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Business Studies IGCSEPDF 133

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PDF 133

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0450/12 Cambridge IGCSE — Mark Scheme May/June 2025 PUBLISHED Question Answer Marks Guidance A(e) Justification might include: New products can help increase potential sales [k] which increases revenue [an]. However, there is a cost of developing new products [k] which increases cash outflows [an]. The benefits of developing new products are greater because the extra revenue gained could cover the additiond costs [eval] which can increase the chance of growth/long term survival [eval]. uaour11 Lampriage 1GUdt — Mark scneme Mmayrsune 2uz> PUBLISHED Question Answer Marks Guidance 1(e) Explain two pricing methods a new business might use. Which is likely to be the best method to use? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to which is the best pricing method for a new business to use. Points might include: * Cost-plus [k] by adding a percentage onto the costs of production [an] it is easy to calculate [an] Penetration pricing [k] setting a lower price than competitors [an] could attract customers [an] Competitive pricing [k] setting a price similar/just below competitors [an] which may not cover costs [an] Price ling [k] allows the business to recover “eet costs quicker [an] may lead to low sales fan’ Promotional pricing [k] . Other appropriate responses should be credited. Justification might include: Cost-plus pricing [k] is easy to calculate [an]. Price skimming {k] allows the business to recover development costs quickly [an]. Cost-plus pricing is the best method as the business will make profit on each item sold [eval] whereas with price skimming they may not attract customers to their new business [eval]. This is a general question so there are no marks for application. Candidates must name the method to access the knowledge marks. Analysis can be awarded for explaining the method or advantages/disadvantages Some points can be awarded as advantages or disadvantages of different methods but only award the same point once. To access evaluation must discuss two relevant methods. Accept but do not expect: Dynamic Pricing {k] Psychological pricing [k]