ValueMart operates a self-service supermarket and sells both manufacturer brands and its own-label products. SupplierValueMartShopper© EAGLE BEACON GLOBAL (...
Question 1 Report
ValueMart operates a self-service supermarket and sells both manufacturer brands and its own-label products.
(a) Describe what is meant by self-service retailing. [2]
(b) Describe what is meant by own-label goods. [2]
(c) Explain why supermarkets use shelves and aisle signs. [2]
(d) Explain why ValueMart may sell manufacturer brands as well as own-label goods. [2]
(e) Outline three methods a retailer can use to promote goods in store. [3]
(f) Explain three benefits of own-label goods to a retailer. [3]
(g) Account for why stock control is important in a supermarket. [3]
(h) Explain three reasons why customers may use a loyalty card. [3]
Answer Details
(a) Self-service retailing means customers select goods themselves from displays and pay at a checkout or self-checkout. [2]
(b) Own-label goods are sold under the retailer's own brand name, even if another manufacturer produces them for that retailer. [2]
(c) Shelves and aisle signs help customers find products and reduce time spent searching. [2]
(d) ValueMart sells manufacturer brands because some customers specifically want familiar brands, and a wider brand range gives customers more choice. [2]
(e) In-store promotion methods include price reductions, end-of-aisle displays, product demonstrations, and point-of-sale posters. Any three gain credit. [3]
(f) Own-label goods can create a distinct store brand, give the retailer greater control over price and packaging, and encourage repeat visits because customers must return to ValueMart to buy that label. [3]
(g) Stock control shows when goods need reordering, reduces empty shelves and lost sales, and limits excess goods that may spoil or occupy space. [3]
(h) Customers may use a loyalty card to receive discounts or points, earn rewards from points, and access member-only offers. [3]
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