State an advantage of branding.

It represents high quality of the product.

State a disadvantage of Above-The-Line promotion?

It is more expensive as it is paid for media advertising.

State the definition of Ecommerce.

It is selling goods and services online.

State an advantage of indirect selling.

More products can be distributed to more customers.

State an advantage of Below-The-Line promotion.

It is used to build relationships with customers.

What is one advantage of skimming?

It shows a high quality of a product which sales revenue can be generated.

What are the examples of extension strategies to increase the life span of the product?

Developing a variety of product range.

What is market segmentation?

Dividing the market into specific consumer groups to form a target market.

State a disadvantage of direct selling.

No retail outlets so customers cannot try any products.

What is one disadvantage of penetration?

It risks the customer not buying the products after an increase on price.

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IGCSE Business Studies - Unit 4 Questions

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These questions shows all the topics learned in Unit 4.

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Questions 20

Answers

1
State an advantage of branding.
It can break relationships with customers.
It represents high quality of the product.
It can reduce the value of the product.
It is expensive.
2
State a disadvantage of Above-The-Line promotion?
It can reach a larger target audience.
It is too time consuming.
It is more expensive as it is paid for media advertising.
It is used to break relationships with customers.
3
State the definition of Ecommerce.
It is Business to Consumer.
It is Business to Business.
It is selling goods and services in person.
It is selling goods and services online.
4
Which type of market research collects new information that doesn't already exist?
Secondary Research
Primary Research
Indirect Research
Direct Research
5
Which one of these pricing strategies guarantee a profit?
Psychological Pricing
Loss Leaders Pricing
Penetration Pricing
Cost-Plus Pricing
6
State an advantage of indirect selling.
More products can be distributed to more customers.
Communication can occur between the customer and producer.
Quickest way to reach the customer.
Bigger profit margins for the customer.
7
State an advantage of Below-The-Line promotion.
It can only reach a limited number of customers.
It is expensive.
It can reach a larger target audience.
It is used to build relationships with customers.
8
Which one of these pricing strategies is the least riskiest strategy?
Destroyer Pricing
Competition-Based Pricing
Promotional Pricing
Loss Leaders Pricing
9
Which of one of these product life cycle shows the launch of the product?
Maturity
Growth
Introduction
Decline
10
What is one advantage of skimming?
It shows a high quality of a product which sales revenue can be generated.
It guarantees a profit.
It risks the customer not buying the products after an increase on price.
It doesn't consider the competitor's prices.
11
Which of these have low market share and high market growth?
Cash Cow
Dog
Question Mark
Star
12
Which of one of these product life cycle shows the downfall of the product?
Introduction
Decline
Growth
Maturity
13
What are the examples of extension strategies to increase the life span of the product?
Removing old products.
Developing a variety of product range.
Launching a new product.
Increasing the prices.
14
Which one of these pricing strategies can make competitors go out of business?
Cost-Plus Pricing
Destroyer Pricing
Promotional Pricing
Skimming Pricing
15
What is market segmentation?
It is when customers are loyal to the products and services aimed at them.
It is the process of increasing market costs.
Merging the market into a many different consumer groups to form a market.
Dividing the market into specific consumer groups to form a target market.
16
State a disadvantage of direct selling.
Slower to reach customers.
No retail outlets so customers cannot try any products.
It is not aimed at any customers.
The producer cannot control where the product is sold.
17
Which type of market segmentation divides the market based on location?
Geographical Segmentation
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
18
What is one disadvantage of penetration?
It risks the customer not buying the products after an increase on price.
It can get rid of old stocks.
It needs other ways to attract customers than pricing.
It is a safe strategy.
19
Which of these have high market share and high market growth?
Dog
Question Mark
Cash Cow
Star
20
Which type of market research collects existing information from any place?
Secondary Research
Indirect Research
Direct Research
Primary Research

IGCSE Business Studies - Unit 4 Questions Flashcards | StudBud