WorksheetsMarketing multiple choice quiz
Total questions: 84
Worksheet time: 42mins
What percentage of your GCSE is the Business 1 exam worth?
25%
50%
75%
100%
Which of the following is NOT a topic covered in the Business 1 exam?
Business planning
Market research
Employment law
Financial accounting
Name one resource you should use to prepare for the Business 1 exam, according to the revision booklet.
Practise using past exam papers and mark schemes.
Watch unrelated movies for relaxation.
Ignore the revision booklet completely.
Only read social media posts about business.
What is the primary objective of the marketing department?
To increase sales
To reduce costs
To hire more employees
To develop new products
Which of the following is NOT a way the marketing department achieves its objectives?
Carrying out market research
Making decisions on the Marketing Mix (the 4 Ps)
Informing customers about products and services
Ignoring customer needs
Fill in the blank: The marketing department informs customers about their products and services and ______ them to buy them (e.g. using special offers).
persuading
ignoring
preventing
confusing
What is the definition of primary research (field)?
Brand new information that is collected by the business.
Information that is gathered from published sources.
Data that is analyzed from competitors' reports.
Research conducted using only online surveys.
What is the definition of secondary research (desk)?
When a business uses information that already exists.
When a business collects new data through surveys.
When a business only uses primary data sources.
When a business conducts experiments to gather data.
Which of the following is an example of primary research?
The internet
Questionnaire
Magazine articles
Competitors’ websites
Which of the following is an example of secondary research?
Survey
Interview
Focus group
Government reports & census
Which of the following is a disadvantage of primary research?
It could be out-of-date.
It can be very expensive to collect.
The source might be biased.
The data might not be wholly relevant.
Which of the following is a disadvantage of secondary research?
It can be time consuming to collect.
Poorly designed questionnaires give poor quality results.
The source might be biased / untrustworthy.
It can be trusted because YOU gathered it.
Complete the following table about qualitative and quantitative data: Qualitative data: This is data related to attitudes, opinions and feelings. For example, the reasons why you do / do not buy a particular product, and your feelings about a particular brand. It is difficult to statistically analyse this data, but it can give you more detailed information. Quantitative data: ________
This is data related to numbers (quantity). For example, the number of times you go shopping per week, or the number of hats you own. This data can be added up and statistically analysed.
This is data related to personal preferences and emotions. For example, your favorite color or your opinion about a movie.
This is data that cannot be measured or counted, such as your thoughts about a product.
This is data that describes the quality of an experience, such as how much you enjoyed a meal.
Identify five ways that the population can be segmented into groups:
1. Age 2. Gender 3. Income 4. Location 5. Lifestyle
1. Height 2. Eye color 3. Shoe size 4. Favorite color 5. Pet ownership
1. Zodiac sign 2. Favorite food 3. Handedness 4. Birth month 5. Blood type
1. Hair length 2. Music taste 3. Car brand preference 4. Favorite sport 5. Number of siblings
Which of the following is the correct ranking of the benefits of market segmentation in order of importance (1-4)? 1. It’s very difficult to make a product that appeals to everyone (young/old, male/female, & rich/poor). 2. It helps businesses to make better pricing decisions – e.g. a low price for children. 3. It saves time and money on market research – e.g. when launching a new lipstick, you only need to survey females. 4. It helps businesses to decide where to advertise – e.g. at TV advert during a football match to target men.
1, 2, 3, 4
2, 1, 4, 3
3, 4, 2, 1
4, 3, 1, 2
Identify four features of a good product:
1. It is innovative (e.g. unique, creative, original). 2. It is made to a good standard (high quality). 3. It is functional (it does what it is supposed to do). 4. It is user-friendly (easy to use and understand).
1. It is expensive. 2. It is difficult to use. 3. It is outdated. 4. It is poorly made.
1. It is only available in one color. 2. It is not reliable. 3. It is complicated to repair. 4. It is not safe to use.
1. It is made from low-quality materials. 2. It is not innovative. 3. It is not functional. 4. It is not user-friendly.
Explain the benefits of 'branding':
The benefits of branding are: 1) Brand loyalty, where well-known brands have loyal customers who return repeatedly. 2) Higher price, as well-known brands can charge more for their goods and services than non-branded goods.
Branding leads to increased production costs and lower customer retention.
Branding reduces the visibility of a product in the market.
Branding ensures that all products are sold at the lowest possible price.
Draw and label the Product Life Cycle diagram as shown below:
The Product Life Cycle diagram should include the following stages: a Introduction, b Growth, c Maturity, d Decline, with Sales on the Y-axis and Time on the X-axis.
The Product Life Cycle diagram should include the following stages: a Planning, b Execution, c Review, d Closure, with Revenue on the Y-axis and Cost on the X-axis.
The Product Life Cycle diagram should include the following stages: a Launch, b Expansion, c Saturation, d Withdrawal, with Profit on the Y-axis and Years on the X-axis.
The Product Life Cycle diagram should include the following stages: a Start, b Peak, c Plateau, d Fall, with Units Sold on the Y-axis and Months on the X-axis.
Identify two ways to 'extend' the life cycle of a product (extension strategies):
1. A business could lower its prices. 2. A business could redesign the packaging to be more appealing.
1. A business could stop advertising. 2. A business could reduce product quality.
1. A business could discontinue the product. 2. A business could increase production costs.
1. A business could ignore customer feedback. 2. A business could limit distribution channels.
Complete the following table about pricing methods: Method: Skimming Definition, example, pros & cons:
Price skimming is where the price of a product starts high because the product is new or unique and demand is likely to be high. The price comes down in stages as demand falls over time. Example: A new games console starts at £299, then comes down to £249, then £199. Pros: Maximises sales revenue in high demand, pays off R&D costs, targets different income groups. Cons: Setting the price too high initially might put customers off.
Price skimming is where the price of a product starts low to attract customers and then increases as demand rises. Example: A new games console starts at £199, then increases to £249, then £299. Pros: Attracts price-sensitive customers first. Cons: May lose out on early high profits.
Price skimming is where the price of a product remains constant regardless of demand. Example: A new games console is always £249. Pros: Simple pricing strategy. Cons: Misses out on potential revenue from high demand periods.
Price skimming is where the price of a product is set based on competitor prices only. Example: A new games console is priced the same as competitors. Pros: Easy to implement. Cons: May not reflect product uniqueness.
What is cost-plus pricing?
Setting a price based on competitors' prices
Adding a percentage to the cost of making/buying a product to ensure profit
Starting with a low price to enter a market
Setting a price based on customer demand
Fill in the blank: In cost-plus pricing, the business adds a _______ to the cost of making or buying a product to ensure they make a profit.
percentage
discount
penalty
tax
Which of the following is an advantage of cost-plus pricing?
It is difficult to calculate
It ensures products cover their costs and make a profit
It always results in the lowest price
It is only used in supermarkets
What is penetration pricing?
Setting a high price to maximize profit
Starting with a low price to enter a competitive market
Matching competitors' prices
Adding a percentage to the cost
Fill in the blank: Penetration pricing is used to attract _______ customers by offering a low price for a limited time.
new
loyal
wealthy
existing
Which of the following is a disadvantage of penetration pricing?
It always increases revenue
It might not make enough revenue to cover costs during the initial period
It is easy to calculate
It is only used for luxury products
What is competitor pricing?
Setting prices based on the cost of production
Keeping a close eye on competitors' prices and trying to match or beat them
Starting with a low price to enter a market
Setting prices based on customer surveys
What is the definition of the Producer to Customer distribution channel?
The producer of a product sells directly to the customer.
The producer sells to a wholesaler, who then sells to the customer.
The producer sells to a retailer, who then sells to the customer.
The producer sells to an agent, who then sells to the customer.
Give an example of a business that uses the Producer to Customer distribution channel.
Dell computers sell directly to customers.
Walmart sells products from various brands.
Amazon acts as a marketplace for sellers.
Best Buy sells electronics from multiple manufacturers.
State one advantage of the Producer to Customer distribution channel regarding control over the brand image.
The business has complete control over how their product is described, presented, priced – i.e. control over the brand image.
The business has no influence over how their product is marketed.
The business must rely entirely on intermediaries for brand representation.
The business loses track of customer preferences due to multiple distribution layers.
How can direct contact with the customer be useful for a business in the Producer to Customer distribution channel?
It can be a useful way to gain market research for further improvements (e.g. customer feedback).
It eliminates the need for any marketing activities.
It guarantees immediate payment from all customers.
It allows the business to avoid all distribution costs.
What is a financial advantage for the business when selling directly to the customer?
The business can sell at the full, retail price, so makes a higher profit margin per sale.
The business avoids all marketing costs.
The business can eliminate all competition.
The business does not need to provide customer service.
In the Producer to Customer distribution channel, who usually pays for the product immediately?
The customer will usually pay for the product immediately.
The producer will usually pay for the product immediately.
A wholesaler will usually pay for the product immediately.
A retailer will usually pay for the product immediately.
What is a disadvantage of the Producer to Customer distribution channel regarding the number of units sold at a time?
The business might only sell one unit at a time to customers (compared to multiple units if sold to a retailer).
It allows for bulk sales to customers directly.
It increases the number of intermediaries involved in the process.
It guarantees higher sales volume per transaction.
Why might the admin cost of sales be high in the Producer to Customer distribution channel?
Because the business might only sell one unit at a time to customers, so the admin cost of sales is high (e.g. multiple phone calls & deliveries).
Because the business benefits from bulk discounts when selling directly to customers.
Because the distribution channel eliminates all administrative tasks.
Because customers handle all administrative work themselves.
What is a possible customer preference disadvantage in the Producer to Customer distribution channel?
Customers may prefer the convenience of a local retailer.
Customers may prefer to buy directly from the producer.
Customers may prefer online shopping only.
Customers may prefer to avoid all intermediaries.
Which distribution channel involves the producer selling their product to a retailer, who then sells to the end user (customer)?
Producer → Wholesaler → Retailer → Customer
Producer → Retailer → Customer
Producer → Customer
Producer → Agent → Customer
What is an example of a product distributed through the Producer → Retailer → Customer channel?
Kellogg’s sold in Tesco
Corner shop groceries
Direct online sales
Factory outlet sales
Fill in the blank: Many products sell better if placed in a convenient location for customers, such as a _________?
local shop
mountain top
desert island
abandoned warehouse
remote forest
Many retailers are well-known to customers and have a good brand image, which can influence customer trust.
True
False
Which of the following is a disadvantage for the producer in the Producer → Retailer → Customer channel?
Ability to send one large delivery
Retailers may insist on a very low price or long credit terms
Products sell better in convenient locations
Retailers have a good brand image
In the Producer → Wholesaler → Retailer → Customer channel, what is the main role of the wholesaler?
Sell directly to customers
Break down large batches into smaller units for retailers
Advertise products
Set retail prices
Fill in the blank: The process of breaking down a very large batch into smaller units for small retailers is called _________.
breaking bulk
warehousing
retailing
packaging
In the Producer → Wholesaler → Retailer → Customer channel, the producer may have to sell at a much lower price to the wholesaler.
True
False
A digital distribution channel refers to a method of delivering products or services to customers via digital means. Which of the following is an example of a digital distribution channel?
Streaming movies on Netflix
Buying groceries at a supermarket
Reading a printed newspaper
Attending a live concert
Complete the following table about advertising methods: Method: Social media. Definition, example, pros & cons:
Social media involves businesses using platforms such as Facebook, Twitter and Instagram to communicate with their customers. Examples: Most businesses use social media these days e.g. Nike, Tesco and McDonald’s. Can be cheap to use (compared to TV). Can target large, specific audiences. Quick to communicate (TV can take months to make an advert). There are many forms of social media – it may be difficult to choose the best one.
Social media advertising is only about posting paid advertisements on TV and radio. Examples: Only large companies like Coca-Cola use social media. It is always expensive and cannot target specific audiences. It is slow to communicate and there are limited platforms to choose from.
Social media is a method where businesses use only printed flyers to reach customers. Examples: Small local shops use social media rarely. It is very costly and cannot reach a wide audience. Communication is always delayed and there are no choices of platforms.
Social media advertising means sending emails to customers only. Examples: Only online businesses use social media. It is not effective for targeting audiences and is always more expensive than TV. Communication is slow and there are no different forms of social media.
What is one advantage of using websites for business advertising?
Can use moving images (video) as well as detailed written information.
Websites are only accessible during business hours.
Websites do not allow for any customer interaction.
Websites can only display text and no images.
Most businesses have a website these days, so it is easy to differentiate your business online.
True
False
What is a potential risk of using websites for business advertising?
Potential of cyber hacking – e.g. customer details being stolen, creating a bad brand image.
Increased foot traffic to physical stores.
Guaranteed increase in sales revenue.
Reduced need for customer service staff.
Websites: Which of the following is NOT an advantage of using websites for advertising?
Can update seasonal promotions quickly
Can include detailed information
Not used by all groups of people
Can link the customer to purchase immediately
Fill in the blank: Growing use of the internet = more ______ customers.
potential
difficult
expensive
inactive
Setting up a website for a business is always inexpensive and easy.
True
False
Print media: What is one example of a product often advertised in fashion magazines?
Perfume, watches, and clothes.
Kitchen appliances and gardening tools.
Car repair kits and hardware supplies.
Textbooks and office furniture.
Print media: Which of the following is an advantage of print media advertising?
Cheaper than TV advertising
Cannot include detailed information
Not good for targeting specific customers
No visual appeal
Print media: Fill in the blank: High quality gloss pictures make products look _______.
attractive
dull
expensive
old
Print media is being used more and more with the rise of the internet.
True
False
Which of the following is an advantage of advertising on television?
Very cheap
Can reach a very large audience across the country
The product cannot be seen
Cannot remember specific details
Which of the following is a disadvantage of advertising on radio?
Memorable, catchy jingles
Much cheaper than TV adverts
The product cannot be seen
Can target different groups through different stations
Fill in the blank: Advertising on television can be targeted at a particular audience, for example, toys during ______ programmes.
kids'
news
sports
cooking
Which of the following is NOT an example of a business that advertises on television?
A) Car companies
B) Supermarkets
C) Plumbers
D) Fashion brands
Radio advertising is often used at a local level on local radio stations.
True
False
Fill in the blank: One disadvantage of television advertising is that it is very ______, particularly at peak times.
expensive
entertaining
brief
colorful
Which of the following is a characteristic of radio advertising?
A) Audio-visual impact can be very persuasive
B) Cannot remember specific details
C) Can be targeted at a particular audience during kids’ programmes
D) People may switch over, make a cup of tea, fast forward through the adverts
What is the point of sale method where a business reduces the prices of products to attract more customers? This method might generate more sales, but the profit per item will be lower. Businesses cannot trick or lie to customers about price reductions – the product should have been on sale at the higher price for at least 28 days, within the last 6 months.
Price reductions
Product bundling
Loyalty programs
Upselling
What is the point of sale method where a business sells a product at a loss, in the hope that it will draw customers into a shop to buy other things, or to make further sales in the future? For example, a supermarket might sell baked beans for 1p a tin (making a loss) hoping that it will attract customers to the shop, who then do their weekly shop (making a profit overall).
Loss leaders
Price skimming
Penetration pricing
Premium pricing
What is the point of sale method designed to attract customers to buy one product over another, often by offering a prize such as a free holiday or event tickets? Ideally, the extra revenue generated should be more than the cost of the competition.
Competitions
Discount Coupons
Loyalty Cards
Product Sampling
What is the point of sale method where a business gives out free samples to customers to give them a taster, in the hope that they will buy the product? Examples include free taster of ‘impulse’ buys in shops (e.g. chocolate, biscuits, and drinks) and free sample packets of washing powder / liquid.
Free samples
Discount coupons
Loyalty cards
Buy one get one free
What is the purpose of marketing within business?
The purpose of marketing within business is to identify and understand its customers, inform customers, and increase sales.
The purpose of marketing within business is to reduce production costs and eliminate competition.
The purpose of marketing within business is to focus only on internal operations and ignore customer needs.
The purpose of marketing within business is to increase employee satisfaction and reduce turnover.
What is the importance to a business of identifying and understanding its customers?
It helps inform customers and increase sales.
It allows businesses to avoid paying taxes.
It ensures that competitors cannot operate in the market.
It guarantees that all products will be successful.
What is the purpose of market research?
The purpose of market research is identifying and understanding customer needs.
The purpose of market research is to increase production costs.
The purpose of market research is to ignore customer feedback.
The purpose of market research is to reduce employee satisfaction.
List two primary research methods used in market research.
Questionnaires, interviews, trialling, focus groups.
Financial analysis, stock trading, mergers, acquisitions.
Advertising, branding, logo design, packaging.
Product manufacturing, logistics, warehousing, shipping.
Name two secondary research sources used in market research.
Newspapers and magazines, census, websites, internal data.
Focus groups and interviews, product testing, direct observation.
Personal opinions, random guesses, gut feeling.
Company mission statement, CEO's biography, annual staff party details.
How can different methods and sources of market research be appropriate for different business purposes?
Different methods and sources provide different types of information suitable for various business needs.
All methods and sources of market research provide the same information for every business purpose.
Market research methods and sources are only useful for large businesses, not small ones.
The choice of market research method does not affect the type of information gathered.
What is the use and interpretation of qualitative and quantitative data in market research?
They help businesses understand customer preferences and market trends.
They are only used for financial reporting purposes.
They are irrelevant to business decision-making.
They are used solely for employee performance evaluation.
How is segmentation used to target customers?
Segmentation is used to target customers based on age, gender, income, location, and lifestyle.
Segmentation is used to randomly assign products to customers.
Segmentation is used to increase the price of products for all customers.
Segmentation is used to eliminate competition by merging companies.
What are the 'four Ps' of the marketing mix?
Price, product, place, promotion.
People, process, performance, planning.
Profit, product, price, publicity.
Product, planning, promotion, process.
What are the stages of the product lifecycle?
Introduction, growth, maturity, decline.
Planning, execution, closure, review.
Design, development, launch, feedback.
Ideation, prototyping, scaling, exit.
List two pricing methods used in marketing.
Skimming, cost-plus, penetration, competitor, promotional.
Branding, advertising, distribution, packaging, logistics.
Market research, customer service, product design, innovation.
Sales training, public relations, event management, sponsorship.
What are two examples of promotion at the point of sale?
Price reductions, loss leaders, competitions, free samples.
Advertising on television and radio.
Sponsoring a sports team and placing billboards.
Launching a new product and conducting market research.
Name two advertising methods used in promotion.
Social media, websites, print media, television, radio.
Cooking, gardening, painting, sculpting, knitting.
Mathematics, physics, chemistry, biology, astronomy.
Farming, fishing, mining, forestry, hunting.
What are two types of distribution channels for products and services?
Digital and physical distribution channels.
Seasonal and permanent distribution channels.
Internal and external distribution channels.
Direct and indirect marketing channels.
How do the four Ps of the marketing mix work together?
They combine to create a comprehensive marketing strategy that meets customer needs and business goals.
They focus only on increasing product prices to maximize profits.
They operate independently without influencing each other.
They are used only for advertising purposes.
How can the marketing mix be used to inform and implement business decisions?
By analyzing and adjusting the four Ps, businesses can make informed decisions to improve performance.
By ignoring customer feedback and focusing only on production.
By reducing the number of products offered to minimize risk.
By setting prices without considering market demand.
What is the interpretation of market data in marketing?
It involves analyzing changes in demand, target market and market share, and changes in product and effects of promotion.
It refers to the process of setting product prices based on competitor analysis only.
It is the act of distributing products to retailers without considering consumer feedback.
It means focusing solely on increasing advertising budgets regardless of market trends.
