Item A: Form & Fold designs compact desks for people working in small flats. Customers rate appearance at 8.7 out of 10, but 19% of desks are returned because they are difficult to assemble. A stronger hinge would add £14 to the current £86 manufacturing cost. The selling price is £179.
State one element of the design mix other than aesthetics.
Calculate the manufacturing cost of a desk if Form & Fold adds the stronger hinge.
Form & Fold is considering two product decisions:
Option 1: Keep the current design and continue emphasising its appearance
Option 2: Add the stronger hinge to improve function
Justify which one of these two product decisions Form & Fold should choose.
36 exam-style questions on Edexcel GCSE Business 2.2 Making marketing decisions, covering 2.2.1a The design mix, 2.2.1b The product life cycle, 2.2.1c Product differentiation, 2.2.2a Pricing strategies, 2.2.2b Influences on pricing strategies, 2.2.3a Promotion strategies for market segments, 2.2.3b The use of technology in promotion, 2.2.4 Place, 2.2.5a How marketing mix elements interact, and 2.2.5b The integrated marketing mix and competitive advantage. Each one has a worked solution and a mark scheme showing where the marks go.