AQA · GCSE · Business

    Course version: 8132 · Version from Sept 2017

    The concept of quality: additional sales

    In the context of quality, additional sales are the extra revenue a business gains when good quality encourages customers to buy more, return, or recommend the business.

    Checked against the AQA 8132 specification (opens in a new tab) on .

    • Point 7 of 13
    • 3 key terms

    Study notes

    From the checked teaching notes for this specification point.

    The idea

    In the context of quality, additional sales are the extra revenue a business gains when good quality encourages customers to buy more, return, or recommend the business. High quality can lead to repeat purchases, positive word-of-mouth and a stronger brand, all of which increase sales volume and value. For example, a restaurant with consistent food quality may attract more customers and larger orders. However, quality improvements cost money, so the additional sales must be enough to cover those costs and raise profit. Businesses may measure additional sales through repeat custom, average spend per customer, or referral rates. Poor quality can have the opposite effect, reducing sales and damaging reputation.

    What earns the marks

    • Defines additional sales as extra revenue generated because of good quality, such as from repeat purchases or recommendations.
    • Explains how good quality can lead to repeat custom and positive word-of-mouth, increasing sales.
    • Links additional sales to profitability, noting that the extra revenue must exceed the cost of achieving quality.
    • Uses a business example to show how quality improvements can generate additional sales.
    • Recognises that poor quality can reduce sales and damage reputation.

    Common mistakes and how to put them right

    • Thinking additional sales are guaranteed by quality improvements.

      Put it right: Additional sales depend on customer response and must cover quality costs.

    • Confusing additional sales with total sales.

      Put it right: Additional sales are the extra sales gained, not the overall revenue.

    • Ignoring the cost of quality.

      Put it right: Quality improvements require investment, so additional sales must be sufficient to improve profit.

    Exam tips

    • Use the phrase 'additional sales' accurately in answers about quality benefits.
    • Support your explanation with a specific example, such as a hotel gaining repeat bookings after improving service.
    • When evaluating, consider whether the additional sales justify the cost of quality improvements.

    Try the lesson

    The start of the The concept of quality: additional sales lesson, made from checked teaching notes for this specification point.

    Have a go first

    A clothing shop improves the quality of its products. What does 'additional sales' mean in this context?

    Listen

    In the context of quality, additional sales are the extra revenue a business gains when good quality encourages customers to buy more, return, or recommend the business. High quality can lead to repeat purchases, positive word-of-mouth and a stronger brand, all of which increase sales volume and value. For example, a restaurant with consistent food quality may attract more customers and larger orders. However, quality improvements cost money, so the additional sales must be enough to cover those costs and raise profit. Businesses may measure additional sales through repeat custom, average spend per customer, or referral rates. Poor quality can have the opposite effect, reducing sales and damaging reputation. A strong answer earns marks for these points. Defines additional sales as extra revenue generated because of good quality, such as from repeat purchases or recommendations. Explains how good quality can lead to repeat custom and positive word-of-mouth, increasing sales. Links additional sales to profitability, noting that the extra revenue must exceed the cost of achieving quality. Uses a business example to show how quality improvements can generate additional sales. A common slip: Thinking additional sales are guaranteed by quality improvements. Instead, additional sales depend on customer response and must cover quality costs. Exam tip: Use the phrase 'additional sales' accurately in answers about quality benefits.

    See it

    A top-down flowchart. At the top, a node labelled Good quality branches into three nodes: Repeat purchases, Positive word-of-mouth and Stronger brand. All three of these lead into a single node labelled Additional sales. Additional sales then leads to a node labelled Must cover the cost of quality, which leads to a final node labelled Raise profit. Separately, a node labelled Poor quality leads to a node labelled Reduced sales and damaged reputation.
    It shows how good quality leads to repeat purchases, positive word-of-mouth and a stronger brand, which generate additional sales that must cover quality costs to raise profit, while poor quality reduces sales and damages reputation.

    Key words

    Say what each word means before you turn the card.

    Additional sales

    Try answering aloud or in your head before turning the card.

    Profitability

    Try answering aloud or in your head before turning the card.

    Sales revenue

    Try answering aloud or in your head before turning the card.

    See every definition
    Additional sales
    The extra revenue a business gains when good quality encourages customers to buy more, return, or recommend the business.
    Profitability
    Raised when the additional sales from quality improvements are enough to cover those costs.
    Sales revenue
    Increased when good quality leads to repeat purchases, positive word-of-mouth and a stronger brand.

    Label the diagram

    Some boxes have lost their names. Pick the right name for each number.

    The diagram again, with 3 boxes numbered instead of named. A top-down flowchart. At the top, a node labelled Good quality branches into three nodes: Repeat purchases, Positive word-of-mouth and Stronger brand. All three of these lead into a single node labelled Additional sales. Additional sales then leads to a node labelled Must cover the cost of quality, which leads to a final node labelled Raise profit. Separately, a node labelled Poor quality leads to a node labelled Reduced sales and damaged reputation.

    • 1Box 1

    • 2Box 2

    • 3Box 3

    0 of 3 labelled

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