IGCSE Business Exam Questions
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Questions and Answers

Outline two possible advantages to ALB of using retailers to distribute its products.

  1. Increased market reach. 2. Reduced distribution costs.

Competitive pricing is often used to attract __________ from consumers.

buyers

Which of the following is NOT an element of the marketing mix?

  • Price
  • Place
  • Product
  • Process (correct)

    • A good brand image can lead to customer loyalty.

    <p>True</p> Signup and view all the answers

    What is one benefit and one cost to a business of developing new products?

    <p>Benefit: Potential for increased sales; Cost: Significant research and development expenses.</p> Signup and view all the answers

    Match the concept with its definition:

    <p>Brand image = Perception of a brand in the minds of consumers Marketing mix = Combination of product, price, place, and promotion Marketing budget = Financial plan for marketing activities Competitive pricing = Setting prices based on competitors' strategies</p> Signup and view all the answers

    Define 'brand image'.

    <p>The perception of a brand in the minds of consumers.</p> Signup and view all the answers

    What is one reason why packaging will be important for Paolo's business?

    <p>It will attract customers and enhance brand identity.</p> Signup and view all the answers

    What is the selling price per unit of the camera?

    <p>$120</p> Signup and view all the answers

    Which stage of the product life cycle may lead to lower pricing due to increased competition?

    <p>Maturity</p> Signup and view all the answers

    The variable cost per unit of the camera is lower than the fixed costs.

    <p>True</p> Signup and view all the answers

    Selling to a wholesaler is generally the best channel of distribution for start-up businesses.

    <p>False</p> Signup and view all the answers

    What is the margin of safety in units for the camera?

    <p>500</p> Signup and view all the answers

    What percentage of consumers expect businesses to respond to environmental pressures?

    <p>85%</p> Signup and view all the answers

    Demand for Kemala's best-selling hand cream is price ______.

    <p>inelastic</p> Signup and view all the answers

    Match the marketing strategy to its description:

    <p>Advertising in specialist beauty magazines = Targeted approach to customers interested in beauty products Adding new features to a product = Enhancing product appeal and differentiation Using retailers as distribution channels = Leveraging existing retail networks to reach consumers Explaining the importance of cash flow = Understanding financial health and maintaining liquidity</p> Signup and view all the answers

    Gino's goal for Return on Capital Employed (ROCE) is ____%.

    <p>10</p> Signup and view all the answers

    Which of the following might contribute to price inelastic demand for a product?

    <p>Essentiality of the product</p> Signup and view all the answers

    What is one potential benefit of developing new products for a business?

    <p>Improved customer loyalty</p> Signup and view all the answers

    Fixed costs remain constant regardless of the number of units sold.

    <p>True</p> Signup and view all the answers

    Match the fast-food restaurant features to their descriptions.

    <p>Full-time chefs = Employed to ensure food quality and service Part-time workers = Hired to manage busy hours and flexible operations Regular meetings = Used to communicate menu changes effectively Inflation = A potential challenge affecting food pricing</p> Signup and view all the answers

    List two potential roles of packaging for products.

    <p>Protection, Branding</p> Signup and view all the answers

    Maintaining customer loyalty is less important than attracting new customers according to GBU's Marketing Director.

    <p>False</p> Signup and view all the answers

    Name one way Gino could increase the number of customers at his restaurant.

    <p>Enhancing marketing strategies or introducing promotional offers.</p> Signup and view all the answers

    What could be a threat to Pamela's business due to her avoidance of e-commerce?

    <p>Higher operational costs</p> Signup and view all the answers

    Raul's farm sells its produce directly to a drinks manufacturer.

    <p>True</p> Signup and view all the answers

    Name one external cost created by Raul’s farming activities.

    <p>Environmental degradation due to pesticides.</p> Signup and view all the answers

    Developing a new product for PPE might incur a _______ due to research and development expenses.

    <p>cost</p> Signup and view all the answers

    Match the following pricing methods with their descriptions:

    <p>Cost-plus = Setting price based on production costs plus a mark-up Competitive pricing = Setting price based on competitors' prices Penetration pricing = Setting a low price to enter a competitive market Skimming pricing = Setting a high price initially then lowering it</p> Signup and view all the answers

    Which of the following is a potential benefit of giving out free samples for a new food product?

    <p>Gaining customer trust</p> Signup and view all the answers

    Import tariffs impose lower costs on goods coming into a country.

    <p>False</p> Signup and view all the answers

    What is one advantage of using wholesalers for a large business's distribution?

    <p>Wider distribution reach.</p> Signup and view all the answers

    What is one advantage of selling directly to customers using SSE’s website?

    <p>Higher profit margins</p> Signup and view all the answers

    Selling to large sports retailers leads to greater control over pricing and branding.

    <p>False</p> Signup and view all the answers

    Which pricing method involves setting a low price to attract customers quickly?

    <p>Penetration pricing</p> Signup and view all the answers

    The ______ method of promotion is essential for CC’s new range of personalised mobile phone covers.

    <p>targeted marketing</p> Signup and view all the answers

    Which sales promotion method is likely to attract the most immediate customers to Gemma's new shop?

    <p>Buy one, get 50% off second purchase</p> Signup and view all the answers

    Promoting brand image is considered the most important role of packaging.

    <p>False</p> Signup and view all the answers

    What are two benefits of using a wholesaler for product distribution?

    <p>Lower pricing and wider market reach.</p> Signup and view all the answers

    The method of promoting products through _____ magazines is often used for targeting niche markets.

    <p>specialist</p> Signup and view all the answers

    Match the sales promotion methods with their potential impact on revenue:

    <p>Buy one, get 50% off second purchase = Encourages multiple purchases 10% off everything = Increases overall foot traffic Pay a celebrity to open the shop = Enhances brand visibility</p> Signup and view all the answers

    What is one disadvantage of a retailer as a distribution channel?

    <p>Higher pricing strategies</p> Signup and view all the answers

    E-commerce presents only opportunities with no threats for businesses.

    <p>False</p> Signup and view all the answers

    What should Tokumbo consider when choosing options for the future growth of SA?

    <p>Market trends and financial projections.</p> Signup and view all the answers

    Study Notes

    IGCSE Business - Exam Questions

    • The exam is 4 hours long and has 40 questions.
    • The total marks for all sections are 258.
    • Sections are broken down into: Easy (12 questions, /34 marks), Medium (20 questions, /128 marks) and Hard (8 questions, /96 marks).
    • The exam covers the Marketing Mix, including products, pricing, place, and promotion. It also involves aspects of the product life cycle, and price elasticity of demand. Technology and the significance of these methods in business are also included.

    Case Study 1 (Page 2)

    • PJA makes fashion clothing for 16-25 year olds.
    • PJA produces new products every 3 weeks.
    • Products are made in a local factory due to import quotas.
    • The Managing Director is using ratio analysis to analyze financial statements from 2020.
    • Key financial data from PJA's 2020 financial statements include:
      • Revenue: $7,400 million
      • Gross profit: $3,330 million
      • Profit: $1,100 million
      • Current ratio: 1.5
      • Return on Capital Employed (ROCE): 8%
    • Developing new products is a benefit, however, they may be difficult to market effectively due to high competition from other companies

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    Related Documents

    IGCSE Cambridge (CIE) Business Past Paper 2023 PDF

    Description

    This quiz is designed to test your knowledge on key topics covered in the IGCSE Business course, including the Marketing Mix, product life cycle, and price elasticity of demand. You will encounter various questions that assess your understanding of financial analysis through a case study of PJA, a fashion clothing company. Prepare to challenge yourself with 40 questions spanning easy to hard levels.

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