Edexcel IGCSE Business Studies 4.3.2 Price
Practise choosing pricing strategies and calculating promotional discounts from case data, with working shown clearly.
- Syllabus
- First assessment 2019
- Course
- Business Studies 4BS1
Exam points
- calculate discounted prices or percentage decreases using the figures in the question
- match skimming, penetration, competition, cost plus or promotional pricing to a case
- explain how a pricing strategy could affect sales, market share or competitors
4.3.2 Price question 1
[Maximum number: 1]
Ocean Vibes is a boat tour business located in two tourists resorts in Portugal. During the tours, it collects wildlife research. The idea came from two young scientists, Alfredo and Pedro, who share a passion for the environment, boats and science. Ocean Vibes employs boat tour guides and a sales team in each of the two resorts.
The main goal of Ocean Vibes is to connect tourism with science. It offers dolphin and bird-watching tours to tourists and uses the boat tours to collect research data on the wildlife. Its tour guides are knowledgeable, passionate and respectful of the environment.
Customers can book the boat tours online or in the tourist resorts. They are encouraged to leave reviews on Ocean Vibes' website.
Every month Ocean Vibes provides a boat tour for students and researchers who wish to study the wildlife.
There are many other businesses offering boat tours in Portugal which makes competing in the industry a challenge.
State one benefit to Ocean Vibes of using competition pricing.
A02-1 mark
Award 1 mark for a benefit to Ocean Vibes of using competition pricing.
- Ocean Vibes may attract sales from other boat tour businesses (1)
NB Do not accept a benefit that is not in the context of Ocean Vibes
Accept any other appropriate response.
(1)
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