1) Market segmentation: a) divides customers into sub-groups b) is a method of promotion c) is a qualitative form of market research d) transports products to customers 2) Which of the following is not one of the four Ps of the marketing mix? a) Packaging b) Place c) Price d) Promotion 3) A seller charges a high price for pre-orders of a soon-to-be-released video game. The seller intends to charge a lower price for the video game once it has been released. What is this high price an example of? a) Illegal behaviour b) Innovation c) Penetration pricing d) Skimming 4) Which of these is an example of a secondary source of market research? a) Face-to-face interviews with customers b) Focus groups c) Magazine articles d) Questionnaires sent to local residents 5) Sparkling Jewellery Ltd uses cost plus pricing. The company sets its selling prices at cost plus 120%. The selling price of a diamond ring which cost £800 to make would be: a) £160 b) £920 c) £960 d) £1760 6) An internet-based travel agent sells expensive round-the-world cruises. Which of the following market segments is the travel agent most likely to target? a) Families with children under five years of age b) Local residents c) People with high incomes d) Young, single men 7) A primary purpose of the marketing function of a business is: a) to employ staff b) to improve employee retention c) to increase sales d) to reduce costs 8) Which of the following is a benefit to a business of advertising in a national newspaper? a) A large audience can be reached b) A specific city can be targeted c) Additional finance may be required d) Audio visual techniques can be used 9) The letter X on the product life cycle diagram below shows the current position of Xandos, a marine navigation device. What stage of the product life cycle is Xandos currently in? a) Decline b) Growth c) Introduction d) Maturity 10) Market research is used by a business to: a) decrease demand b) identify customer needs c) motivate its employees d) shorten the product life cycle 11) Which one of the following is not a reason for a business to offer price reductions? a) To encourage new customers to try the products b) To increase sales c) To raise awareness of available products d) To reduce market share 12) A baker’s shop gives out free samples of its sausage rolls for customers to try. This is an example of: a) advertising b) market segmentation c) point of sale promotion d) secondary market research 13) Which of the following is a disadvantage to a sole trader of advertising on social media? a) It could go viral b) It is an expensive form of advertising c) It is difficult to control d) It is of limited use to small businesses 14) Which of the following is a benefit of innovation? a) Business risk is increased b) Customer needs can be ignored c) It can extend the product life cycle d) It will increase delegation 15) In response to market research data, a florist shop reduces the price it charges for a small bouquet of flowers from £16.00 to £12.50. The percentage reduction in the price charged for a small bouquet of flowers is approximately: a) 4% b) 5% c) 22% d) 28% 16) Which of the following is an advantage to a business of using primary market research rather than secondary market research? a) Primary market research can be more specific b) Primary market research is likely to cost less c) Primary market research is provided by the government d) Primary market research will be less time consuming 17) A manufacturer is most likely to use a regional distribution centre to: a) allow fast delivery to all parts of the country b) identify the needs of local consumers c) increase costs d) train its workforce 18) A national supermarket chain is testing whether a new type of savoury snack will be popular in its stores. The new snack is currently being offered for sale in 10 of its 120 stores. What market research method is the supermarket chain using? a) Sampling b) Target marketing c) The national census d) Trialling 19) A business that uses a digital distribution channel: a) uses social media to promote its products b) uses state-of-the-art lorries to transport its products c) uses the Internet to deliver its products d) uses warehouses to store its products 20) The table below shows market data for two products before and after advertising on television. a) demand for both products decreased significantly b) Product A was more popular than Product B c) the quantity sold of Product A increased by 50% d) the sales of Product A increased by a higher percentage than Product B

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