Cambridge A Level Chapter 21: Marketing Analysis

Price Elasticity of Demand (PED) is...

• A measure of the responsiveness of price for a product following change in its demand

• A measure of the responsiveness of demand for a product following change in its price

• A measure of the responsiveness of demand for a product following change in its elasticity

• A measure of the responsiveness of demand for a product following change in its market

If the value of PED is between 1 and infinity, the classification is...

• Perfectly inelastic demand

• Perfectly elastic demand

• Inlastic demand

• Elastic demand

The following are factors that determine price elasticity of demand, except...

• Consumer loyalty

• How necessary the product is

• Number of close competitors

• Popularity of the product

A product that experiences an increase in demand when consumer incomes fall is a description of the term...

• Inferior product

• Inferior good

• Superior product

• Superior good

The following are the process of new product development, except...

• Concept development and testing

• Business analysis

• Promotion planning

• Test marketing

Qualitative sales forecasting methods are, except...

• Delphi method

• Jury of experts

• Extrapolation

• Sales force composite

By the moving averages method, there are factors that we can identify that are expected to influence future sales, they are...

• Trend, seasonal fluctuations, finance fluctuations

• Trend, seasonal fluctuations, cyclical fluctuations

• Finance fluctuations, seasonal fluctuations, cyclical fluctuations

• Trend, cyclical fluctuations, finance fluctuations

The launch of the product on a small-scale market to test consumers' reactions to it is the description of a term...

• Test marketing

• Commercialisation

• Product testing

• Product marketing

If the classification of PED is inelastic demand, so the value of PED is...

• Zero

• Unitary

• Between 0 and 1

• Infinity

Following a reduction in consumer incomes of 5%, the demand for a supermarket's own-label water bottle increased by 20%. The demand for an expensive well-known branded water bottle fell by 10%. Check the income elasticity of demand.

• Own-label -4, Branded 2

• Own-label 4, Branded -2

• Own-label -4, Branded -2

• Own-label 4, Branded 2