CAIE IGCSE Business Studies 4.5 quality of goods and services
Use this quality page to explain why quality matters, compare methods and justify how a business should achieve good quality.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Explain quality assurance benefits such as fewer mistakes, lower waste or fewer complaints.
- Compare quality control and quality assurance in production or service contexts.
- Justify the most important way to improve quality using the case evidence.
Covered syllabus points
4.5. Quality of goods and services question 1
[Maximum number: 4]
NSL is a business based in country X．It manufactures food products including bread and breakfast cereals．NSL uses lean production in its factory．Maintaining quality is important．NSL imports 15% of its raw materials．Changes in country X＇s exchange rate can affect businesses which import raw materials．NSL＇s Marketing Manager knows the business should respond to changes in consumer spending patterns．She is aware that market research can be used to help make business decisions．
（c）Outline two reasons why maintaining quality is important for NSL．
Reason 1：
Reason 2：
Outline two reasons why maintaining quality is important for NSL.
Award 1 mark for each relevant reason (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Points might include:
- Develop strong brand image / generate good publicity / better reputation [k] for its food [app]
- Keep customer loyalty/remain competitive [k] which may help as spending patterns change [app]
- Can charge high/premium prices [k] which may help cover any effect of exchange rates [app]
- Lower costs/less wastage [k] at the factory [app]
- Fewer customer complaints/returns [k]
- Attract new customers/increase sales [k]
- To meet legal requirements [k] such as food standards [app]
- It adds value [k]
Other appropriate responses should be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Food or related words such as ingredients, breakfast cereal, bread
- Manufacture
- (Consumer) spending patterns change
- Factory
- Exchange rates
- ( 15% of raw) materials are imported
- Lean production
Other appropriate examples can be credited.
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