Business Studies Multiple Choice

(1/2 mark per question)
1. Dribbler has recently launched an innovative basketball shoe specifically targeting teenagers.
Which type of market is Dribbler targeting?

A. Mass markets.
B. Niche markets.
C. Consumer markets.
D. Intermediate markets.

2. Post Office franchises have recently diversified into selling stationery and other
products. Their customers were surveyed while in the shops and their responses were
used to make a decision to diversify.
Which aspect of the market research process does this refer to?

A. Primary data collection.
B. Secondary data collection.
C. AG McNair data collection.
D. Australian Bureau of Statistics data collection.

3. Wipe-Out Surf Boards have developed a surf board that incorporates new technology and will assist people who are learning to surf. The surf board will be considerably more expensive than similar surf boards.
Which of the following statements best describes this marketing practice?

A. Segmentation by age.
B. Segmentation by gender.
C. Segmentation by income.
D. Segmentation by lifestyle.

4. For what type of reports are sales analysis and market share analysis useful?

A. Determining the market mix.
B. Monitoring the marketing plan.
C. Positioning the product.
D. Branding the product.

5. What marketing strategy is branding associated with?

A. Product.
B. Price.
C. Positioning.
D. Place.

6. Which of the following is an example of direct marketing?

A. Advertising in the local paper.
B. Mail order catalogues with the facility to deliver door to door.
C. Advertising a product on the television.
D. A huge sell-out sale held by a department store.

7. Which of the following is an example of an indirect projected cost?

A. Advertising in the local paper.
B. Administration cost.
C. Research and development cost.
D. Leasing of a warehouse.

8. Which of the following is not an element of a SWOT analysis?

A. Strengths.
B. Threats.
C. Weaknesses.
D. Objectives.

9. Which of the following statements is the most correct in relation to the product life cycle?

A. During the establishment phase, sales will be high and the break-even point will
be low.
B. During the establishment phase, sales will be low and the break-even point will be
low.
C. During the establishment phase, sales will be high and the break-even point will
be high.
D. During the establishment phase, sales will be low and the break-even point will be
high.

10. Which of the following is an example of market penetration?

A. Manipulating the price of a product so it is set low in order to have a bigger share
in the market.
B. A soft drink company is attracting existing customers to their new soft drink range
by a marketing strategy that relies on them purchasing their products more
frequently and a larger quantity of them.
C. A new clothes brand for teenage girls is sold exclusively in a major department store.
D. Increasing the customer base of a fast food chain by opening in a new location.

11. What is meant by the term “guerrilla marketing”?

A. Using an existing brand to advertise a new brand.
B. Positioning a product in a prominent location near a checkout.
C. The price of a product is relatively high.
D. The marketing campaign of a product or service which is unconventional,
potentially interactive and in unexpected places.

12. Which of the following is a geocentric approach to marketing products and
services internationally?

A. A business markets their product or service globally the same as it does domestically.
B. A business customises the market mix to meet the specific needs of each foreign market.
C. A business analyses the needs of the customers worldwide and adopts a standardised marketing mix for all of the markets it serves.
D. A business allows its expatriate staff to market their product range or service as they see fit for the local culture.

13. Which NSW legislation covers aspects of delivery of goods, transfer of ownership,
product quality and the fitness for purpose?

A. Commonwealth Trade Practices Act.
B. NSW Delivery of Goods Act.
C. NSW Sale of Goods Act 1987.
D. Commonwealth Sale of Goods Act 1987.

14. What is meant by “price discrimination”?

A. Selling of the same product to different groups of people at different prices.
B. Traders advertise products at very low prices to attract customers when they have
a very limited amount of stock. Once the low priced stock is sold, the trader steers
the customer to a higher priced or lower quality product.
C. Misleading customers on the price of goods or services.
D. Advertising goods as new if they have been used.

15. Offering a loyalty or reward card to customers for repeat sales is an example of?

A. Relationship marketing.
B. Customer orientation.
C. Sales approach.
D. Production approach.

16. Which of the following is a psychological factor influencing a person buying a house?

A. Relocating because the land across the road has been rezoned for industrial use.
B. Buying where the house prices are cheaper.
C. Influence of family to be closer together geographically.
D. Personal aspirations for improving social status by buying in a particular location.

17. In what type of market does a business sell standard and undifferentiated products where there is a large demand?

A. Niche market.
B. Mass market.
C. Consumer market.
D. Intermediate market.

18. Which of the following is not considered by ACCC as anti-competitive conduct?

A. Not honouring a warranty.
B. Predatory pricing.
C. Price fixing.
D. Cartel conduct.

19. A door –to-door salesperson is asking for a survey to be filled out as market research. She then tries to sell you her product or service. What practice is this an example of?

A. Third line forcing.
B. Predatory selling.
C. Misuse of market power.
D. Sugging.

20. A large global business lists in the Annual Report, sales and other revenue by
geographical segments. What is this an example of?

A. Global market.
B. Geographic expansion.
C. Geocentric revenue.
D. Organisation of sales into market territories.

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