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Theme 1 AUT1 Quiz
Theme 1 AUT1 Quiz
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A level Business
Flashcards
70 cards
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Practice quiz
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Questions
70
Answers
1
A major disadvantage of a flexible work force is that _________.
flexible workers are often less familiar with equipment
it can lead to conflict between core and flexible workers
all of these
it leads to loss of some control over workers
2
Niche Markets
All of the above
Meet specific customer needs
Have a smaller target market
Are lower volume, higher value
3
Define market share
The total value of assets owned by the business.
The way profits are shared
The value of shares issued by a company
The portion of market sales dominated by the business.
4
Which will NOT shift
demand
on a supply and demand diagram?
Changes to income levels
Trends
Price changes
Interest rate changes
5
An advantage of mass markets is
Low costs of advertising
Meet the customer specific needs
Economies of scale
Low competition
6
How does high supply affect price?
Prices is not affected by high supply.
Price increases
Price decreases
7
Online retailers like Amazon have disrupted traditional methods of retailing.
True
False
8
All of the following are advantages of outsourcing
except
simplifies logistics of transportation of parts & products.
it creates competitive market for parts and supplies
it can take advantage of low cost overseas labor
it provides more flexibility for companies
9
product design mix : aesthetics, function and
price
place
cost of manufacture
promotion
10
Market size is....
Volume of all sales in the market
Volume/value of one firm's revenue
Volume or value of all sales in market
Value of one firm's sales
11
Which is true of niche markets?
Few competitors
Consumers seek generic products
Businesses must compete on price
Potential for high sales revenue
12
what's the difference between risk and uncertainty
Hey josh
nothing
risk is measurable and uncertainty isnt
Risk is small and uncertainty is big
13
Which of the following is
not
an advantage of online retailing?
Open for sales 24/7
Access to a larger potential market
Customer can receive the product sooner
Improved customer convenience
14
Which is an advantage of treating staff as a cost?
Lower morale
Saving money
Lower productivity
Lower motivation
15
In a supply and demand diagram, if demand decreases the demand line will shift to the left
False
True
16
Dynamic markets are...
Markets that are constantly changing
Markets that are small
Markets that are unique
Markets that rarely change
17
Pricing strategies - Whats cost plus pricing?
None of the above
Involves adding a markup to unit costs
Involves adding markup to the retail price
Involves taking into account both costs and pricing of competitors
18
ways to build a brand
USP, advertising, sponsorship, use of social media
USP, differentiation, team-building, multi-skilling
USP, DIFFERENTIATION, ADVERTISING, ADVERTISING
multi-skilling, promotion, promotion, promotion, promotion
19
A penetration pricing strategy
Frequently encourages other businesses to enter market
Used by a business to attract a large share of the market
Used in maturity stage of the Product Life Cycle
Usually results in high profit levels for the company
20
The formula for income elasticity of demand is:
% change in Q / % change in Income
% change in Income / % change in Q
% change in Price / % change in Q
% change in Q / % change in Price
21
When is penetration pricing normally used?
When a product's sales are declining
When sales are at their highest
When a new product is launched
When consumers are bored of a product
22
What are the benefits of having a strong brand?
Decreased competition in the market
Reduced costs associated with marketing and advertising
Increased product variety
Increased customer loyalty and trust
23
All of the following are examples of public relations except for?
Giving to charity
Press Releases
Sponsoring a community sports team
Billboards
24
How can an Entrepreneur anticipate risk and uncertainty?
Market segmentation
Differentiated marketing
Market research
Read the news
25
What are the benefits of market research?
All of these answers
Know what a customer wants
Can make better business decisions
Reduces the risk of launching a new product
26
What is psychographic segmentation?
age, gender, occupation, socio-economic group
personality, lifestyle, attitudes
rate of usage, loyalty, benefits sought
customer location, region
27
Premium pricing is a feature of mass markets
False
True
28
Field Research is...
when a business gathers new information, e.g. a survey
when a business looks at existing information, e.g. books
29
What can a business do about risk and uncertainty?
Decrease expenditure
Buy Twitter
Increase the number of employees
Diversify products and services
30
Staff costs can be variable as well as fixed costs, i.e. semi-variable
False
True
31
Advantages of Collective Bargaining
Workers are protected
Not all employees will agree with Union
Safe workplace
Higher Wages
32
penetration pricing
a high price for a limited time
a price based on cost
a low price to get a foothold in the market
a low price to put competitor out of business
33
Product Life Cycle
Introduction, growth stage, maturity stage, decline stage
The range of prices charged for a category
A film of concert performances
Planning for how people in the market will think about your product
34
Which of the following reflect social trends in the way products are sold (distribution)?
Growth of e-commerce
ALL of these
Shopping becoming like a leisure activity
Supermarkets extending their opening hours
35
Distribution channels
Price
Promotion
Product
Place
36
Which of the following is an advantage of outsourcing for business?
Business uses employees of other firms to produce its inputs
Business relies on other businesses to supply raw materials
Less control over the flow of inputs by managers.
Reduces the number of local jobs
37
Which one of these Market Research methods is NOT a PRIMARY Market Research method?
Internet Research
Focus Groups
Questionnaires
Observations
38
Online retailing has caused ...
An abundance in skills
More firms to make more profit
48.6 % decrease in physical retail shops
An increaseing demand for staff with digital skills
39
Dynamic pricing is
Different prices for different segments for the same product
Placing sales on products
Charging same price to all customers
Different products and prices for different segments
40
Above the line promotion
uses mass media to convey messages to consumers
are offered by the retailer to customers
does not use mass media to convey messages to consumers
are offered by the manufacturer to retailers
41
what is an example of emotional branding
Pg Tips monkey
Andrex Pup
Big Lez and the kayak shop
Wallace and Gromit
42
What is the difference between redundancy and dismissal?
Redundancy is when a job is no longer required or needed
Redundancy happens when a worker is terminated unfairly
Redundancy is being dismissed from a job due to incompetence
None of the above
43
Desk Research is
Primary information
all of the above
when a business gathers existing information, e.g. in books
44
Product Orientation is:
Focused on selling at all costs
Focused on making the product first and then trying to sell
Focused on market research then making products that sell.
Focused on orienting the product with the market leaders
45
What's the difference between risk and uncertainty?
Risks are measurable, uncertainty is immeasureable
Uncertainty can be identified, risks cannot.
Risks can be identified, uncertainty cannot
46
Distribution Channels - What is Direct Distribution?
When the customer buys direct from the company.
When the customer buys from a thrid party such as a travel agent.
47
Predetory pricing is Legal
False
True
48
Below the line promotion is
promotion that does not involve advertising
promotion that is offensive to some people
similar to guerrilla marketing
promotion that does involve using the media
49
What is the Boston Matrix?
An advertising diagram
To track revenue, expensiture and profit
Part of the product life cycle
A tool to analyse a businesses product portfolio
50
The boston matrix involves...
?, stars, cash cows and dogs
?, dogs, Cash fish, chickens
#, dogs, cats, buffalo
?, Cash cows, rainbows and stars
51
Viewing staff as a cost may make workers feel exploited, neglected, stressed and unhappy
True
False
52
Competition affects the market in all of these way apart from ;
Forces firms to be efficient
Drives prices up
Forces firms to innovate
Drives prices down
53
Market Orientation is...
An approach which emphasis external factors.
An approach which emphasises the consumer.
An approach which emphasises economies of scale.
An approach which emphasises the production process/product.
54
what is differentiation (in business)
offering a unique productor service to the market or niche.
lowering costs
seperating a target market
A Math topic
55
Disadvantage of zero hour contracts
It will save costs
Workers will not feel part of the business
The business will be more dynamic
The business won't get 'stuck' with poor workers
56
What is collective bargaining?
Employers use this to find large groups of laborers.
Laborers working in groups are more productive in workplace.
Employers use this to get the cheapest labor.
Laborers acting together negotiating with management.
57
Viral Marketing is
Films referencing other films in their advertising
Internet advertising campaign passed on by social media
crashing out websites to get famous
Big budget billboard, magazine & TV advertising
58
Extension strategies are launched to extend
maturity stage
decline stage
growth stage
launch stage
59
A brand is?
The name of the product
A name, term, or symbol that distinguishes a product from the competition
The colors that distinguish a product from the competition
The product's logo
60
What are distribution channels?
intermediaries a product passes through to reach consumers.
A business’s actual physical location
Vehicles used to transport goods
Costs connected with shipping goods
61
Market mapping and market positioning are the same thing.
True
False
62
Why are staff seen as assets?
Seen as valuable and skilled
Costly
Little security
63
What is the difference between a wholesaler and a retailer?
W.salers buy in bulk from manufacturer & resell. Retail sells to customer
Wholesalers only pay their workers on commission while retailers do not
Wholesalers cannot sell music items while retailers can
Wholesales are large, retailers are only small entities
64
which of these pricing strategies is pricing the product below it's cost?
price penetration
competitive pricing
cost-plus pricing
loss leader
65
Extension strategies are
Strategies to reach an international market
strategies to prolong the lifespan of a product
Used by the hairdresser
strategies to differentiate the product
66
Competition is often intense in mass markets
False
True
67
What is Pricing Strategies – Psychological Pricing?
Price a base product low and its refills or replenishments at a high price.
Start with a low price and slowly adjust price of products upwards.
The products are priced at a point that creates a psychological bargain.
Start with a high price and slowly adjust price of products downwards.
68
Mass markets strategies
Focus
Cost leadership
Differentiation
69
Sum up Market mapping
Mapping out the stock market
Placing your products in a strategic way around the country
looking for a gap in the market to supply for
Creating a product that appeals to travellers
70
Price skimming is....
buy one get one free
a loss on a product in the hope of making sales on others
starting a price high and then lowering it
destroying the competition
