Which promotional method uses short-term discounts to encourage customers to purchase a product?

• Public relations
• Sales promotions
• Advertising
• Sponsorship

Which is a correct definition of a customer?

• A person who makes an enquiry about a product
• A person who recommends a product or service
• A person who purchases a product or service
• A person who uses a product or service

If a company sells 500,000 units of a product at £20 each, what is the market size in terms of revenue?

• £10 million
• £1 million
• £5 million
• £20 million

A supermarket decides to match the prices of a rival store. What is this known as?

• Penetration pricing
• Cost plus
• Loss leader
• Competitive pricing

Why might a business choose to raise its selling price?

• The product is in the introduction phase of its lifecycle
• To increase demand from customers
• It has a monopoly
• To increase their market share

Which of the following type of data is qualitative?

• The number of students enrolling on a particular course
• How many pizzas were sold by a takeaway on a Friday night
• The percentage increase in sales last month
• How good chicken nuggets taste

What is market segmentation?

• Combining different markets into one
• Dividing the market into distinct groups with similar needs and characteristics
• The process of setting prices in the market
• Analysing the overall market demand

On the Boston Matrix, which term refers to a product which has low growth but a high market share?

• Question mark
• Star
• Dog
• Cash cow

In a market where the total units sold decrease from 1 million to 800,000, what is the percentage decrease in market size?

• 10%
• 20%
• 25%
• 30%

What is always the first point in a distribution chain?

• The distributer
• The producer
• The customer
• The wholesaler