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Marketing mix

From Paper 1: Business 1
51 mark
A product has an income elasticity of demand of +2.5. It is best described as a:

Question 1 · Fernhill Coffee Roasters

Fernhill Coffee Roasters is a private limited company that sells coffee beans to independent cafés and, since 2022, direct to consumers through a subscription service. The UK coffee market is growing, but competition from supermarket own-brands has increased. Extract A: Fernhill sales data
202320242025
Café (wholesale) revenue (£000)2,4002,3502,280
Subscription revenue (£000)3106201,040
Number of subscribers4,1008,00013,200
UK specialty coffee market (£m)410445480
Extract B: Pricing decision Fernhill's marketing director wants to raise the monthly subscription price from £8.00 to £9.00. A small trial in one region suggested that the number of subscribers would fall by about 5%. The finance director worries that 'one bad review on social media could cost us thousands of subscribers', and argues that Fernhill should instead spend more on promotion to win market share.
From Paper 2: Business 2
1.29 marks
Analyse whether Fernhill should raise its subscription price from £8.00 to £9.00. Use the data in Extract B in your answer.
From Paper 2: Business 2
1.320 marks
To what extent should Fernhill focus its future growth on its subscription business rather than on supplying cafés?
Score 0 / 30 · 0 of 3 marked

This paper is written by Plasmo in the style of the AQA A-Level Business exam. It is not a past paper and is not produced or endorsed by the exam board.

Marketing mix Exam Questions: AQA A-Level Business | Plasmo