Marketing: Test 2 - Question Bank

Question Bank ''Marketing: Test 2'' with interactive revision questions on a variety of business topics.

Question Bank - Business Studies

Marketing: Test 2

Q1. What is meant by the term psychological pricing?

(Select one answer)

(a) * The process of raising the customer awareness of the supposed values/qualities of your product, so building its brand image.
(b) * The cutting out of wholesalers from the distribution chain.
(c) * Setting prices that reinforce the concept of value. e.g. £99 and not £100.
(d) * The forces of supply and demand and how they determine price.


Source: bized


Q2. All of the following are roles of wholesalers , except

(Select one answer)

(a) * breaking bulk.
(b) * sharing the risk of new products with the manufacturer.
(c) * servicing the needs of small customers.
(d) * selling directly to consumers.


Source: bized


Q3. The price elasticity of demand for a product tells you

(Select one answer)

(a) * how sensitive price is to changes in demand.
(b) * how sensitive the demand for a product is to changes in the products price.
(c) * How demand changes with changes in the prices of competitors goods.
(d) * how sensitive demand is to changes in the costs of production.


Source: bized


Q4. Market share tells you

(Select one answer)

(a) * how well a firm is doing.
(b) * how much power a firm has in a market.
(c) * how many firms there are in a particular market.
(d) * how big a market is.


Source: bized


Q5. Market segmentation is done by firms for all of the following reasons, except

(Select one answer)

(a) * to increase market share.
(b) * to assist new product development.
(c) * so that they can develop multi-purpose advertising campaigns.
(d) * to extend products into new markets.


Source: bized


Q6. The income elasticity of demand for a product is negative. Such products are known as

(Select one answer)

(a) * normal goods
(b) * inferior goods
(c) * luxury goods
(d) * necessities.


Source: bized


Q7. In the marketing mix what is meant by the term 'place'?

(Select one answer)

(a) * The process of getting products to the places where customers can buy them.
(b) * Recognising that consumers change their tastes over a period of time.
(c) * The building-in of reliability to a product.
(d) * Launching a new product that extends the product range.


Source: bized


Q8. The Boston Matrix is a visual presentation, or model, which

(Select one answer)

(a) * shows if a product is likely to be a success or not.
(b) * allows firms to classify their products according to their market share and the growth of the
(c) * The building-in of reliability to a product.
(d) * Launching a new product that extends the product range.


Source: bized


Q9. A 'Star' is

(Select one answer)

(a) * A product with a high market share and a high rate of growth.
(b) * A product with a low market share and a low rate of growth.
(c) * A product with a high market share but a low rate of growth.
(d) * A product with a low market share but a high rate of growth.


Source: bized


Q10. The price elasticity of a product is influenced by all of the following factors, except

(Select one answer)

(a) * necessity
(b) * habit
(c) * brand loyalty
(d) * the level of VAT in operation at the time


Source: bized


Q11. Market share can be measured by

(Select one answer)

(a) * counting the number of customers there are in a market, and for a particular firm within it.
(b) * comparing the sales value for a company with the total unit sales for the whole market.
(c) * comparing the sales value for a company with the total sales value for the whole market.
(d) * comparing the number of outlets a firm has with the total number of outlets within the market.


Source: bized


Q12. All of the following are extension strategies for a product, except

(Select one answer)

(a) * finding new uses for the product.
(b) * encouraging more frequent use and purchase of the product.
(c) * developing new markets for the product.
(d) * repackaging the product.


Source: bized


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