GCSE and O Level Business Studies

checklist
eting mix is the four key decisions product, price, promotion and
t a business must take in order to
roducts effectively (the Four Ps).
al businesses need to develop relationships to build customer
nd develop brand image.
uct life cycle has four main introduction, growth, maturity ne-and each of these
influences g decisions.
an important influence on
er demand and businesses have a of pricing strategies they can use to the marketing
potential of their
elasticity of demand measures ense of consumer demand for t as a result of a change
in the price.
Section 3 Marketing
Exam-style practice questions
dresses
1 Debbie is a clothing designer. She designs one-off c for people to wear on
special occasions. The average cost of making one of her dresses is $80. Debbie
makes a profit of
300% on every dress she makes and sells.
Debbie is considering making clothing for babies and young children. She will
design the clothing, but will have several of each design produced by a local
factory. Debbie has not yet
decided how to price this new range of clothing.
a Define 'profit'
b Calculate the price Debbie charges for her designer
dresses.
c Identify four factors that influence the demand
for Debbie's designer dresses.
d Explain two methods of pricing Debbie
might consider using for the new baby and young
children's clothing.
e Do you think Debbie is right to develop these new products for her business?
Justify your answer.
2 Carmel makes fashion jewellery, which she sells at a local market. Most of her
items have a short product life cycle so she is always looking for new ideas for
her jewellery items. The market is very competitive and the demand for her products
is price elastic. She prices all of her products by adding a 50% mark-up on cost.
Carmel is considering setting up her own website.
a Define 'price elastic'.
1
Obje
In this
learn dist ain
121
pr th
12
141
161
16
te
121
b Identify two stages of a product's life cycle.
121
c Outline one benefit and one limitation to Carmel of selling her jewellery at the
local market.
141
d Explain one advantage and one
disadvantage to Carmel of having her own website.
e Do you think it is a good idea for Carmel to price her products by adding a 50%
mark-up on cost? Justify your answer.
同
Total available marks 40