A start-up sells premium reusable bottles. It cuts price sharply but keeps luxury packaging and promotes exclusivity. What is the main marketing-mix risk?
The product will automatically become cheaper to manufacture
Premium packaging prevents any effect on customer perceptions
The low price may conflict with the premium positioning communicated by product and promotion
Price cannot affect competitiveness or customer perceptions when the physical product remains unchanged
37 exam-style questions on Edexcel GCSE Business 1.4 Making the business effective, covering 1.4.1a Limited liability, 1.4.1b Types of business ownership for start-ups, 1.4.1c Franchising, 1.4.2a Factors influencing business location, 1.4.2b Impact of the internet on location, 1.4.3a What the marketing mix is, 1.4.3b Balancing the marketing mix, 1.4.3c Impact of technology on the marketing mix, 1.4.4a The role and importance of a business plan, and 1.4.4b The purpose of planning business activity. Each one has a worked solution and a mark scheme showing where the marks go.