HSC YEAR 12 BUSINESS STUDIES TEST AND REVISION PAPER.
Multiple Choice Test: Marketing (31 MARKS).
1Positioning is a part of which business function?
(A) Accounting
(B) Finance
(C) Marketing
(D) Operations
2Nick owns a chain of sports stores. He recently modified his marketing strategy to allowcustomers to purchase via the Internet.Which of the following is an internal factor that may have influenced this decision?
(A) Strategies adopted by competitors to increase market share
(B) Advances in Internet technology with online purchasing facilities
(C) Difficulty in recruiting suitable staff with relevant product knowledge
(D) The recent employment of a marketing manager with new ideas
3A clothes retailer reduces the price of its jeans below cost price in order to attract customers.Which of the following describes this action by the retailer?
(A) Loss leader
(B) Market leader
(C) Strategic leader
(D) Production leader
4As part of its marketing activities, a business provides financial support for a regionalsporting event.Which marketing strategy is it using?
(A) Product
(B) Price
(C) Promotion
(D) Place
5What stage of the product life cycle is price skimming normally associated with?
(A) Establishment
(B) Maturity
(C) Steady state
(D) Decline
6Beautiful Skin Pty Ltd has decided to market a razor for women. It has calculated totalproduction costs for each razor and added a 10% margin to set the final price.
Which type of pricing is this?
(A) Break-even pricing
(B) Competition-based pricing
(C) Cost pricing
(D) Market pricing
7 An Australian shoe manufacturer creates a new logo to establish a global brand image. Which type of marketing strategy is it addressing?
(A) Product
(B) Price
(C) Promotion
(D) Place/distribution
8 Frank purchased a dishwasher so that his family could spend more time together.
What factor influencing consumer choice applies to this decision?
(A) Economic
(B) Government
(C) Organisational
(D) Sociocultural
9Which of the following aspects of marketing is NOT addressed by consumer law?
(A) Warranties
(B) Positioning
(C) Implied conditions
(D) Deceptive advertising
10 The following diagram illustrates the market distribution of products J, K, L and M.
Which of the following statements is correct?
(A) Product J is distributed intensively and Product L is distributed selectively.
(B) Product J is distributed exclusively and Product M is distributed selectively.
(C) Product K is distributed intensively and Product M is distributed exclusively.
(D) Product K is distributed exclusively and Product L is distributed selectively.
11 Clean Cut Mowers has invented and is marketing a silent lawn mower. There is no othermower like it on the market. Vanessa, the Marketing Director, has decided to charge themaximum price possible for this mower.What type of pricing strategy is Vanessa using?
(A) Cost pricing
(B) Penetration
(C) Price points
(D) Skimming
12Fortunes Financial Advisory Service offers free entry in a competition to win a jet ski. The free entry is in return for the completion of a short survey that asks a range ofquestions about financial and personal details. Following the completion of surveys, Fortunes Financial Advisory Service contacts allthe entrants to arrange a visit by an adviser to promote their services.What is the unethical marketing method being used by Fortunes Financial AdvisoryService?
(A) Sugging
(B) Implied conditions
(C) Below-the-line promotion
(D) Deceptive or misleading advertising
13X-Data Business Machines Ltd has released an advertising campaign that states the saleprice of one of its computer packages. It has insisted that distributors of this computerpackage sell it only at the advertised price.Which of the following aspects of consumer law has been breached by X-Data BusinessMachines?
(A) Implied conditions
(B) Price discrimination
(C) Resale price maintenance
(D) Deceptive and misleading advertising
14Gemima is conducting research to find out about product usage and perceptions of priceamong members of the public. She is stopping people in the shopping mall and askingthem to complete a survey.What process is Gemima undertaking?
(A) Engaging in sugging
(B) Collecting primary data
(C) Collecting secondary data
(D) Engaging in personal selling
15In a situational analysis of ABICS Business Solutions, cost overruns due to increased rentwere identified as a factor affecting performance.How would this factor be correctly classified in the SWOT analysis?
(A) Strength
(B) Weakness
(C) Opportunity
(D) Threat
16 Which of the following consumer choices is influenced by a psychological factor?
(A) Making food choices based on medical advice
(B) Purchasing a generic brand in preference to a more expensive manufacturer’s brand
(C) Purchasing take-away food in order to provide more time for family interaction
(D) Choosing a healthy food from the canteen rather than a deep-fried product, to encourage weight loss
17An engineering business that has been producing pollution control components forten years, is now redesigning components to meet new environmental standards.What marketing strategy is the business currently concerned with?
(A) Place
(B) Price
(C) Product
(D) Promotion
18Academic Electronics produces microchip components for manufacturers of computersystems.What type of market is Academic Electronics servicing?
(A) Consumer
(B) Industrial
(C) Mass
(D) Retail
19Which of the following best describes selling-oriented marketing?
(A) Using aggressive advertising to persuade customers to purchase products
(B) Satisfying the current and future preferences of customers to ensure long-term
success
(C) Pursuing production efficiencies to deliver quality products at prices that attract
consumers
(D) Enhancing the quality of working life to motivate staff to deliver high-quality
goods and services
20 A popular rock band has released a new CD. A large department store has decided to sellthis CD at below cost price.What strategy is the store using?
(A) Price points
(B) Market pricing
(C) Price skimming
(D) Loss leader pricing
21A soft drink company has designed a multicoloured bottle to market its new drink.
Which marketing strategy is being used by the company?
(A) Place
(B) Price
(C) Product
(D) Promotion
22Ana purchased a new brand of football boots on the recommendation of her team-mates. Which factor influenced Ana’s choice?
(A) Competitiveness
(B) Economic
(C) Psychological
(D) Sociocultural
23 Michael set up a website to enable his customers to purchase goods online. Which of the following is an internal influence that may have led to this decision?
(A) The development of global markets for the products Michael offers
(B) The decision by Michael’s business to outsource training and development
(C) The setting up by Michael’s largest competitor of an online purchasing service
(D) The modification of the marketing plan on the advice of an external consultant
24 A bank charges a fee to customers of other banks who use its ATM service. What is the pricing method being used by the bank?
(A) Cost-based
(B) Break-even
(C) Market-based
(D) Competition-based
25 A business is offering next day delivery of cleaned and scaled fish to restaurants. What type of market is the business targeting?
(A) Consumer
(B) Intermediate
(C) Resource
(D) Wholesale
26 A business sets the price of a range of furniture at below cost price. Which pricing strategy is being used?
(A) Loss leader
(B) Penetration
(C) Price point
(D) Skimming
27 What is an example of below-the-line promotion?
(A) A television advertising campaign
(B) Sponsorship of a local sports team
(C) A commercial billboard on the side of a main road
(D) A product slogan developed by an advertising agency
28 What is an example of market segmentation?
(A) A bank offering reward points to loyal customers
(B) A breakfast cereal manufacturer using advertising to target specific age groups
(C) A sporting goods store dividing the floor space into sections to assist with customer flow
(D) A biscuit manufacturer repackaging its product as a result of increased market competition
29Australian Bioped Ltd has designed a new safety shoe for use in heavy industrial areas. An overseas company wants to manufacture the shoe under licence. Which of the following does Australian Bioped Ltd need to consider before issuing the licence?
(A) Consumer tastes and credit risks
(B) Staffing and currency fluctuations
(C) Contracts and intellectual property
(D) Interest rates and trade agreements
30A local cinema asks customers for their postcode when they purchase tickets. This information is used to plan a marketing campaign. Which of the following best describes this process?
(A) Market distribution
(B) Service differentiation
(C) Primary data collection
(D) Secondary data collection
31 A sports clothing manufacturer is experiencing increased competition and plans to relaunch its product. Which strategy is most appropriate for this phase in the product life cycle?
(A) Diversify into sports equipment
(B) Downsize the marketing department
(C) Decrease accounts receivable turnover
(D) Create a modern image for the clothing range