Table 1 shows weekly sales information collected by a small retailer selling goods for cyclists. The business is deciding which product should receive more ...
Question 1 Report
Table 1 shows weekly sales information collected by a small retailer selling goods for cyclists. The business is deciding which product should receive more advertising in the following month.
(a) Which product produced the greatest sales revenue during the week? Show your working. [2]
(b) Calculate the total number of items sold by the retailer. [2]
(c) State two reasons why the retailer should not use sales revenue alone when deciding which goods to advertise. [2]
(d) Give two pieces of further research the company could collect before changing its advertising. [2]
(e) Identify one likely customer group for the helmet lights. [1]
(f) State one way the retailer could use its website to encourage repeat sales. [1]
Answer Details
(a) The product with greatest sales revenue is water bottles [1]:
\[75\times£8=£600\]
So their sales revenue is \(£600\) [2].
(b)
\[48+75+31=154\]
Total items sold: 154 [2].
(c) Revenue alone is not enough because profit margins may differ [1] and stock availability may differ [1]. Sales can also be seasonal, customers may buy products together, and demand may change.
(d) Useful further research includes customer questionnaire results [1] and competitor prices or advertising [1]. Customer age/cycling habits and reasons for not buying are also valid.
(e) A likely customer group is commuters or cyclists riding after dark [1].
(f) The website could send promotional emails [1] to encourage repeat purchases. Loyalty discounts, related-product suggestions and saved order details are alternatives.
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