16 Do you think that the right location is more important than the prices she charges to the success.......[6]

[BASEL Moderator]

Mabel wants to set up her own hairdressing business. She will need to build good customer relationships. She has done some secondary market research to find out possible demand and what methods of promotion to use. She has decided to buy her inventory (stock) from a wholesaler. Mabel is now looking for the right location for her business. She thinks that location will be more important than price charged to the success of her business.

16 Do you think that the right location is more important than the prices she charges to the success of Mabel’s
business? Justify your answer. [6]

Possible KN Points:
• Near target market
• High price could discourage customer
• Low prices could suggest low quality
• Right location could affect the level of
competition
• Location / price could influence image
• Cost of rent might be too high