AS & A Level / Business / Pricing, promotion and distribution Question practice
Pricing, promotion and distribution About this practice Original, unofficial practice. Evaluative marking points are indicative: credit equivalent justified arguments, one point per distinct criterion, without double counting.
Accept equivalent valid methods and supported interpretations that address the task. Award each mark once; matching the model wording is not required.
Business Pricing, promotion and distribution
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1 Fictional case: a new streaming service sets a low introductory price to attract subscribers. Explain penetration pricing and one risk. Easy 2 marks No calculator + 2 Fictional case: a desk costs 80 to make. The seller adds a 25% mark-up on cost. Calculate the selling price and gross profit margin as a percentage of sales, assuming no other cost of sales. Easy 3 marks Calculator + 3 Fictional campaign: 20000 advertisement clicks cost 4000. Of those clicks, 600 lead to paid orders. Calculate conversion rate and advertising cost per order; explain why neither alone proves profit. Medium 4 marks Calculator + 4 Fictional case: a premium cosmetics producer switches from selected stores to a mass discount marketplace. Analyse effects on reach and brand positioning. Medium 4 marks No calculator + 5 Fictional case: a niche publisher can sell directly online or through bookstores. Evaluate abandoning bookstores entirely. Hard 4 marks No calculator + 6 Fictional case: a supermarket uses personalised discounts derived from purchase histories. Evaluate this compared with the same discount for every customer. Hard 4 marks No calculator + Self-assessed Not marked yet
Set total 21
This is a self-study tool, not a certified answer key or a predicted AS & A Level grade.
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Original questions, not official past papers. Marking guidance is indicative, not an official answer key. Check your exam-board specification.