Which stage of the product life cycle would a business use penetration pricing?
Show model answer
A. Introduction Penetration pricing is used in the introduction stage to attract customers and gain market share. It is not suitable for later stages.
A business wants to launch a new smartphone. Which pricing method would help it gain market share quickly?
Show model answer
C. Penetration pricing Penetration pricing sets a low price to attract customers and gain market share quickly. Other methods are not as effective for this purpose.
Which distribution channel would be most suitable for a small business selling handmade jewellery?
Show model answer
B. Selling directly to consumers online Selling directly to consumers online allows the business to keep costs low and build a relationship with customers. Other channels may not be suitable for a small business.
Which form of promotion would be most effective for a new product launch aimed at young people?
Show model answer
C. A social media campaign A social media campaign would be most effective for reaching young people. Other forms of promotion may not reach the target audience as effectively.
Which of the following is an example of e-commerce?
Show model answer
B. A customer ordering a product online and having it delivered E-commerce involves buying and selling goods or services online. Other examples do not involve online transactions.
Which of the following is an example of a product extension strategy?
Show model answer
B. Adding new features to an existing product A product extension strategy involves adding new features or improvements to an existing product to extend its life cycle. Other examples do not fit this definition.
Which of the following is an example of a price elastic demand?
Show model answer
A. A small increase in the price of a luxury car leads to a large decrease in demand Price elastic demand occurs when a small change in price leads to a large change in demand. Other examples do not fit this definition.
Which of the following is an example of a benefit of using a wholesaler as a distribution channel?
Show model answer
B. The business can reach a wider market Using a wholesaler as a distribution channel allows the business to reach a wider market. Other benefits may not be as significant.
Which of the following is an example of a limitation of using a retailer as a distribution channel?
Show model answer
C. The business may have less control over the selling environment Using a retailer as a distribution channel may mean that the business has less control over the selling environment. Other limitations may not be as significant.
Which of the following is an example of a benefit of using social media for promotion?
Show model answer
D. All of the above Using social media for promotion has many benefits, including reaching a wide audience quickly and at low cost, targeting specific groups of customers, and building a relationship with customers.
Which of the following is an example of a threat of e-commerce to businesses?
Show model answer
D. All of the above E-commerce poses many threats to businesses, including increased competition from online businesses, the need to invest in technology and infrastructure, and the need to manage customer expectations and complaints online.
Which of the following is an example of a benefit of e-commerce to consumers?
Show model answer
D. All of the above E-commerce offers many benefits to consumers, including the ability to shop 24/7, compare prices and products easily, and read reviews and ratings from other customers.
Which of the following is an example of a limitation of using the internet for promotion?
Show model answer
C. The business may have less control over the message and brand image Using the internet for promotion may mean that the business has less control over the message and brand image. Other limitations may not be as significant.
Which of the following is an example of a benefit of using a sales promotion as a form of promotion?
Show model answer
C. The business can encourage customers to make a purchase immediately Using a sales promotion as a form of promotion can encourage customers to make a purchase immediately. Other benefits may not be as significant.
Which of the following is an example of a limitation of using a sales promotion as a form of promotion?
Show model answer
C. The business may damage its brand image if the promotion is not well-managed Using a sales promotion as a form of promotion may damage the business's brand image if the promotion is not well-managed. Other limitations may not be as significant.