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WorksheetsTheme 2 - 2.2 End of unit recap
Total questions: 20
Worksheet time: 11mins
Lucozade, originally a product for the sick, rebranded itself as an energy and sports drink. The most likely extension strategy used was:
Changing the recipe of the drink
Lowering the price
Finding new uses for the product
Raising the price
At which stage of the product life cycle is a business most likely to use an extension strategy?
Introduction
Growth
Maturity
Decline
The product life cycle measures the:
Price of a product over time
Cost of a product over time
Profit of a product over time
Sales of a product over time
At which stage of the product life cycle is customer awareness likely to significantly increase and sales rise steeply?
Introduction
Growth
Maturity
Decline
Which of the following statements best describes the term aesthetics?
Seeking to minimise costs wherever possible
How well the product works for the customer
Actions to prevent a product’s sales declining rapidly
How the product appeals to the senses of a customer
Which of the following statements is true?
Demand will always increase when selling prices fall
Revenue will always increase when selling prices rise
Prices of luxury products tend to be low to stimulate demand
Raising the price of a product with many close substitutes will usually result in a reduction in demand
A significant downturn in the economy has led a business to review its pricing strategy. The business aims to continue to attract customers to purchase its products, despite the intense competition in the market. Which strategy is likely to be the most appropriate in this situation?
Increase selling prices
Keep selling prices the same as before the economic downturn
Lower selling prices
Copy the selling prices of rivals
A business is likely to charge a high price when:
There is a lot of competition in a market
Its products are aimed at customers with a low income
It launches a new, innovative product onto the market
When a product is of a low quality compared to its competitors
In which stage of the product life cycle, when sales growth has slowed down after reaching a peak, would a business cut prices to attract competitors’ customers to purchase its products?
Introduction
Growth
Maturity
Decline
In which two of the following situations might a business charge a low price?
When a product has a recognisable brand name
When there is little or no competition in the market
When a product is known for its quality
When a product is no longer in demand due to technological changes
When there is a lot of competition in the market
Which of the following bests describes the process of a business establishing a distinct identity or personality for its products?
Sponsorship
Branding
Advertising
Promotion
A business donates money to a local football team and, in return, the team displays the name and logo of the business on its kit. This an example of:
Special offers
Product trial
Sponsorship
Branding
Which of the following promotion strategies uses the media to promote products to a target audience?
Advertising
Point of sale material
Product trials
Special offers
Which two of the following are most likely to be drawbacks of television advertising as a promotion strategy?
It can be expensive for the business
No guarantee the target audience will receive the message
A large quantity of people will receive the message
Appropriate time slots and programmes can be chosen
Messages can be communicated with sight, sound and motion
Which of the following is a benefit to a manufacturer of using a national retailer as a channel of distribution?
A higher price can be charged
Profit margins will be increased
Product sales will be guaranteed
A wider audience may be reached
Which of the following is true in relation to a producer distributing products through a retail chain?
Products are sold directly by the producer to the end user
Full control of distribution is kept by the producer
A large number of potential customers can see the product
The producer makes more profit per unit sold in comparison to the business selling directly to the public
A physical shop/store that buys its products from a wholesaler, or directly from the business that makes the goods, and then sells these products to customers is known as a:
Producer
E-tailer
Retailer
Manufacturer
Which of the following statements is true?
Most grocery sales in the UK are made online
Most grocery sales in the UK are made in physical stores
All stores that sell groceries offer an online service
All grocery stores offer a click and collect service
Which two of the following goods/services are most suitable to be distributed via e-commerce?
Flights
Hairdressing
Insurance
Opticians
Children’s shoe fitting service
Which two of the following are drawbacks to a business of using e-commerce?
The business has the ability to sell to wider markets
It appeals to many customers who have busy lifestyles
Customers cannot see, touch or try goods which can discourage sales
It is can be easier to compete on price as running costs are lower
Competition can be intense when operating online
