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WorksheetsIGCSE Business 0450 - Unit 3.3 Marketing Mix
Total questions: 30
Worksheet time: 17mins
Name
Class
Date
1.
A business develops a new product mainly to:
a)
reduce all competition immediately
b)
meet changing customer needs and increase sales
c)
avoid all marketing costs
d)
guarantee customer loyalty
2.
Which is most likely to be a cost of developing a new product?
a)
research and development spending
b)
instant higher market share
c)
greater customer loyalty
d)
free publicity
3.
A likely benefit of successfully launching a new product is:
a)
lower customer awareness
b)
higher sales revenue
c)
less market research needed forever
d)
no need for promotion
4.
A strong brand image often leads to:
a)
lower customer loyalty
b)
repeat purchases and stronger sales
c)
less recognition in the market
d)
customers ignoring quality
5.
What is an important role of packaging?
a)
to stop all competitors entering the market
b)
to protect the product and attract customers
c)
to remove the need for branding
d)
to make promotion unnecessary
6.
The introduction stage of the product life cycle is usually characterised by:
a)
high sales and many competitors
b)
low sales and heavy promotion
c)
falling sales and reduced demand
d)
stable demand for many years
7.
During the growth stage of the product life cycle, a business is most likely to see:
a)
rising sales
b)
negative cash flow only
c)
the product being withdrawn
d)
no customer awareness
8.
Which is an extension strategy for a product in the maturity stage?
a)
withdrawing the product immediately
b)
changing the packaging or adding a new feature
c)
stopping all promotion
d)
raising the price sharply with no reason
9.
Why might promotion spending be high in the introduction stage?
a)
to create awareness of the new product
b)
because the product is already well known
c)
because demand is always inelastic
d)
to reduce the need for packaging
10.
A business is most likely to use skimming pricing when the product is:
a)
new and different with limited competition
b)
old and declining
c)
sold in a very competitive market
d)
targeted only at bargain hunters
11.
Cost-plus pricing means the business sets price by:
a)
matching the lowest competitor price
b)
adding a mark-up to unit cost
c)
charging whatever customers want
d)
reducing price below cost
12.
One limitation of cost-plus pricing is that it:
a)
ignores competitor prices and customer demand
b)
always leads to loss-making
c)
cannot be used by manufacturers
d)
is only suitable for services
13.
Penetration pricing is most suitable when a business wants to:
a)
enter a market quickly and gain market share
b)
target a small luxury market
c)
recover research costs fast from a few customers
d)
sell only to loyal existing customers
14.
Competitive pricing means a business bases its price mainly on:
a)
the price charged by rival firms
b)
the cost of packaging only
c)
the number of employees
d)
how long the product has been sold
15.
Promotional pricing is best described as:
a)
a permanent high price
b)
a temporary price cut to boost sales
c)
a pricing method based only on costs
d)
charging different prices in different countries
16.
A business selling a new fashion item with a unique design and little competition should probably use:
a)
penetration pricing
b)
competitive pricing
c)
skimming pricing
d)
promotional pricing
17.
If demand for a product is price elastic, a small rise in price will usually cause:
a)
a larger fall in quantity demanded
b)
no change in sales volume
c)
demand to become fixed
d)
a shortage of supply
18.
If demand for petrol is price inelastic, this means consumers:
a)
buy much less when price rises slightly
b)
are very sensitive to price changes
c)
change quantity demanded only a little when price changes
d)
stop buying immediately when price rises
19.
Why is price elasticity useful to a business?
a)
it tells the business how many workers to employ
b)
it helps the business predict how sales may change if price changes
c)
it replaces the need for market research
d)
it guarantees profit
20.
One advantage of using wholesalers in a distribution channel is that they:
a)
sell only to final consumers
b)
buy in bulk and help products reach many retailers
c)
eliminate all transport costs
d)
make packaging unnecessary
21.
A business using a direct-to-consumer channel is most likely to benefit from:
a)
less control over customer service
b)
no delivery responsibilities
c)
automatic nationwide coverage in shops
d)
more direct contact with customers
22.
One disadvantage of selling only through retailers is that the manufacturer may:
a)
have less control over how the product is displayed
b)
avoid paying any distribution costs
c)
keep all customer data
d)
sell every product at a higher price
23.
A small business making customised cakes for local customers should probably use:
a)
direct selling to consumers
b)
a chain of international wholesalers
c)
only vending machines
d)
a stock exchange listing
24.
The main aim of promotion is to:
a)
increase awareness and persuade customers to buy
b)
guarantee customer satisfaction forever
c)
reduce production costs
d)
replace distribution channels
25.
Which is an example of sales promotion?
a)
a newspaper advert
b)
a buy-one-get-one-free offer
c)
a brand logo
d)
market segmentation
26.
Why must businesses consider cost-effectiveness when planning promotion?
a)
because the biggest budget is always best
b)
because promotion should increase sales enough to justify its cost
c)
because all promotion is free online
d)
because promotion has no link to profit
27.
E-commerce is best defined as:
a)
selling and buying products using electronic networks such as the internet
b)
transporting goods to shops
c)
making products in a factory
d)
promoting only through television
28.
One opportunity of e-commerce for businesses is that it can:
a)
reach customers in wider markets
b)
remove all competition
c)
eliminate the need for stock control
d)
guarantee loyal customers
29.
One threat of e-commerce to consumers is:
a)
more convenience
b)
greater choice
c)
risk of online fraud or data theft
d)
easier price comparison
30.
Using social media for promotion can help a business because it:
a)
cannot target specific audiences
b)
allows quick interaction with customers and low-cost promotion
c)
always replaces all other promotion
d)
prevents negative feedback
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