When a business calculates the selling price of a product by adding a percentage to its cost, it is called…

  • Loss leader
  • Price skimming
  • Competitive pricing
  • Cost plus

Which promotional method manages communications to establish and maintain a positive reputation

  • Sponsorship
  • Social media
  • Advertising
  • Public relations

A company targeting a specific age group, such as teenagers, is an example of:

  • Demographic segmentation
  • Geographic segmentation
  • Behavioral segmentation
  • Behavioural segmentation

Which is an advantage of primary research?

  • Data is specific to the business's needs
  • Research has already been undertaken by someone else
  • Data is always up to date
  • Data is always accurate

Why might a business choose to keep its selling prices low?

  • There is lots of competition in the market
  • To create a premium brand
  • The product is in the maturity phase of its lifecycle
  • Its fixed costs increase

When setting a price for its products, which of the following is the most important consideration?

  • The cost of the rent it must pay
  • Providing good value for the target customer
  • Complying with the Weights and Measures Act (1985)
  • Increasing its sales

Which of the following is not a definition of a "market"?

  • A geographical area where buys and sellers come together
  • Competition between businesses to sell a certain type of product
  • A particular customer demographic
  • A series of cash transactions

Which term describes selling a product at a loss, but recovering profits on other items a customer may subsequently purchase?

  • Cost plus
  • Loss leader
  • Price skimming
  • Penetration pricing

A ______________ is when a business has a range of different products to sell.

  • Boston Matrix
  • Cash Cow
  • Extension strategy
  • Product Portfolio

What is market size?

  • The physical size of a market
  • The number of competitors in a market
  • The total value or volume of a market