Baskaran
0450-22-O-N-12-1c
Dhanushree
TOPIC QUESTION - PAPER 1
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Dhanushree
December 12, 2025 at 5:23:08 AM
May/June 2022
Version 3
1.0 Understanding Business Activity
1.1 Business Activity
YOUR ANSWER
Way 1:
EQR could improve its product quality, for example by using higher-quality ethical coffee beans. This makes customers willing to pay a higher price because they see the drink as more premium, increasing the difference between selling price and cost of materials.
Way 2:
EQR could offer better service, such as faster delivery or friendlier staff. This improves customer experience, encouraging them to pay more or buy more often, which raises added value without increasing the cost of ingredients much.
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