4.3 The Sales Process & Customer Service Practice Questions

Question 1

9 marks

Text 2 — Cindermoor Stoves Ltd

Cindermoor Stoves Ltd sells wood-burning stoves. It has one showroom in Harrogate where around 30 stoves are on display and two are lit every day. Sales staff are trained to demonstrate how each stove works and to advise customers on the right size of stove for their room. Stoves cost between £900 and £2600 and most customers also pay for installation by the company's own fitters.

In 2022 the business launched a website so that customers anywhere in the UK can order stoves online. The owner, Nadia Forsyth, has spent money on security software and on training two employees to update the site. Delivery is expensive because each stove weighs over 90 kg, and processing returns is costly. Nadia has noticed that online customers often ask questions by e-mail before they buy.

Nadia is now thinking about how the business should sell its stoves in the future.

Table 2: Cindermoor Stoves Ltd revenue, 2022–2024

Year Revenue from showroom sales (£) Revenue from website sales (£)
2022 486 000 54 000
2023 462 000 91 000
2024 440 000 135 000
(a)

State one method of selling, other than face to face selling.

(b)

Explain one way in which using e-commerce can increase the costs of a business.

(c)

Using Table 2, calculate the percentage change in Cindermoor Stoves Ltd's revenue from website sales between 2022 and 2024.

Answer: ............................ %

(d)

Analyse one benefit to Cindermoor Stoves Ltd of continuing to sell its stoves face to face in its showroom.

Question 2

13 marks

Text 2 — Wickenfield Bikes Ltd

Saoirse Kinnane set up Wickenfield Bikes Ltd in 2019. The business sells electric bikes from a showroom in a small market town and through its own website. All showroom staff complete a four-week training course on how each model works before they are allowed to serve customers.

Every bike comes with a free service after the first 100 miles, a three-year battery warranty and a repair service. The website has a live chat facility and a 30-day returns policy. Customers who buy a bike receive a monthly email with maintenance tips and an invitation to a free group ride.

Bikes bought online are delivered within five days. They arrive partly assembled and some customers have complained about this. Saoirse believes that the service Wickenfield Bikes Ltd offers is the main reason customers choose it instead of larger rivals.

Fig. 1 — Wickenfield Bikes Ltd sales and customer complaints

Year Number of bikes sold Number of customer complaints
2023 1 450 96
2024 1 680 72
2025 1 860 60
(a)

Identify two examples of after-sales service.

(b)

Calculate the percentage change in the number of customer complaints received by Wickenfield Bikes Ltd between 2023 and 2025.

You are advised to show your working.

Answer: ............................ %

(c)

Analyse one way in which customer engagement contributes to good customer service at Wickenfield Bikes Ltd.

(d)

Analyse one advantage and one disadvantage to Wickenfield Bikes Ltd of selling electric bikes through its website as well as through its showroom.

Question 3

6 marks
(a)

Which is a method a business could use to collect customer feedback?

  • A An online review form
  • B Batch production
  • C Price skimming
  • D Quality control
(b)

Which is an example of after-sales service?

  • A A discount for customers who buy two items
  • B A free repair service during the first year after purchase
  • C A sales assistant explaining a product's features in the shop
  • D Free samples handed out in a supermarket
(c)

Identify two consequences for a business of providing poor customer service.

(d)

Explain one benefit to a business of training its employees to have good product knowledge.

Question 4

5 marks
(a)

Which is an example of telesales?

  • A A customer buying a product in a shop after speaking to a sales assistant
  • B A customer ordering a product through a business's website
  • C A customer receiving a free sample in a supermarket
  • D A sales employee telephoning customers to sell them home insurance
(b)

Which is an example of e-commerce?

  • A Advertising the business on a billboard
  • B Customers ordering products through the business's mobile phone app
  • C Paying employees' wages by bank transfer
  • D Using a spreadsheet to record the business's costs
(c)

A clothing shop starts selling online as well as in its shop. Which is the most likely result for the business?

  • A It can reach customers outside its local area at any time of day
  • B It no longer needs to pay for delivering products
  • C It no longer faces any competition
  • D Its customers can try clothes on before buying them
(d)

Table 1 shows the sales of a small business in one month.

Table 1

Type of sale Value
In-store sales £27 000
Online sales £18 000

Calculate the business's online sales as a percentage of its total sales.

Answer: ______ %