AQA A level Business - Unit 3 Question Paper & Mark scheme

AQA A level Business - Unit 3 Question Paper & Mark scheme Price taker - ANS A business must accept the SPPU due to little ability to compete with the price maker Necessity Goods - ANS Demand increase proportionally less than income Product life cycle - ANS Theory that sales of all products follow a similar pattern over time - development, introduction, growth, maturity and decline Brand - ANS A name, sign, symbol, slogan that is recognizable Builds customer loyalty to brand Socio Economic Status - ANS Segmentation method using income Market targeting - ANS Deciding which part of the population to target Market positioning - ANS Where a product stands in relation to competitors Sales volume - ANS Number of items sold in a certain time period Sales value - ANS Volume sold x Selling price Primary market research - ANS research collected first-handed by the business itself, e.g. surveys + Reliable, valid and up to date - Expensive, difficulties in making analysis Quantitative - ANS Numerical data from e.g. multiple choice questions, made on a mass scale + Concise data, easy to analyse - Answers 'what' not 'why' Qualitative - ANS Opinions + Great insights, may highlight issues business unaware of - Expensive to collect, difficult to analyse, small sample Market mapping - ANS Identifies features of a market Can find gaps in market Good starting point for research Confidence levels - ANS Margin of error in figures Shows accuracy of sample Correlation - ANS Strength of relationship between data sets Technology to collect data - ANS Easy to collect (Fast, accurate, lots of data) (Data overload and finding correlations) Competitiveness - ANS Measures a firms ability to offer a better combination of price and quality than its rivals USP - ANS A point of genuine difference that makes one product stand out from the crowd