08 Identify and explain two reasons why product quality might be important to Manisha’s business. [6]

[BASEL Moderator]

Five years ago Manisha started making cakes from her home. The cakes are for celebrations, such as weddings and birthdays. Now she has a small shop and 3 employees. Product quality is important to her business. Manisha said: ‘I have benefited from the economic boom but I did not expect demand to increase by 500% each year. Somehow I have managed to cope with higher interest rates and all the challenges of being a sole trader. The business is profitable at last but I have to work every day.’A friend has offered to become Manisha’s business partner.

08 Identify and explain two reasons why product quality might be important to Manisha’s business. [6]

Possible KN Points:
• Helps maintain customer loyalty
• Increase or ensure sales
• Poor quality damages reputation OR brand image
• No need to replace faulty products development must be
• Charge/maintain high prices
• Way to add value
• To meet legal requirements OR poor quality could damage people’s health
• To reduce complaints