A LEVEL EDEXCEL BUSINESS PAPER 1 questions and
solutions
mass market - Correct Answer ✔✔ - a market that targets a large segment - products are standardised
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
niche market - Correct Answer ✔✔ - a market that targets a small segment - customers have specific needs that are
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
catered by the mass market
n, n, n, n, n,
brand name - Correct Answer ✔✔ - a name, sign, symbol or other feature that allows consumers to identify the good
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
of a business and differentiate it from rivals
n, n, n, n, n, n, n, n,
e-commerce - Correct Answer ✔✔ - conducting business transactions online n, n, n, n, n, n, n, n, n, n,
online retailing/ e-tailing - Correct Answer ✔✔ - buying goods online
n, n, n, n, n, n, n, n, n, n, n,
market - Correct Answer ✔✔ - a arrangement where the buyer and seller can trade and communicate
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
marketing - Correct Answer ✔✔ - process that involves identifying, analysing and anticipating customer requiremen
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
profitably
n,
market share - Correct Answer ✔✔ - the total sales a business has in a particular market that involves one and more
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
other businesses
n, n,
primary/field research - Correct Answer ✔✔ - data collected first-hand for a specific purpose (involves
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
questionnaires)
n,
secondary/desk research - Correct Answer ✔✔ - data that already exists for a different purpose (can be internal -
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
stock movements/sales figures and external - international publications/rival websites)
n, n, n, n, n, n, n, n, n,
quantitative research - Correct Answer ✔✔ - data can be measured (financial element to it)
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
qualitative research - Correct Answer ✔✔ - research based on opinions, beliefs and intentions.
n, n, n, n, n, n, n, n, n, n, n, n, n, n,
consumer panel - Correct Answer ✔✔ - group of consumers are asked for feedback of a product after a period of tim
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
database - Correct Answer ✔✔ - a system that stores data electronically - has features such as find and sorting.
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
focus groups - Correct Answer ✔✔ - consumers are invited for a discussion about a product that is going to be
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
launched in the market
n, n, n, n,
market orientation - Correct Answer ✔✔ - a business that places the needs of the customers at the centre of decisio
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
making
n,
product orientation - Correct Answer ✔✔ - a business that puts emphasis on the product itself - meaning contact wit
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
customer comes last
n, n, n,
,market research - Correct Answer ✔✔ - collection, presentation and analysis of data relating to the marketing and
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
consumption of goods and services
n, n, n, n, n,
market segmentation - Correct Answer ✔✔ - a group that has similar characteristics in a whole market (behavioura
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
psychographic, demographic and geographic)
n, n, n, n,
added value - Correct Answer ✔✔ - the extra features that may be offered when selling a product which helps to
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
exceed customer satisfaction
n, n, n,
competitive advantage - Correct Answer ✔✔ - an advantage that helps a business to perform better than its rivals
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
market/perceptual map - Correct Answer ✔✔ - a two-dimension diagram that places a brand with other rivals again n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
two characteristics or attributes (based on opinion)
n, n, n, n, n, n, n,
market positioning - Correct Answer ✔✔ - the view a customer has of a product compared to other rivals (in terms o
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
quality, value and image)
n, n, n, n,
product differentiation - Correct Answer ✔✔ - at attempt by a business to set the product apart from its rivals
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
reposition - Correct Answer ✔✔ - the process by which a business attempts to change the position consumers have
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
of their product
n, n, n,
USP - Correct Answer ✔✔ - the aspect or feature of a product that clearly distinguishes it from its rivals
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
demand - Correct Answer ✔✔ - amount of a product consumers are willing and able to buy at any given price
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
Factors affecting demand - Correct Answer ✔✔ - price of substitutes, complementary goods, advertising and
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
branding, fashion and tastes, seasonality, demographics and external shocks (government, competition and
n, n, n, n, n, n, n, n, n, n, n, n,
economic climate)
n, n,
complementary goods - Correct Answer ✔✔ - goods that are purchased together because they are consumed n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
together (milk and cereal)
n, n, n, n,
inferior goods - Correct Answer ✔✔ - income rising = demand falls (Tesco value crisps)
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
substitute good - Correct Answer ✔✔ - goods that can be bought as an alternative to other but perform the same
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
function
n,
normal good - Correct Answer ✔✔ - income rising = demand rises (kettle chips for example)
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
supply - Correct Answer ✔✔ - amount of a product which suppliers will offer at a given price
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
factors affecting supply - Correct Answer ✔✔ - cost of production, introduction of new technology, indirect taxes,
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
government subsidy and external shocks (weather and government)
n, n, n, n, n, n, n, n,
subsidy - Correct Answer ✔✔ - a grant given to producers using to encourage production
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
solutions
mass market - Correct Answer ✔✔ - a market that targets a large segment - products are standardised
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
niche market - Correct Answer ✔✔ - a market that targets a small segment - customers have specific needs that are
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
catered by the mass market
n, n, n, n, n,
brand name - Correct Answer ✔✔ - a name, sign, symbol or other feature that allows consumers to identify the good
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
of a business and differentiate it from rivals
n, n, n, n, n, n, n, n,
e-commerce - Correct Answer ✔✔ - conducting business transactions online n, n, n, n, n, n, n, n, n, n,
online retailing/ e-tailing - Correct Answer ✔✔ - buying goods online
n, n, n, n, n, n, n, n, n, n, n,
market - Correct Answer ✔✔ - a arrangement where the buyer and seller can trade and communicate
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
marketing - Correct Answer ✔✔ - process that involves identifying, analysing and anticipating customer requiremen
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
profitably
n,
market share - Correct Answer ✔✔ - the total sales a business has in a particular market that involves one and more
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
other businesses
n, n,
primary/field research - Correct Answer ✔✔ - data collected first-hand for a specific purpose (involves
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
questionnaires)
n,
secondary/desk research - Correct Answer ✔✔ - data that already exists for a different purpose (can be internal -
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
stock movements/sales figures and external - international publications/rival websites)
n, n, n, n, n, n, n, n, n,
quantitative research - Correct Answer ✔✔ - data can be measured (financial element to it)
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
qualitative research - Correct Answer ✔✔ - research based on opinions, beliefs and intentions.
n, n, n, n, n, n, n, n, n, n, n, n, n, n,
consumer panel - Correct Answer ✔✔ - group of consumers are asked for feedback of a product after a period of tim
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
database - Correct Answer ✔✔ - a system that stores data electronically - has features such as find and sorting.
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
focus groups - Correct Answer ✔✔ - consumers are invited for a discussion about a product that is going to be
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
launched in the market
n, n, n, n,
market orientation - Correct Answer ✔✔ - a business that places the needs of the customers at the centre of decisio
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
making
n,
product orientation - Correct Answer ✔✔ - a business that puts emphasis on the product itself - meaning contact wit
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
customer comes last
n, n, n,
,market research - Correct Answer ✔✔ - collection, presentation and analysis of data relating to the marketing and
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
consumption of goods and services
n, n, n, n, n,
market segmentation - Correct Answer ✔✔ - a group that has similar characteristics in a whole market (behavioura
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
psychographic, demographic and geographic)
n, n, n, n,
added value - Correct Answer ✔✔ - the extra features that may be offered when selling a product which helps to
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
exceed customer satisfaction
n, n, n,
competitive advantage - Correct Answer ✔✔ - an advantage that helps a business to perform better than its rivals
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
market/perceptual map - Correct Answer ✔✔ - a two-dimension diagram that places a brand with other rivals again n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
two characteristics or attributes (based on opinion)
n, n, n, n, n, n, n,
market positioning - Correct Answer ✔✔ - the view a customer has of a product compared to other rivals (in terms o
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
quality, value and image)
n, n, n, n,
product differentiation - Correct Answer ✔✔ - at attempt by a business to set the product apart from its rivals
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
reposition - Correct Answer ✔✔ - the process by which a business attempts to change the position consumers have
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
of their product
n, n, n,
USP - Correct Answer ✔✔ - the aspect or feature of a product that clearly distinguishes it from its rivals
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
demand - Correct Answer ✔✔ - amount of a product consumers are willing and able to buy at any given price
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
Factors affecting demand - Correct Answer ✔✔ - price of substitutes, complementary goods, advertising and
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
branding, fashion and tastes, seasonality, demographics and external shocks (government, competition and
n, n, n, n, n, n, n, n, n, n, n, n,
economic climate)
n, n,
complementary goods - Correct Answer ✔✔ - goods that are purchased together because they are consumed n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
together (milk and cereal)
n, n, n, n,
inferior goods - Correct Answer ✔✔ - income rising = demand falls (Tesco value crisps)
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
substitute good - Correct Answer ✔✔ - goods that can be bought as an alternative to other but perform the same
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
function
n,
normal good - Correct Answer ✔✔ - income rising = demand rises (kettle chips for example)
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
supply - Correct Answer ✔✔ - amount of a product which suppliers will offer at a given price
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
factors affecting supply - Correct Answer ✔✔ - cost of production, introduction of new technology, indirect taxes,
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
government subsidy and external shocks (weather and government)
n, n, n, n, n, n, n, n,
subsidy - Correct Answer ✔✔ - a grant given to producers using to encourage production
n, n, n, n, n, n, n, n, n, n, n, n, n, n, n,
