Business Studies · May / June 2016 · Paper 22 · Question 2

Identify and explain two possible benefits to FF from changes in IT. See Appendix 1. [8]

Knowledge [2 × 1] award one mark for each relevant benefit Analysis [2 × 1] award one mark for a relevant explanation for each benefit Application [2 × 2] award two application marks for each benefit Award one mark for each relevant benefit (maximum of two), such as:

profitable and grown over last 5 years;

provides excellent customer service;

photographs;

photographers;

photography;

getting married;

weddings, birthdays, family photographs;

business customers as well as private individuals;

employed 2 additional photographers;

8 photographers;

2 part-time office workers deal with administration and accounts;

taking over another photography business;

growing externally rather than internally;

photographs received on the internet;

use an app to download photographs;

pay existing photographers 50% above minimum wage;

information in Appendix 3. There may be other examples in context which have not been included here.

To expand, FF needs to attract new customers. Consider the following three methods of market research. Which method do you think will be most effective in identifying the needs of potential customers? Justify your answer. [12]

Relevant points might include: Secondary research on weddings Low cost Quite a quick way to gain information Information on the market size i.e. number of weddings taking place Not qualitative information Past trends no guarantee of future trends Information out of date Information not match exact requirements of research required Questionnaires given out at wedding dress shops Gathers the opinions of target customers Quantitative and qualitative data Information gathered is tailored to exact requirements of FF Information may not be accurate if questions are poorly phrased Expensive, as time- consuming Interviews with photographers from other parts of the country Detailed qualitative information gathered Customer needs identified Can be expensive to carry out as time-consuming Must be careful of interviewer bias Trends in other parts of the country is no guarantee of sales in their region Knowledge/Analysis/Evaluation – award up to ten marks using the levels-based mark scheme below. Knowledge/Analysis/Evaluation Level 3 At least 2 × Level 2+ 9–10 marks for well justified conclusion as to which method of research will be the most effective and why it will be more effective than the alternatives. 7–8 marks for some limited judgement shown in the conclusion as to which method of research will be the most effective. Level 2 4–6 marks Detailed discussion of the advantages and/or disadvantages of each method of market research to identify customer needs. (Not how the information can be used.) Level 1 1–3 marks Outline of the advantages and/or disadvantages of each method of market research to identify customer needs. (Not how the information can be used.) Level 1 One mark for each L1 statement (max of 3 marks) e.g. Detailed qualitative information gathered from interviews. Level 2 One × L2 explanation can gain four marks and a further mark can be awarded for each additional L2 explanation (max six marks). E.g. Detailed qualitative information gathered from interviews as follow up questions can be asked by the interviewer. However, if the interviewer is not very experienced they can lead the interviewee in their answers to questions meaning the results are biased. (Four marks for L2 answer.) Level 3 For L3 to be awarded there needs to be at least two L2 marks awarded and then a conclusion of which method of market research will be the most effective in identifying customer needs. Award up to two additional marks for relevant application. Possible application marks: profitable and grown over last 5 years;

provides excellent customer service;

birthdays, brides and grooms, private individuals;

photographs;

photography;

getting married;

taking over another photography business;

growing externally rather than internally;

wedding photographs, photographs received on the internet;

use an app to download photographs;

information in Appendix 3. There may be other examples in context which have not been included here.