1.1.1 - 1.1.2 Meeting Customer Needs - Edexcel A Level Business

Which of the following best defines a mass market?

• A small, specialized market catering to specific needs

• A market that appeals to a wide range of customers

• A market with only a few competing firms

• A market that is only accessible through physical retail stores

Which of these characteristics is associated with niche markets?

• High volume of sales

• Targeting a specific group of consumers with specialized needs

• Low prices and low differentiation

• Broad and general product offerings

Market size is typically measured by:

• The number of competitors in a market

• The total sales or revenue generated within a market

• The number of brands available in a market

• The average price of goods in the market

Market share refers to:

• The proportion of total sales that a company or product holds within a market

• The growth rate of the market over time

• The number of customers a company has

• The amount of products available in the market

Brands are important in a mass market because:

• They reduce production costs

• They help differentiate products from competitors

• They increase market share by appealing to a small, select group

• They are only used in niche markets

Which of the following is NOT a characteristic of a dynamic market?

• Constant change and evolution

• Predictable customer preferences

• Innovation driving market growth

• Adapting to changing market conditions

What is the primary benefit of online retailing?

• Lower prices for consumers

• Access to a global customer base

• Higher competition for physical stores

• Limited product range

Innovation helps market growth by:

• Decreasing product prices

• Maintaining the status quo in the market

• Offering new and improved products or services

• Reducing competition

When businesses are adapting to market change, they must:

• Increase their prices

• Reduce their innovation efforts

• Monitor consumer preferences and technological advancements

• Eliminate all competition

How does competition affect markets?

• It usually decreases consumer choice

• It drives businesses to improve quality and lower prices

• It only benefits larger businesses

• It leads to higher prices for all consumers