Cambridge IGCSE and O Level Business Studies
Section 3 – Multiple choice
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Which of the following might cause a change in customer spending patterns?
A
An increase in the production of goods and services
B
The introduction of a new product to the market
C
An increase in consumer income
D
A change of government
Some markets have become more competitive because:
A
some businesses have left the market
B
the market is dominated by a few large firms
C
consumers have more money to spend
D
there has been a reduction in the barriers to trade.
Which of the following is the best example of an industrial good?
A
A new computer-controlled machine
B
A television
C
A bottle of fizzy drink
D
A newspaper
A benefit of niche marketing is:
A
there are many consumers
B
consumers have low incomes
C
profits per unit sold are often very high
D
the product can be sold to different types of consumer.
Which of the following is not a method for segmenting a market?
A
Dividing the market according to gender
B
Dividing the market according to lifestyle
C
Dividing the market according to price
D
Dividing the market according to consumer income
Primary research is:
A
less expensive than secondary research
B
the best method of researching the market
C
less time-consuming to collect than secondary research
D
usually more accurate than secondary research.
© Cambridge University Press 2018
Section 3 – Multiple choice
1
Cambridge IGCSE and O Level Business Studies
7 Which of the following is not a source of secondary data?
A
Internet
B
Company records
C
Focus panel
D
Government statistics
8 Market research data might not be accurate because:
A
questionnaires are used
B
interviewees always answer truthfully
C
interviewers are not properly trained
D
too many people are asked to take part in the survey.
9 Which of the following describes systematic random sampling?
A
The target market is divided into groups and a selected sample is chosen at
random from each group.
B
Every member of the target market has an equal chance of being selected.
C
The target market is divided into groups and a fixed number is selected from
each group.
D
Every nth member of the target market is selected.
10 Which of the following statements best describes the marketing mix?
A
It combines all the elements that are important in marketing.
B
It will guarantee the success of a product.
C
It is the decisions that a business must take to market a product effectively.
D
It is not important for the marketing of industrial goods.
11 A product which has a price elasticity of demand of –1.4 is said to be:
A
too expensive
B
price elastic
C
price inelastic
D
a necessity.
12 Wholesalers and retailers are examples of:
A
middlemen
B
consumers
C
producers
D
agents.
© Cambridge University Press 2018
Section 3 – Multiple choice
2
Cambridge IGCSE and O Level Business Studies
13 Which of the following is the correct order for a product’s life cycle?
A
Decline, growth, maturity, introduction
B
Introduction, maturity, growth, decline
C
Growth, maturity, introduction, decline
D
Introduction, growth, maturity, decline
14 The main purpose of an extension strategy is:
A
to keep a product in its growth stage for as long as possible
B
to prevent a product from entering the maturity stage for as long as possible
C
to extend the maturity stage of a product
D
to slow down the decline of a product.
15 Which of the following is not an aim of promotion?
A
To attract the attention of consumers
B
To create a brand image
C
To improve the quality of a product
D
To encourage retailers to stock the product
16 A good example of promotion is:
A
sponsorship
B
skimming pricing
C
direct sales
D
value added.
17 A benefit to producers of e-commerce is:
A
more firms are able to enter the industry
B
people prefer to buy products using the internet
C
competition will decrease prices
D
they can market their product to more consumers.
18 A business’s promotional activities are most influenced by:
A
the quality of its products
B
the size of the marketing budget
C
the number of consumers in the market
D
market segmentation.
© Cambridge University Press 2018
Section 3 – Multiple choice
3
Cambridge IGCSE and O Level Business Studies
19 Which of the following is an example of legal controls on marketing strategy?
A
Businesses must be market orientated.
B
Advertising must not be used to persuade consumers to buy products they don’t need.
C
The government encourages competition in markets.
D
Businesses must not agree with each other to set the same price for a product.
20 Which of the following is sometimes a problem of entering foreign markets?
A
The firm has carried out market research.
B
There is competition in the market.
C
Consumers speak the same language.
D
There is strong brand loyalty to existing products.
© Cambridge University Press 2018
Section 3 – Multiple choice
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