Take this Quiz: BTEC Business: Developing a Marketing Campaign | Zestly

Question 1

Calverton Cycles is considering a new product line. Which of the following activities represents primary research for the firm?

Accepted Answer

Running a survey of its own customers about a product it is considering.

Answer

Reviewing a competitor's published annual accounts.

Answer

Reading a published report on the cycling market.

Answer

Looking up national statistics on household spending.

Question 2

Calverton Cycles conducts a focus group of eight customers to discuss a new bicycle design. What does this method provide that a survey of two thousand people does not?

Accepted Answer

Depth: the reasons behind the answers, in the customers' own words.

Answer

A result that can safely be applied to the whole market.

Answer

A larger and more reliable sample.

Answer

A figure that can be quoted as a percentage of all buyers.

Question 3

Calverton Cycles surveys 400 people about why they would switch brands. 260 people say price is the main reason, 90 say design, and 50 say after-sales service. Which conclusion do these figures support?

Accepted Answer

That price matters most to this sample, with 65 per cent naming it.

Answer

That the firm should raise its prices, since price is what customers notice.

Answer

That price matters most, with 26 per cent naming it.

Answer

That design and service together matter more than price.

Question 4

Which of the following methods of dividing a market is an example of demographic segmentation?

Answer

Grouping customers by the region they live in.

Answer

Grouping customers by how often they buy.

Answer

Grouping customers by the attitudes and values they hold.

Answer

Grouping customers by age and income.

Question 5

Calverton Cycles decides to sell only to serious road cyclists rather than to everyone who might buy a bicycle. What is the firm doing?

Answer

Positioning the product, which means choosing a price.

Answer

Diversifying, because it is entering a new market.

Answer

Choosing a target market, accepting a smaller audience in exchange for a sharper offer.

Answer

Segmenting the market, which is the same decision.