Term 1 - Checkpoint 2 -G10 - Review

Which one of the following is an example of demographic segmentation?

• Small cars in big cities

• Shoes for children aged 2-5 years

• Heaters for cold weather

• Umbrellas for rainy countries

People use apps on their smartphones to buy tickets for the cinema. They no longer buy printed tickets on paper.

What type of market change is this an example of?

• Taste and fashion change

• Technologies change

• Salaries change

• Populations change

Muneerah wants to sell fresh fruit juice in Sharjah. She did market research to find out about other businesses that also sell fresh fruit juice in Sharjah.

Which benefit of market research is this an example of?

• Building customer profiles

• Identify market gaps

• Finding out about competitors

• Predicting market changes

Which primary research method is used when a business brings together a group of consumers to discuss elements of a product?

• Focus group

• Observation

• Questionnaire

• Interview

What is market research?

• The process of setting an appropriate price that meets the needs of customers.

• The process of collecting information about customers, competition and the market.

• The process of creating distribution channels so the product can reach customers.

• The process of communicating to customers how their needs will be met.

A business can calculate Price Elasticity of Demand to help them make pricing decisions.

What happens when demand is elastic?

• An increase in price will mean a decrease in revenue

• An increase in price will mean an increase in revenue.

• A decrease in price will mean a decrease in revenue

• A change in price will make no difference to revenue.

Lulu wants to sell a sparkling cola drink. She checked the prices of Pepsi and Coca-Cola. She decides to make her prices lower than theirs.

What type of pricing strategy is Lulu using?

• Cost-plus pricing

• Competitive pricing

• Premium pricing

• Price-skimming

What type pricing strategy involves a business setting a lower price for a short period of time? E.g. buy one, get one free

• Premium pricing

• Promotional pricing

• Cost-plus pricing

• Competitive pricing

In 2016, the UAE government made price-fixing illegal. What type of factor influencing price is this an example of?

• Cost of the product

• Price of similar products

• Demand

• Laws

What are consumer goods?

• Goods that are sold to individuals to satisfy their needs and wants

• Goods that are transported fast to avoid expiry

• Goods that are bought and used by a business to produce other goods or services.

• Goods that are made to last for more than three years.