A level - Knowledge test - 1.3

What are the elements of the design mix:

Answer explanation

The elements of the design mix include function, aesthetics, and cost. Function refers to how well the product performs, aesthetics to its visual appeal, and cost to the financial aspect of production and pricing.

List two social trends that can impact the elements of the design mix

Answer explanation

Two social trends that can impact the design mix are sustainability, leading to eco-friendly materials, and digitalization, influencing product design and marketing strategies.

In order, list the stages of the product lifecycle

Answer explanation

The stages of the product lifecycle are: Introduction, Growth, Maturity, and Decline. Each stage represents a different phase in the product's market presence and sales performance.

Name two promotional methods suitable for the mass market

Answer explanation

Two effective promotional methods for the mass market are television advertising and social media campaigns. These methods reach a wide audience quickly and can create significant brand awareness.

Name the pricing strategy used by Poundland

Answer explanation

Poundland uses a 'single price' strategy, where all items are sold at a fixed low price, typically £1. This approach simplifies shopping and appeals to budget-conscious consumers.

Name the pricing strategy that uses pricing products at £4.99/£8.99

Answer explanation

The pricing strategy that uses prices like £4.99 or £8.99 is known as 'psychological pricing'. This approach aims to make prices appear lower than they actually are, influencing consumer perception and buying behavior.

List 3 factors that determine the pricing strategy of a business

Answer explanation

Three key factors that determine a business's pricing strategy are cost of production, market demand, and competition. These elements help businesses set prices that maximize profit while remaining attractive to customers.

Name the distribution channel that involves the business selling directly to the consumer

Answer explanation

The distribution channel that involves selling directly to the consumer is known as 'direct sales'. This method eliminates intermediaries, allowing businesses to engage with customers personally.

Name the two dimensions that are used in the Boston Matrix

Answer explanation

The two dimensions used in the Boston Matrix are 'Market Growth' and 'Market Share'. These dimensions help categorize a company's products into four quadrants based on their performance.

Two ways in which consumer loyalty can be developed

Answer explanation

Consumer loyalty can be developed through personalized customer experiences and reward programs. Personalization makes customers feel valued, while rewards incentivize repeat purchases.