Revision 1 T1 Grade 10

Businesses need to charge prices they know their customers are willing and able to pay. (Knowledge)

 

Which factor influencing price is this?

• Costs

• Price of similar products

• Laws

• Demand

Which pricing strategy is used by a business that sells luxury items and wants the product to be exclusive?

• Price-skimming

• Premium pricing

• Competitive pricing

• Cost-plus pricing

Ahmed sells phone chargers.

Total cost: AED14,000

Output: 1,000 units

Mark-up: 50%

 

Calculate the selling price for each phone charger.

• AED 28

• AED 21

• AED 14

• AED 7

Amna sells dresses in Ajman.

% change in quantity demanded: Increased by 40%

% change in price: Decreased by 20%

Calculate the Price Elasticity of Demand (PED) for Amna and choose the correct answer:

• The PED is 0.5, so the product is elastic.

• The PED is 0.5, so the product is inelastic.

• The PED is 2, so the product is elastic.

• The PED is 2, so the product is inelastic.

Which element of the marketing mix describes where a product is sold?

•   Product

•   Price

• Place

• Promotion

Saif has a strawberry farm. He needs to distribute the strawberries to the consumer quickly, while they are still fresh.

What type of factor that influences place decisions is this an example of?

• Industrial products

• Perishable products

• Technical products

• Frequency of purchase

Which part of the distribution channel consists of the business making the product?

• Producer

• Wholesaler

• Retailer

• Consumer

Sara produces honey and wants to sell it internationally on www.uaehoney.com. She will offer discount codes and gift boxes to increase sales. Sara will be responsible for the storage and delivery of the honey.

Recommend an appropriate type of distribution.

• Online marketplace

• eCommerce website

• Department store

•   Supermarket

What is the difference between advertising and sales promotion?

• Advertising is mass communication, whereas sales promotion is a range of techniques to sell more products

•    Advertising is a range of techniques to sell more products, whereas sales promotion is mass communication.

Amna has a coffee shop in Fujairah. She wants to advertise to people living in Fujairah, but she has a limited budget. She plans to tell her customers about special offers and deals on a weekly basis. However, she cannot afford to pay an advertising agency to make professional advertisements.

Recommend a type of advertising for Amna’s business.

• Cinema

• Social Media

• Billboard

• Television