Lahore Grammar School

Senior Branch 26/B Officers Colony Multan

MONTHLY TEST March 2021

Student’s Name: _____________________________________________________________

Grade: IX-O Subject Business StudiesTime: 45 min

Total Marks: 30 Subject Teacher: _____________________________

Marks Obtained: _________ Percentage: ____________ Grade: __________

Q1) EDGE makes mobile (cell) phones. It operates in a competitive market. The Marketing manager believes
that because EDGE is good at maintaining customer loyalty demand for its phones is price inelastic. Its best
selling product, Z, is near the end of its product life cycle. The Marketing manager has to decide whether to
spend money on developing new products or use extension strategies for product Z.

(a) What is meant by ‘customer loyalty’?

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(b) Calculate the quantity of product Z sold in 2015.
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(c) Outline any two functions of packaging for EDGE in competitive market.
Function 1:
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Function 2:
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(d) Explain one advantage and one disadvantage to EDGE of developing new products.
Advantage: ............................................................................................................................................................
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Explanation: .............................................................................................................................................................
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Disadvantage: ..........................................................................................................................................................
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Explanation: .............................................................................................................................................................
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(e) Explain two extension strategies that EDGE could use for product Z. Recommend which one
of the two strategies it should choose. Justify your answer.

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Q2-a) Outline any two methods of presenting market research data

Method 1
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Method 2
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b) Explain any two stages of product life cycle in terms of Price and Promotion decisions
Stage 1: ............................................................................................................................................................
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Explanation: .............................................................................................................................................................
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Stage 2: ............................................................................................................................................................
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Explanation: .............................................................................................................................................................
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