ways.

First, advertising tells customers about products. When people see advertisements on TV or posters, they learn about what the business sells. This makes them want to buy the product so sales increase.

Second, advertising makes products look attractive and good. Advertisements use nice pictures and colors to make people like the product. When customers like how the product looks in the advertisement, they will buy it and sales go up.

Third, advertising can offer discounts and special prices. When businesses advertise sales and reduced prices, customers want to take advantage of the offers. This brings more customers and increases sales quickly.

Mark: 3/9

Examiner commentary: This response demonstrates limited understanding and falls short of the pass standard. While the candidate attempts to identify three ways advertising increases sales, the explanations are superficial and underdeveloped. The first point correctly identifies the informative function of advertising but doesn't explain the awareness-to-purchase mechanism. The second point confuses aesthetic appeal of advertisements with persuasive messaging about product benefits—a common misconception at this level. The third point, while valid, addresses promotional pricing rather than advertising per se, suggesting the candidate doesn't fully distinguish between different marketing activities. The response lacks specific examples, uses minimal business terminology, and doesn't demonstrate the depth of explanation required (how and why each method works to increase sales). To improve, the candidate should: explain mechanisms in detail (how awareness leads to trial purchases), use proper business concepts (brand awareness, persuasive messaging, customer retention), provide concrete examples, and ensure each point directly addresses how advertising (not just promotion) increases sales.