Chapter 4: Competition

1 What is meant by the term ‘brand image’?

Brand image is reputation of a certain brand, it is improved through advertising your brand which gives it a better image.

2 What brand image might businesses want for the following products? (a) Helmets for building sites, (b) a club in town centre, (c) a local taxi service.

A local taxi service because a taxi would go around locally spreading your brand.

3 What is meant by the term ‘after-sales service’?

After sales service is information about the product a customer has bought.

4 State two types of after-sales service that could be given by a garage.

Two types of after sale service a garage would give is for example if you got new tires the consumer might say to be careful etc or if you got new seats installed the consumer would teach you how to adjust the seat.

5 Explain why a business might want to develop a brand.

A business might want to develop a brand so the business would get popular and be known around places.

6 Using an example explain the term ‘product range’ of a business.

Product range is the same product but different brands for example crisps is from a variety of companies but are put together in a shop.

7 List two benefits to customers from competition.

- The products would be improved to show off to customers

- More shops would be made for local customers e.g. Tesco metro.

8 State three strengths and three weaknesses to a business of opening a small independent sports shop.


- Local sporty kids would come

- There might be sport facilities in the area

- Its small, easy to go around.


- Not very sporty people about

- Less sport facilities

- Small amount of products

9 Explain why someone with experience of the coffee trade might set up a specialist store.

Because if you have experience you would have more knowledge

10 State two reasons why a business might choose to set up a shop near to a rival.

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