AQA A Level · Business 7138

Market research and market data: Practice Questions

5 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on Market research and market data.

9 questions16 marksFree, no account

Question 1

1 mark

If a product has a Price Elasticity of Demand (PED) of \( -2.5 \), how will a small increase in the selling price affect the business's total revenue?

Question 2

1 mark

A firm's product has a Price Elasticity of Demand (PED) of \(-0.4\). If the firm decides to reduce the selling price of the product by \(10\%\), what will be the effect on total revenue?

Question 3

1 mark

In marketing, what is the primary purpose of constructing a market map (positioning map)?

Question 4

1 mark

A product has an Income Elasticity of Demand (YED) of \( +0.4 \). What does this coefficient indicate about the product?

Question 5

1 mark

Which pricing strategy involves setting a high initial price for a new, innovative product before gradually lowering it over time as competitors enter the market?

Question 6

2 marks

State the term used in digital marketing for a metric that measures the percentage of website visitors who complete a desired action, such as making a purchase or signing up for a newsletter.

Write your answer out first, then check it against the worked solution.

Question 7

3 marks

A firm spends \( £25,000 \) on a digital marketing campaign. The campaign directly generates \( £120,000 \) in additional revenue, with associated variable costs of \( £45,000 \). Calculate the return on marketing spend percentage generated by the campaign.

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Question 8

2 marks

A market segment was valued at \( £800{,}000 \) in 2022 and increased to \( £920{,}000 \) in 2023. Calculate the percentage market growth over this period.

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Question 9

4 marks

A boutique beverage manufacturer sells organic fruit juices. Last year, the business sold \( 80,000 \) bottles at a price of \( £3.00 \) each.

Following an increase in production costs, the business decided to increase the selling price to \( £3.60 \) per bottle. In response to this price increase, annual sales volume fell to \( 68,000 \) bottles.

(a) Calculate the percentage change in price and the percentage change in quantity demanded.
(b) Calculate the Price Elasticity of Demand (\(\text{PED}\)) for the fruit juice.
(c) State whether the demand for this product is price elastic or price inelastic, and explain how the price increase affected the total revenue of the business.

Write your answer out first, then check it against the worked solution.

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