7. (a) Give one stage of the sales process - Edexcel - GCSE Business - Question 7 - 2019 - Paper 1

The UK supermarket that has a larger market share than Sainsbury’s is Tesco, with a market share of 28.5%.

One advantage of improving customer service for Sainsbury’s is increased customer loyalty. When customers receive exceptional service, they are more likely to return, recommend the store to others, and choose Sainsbury’s over competitors.

Sainsbury’s should choose the option to increase wages. This would not only motivate employees by directly impacting their financial well-being, but it can also lead to higher job satisfaction and reduced turnover rates. Higher wages can attract better talent and increase productivity, which could positively impact the overall customer experience.

The likely impact on Sainsbury’s of replacing Fairtrade with its own Fairly Traded scheme could be both positive and negative. On the positive side, a proprietary scheme could potentially lower costs for Sainsbury’s by eliminating Fairtrade licensing fees. This can improve profit margins on products sold under this scheme. Moreover, Sainsbury’s can tailor the program to align with their branding and values.

However, there are notable risks. Customers may perceive the change negatively, feeling that a proprietary scheme lacks the credibility and ethical assurance associated with Fairtrade. Consequently, this could lead to a loss of consumer trust and sales if customers choose to shop at competitors that maintain traditional Fairtrade sourcing. It is crucial for Sainsbury's to ensure that any new scheme is transparent and maintains the trust of its customer base to mitigate these risks.