Edexcel A Level Business MCQ Test 1.1, 1.2, and 1.3 Test 1

A common drawback of using secondary marketing research is that:

• It takes time to collect and analyse the raw data

• Survey respondents often do not understand the questions

• It can be out-of-date or not directly relevant

• Secondary research is subject to sample bias

Which of the following is a reason why sampling is used for primary marketing research?

• It is more costly to survey just a sample

• Without a sample, the research results are invalid

• It is illegal to survey everyone in a target market

• A good sample can represent the whole population

Which of these methods of promotion mainly involves face-to-face communication with customers?

• Online advertising

• Sponsorship

• Public relations

• Personal selling

A likely benefit of a business achieving successful product differentiation is:

• Lower unit costs

• Increased competition

• Higher customer loyalty

• Lower gross profit margins

The cash flows from a product are most likely to be negative during which phase of the product life cycle?

• Introduction / launch

• Growth

• Maturity

• Decline

Based on the market data contained in the table below, what is the forecast market size in Year 3 if the market size in Year 1 was £6,000,000?

Year Index (Year 1 = 100)

2014 (Actual) 100

2015 (Actual) 106

2016 (Forecast) 117

• £6,600,000

• £7,020,000

• £6,540,000

• £4,980,000

Business X has a market share of 24% in a market where total sales are £8,000,000 per year. If the market grows by 10% next year but Business X sales stay the same, what will its market share be next year?

• 21.8%

• 22.6%

• 18.2%

• 25.6%

A business has a single product which it believes has a price elasticity of demand of -1.6. If the business decides to increase the selling price of the product by 5% the likely effect is:

• Quantity demanded decreases by 1.6%

• Quantity demanded increases by 8%

• Quantity demanded decreases by 5%

• Quantity demanded decreases by 8%

What variables does the Boston Matrix analyse?

• Selling price + market demand

• Share price + market share

• Market profits + cash flow

• Market share + market growth

Which of these products would be most likely to benefit from a price skimming strategy?

• Established product at the mature stage of its life cycle

• New product with unique features

• Product that can be bulk bought

• Product attractive to price-conscious customers