Edexcel A level Business

In February 2012, football star David Beckham launched a range of men’s underwear called Bodywear. This range is only being sold in H & M high street stores.

This business opportunity for H & M is best described as a form of

• test marketing

• trade-off

• market mapping

• market differentiation

The Old Amalfi Italian restaurant in Russell Square, London, prepares more expensive dishes made with fresh pasta, herbs, fruit and vegetables.

The use of fresh ingredients at the Old Amalfi might be regarded as an example of

• contribution

• qualitative research

• trade credit

• adding value

Graphotism is a quarterly magazine aimed at street artists in the UK. It is not widely available to buy from newsagents.

Graphotism is an example of a product which has

• a market niche

• potential sample bias

• limited liability

• a high sales volume

In the spring of 2012, Burger King (BK) transformed its menus and the design of its fast-food outlets – the biggest changes since the chain opened its doors in 1954.

Sources of primary research data for BK might have included all of the following, except

• market intelligence reports

• product trials

• loyalty card application forms

• observations

In 2012, the Royal Mail announced a 30% price increase for First Class stamps to 60p.

If the price elasticity of demand is -2, demand will

• rise by 60%

• fall by 60%

• rise by 15%

• fall by 15%

The Grand Hotel in Scarborough, England, employs a flexible labour force.

A flexible labour force is least likely to be achieved by which one of the following.

• Part-time contracts

• Short-term contracts

• Calling staff in at short notice

• Sharing profits with staff

Before setting up in business as a personal trainer in 2010, Marvin Burton undertook qualitative and quantitative market research. Which one of the following questions is most likely to lead to qualitative results?

• How often do you visit a gym?

• What price are you currently paying for gym membership?

• What motivated you to join a gym?

• How long have you been a member of a gym?

If the price of Apple iPhones increases, the company would be willing to supply more because

• producing Apple iPhones had become more profitable

• costs of producing iPhones had recently increased

• VAT on mobile phones had increased

• prices of competitors’ mobile phones had fallen

During 2009, it was reported that a number of Maclaren baby buggies had a design fault, which made them dangerous to use.

Which one of the following would be an immediate consequence of the above?

• An increase in price

• An increase in supply

• A fall in demand

• A fall in profits

In a consumer survey conducted by Network Rail in 2010, analysts argued that results were not valid because sampling methods used were biased.

Which one of the following might lead to a biased set of survey results for Network Rail?

• A range of respondents was chosen representing all rail passengers

• Questions were asked at various times on different days of the week

• First and standard class passengers were included in the sample

• Only passengers with discount cards were used in the sample