Theme 1 Edexcel Business

What is an advantage of mass markets?

• Can cater to specific customer needs.

• Opportunities for innovation and growth.

• Can achieve economies of scale.

• Helps in better decision-making.

What is a disadvantage of niche markets?

• Face high competition.

• Have limited growth potential.

• Requires continuous adaptation and investment.

• Can lead to price wars and reduced profit margins.

What defines dynamic markets?

• Markets that target a large audience with similar needs.

• Markets that focus on a specific segment with unique needs.

• Markets that are constantly evolving due to technological advancements, consumer preferences, and competitive pressures.

• The influence of competitors on market dynamics, pricing, and consumer choices.

What is an advantage of competition?

• Can achieve economies of scale.

• Drives innovation and improves quality.

• Can cater to specific customer needs.

• Helps in better decision-making.

What is the definition of risk in the context of risk and uncertainty?

• The influence of competitors on market dynamics.

• Markets that are constantly evolving.

• Risk involves known probabilities of outcomes.

• Can lead to price wars and reduced profit margins.

What is a disadvantage of risk and uncertainty in business?

• It can lead to high-quality products.

• It can impact business stability and planning.

• It can increase customer satisfaction.

• It can reduce costs.

What is the focus of product orientation?

• Meeting customer needs and preferences.

• Collecting new data directly from sources.

• Product quality and innovation.

• Analyzing existing data collected by others.

What is an advantage of market orientation?

• It can lead to high-quality, innovative products.

• It can be less expensive than primary research.

• It can lead to higher customer satisfaction.

• It provides clear, numerical insights.

What is a disadvantage of primary research?

• It can be costly and time-consuming.

• It may result in products that do not meet market needs.

• It can be expensive to conduct.

• Data may not be specific to the researcher’s needs.

What is an advantage of secondary research?

• It provides clear, numerical insights.

• It is less expensive than primary research.

• It can lead to higher customer satisfaction.

• It focuses on product quality and innovation.