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Qualifications Edexcel GCSE Business

1.2 Spotting a business opportunity

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Which list shows the four main customer needs?
Price, quality, choice and convenience
Which statement best describes what customers usually want about price?
Good value rather than lowest price
Which sentence best distinguishes 'cheap' from 'good value'?
Cheap suggests low cost and quality
Which idea is correct about price and quality?
Low price does not guarantee low quality
Why is quality often judged differently by customers?
Different customers judge quality differently
What does 'choice' mean for a business offering products?
Offering a range of options for customers
What is a likely problem from offering too much choice?
Customers become confused and sales drop
Which is an example of improving convenience for customers?
Multiple payment and finance options available
Why does a business location matter to customers?
Customers prefer easy to access businesses
What is the consequence of poor product availability?
Customers cannot buy and sales are lost
Which delivery feature most increases convenience for customers?
Fast, reliable and low cost delivery
Why must a business identify a target market?
To tailor price quality choice and convenience
What result follows getting the right mix of customer needs?
Generates sales and helps business survive
Which purpose of market research helps businesses avoid costly mistakes?
Reduces the risk of failure
Which research type answers how many or how often questions?
Quantitative research collecting numerical data
Which method mainly produces qualitative insights from a small discussant group?
Focus groups with selected participants
Which is a key benefit of social media for market research?
Provides real time consumer data
Which secondary source is detailed but often costs money?
Market reports from private companies
Which questionnaire question type is easier to count?
Closed questions with set answers
Which is an example of observation in market research?
Watching shoppers choose products
Why must a sample represent the market in research?
To make the data reliable
Which problem can unreliable market research cause?
Missing customer needs and opportunities
Which describes primary research?
First hand information collected directly
Which tool mixes open and closed questions?
A planned questionnaire for respondents
Which feature of government reports limits their use for specific markets?
They tend to be broad and general
Why do businesses use market segmentation?
To group consumers with similar needs
Which is not a main method of market segmentation?
Company organisational ownership type
Which product mix matches climate segmentation for warm areas?
Sun protection lotion and light clothing
Which best explains the purpose of market segmentation?
To divide market into similar groups
How does segmentation help businesses market products?
To tailor products for specific groups
Which describes a niche product?
Targets a narrow specific customer group
What is a target market?
A specific group a product targets
Why does climate matter in geographic segmentation?
Because consumers need different climate products
Which best explains the purpose of market segmentation?
To divide market into similar groups
How does segmentation help businesses market products?
To tailor products for specific groups
Which describes a niche product?
Targets a narrow specific customer group
What is a target market?
A specific group a product targets
Why does climate matter in geographic segmentation?
Because consumers need different climate products
Which best explains the purpose of market segmentation?
To divide market into similar groups
How does segmentation help businesses market products?
To tailor products for specific groups
Which describes a niche product?
Targets a narrow specific customer group
What is a target market?
A specific group a product targets
Why does climate matter in geographic segmentation?
Because consumers need different climate products
How does population density affect business location choices?
Urban areas attract more cafés and outlets
Why might a global restaurant change menus by country?
To suit local tastes and preferences
How does age segmentation help businesses?
By designing products for life stages
Which is an example of lifestyle segmentation?
Sporty people who buy athletic gear
What does socio-economic grouping combine?
Income, education and occupation data
What is a risk of assuming segment members are identical?
Missing individual needs within a segment
How does market mapping help businesses?
It shows competitors and market gaps
Why does competition in a market usually benefit customers?
Wider choice and lower prices
What indicates a monopoly in a market?
Only one supplier in the market
Which feature is typical of an oligopoly?
A few large firms dominate market
Why must businesses study their competitors?
To identify competitors' strengths and weaknesses
What does a SWOT analysis help a business do?
Judge its position and spot threats
Which factor is NOT one of the five main competitor analyses?
Competitor advertising budget estimates
What is a likely effect of cutting prices to gain market share?
Reduced profit margins per sale
Which pricing strategy helps a new business attract customers quickly?
Penetration pricing with low prices
How can high quality affect a business's pricing?
Allow charging higher prices
Which location choice suits a retail café best?
High footfall city centre spot
How can a start-up use social media effectively?
Engage customers and build market share