Business Studies


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 1.   Quantitative data is best defined as data which:

A   gives information about opinions, judgements and attitudes Incorrect – this information is gathered from qualitative data

B   can be presented in number form and can be statistically analysed

     Correct – quantitative date refers to ‘quantities’ and thus can be analysed into number form and can be statistically analysed.

C   tells businesses about customer needs

     Incorrect – this is could be the result of either qualitative or quantitative data after it has been collected.

D  comes only from primary research

     Incorrect – quantitative data can come from both primary and secondary sources. (1 mark)

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 2. Which one of the following would most likely be considered an example of marketing research? Select one answer.

A    Hiring a new worker

       Incorrect – this is part of human resource management.

B  Repairing a machine

       Incorrect – this is part of the production process.

C  Surveying customers about a product.

       Correct surveying customers would result in gathering their opinions

D  Sending an invoice to a customer  (1 mark)

       Incorrect – this is done as part of the billing process when a customer buys a product.

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 3.  Which one of the following would be an example of market research? Select one answer.

A  Launching a new advertising campaign for a product

     Incorrect – the advertising campaign usually follows the market research process.

B  Cutting the price of a product

     Incorrect – price cutting is a promotional tool.

C  Persuading a large supermarket chain to sell a product

      Incorrect – this is part of the ‘place’ element of the 4Ps.

D  Surveying customers about the qualities of a product  (1 mark)

    Correct – surveying customers is a market research strategy.

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 4. A publishing company is about to launch a new magazine aimed at female readers aged 14-20. Which two of the following would be direct ways in which the company could try to get potential readers to buy the first issue of the magazine? Select two answers.

A  Keep production costs low

       Incorrect – low or high production costs will not persuade or dissuade a customer from buying the product.

B  Offer a free lipstick with the issue

      Correct – a relevant free gift acts as an incentive to the purchaser.

C  Take on extra staff

      Incorrect – this is a human resources matter and has no bearing on a customer’s decision to purchase.

D  Sell the first issue at half price

      Correct – a reduced price may persuade a customer to buy a product without having to spend too much money on it.

E  Cut advertising on other magazines produced by the company

       Incorrect – many of the other magazines may have different target markets. (2 marks)

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5.  A car manufacturing company is worried that there is little customer loyalty amongst car buyers for its vehicles. Select one answer to show that the lack of customer loyalty is most likely to mean that:

A  customers are buying a different make of car when they sell their existing car

        Correct – a lack of loyalty means that customers will not return to purchase the same brand again and again.

B  car sales for the company are increasing

         Incorrect – a lack of loyalty often reduces sales levels

C  the cars the company sells are seen as being good value

        Incorrect – good value often results in customer loyalty.

D  it would be more profitable for the company to make large cuts in the price of its cars

       Incorrect – large price cuts are not a guarantee of customer loyalty as it is often based on many different factors

     (1 mark)

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 6.A company making frozen pizzas depends for its success on repeat purchases. Customers are most likely to make repeat purchases because: Select one answer.

A  it determines the amount of profit the company makes

       Incorrect – the amount of profit is based on several different factors and not just sales levels.

B  it increases sales of pizzas

       Incorrect – repeat purchases maintain sales levels for a company.

C  the company spends heavily on advertising

       Correct – advertising encourages people to make repeat purchases.

D  in the pizza market, customers have little brand loyalty.

      Incorrect – little brand loyalty would not generate repeat purchases. Also, in the pizza market people do tend to have brand loyalty.     (1 mark)

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Leah Porter


Chelsea Borland

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