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Which is a simple example of data-driven planning in handicrafts?
Correct answer: A
Sales data from previous months shows which handicraft items sold and in what quantities. Using those records to decide next month's production is data-driven planning because the decision is based on evidence. Option B relies on guesswork, while option C hides useful customer feedback. Exam tip: Identify data-driven planning when decisions use recorded sales, demand, cost, or customer-feedback information.
Why can export packaging be stricter than normal packaging in handicrafts?
Correct answer: A
Exported handicrafts may travel long distances and be handled repeatedly during loading, unloading, and storage. Stronger packaging and compliance with international standards may therefore be needed to protect them from breakage, moisture, pressure, and shock. Option B is incorrect because exported goods do require safe packaging. Exam tip: remember three reasons for export packaging—protection, transport, and standards.
If an artisan group tells product stories but quality is inconsistent, what effect will it have on the brand?
Correct answer: A
A product story can create an emotional connection with artisans, tradition and the making process, but customers must also receive the expected quality every time. Inconsistent quality leads to uneven customer experiences and can reduce trust in the brand. Storytelling alone cannot create lasting brand loyalty. Exam tip: When writing about brand building, mention both storytelling and consistent quality.
When does information asymmetry occur between artisan and trader in handicrafts?
Correct answer: A
Information asymmetry occurs when two people in a transaction do not possess the same important information. In handicrafts, a trader may know the current market price, customer demand, or likely resale value, while the artisan may know only the cost and effort of making the item. The trader can then use the information gap to negotiate a lower buying price. This can reduce the artisan’s income and bargaining power, especially when the artisan has few alternative buyers.
Option A is correct because it clearly describes unequal knowledge of market demand and price. If both parties have the same information, there is no such asymmetry. Direct selling can reduce the problem because the artisan communicates with the customer, although it does not automatically remove every information gap. A transparently written price also improves information equality. The key test is unequal access to relevant information during the transaction.
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