Business Studies Multiple Choice Question – 9 July 2021

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Tesco sells a two-litre bottle of Coca Cola for £3. It also sells its own brand, called Everyday Value Cola, at 20p for a two-litre bottle. 

Which element of the design mix of Everyday Value Cola would be the most important to Tesco?

Select ONE answer:

  1. Economic manufacture
  2. Aesthetics
  3. Function
  4. High quality

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – Definition of design mix e.g. the combination of function, aesthetics and economic manufacture in the overall design.  Economic manufacture is concerned with how cheaply the cola can be made.  Tesco need to make the cola as cheap as possible so that it can be sold for 20p needed to ensure low costs to enable a profit to be made.
  2. Not correct – is wrong because consumers will not be concerned about how the cola looks as they are purchasing it due to the low price
  3. Not correct – is wrong because though value cola has to function as a drink and be suitable for consumers to buy, the taste is not the most important aspect when the price is just 20p.
  4. Not correct – is wrong because quality would not be the most important consideration as the cola is only 20p and it is a value brand/ quality is not an element of the design mix

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