Medium6 marksExtended Response
AQA GCSE · Question 03.3 · Marketing
Emilios gives away free samples of its 'flavour of the day' to boost sales.
Analyse one drawback of Emilios offering free samples.
Emilios gives away free samples of its 'flavour of the day' to boost sales.
Analyse one drawback of Emilios offering free samples.
How to approach this question
This is a 6-mark "analyse" question. You need to show depth and use the case study.
1. **Identify** a drawback of giving free samples (e.g., the cost, attracting non-paying customers, causing queues).
2. **Explain** what this drawback means in general terms.
3. **Apply** it directly to Emilios' situation using evidence from Item C. For example, link the drawback of queues to the customer "complaints about the time they spend waiting". Link the cost to the fact they "need replacing regularly".
4. **Analyse** the impact of this drawback on Emilios. Explain *why* this is a significant problem for the business, connecting it to its objectives (like customer satisfaction) or profitability.
Full Answer
One drawback of Emilios offering free samples is the direct cost associated with giving away products for free. Each sample of ice cream has a cost in terms of ingredients and the staff time taken to prepare and serve it. The case study notes the samples are "very popular and need replacing regularly", which implies a significant and ongoing cost. This expenditure directly reduces the shop's potential profit margin, and if the samples do not successfully convert passers-by into paying customers, it could simply be a financial loss for the business.
Furthermore, this promotional method could negatively impact customer satisfaction and the efficiency of the business. The case study states that while samples "encourage tourists to enter the shop", some customers have "complained about the time they spend waiting to be served once inside". This suggests the promotion is creating a bottleneck, leading to long queues and poor service for genuine paying customers. This could damage Emilios' reputation for customer satisfaction, which is stated to be an important objective, and may deter repeat business.
Offering free samples is a common sales promotion technique, but it has downsides.
- **Cost:** There is a direct cost of the product being given away. For Emilios, this is the cost of the ice cream ingredients. The case states they are "very popular", implying the cost could be substantial. This directly reduces profit.
- **Attracting the wrong people:** Some people may take the free sample with no intention of ever making a purchase.
- **Operational issues:** As seen in the case study, the promotion can lead to overcrowding and long queues ("customers have complained about the time they spend waiting"). This can frustrate paying customers and damage the business's reputation, conflicting with their objective of "customer satisfaction".
To analyse, you must explain *why* this drawback is a problem *for Emilios*. For example, the queues are not just a general problem; for Emilios, they directly undermine their stated objective of customer satisfaction.
Common mistakes
✗ Discussing more than one drawback. The question asks for "one".
✗ Not using the information from Item C to support the answer.
✗ Describing the drawback but not analysing its impact on Emilios specifically (e.g., on its profits or reputation).
Practice the full AQA GCSE Business Paper 2
26 questions · hints · full answers · grading
More questions from this exam
Q01.1Which of the following is a method of secondary market research?EasyQ01.2Which of the following describes dividing potential customers into groups based on different char...EasyQ01.3Which source of finance could be given to a business to create jobs in areas of high unemployment?EasyQ01.4Which of the following is the correct formula to calculate the margin of safety from a break-even...EasyQ01.5Which of the following types of business ownership has shareholders, but cannot advertise its sha...Easy
Expert