Business Paper 1 Revision

Which of the following best defines a market?

• A place where goods are manufactured

• Any place where buyers and sellers meet to exchange goods or services

• A building where products are displayed

• A group of competitors in the same industry

What is the primary aim of marketing?

• To maximize production costs

• To identify, anticipate and satisfy consumer needs and wants profitably

• To eliminate competition

• To reduce product quality

A niche market is characterized by:

• Large-scale production for mass consumers

• Products aimed at broad market segments

• Products aimed at a small subset of consumers within the wider market

• Low profit margins

Primary market research involves:

• Using government statistics

• Analyzing competitor reports

• Gathering first-hand information directly from consumers

• Reading industry publications

Which of the following is an example of secondary market research?

• Conducting focus groups

• Carrying out surveys

• Using government census data

• Observing customer behavior

Market positioning refers to:

• The physical location of a business

• How consumers perceive a brand relative to competitors

• The number of products in a market

• The price of products

Adding value to products can be achieved through:

• Reducing quality

• Branding, convenience, and quality improvements

• Increasing production costs

• Limiting distribution channels

Price elasticity of demand measures:

• How much demand changes when income changes

• How much demand changes when price changes

• How much supply changes when price changes

• How much profit changes when costs change

If a product has elastic demand, a price increase will likely result in:

• Higher total revenue

• Lower total revenue

• No change in total revenue

• Increased market share

Income elasticity of demand measures:

• How demand responds to price changes

• How demand responds to income changes

• How supply responds to demand changes

• How profit responds to cost changes