If a product performs its job well, which design mix element is being met?
The function element of design
Aesthetics refers to which aspect of a product?
How a product looks and feels
Which product would prioritise low cost over looks?
A budget supermarket brand
What does a product life cycle diagram normally plot?
Sales over time or stage
Which is the correct order of product life cycle stages?
Development, growth, maturity, decline
Why might sales be low at product introduction?
Because customers are unaware initially
What indicates the maturity stage of a product?
Sales reach their peak level
Which is a valid reason for keeping a declining product on sale?
It still makes a profit
Which is an example of a product extension strategy?
Introducing new variants
How does redesigning packaging help a product?
Makes it more attractive to buyers
What is differentiation in product strategy?
Offering something different from competitors
Which best describes a Unique Selling Point (USP)?
A feature competitors do not offer
What best describes 'price' in a business context?
Amount charged for a product
Which factor should a business consider when setting a price?
Production cost of the product
Which is an advantage of cost-based pricing?
Helps cover costs and profit
What describes competition-based pricing?
Setting prices based on rivals' charges
Which is an advantage of competition-based pricing?
Helps retain customers from rivals
What is penetration pricing?
Low initial price then raises later
Which is an advantage of penetration pricing?
Attracts customers and builds loyalty
When is price skimming most suitable?
When early demand is strong
What is an advantage of price skimming?
Maximises profits from early buyers
What is premium pricing mainly used to do?
Position product as luxury or exclusive
Why is predatory pricing risky for the business using it?
Can cause losses for the business
Which is an example of psychological pricing?
Using nine pounds ninety-nine pence
What is the name for the promotional method in which a business pays towards an event, person or team in return for having its name promoted?
Sponsorship
What is meant by 'product trial'?
Letting customers try a product for free or at a reduced price before they buy
Which term describes online adverts that are selected for a user based on what they have searched for and looked at before?
Targeted advertising
What is meant by 'branding'?
Creating a name, logo and image for a product that customers recognise and trust
What is the name for a regular online bulletin that a business sends to customers who have signed up to receive its news and offers?
E-newsletter
What is meant by 'viral advertising'?
Promotional content that users share online so it spreads quickly
A small local cafe has a limited budget and wants to attract shoppers who live nearby. Which advertising method is most suitable?
Putting posters and flyers in the local area
Which of the following is an example of a product trial?
A company gives away free samples of a new soap
Why might a supermarket use a buy one get one free offer for a short period?
To increase sales in the short term by making the product appealing
What is the main benefit to a business of having strong branding?
Customers recognise the product easily and will pay more for it
A customer searches online for flights to Spain and then sees adverts for Spanish hotels in their social media feed. Why do these adverts appear?
Their browsing history is used to show adverts matching their interests
Why are businesses keen to create adverts that go viral on social media?
It is shared by users and spreads quickly at little cost
What is an advantage to a business of using e-newsletters to promote its products?
They are cheap to send directly to customers who have signed up
A company that sells gardening tools sponsors a national gardening show. What is the main benefit of this sponsorship for the company?
Its brand is seen by people who already enjoy gardening
A cafe has offered half price meals every weekend for a year. Why might this be a problem for the cafe?
Customers may wait for the offer instead of paying the full price
What is meant by 'special offers' as a method of promotion?
Short term price cuts or extra free product to attract buyers
A business selling expensive watches advertises in a luxury lifestyle magazine. Why is this a good choice?
The magazine is read by the customers it wants to reach
A drinks company gives away free cans of a new flavour at a railway station. Why does it do this?
Customers can try the flavour and may then buy it in shops
Which is a disadvantage for a business of promoting its products on social media?
Negative comments can spread quickly to many people
What is meant by 'e-tailer'?
A retail business that sells its products to customers online
Which term describes a business that buys large quantities of products and sells them on to shops?
Wholesaler
What is meant by 'e-commerce'?
Any business transaction that is carried out online
Which term describes a shop or outlet that sells products or services on behalf of a producer?
Retailer
What is meant by 'direct distribution'?
Selling products straight from the producer to the consumer
What is meant by a channel of distribution?
The route a product takes from the producer to the consumer
A farm sells its meat and vegetables directly to customers who visit the farm. Which channel of distribution is being used?
Producer to consumer
Which is a benefit to a producer of selling its products through a retailer?
The producer gains access to many more customers than selling alone
Why can a wholesaler usually buy stock at lower prices than a small retailer?
It buys products in much larger quantities from the producer
How has e-commerce changed the way many businesses distribute their products?
A business can sell to customers without a physical shop
What is a benefit to an e-tailer of being open for business 24 hours a day?
Customers can place orders at any time, which may increase sales
What is a benefit to a small e-tailer of selling through a large platform such as Amazon or eBay?
It can reach a much larger audience of potential customers
What is meant by an indirect channel of distribution?
A route to the consumer that involves at least one other business
A furniture maker sells its sofas to a wholesaler, who sells them to a high street shop, which then sells them to customers. Which channel of distribution is this?
Producer to wholesaler to retailer to consumer
Which is a drawback to a producer of selling its products through a retailer?
The producer receives a smaller share of the selling price
Why might a producer sell its products to a few wholesalers instead of dealing with hundreds of retailers itself?
It reduces the number of businesses the producer has to deal with
Why can an e-tailer often keep its costs lower than a high street retailer?
It can trade from cheaper premises such as a warehouse or a home
Which is a drawback for a business of selling its products only online?
It faces competition from sellers all over the world
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