Rachel's business produces and sells chocolate bars. Quality is important. Rachel is a sole trader who received government support when she started up her business. The business operates in a competitive market. Rachel is considering ways to increase sales of her best-selling product. She is also planning to introduce a new chocolate bar. Rachel knows deciding which pricing method to use for a new product is important. Explain two reasons why quality is important to Rachel's business. Reason 1: Explanation: Reason 2: Explanation: .......................................................................................................................................

Award 1 mark for each relevant reason [max 2].
Award 1 mark for each relevant reference to this business [max 2].
Award 1 mark for each relevant explanation [max 2].
Points might include:
- Can charge higher prices \([\mathrm{k}]\) which could influence pricing method [app] and increase profit margin [an]
- Attract new customers \([\mathrm{k}]\) increasing market share \([\mathrm{an}]\) in the competitive market [app]
- Establish a brand image [k] which can increase sales [an] of chocolate bars [app]
- Differentiate product from competitors [k] which could increase market share [an]
- Reduce complaints [k] for the sole trader [app] so reduce returns / cash outflows / less waste [an]
- Maintain customer loyalty [k] which can lead to (repeat) sales / increase revenue / buy more often [an]
- Act as a form of word-of-mouth promotion [k]

Other appropriate responses should be credited.