Business Studies · Oct / Nov 2017 · Paper 11 · Question 1

Ella has just left college and wants to start up her own business. She has designed a new bicycle light with a safety feature not found in any rival products. Ella knows obtaining finance will be difficult. She plans to have the lights produced in another country. Each light will cost $8 to produce. Ella cannot decide whether to use price skimming. She said: ‘I have received orders for 300 lights and I have not even started promoting them’. Ella wants to be a successful entrepreneur. Table 1: Information on possible promotion options for Ella’s bicycle light. Option 1: Set up her own website Option 2: Advertise in specialist magazine Cost information $500 for web page to show product $300 for full page colour specifications and contact details advertisement Other information For extra $750 website would allow One of the most popular cycling customers to order online magazines in the country.

Read automatically from the paper; the printed page above is exact.