What is a main risk of niche markets?

Vulnerability to market changes

How is market share calculated?

Sales of business / total market sales

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Theme 1 and 2 - Complete Units

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Test your knowledge on market segmentation, branding, market research, and more in this engaging quiz on essential marketing concepts.

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Questions 19

Answers

1
What is a main risk of niche markets?
High production costs
Global reach
Too many competitors
Vulnerability to market changes
2
What is a limitation of primary research?
Never useful
Can be expensive
Always biased
Only uses old data
3
Which is a benefit of market research?
Eliminates competition
Guarantees product success
Lowers all costs
Reduces risk of failure
4
How does competition benefit consumers?
Less innovation
Limited options
More choices
Higher prices
5
Which is an example of added value?
Free product customization
Higher taxes
Longer delivery times
Less customer service
6
Which is a key feature of mass markets?
Low marketing spend
High competition
Small customer base
Personalized products
7
How can businesses adapt to market changes?
Invest in R&D
Reduce product quality
Limit product range
Ignore customer feedback
8
Which segmentation method uses attitudes and lifestyles?
Demographic
Geographic
Behavioral
Psychographic
9
Which is a characteristic of a mass market product?
Highly personalized
Limited reach
Premium pricing
Standardized for all
10
Which factor can cause market decline?
Stable demand
Emergence of substitutes
Rising population
Increased innovation
11
How is market share calculated?
Profit / total sales
Total costs / total sales
Sales of business / total market sales
Market size / number of firms
12
Which factor best drives market growth?
Product packaging
Employee training
Economic growth
Store location
13
How does branding add value to products?
Increases shelf life
Creates customer loyalty
Reduces competition
Lowers production cost
14
Online retailing benefits businesses by...
Reducing product range
Lowering marketing expenses
Limiting customer reach
Increasing rent costs
15
Which best describes a dynamic market?
Few competitors
Stable over time
Limited innovation
Constantly evolving
16
True or false: Market share is always measured by value.
False
True
17
What is a key advantage of online retailing for customers?
Higher prices
Fewer choices
Limited hours
Global access 24/7
18
How does market orientation benefit a business?
Ignores customer needs
Reduces product quality
Focuses only on production
Faster response to changes
19
What is the main purpose of product differentiation?
Lower quality
Reduce costs
Limit product range
Stand out from rivals

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