Take this Exam: A-Level Business: Marketing and the Market | Zestly

Question 1

A toy manufacturer notices that sales of its classic board game have stopped growing and are starting to decline. The firm decides to release a new 'travel edition' of the game to boost interest. Which stage of the product life cycle is the game in, and what is the purpose of the new edition?

Accepted Answer

Maturity stage; the firm is implementing an extension strategy.

Answer

Growth stage; the firm is attempting to increase market share.

Answer

Decline stage; the firm is attempting to liquidate stock.

Answer

Maturity stage; the firm is attempting to replace the product.

Question 2

A luxury watchmaker positions its brand as an exclusive, high-end choice. However, the firm decides to sell its watches in discount supermarkets to increase sales volume. Which element of the marketing mix is inconsistent, and what is the likely consequence?

Accepted Answer

Place; it will damage the brand's premium image.

Answer

Price; it will lead to higher profit margins.

Answer

Product; it will improve the quality of the watches.

Answer

Promotion; it will increase the brand's exclusivity.

Question 3

A small electronics firm is deciding whether to sell its new gadget directly through its own website or through a large national retailer. What is the primary trade-off the firm faces?

Accepted Answer

Direct selling offers higher margins and control, but the retailer offers wider reach.

Answer

Retailers offer higher control but lower reach.

Answer

Direct selling is cheaper to manage but retailers offer better brand protection.

Answer

Direct selling offers wider reach but lower profit margins.

Question 4

Two rival coffee shops sell identical lattes, yet one shop sustains a price that is two pounds higher than the other. In economic terms, what is the brand doing to the demand curve?

Answer

It is shifting the supply curve to the left.

Answer

It is reducing the total market size.

Answer

It is making demand more price inelastic, allowing for higher prices.

Answer

It is making demand more price elastic, forcing lower prices.

Question 5

A digital marketing agency can now track exactly which online advertisement led to a specific customer purchase. What does this measurability change about the firm's decision-making?

Answer

It allows the firm to ignore the cost of the advertisement.

Answer

It enables the firm to calculate return on investment more accurately and optimise future spending.

Answer

It ensures that all customers who click the advertisement will eventually make a purchase.

Answer

It proves that the advertisement caused the sale, eliminating the need for further analysis.