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BCS Written Marketing study materials
BCS Written Marketing study resources

BCS Written Marketing practice questions

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Question 1Marketing Concepts, Environment and Consumer Behaviour

Which element of the marketing mix refers to the channels and locations through which a product is made available to buyers?

  1. Place Correct answer.
  2. Product
  3. Price
  4. Promotion

Explanation

Place, also called distribution, covers the channels, intermediaries, coverage and logistics that determine where and when customers can obtain the offering. It is distinct from the other three mix elements because it addresses access and availability rather than the offer itself, its cost or its communication.

Question 2Marketing Concepts, Environment and Consumer Behaviour

A firm segments a market by dividing buyers according to age, income and occupation. Which type of segmentation is being used?

  1. Demographic Correct answer.
  2. Behavioural
  3. Psychographic
  4. Geographic

Explanation

Demographic segmentation uses measurable population characteristics such as age, gender, income, occupation and family life cycle. These variables are widely used because they are easy to collect and often correlate with purchasing patterns.

Question 3Marketing Concepts, Environment and Consumer Behaviour

According to Maslow's hierarchy, which need level comes immediately after physiological needs are satisfied?

  1. Social needs
  2. Safety needs Correct answer.
  3. Self-actualisation
  4. Esteem needs

Explanation

Maslow ordered needs so that physiological requirements such as food and shelter are followed by safety needs covering security, protection and stability. Higher levels of belonging, esteem and self-actualisation are only pursued once these lower ones are reasonably met.

Question 4Marketing Concepts, Environment and Consumer Behaviour

Which of the following is an element of the micro environment rather than the macro environment of a firm?

  1. Inflation trends in the national economy
  2. Demographic shifts in the population
  3. Changes in government legislation
  4. Suppliers who provide key components Correct answer.

Explanation

The micro environment consists of actors close to the company that directly affect its ability to serve customers, including suppliers, intermediaries, competitors and customers. Macro environment forces such as economic, demographic, political and technological trends affect all firms broadly.

Question 5Marketing Concepts, Environment and Consumer Behaviour

In the consumer decision process, which stage immediately follows the evaluation of alternatives?

  1. Information search
  2. Purchase decision Correct answer.
  3. Post-purchase behaviour
  4. Need recognition

Explanation

The conventional five-stage model runs from need recognition through information search and evaluation of alternatives to the purchase decision, and then to post-purchase behaviour. After comparing options the buyer decides whether, what and where to buy.

Question 6Marketing Concepts, Environment and Consumer Behaviour

A company defines its business as 'we sell cinema tickets' rather than 'we provide entertainment'. Which criticism of this definition applies?

  1. It is too broad and cannot guide strategy
  2. It ignores the role of pricing
  3. It defines the market too narrowly by geography
  4. It is marketing myopia focused on the product Correct answer.

Explanation

Marketing myopia describes defining a business by the physical product sold rather than by the underlying customer need it satisfies. A product-based definition blinds the firm to substitutes such as streaming services that meet the same entertainment need.

Question 7Marketing Concepts, Environment and Consumer Behaviour

Which marketing concept holds that consumers favour products that are readily available and inexpensive, so the firm should focus on production efficiency and wide distribution?

  1. Selling concept
  2. Societal marketing concept
  3. Marketing concept
  4. Production concept Correct answer.

Explanation

The production concept assumes demand exceeds supply or that buyers prioritise availability and low price, so management concentrates on efficiency and distribution scale. It is distinct from the selling concept, which pushes existing products through aggressive promotion.

Question 8Marketing Concepts, Environment and Consumer Behaviour

Which source of information in the consumer decision process is described as the most effective for influencing purchase?

  1. Personal sources such as friends and family Correct answer.
  2. Experiential sources from handling the product
  3. Commercial sources controlled by the marketer
  4. Public sources such as consumer ratings bodies

Explanation

Personal sources are generally judged the most effective because they are perceived as credible and impartial, even though commercial sources are the most numerous and heavily used by marketers. The distinction matters because credibility and reach are not the same thing.

Question 9Marketing Concepts, Environment and Consumer Behaviour

A retailer uses a loyalty card to record how often each customer shops and how much they spend, then groups customers by usage rate. Which segmentation base is this?

  1. Behavioural Correct answer.
  2. Demographic
  3. Psychographic
  4. Geographic

Explanation

Behavioural segmentation classifies buyers by observable conduct such as usage rate, purchase occasion, loyalty status or benefits sought. Recorded transaction data directly reveals these behaviours rather than describing who the buyer is in population terms.

Question 10Marketing Concepts, Environment and Consumer Behaviour

A firm targets a small, well-defined group of buyers with a distinctive offer tailored to their needs. Which targeting strategy is being pursued?

  1. Differentiated marketing
  2. Mass marketing
  3. Undifferentiated marketing
  4. Concentrated marketing Correct answer.

Explanation

Concentrated, or niche, marketing focuses all effort on one carefully defined segment rather than spreading resources across the whole market. It suits firms with limited resources that can serve a specialised group exceptionally well.

Question 11Marketing Concepts, Environment and Consumer Behaviour

Which positioning approach is being used when a brand claims the lowest running costs in its category?

  1. Positioning by price and quality Correct answer.
  2. Positioning by user
  3. Positioning by product attribute
  4. Positioning by competitor

Explanation

Positioning by price and quality emphasises the relationship between what the buyer pays and the value received, such as low cost of ownership for a given standard. Claiming the lowest running costs is a value-for-money claim rather than a claim about who uses the product.

Question 12Marketing Concepts, Environment and Consumer Behaviour

In the buying decision process for organisational purchases, which stage comes first?

  1. Problem recognition Correct answer.
  2. General need description
  3. Order routine specification
  4. Supplier search

Explanation

The organisational buying process begins with problem recognition, when someone in the buying organisation perceives a need that a purchase could satisfy. Only after the need is recognised can the buyer describe requirements, search for suppliers and specify an order.

Question 13Marketing Concepts, Environment and Consumer Behaviour

A marketer notices that a competitor's new pricing model has reduced demand for its own service. Which environment force is most directly responsible?

  1. Technological
  2. Natural
  3. Cultural
  4. Competitive Correct answer.

Explanation

The competitive environment comprises rival firms and substitute offers whose actions directly affect a company's demand. A competitor's pricing move changes buyer choices within the same market, which is a competitive rather than a broad societal force.

Question 14Marketing Concepts, Environment and Consumer Behaviour

Which concept of social class is most consistent with marketing practice?

  1. Classes show similar values and behaviour within each stratum Correct answer.
  2. Classes are determined solely by income
  3. Classes are identical across all countries
  4. Classes are fixed at birth and cannot change

Explanation

Social class is commonly treated as a relatively homogeneous and enduring division of society whose members share values, interests and behavioural patterns that marketers can use to predict consumption. It is not reducible to income alone and is not permanently fixed.

Question 15Marketing Concepts, Environment and Consumer Behaviour

A buyer is influenced by membership of a group to which they aspire but do not yet belong. Which reference group type is this?

  1. Primary group
  2. Dissociative group
  3. Membership group
  4. Aspirational group Correct answer.

Explanation

An aspirational group is one a consumer wishes to join or emulate, so its norms and consumption patterns influence behaviour even without membership. Membership groups, by contrast, are those to which the person already belongs.

Question 16Marketing Concepts, Environment and Consumer Behaviour

Which statement best describes the difference between needs and wants?

  1. Needs are always satisfied before any want can exist
  2. Wants are basic requirements, while needs are shaped by advertising
  3. Needs and wants are identical because both are shaped by culture
  4. Needs are basic requirements, while wants are culturally shaped desires for specific satisfiers Correct answer.

Explanation

Needs are fundamental human requirements such as food, safety and belonging, whereas wants are desires for particular ways of satisfying those needs, shaped by culture and personality. Marketers influence wants rather than create the underlying needs.

Question 17Marketing Concepts, Environment and Consumer Behaviour

A firm sells the same basic product to all buyers but varies its advertising message for different audience groups. Which targeting approach does this most closely resemble?

  1. Differentiated marketing
  2. Concentrated marketing
  3. Micromarketing
  4. Undifferentiated marketing Correct answer.

Explanation

Undifferentiated marketing offers one product to the whole market and relies on a common appeal, though it may vary the execution of communication. Differentiated marketing would require distinct offers or product versions for each segment.

Question 18Marketing Concepts, Environment and Consumer Behaviour

Which factor in the buyer decision process is most likely to increase the extent of information search before purchase?

  1. Frequent habitual purchase of the item
  2. Low involvement and low price
  3. High perceived risk and low prior knowledge Correct answer.
  4. Strong brand loyalty to one supplier

Explanation

Search effort rises when the purchase is perceived as risky, expensive or personally important and when the buyer lacks prior knowledge or experience. Habitual, low-involvement purchases typically involve minimal search.

Question 19Marketing Concepts, Environment and Consumer Behaviour

A firm claims its chocolate bars use only sustainably sourced cocoa and donates part of each sale to farming communities. Which marketing orientation does this best illustrate?

  1. Selling orientation
  2. Product orientation
  3. Production orientation
  4. Societal marketing orientation Correct answer.

Explanation

The societal marketing concept holds that a firm should deliver customer satisfaction and profit while preserving or improving consumer and social welfare. Sourcing claims and community contributions address social welfare alongside commercial goals.

Question 20Marketing Concepts, Environment and Consumer Behaviour

Which characteristic distinguishes organisational buying from consumer buying?

  1. Organisational buyers are less concerned with delivery reliability
  2. Organisational purchases are always smaller in value
  3. Organisational purchases are always made by a single individual
  4. Organisational demand is derived from demand for consumer goods Correct answer.

Explanation

Derived demand means that demand for business goods ultimately depends on demand for the consumer products they help to produce or supply. Organisational buying also typically involves multiple participants and larger, more formal transactions.

Question 21Marketing Concepts, Environment and Consumer Behaviour

A brand wants buyers to see it as the safest choice for families with young children. Which positioning element is it primarily using?

  1. Sales promotion intensity
  2. Price leadership
  3. Product user imagery Correct answer.
  4. Distribution exclusivity

Explanation

Positioning by user builds an association between the brand and a particular type of buyer or usage situation, here families with young children. Safety becomes meaningful because of who the intended user is rather than because of price or availability.

Question 22Marketing Concepts, Environment and Consumer Behaviour

A firm's segmentation scheme produces groups that are large enough to serve profitably but cannot be reached by any available media or channel. Which criterion of effective segmentation is violated?

  1. Actionability
  2. Accessibility Correct answer.
  3. Substantiality
  4. Differentiability

Explanation

Accessibility requires that a segment can be reached and served through available distribution and communication channels. Substantiality concerns size and profitability, while actionability concerns whether the firm can design effective programmes for the segment.

Question 23Marketing Concepts, Environment and Consumer Behaviour

A consumer repeatedly buys a familiar brand without evaluating alternatives, and the purchase is routine and low risk. Which type of buying behaviour does this describe?

  1. Complex buying behaviour
  2. Habitual buying behaviour Correct answer.
  3. Dissonance-reducing buying behaviour
  4. Variety-seeking buying behaviour

Explanation

Habitual buying behaviour occurs in low-involvement purchases with few perceived differences between brands, so the buyer repeats a familiar choice without extensive evaluation. Complex and dissonance-reducing behaviour both involve high involvement.

Question 24Marketing Concepts, Environment and Consumer Behaviour

Which situation best illustrates how reference groups exert normative influence rather than comparative influence?

  1. A buyer complies with a group's expectations to gain acceptance Correct answer.
  2. A buyer imitates a celebrity's style to signal aspiration
  3. A buyer follows a group's advice because of the group's expertise
  4. A buyer compares product features using expert reviews

Explanation

Normative influence leads consumers to conform to the expectations of a group in order to gain approval or avoid sanctions. Comparative influence instead involves using a group or person as a benchmark for beliefs, attitudes or product evaluation.

Question 25Marketing Concepts, Environment and Consumer Behaviour

A firm operating in a mature market faces a new environmental regulation raising production costs and simultaneously sees a competitor launch a cheaper substitute. Which response best reflects sound marketing analysis?

  1. Treat both as macro forces and respond with a single uniform strategy
  2. Ignore the regulation because it affects all firms equally
  3. Reduce prices to match the competitor without reviewing costs
  4. Treat the regulation as macro and the competitor as micro, then adapt both mix and positioning accordingly Correct answer.

Explanation

Sound analysis distinguishes macro forces, such as political and legal regulation affecting the whole market, from micro actors, such as a specific competitor, because each requires a different response. The firm should adjust its mix and positioning while managing the cost impact of the regulation.

Question 26Marketing Concepts, Environment and Consumer Behaviour

Which element of the marketing mix is most directly concerned with the channels and locations through which a product reaches buyers?

  1. Product
  2. Place Correct answer.
  3. Price
  4. Promotion

Explanation

Place, or distribution, covers the channels, intermediaries, coverage and logistics that make a product available where and when buyers want it. Price concerns the exchange value, product concerns the offer itself, and promotion concerns communication. Distribution decisions therefore determine accessibility rather than the amount paid or the message sent.

Question 27Marketing Concepts, Environment and Consumer Behaviour

A firm divides its market by age, income and occupation. Which type of segmentation base is it using?

  1. Behavioural
  2. Psychographic
  3. Demographic Correct answer.
  4. Geographic

Explanation

Demographic segmentation uses measurable population characteristics such as age, gender, income, occupation, education and family life cycle. These variables are widely available and easy to apply, but they describe who buyers are rather than how they think or behave. Geographic, psychographic and behavioural bases use location, lifestyle and usage patterns respectively.

Question 28Marketing Concepts, Environment and Consumer Behaviour

Which statement best captures the core idea of the marketing concept as a business philosophy?

  1. Achieving organisational goals depends on aggressive selling and heavy promotional pressure on buyers
  2. Achieving organisational goals depends on knowing the needs of target markets and satisfying them better than competitors Correct answer.
  3. Achieving organisational goals depends on continuous product improvement with limited customer research
  4. Achieving organisational goals depends on producing at the lowest possible cost and distributing widely

Explanation

The marketing concept places customer needs at the centre of planning, so the firm identifies target markets and satisfies them more effectively than rivals while still earning profit. It differs from production and selling orientations, which start from internal capacity or from pushing existing output. Long-run profitability is treated as a consequence of superior customer value rather than of volume or persuasion alone.

Question 29Marketing Concepts, Environment and Consumer Behaviour

A buyer's perception of a brand is shaped by what they expect from it rather than by objective product performance. Which perceptual tendency does this illustrate?

  1. Selective exposure
  2. Selective retention
  3. Perceptual defence
  4. Selective distortion Correct answer.

Explanation

Selective distortion describes the tendency to interpret new information in a way that fits existing beliefs and expectations about a brand. Buyers therefore notice and read evidence in line with what they already expect. Selective exposure concerns which messages are noticed at all, retention concerns what is remembered, and perceptual defence concerns screening out threatening stimuli.

Question 30Marketing Concepts, Environment and Consumer Behaviour

A marketer classifies buyers according to the benefits they seek, such as durability, low price or status. Which segmentation approach is being applied?

  1. Demographic segmentation
  2. Firmographic segmentation
  3. Benefit segmentation Correct answer.
  4. Geographic segmentation

Explanation

Benefit segmentation groups buyers by the specific value they want from a product, such as reliability, economy or prestige. It is powerful because the benefit sought is closer to purchase motivation than descriptive variables are. Geographic and demographic bases describe where buyers are and who they are, while firmographic bases apply to organisations.

Question 31Marketing Concepts, Environment and Consumer Behaviour

A buyer's decision to purchase a new laptop is influenced by colleagues who have already bought the same model, by the buyer's own prior experience, and by online reviews. Which term best describes the combined effect of these influences?

  1. The adoption process
  2. The buyer's information environment Correct answer.
  3. The marketing mix
  4. The reference group effect

Explanation

These influences together form the information environment surrounding the decision, comprising personal, commercial, public and experiential sources. Colleagues represent personal sources, online reviews represent public sources, and prior experience represents experiential sources. The marketing mix is a firm-controlled set of tools, the adoption process describes stages of accepting an innovation, and reference group effect covers only one part of the picture.

Question 32Marketing Concepts, Environment and Consumer Behaviour

Which characteristic of services means that their quality can vary from one encounter to the next, making consistent standards difficult to guarantee?

  1. Inseparability
  2. Intangibility
  3. Heterogeneity Correct answer.
  4. Perishability

Explanation

Heterogeneity, also called variability, means service quality depends on who delivers it, when and under what conditions, so outcomes differ between encounters. Firms respond with standardised procedures, training and service blueprints. Intangibility concerns the absence of physical form, inseparability concerns simultaneous production and consumption, and perishability concerns the inability to store capacity.

Question 33Marketing Concepts, Environment and Consumer Behaviour

A firm's marketing team finds that a supplier has raised the price of a key raw material and that a new competitor has entered the market. Which classification best fits both developments?

  1. Internal organisational factors
  2. Micro-environment factors Correct answer.
  3. Socio-cultural factors
  4. Macro-environment factors

Explanation

Suppliers and competitors are actors close to the firm that directly affect its ability to serve customers, so they belong to the micro-environment. The macro-environment covers broader forces such as economic, political, technological and socio-cultural trends. Internal factors concern the firm's own resources and functions, and socio-cultural factors are only one macro category.

Question 34Marketing Concepts, Environment and Consumer Behaviour

Which element of culture is best described as a widely held belief that a particular mode of behaviour is personally or socially preferable?

  1. A value Correct answer.
  2. A folkway
  3. A more
  4. A norm

Explanation

A value is an enduring belief that some condition or behaviour is desirable, and it underpins attitudes and choices. Norms are rules of behaviour derived from values, mores are strongly held norms whose violation attracts serious disapproval, and folkways are everyday conventions with mild sanctions. Marketers study values because they shape what consumers consider acceptable and worthwhile.

Question 35Marketing Concepts, Environment and Consumer Behaviour

A consumer moves from awareness of a new smartwatch to interest, then evaluation, trial and finally regular adoption. Which framework does this sequence describe?

  1. The adoption process Correct answer.
  2. The hierarchy of effects
  3. The buying decision process
  4. The diffusion of innovations

Explanation

The adoption process describes the stages an individual passes through in accepting a new product, typically awareness, interest, evaluation, trial and adoption. Diffusion of innovations, by contrast, describes how an innovation spreads across a social system over time. The hierarchy of effects concerns communication response, and the buying decision process is a broader sequence covering problem recognition to post-purchase behaviour.

Question 36Marketing Concepts, Environment and Consumer Behaviour

A brand of household cleaning products wants buyers to associate it with protecting family health. Which combination of positioning elements would most consistently support that position?

  1. A premium price with limited availability in specialist outlets
  2. Constant promotional novelty with frequent changes of brand slogan
  3. Product formulation claims, packaging cues and advertising messages all reinforcing health protection Correct answer.
  4. Frequent price discounts and a wide distribution footprint

Explanation

Positioning is reinforced when all elements of the mix deliver a consistent message, so product claims, packaging and communication should all point to the same benefit. Inconsistency between elements confuses buyers and weakens the intended place in their minds. Discounting, scarcity or changing slogans may attract attention but do not build a coherent health-protection position.

Question 37Marketing Concepts, Environment and Consumer Behaviour

A firm sells industrial pumps to a small number of large buyers who negotiate directly and require detailed technical specifications. Which buying situation is most likely being described?

  1. A straight rebuy of routine consumables
  2. A modified rebuy of standard items
  3. A habitual purchase of low-involvement supplies
  4. A new task purchase of a complex capital item Correct answer.

Explanation

A new task purchase arises when an organisation buys an item for the first time, typically involving complex specifications, multiple decision participants and extensive supplier evaluation. Capital equipment such as industrial pumps fits this pattern. Straight and modified rebuys involve repeat purchase with little or limited change, and habitual purchasing describes routine consumer behaviour rather than organisational buying.

Question 38Marketing Concepts, Environment and Consumer Behaviour

A firm's segmentation study produces groups that differ meaningfully in needs, but one group is too small to serve at a profit and another cannot be reached by any affordable media. Which criterion of effective segmentation is being violated?

  1. Differentiability and actionability
  2. Stability and measurability
  3. Substantiality and accessibility Correct answer.
  4. Measurability and accessibility

Explanation

Effective segments must be substantial enough to justify the cost of serving them and accessible through available channels and media. The first group fails substantiality because it is too small to be profitable, and the second fails accessibility because it cannot be reached affordably. Measurability, differentiability and stability are separate criteria that the scenario does not call into question.

Question 39Marketing Concepts, Environment and Consumer Behaviour

A company designs a marketing information system so that sales, customer service and finance staff all record data in a shared format that managers can query. Which benefit does this arrangement most directly provide?

  1. It reduces the need for any external market research
  2. It converts scattered internal records into usable decision information Correct answer.
  3. It guarantees that all customer complaints will be eliminated
  4. It automatically sets the most profitable price for each product

Explanation

A marketing information system gathers internal records, marketing intelligence and research into a form managers can analyse, so dispersed data becomes usable decision support. It supports judgement rather than replacing it, and it does not set prices automatically or remove the need for external research. Complaints are managed through service processes, not through data storage alone.

Question 40Marketing Concepts, Environment and Consumer Behaviour

A supermarket chain notices that shoppers who buy nappies in the evening also frequently buy snacks and drinks in the same trip. Analysts describe this as buyers' behaviour being shaped by the total set of choices made in one visit rather than by each item considered alone. Which consumer behaviour concept does this illustrate?

  1. The purchase situation, in which the buying context and companion items influence what is chosen Correct answer.
  2. Selective distortion, in which buyers reinterpret information to fit existing beliefs
  3. Perceptual mapping, in which buyers rank brands on two competing attributes
  4. Cognitive dissonance, in which buyers seek reassurance after a difficult purchase

Explanation

Situational influences concern the circumstances surrounding a purchase, including time of day, purpose of the trip and what else is in the basket, and these circumstances can change which products are chosen. Because the evening shopping context and the co-presence of other items drive the snack purchase, the behaviour reflects the purchase situation rather than any lasting attitude toward the brands involved.

Question 41Marketing Information, Research and Demand Forecasting

A marketing manager wants to estimate next year's demand for a product using past sales records. Which type of data is being used?

  1. Secondary data Correct answer.
  2. Primary data
  3. Observational data
  4. Experimental data

Explanation

Secondary data are data collected by someone else for another purpose and reused by the analyst, such as internal sales records or published reports. Because the manager is not gathering new information directly from respondents, the records qualify as secondary.

Question 42Marketing Information, Research and Demand Forecasting

Which source is the clearest example of primary marketing data?

  1. A questionnaire completed by shoppers for the firm's own survey Correct answer.
  2. A trade magazine article summarising industry sales
  3. A government census report
  4. A competitor's published annual report

Explanation

Primary data are collected first-hand by the researcher for the specific problem at hand. A questionnaire designed and fielded by the firm itself fits this definition exactly.

Question 43Marketing Information, Research and Demand Forecasting

A firm divides its market into groups based on age, income and occupation. Which segmentation base is being applied?

  1. Geographic
  2. Demographic Correct answer.
  3. Behavioural
  4. Psychographic

Explanation

Demographic segmentation uses measurable population characteristics such as age, income, gender and occupation. The variables listed are all classic demographic descriptors.

Question 44Marketing Information, Research and Demand Forecasting

In the marketing research process, what is the immediate next step after defining the problem and research objectives?

  1. Presenting the findings
  2. Developing the research plan Correct answer.
  3. Analysing the information
  4. Collecting the information

Explanation

Once the problem and objectives are set, the researcher designs a plan specifying data sources, methods, instruments and sampling. Data collection, analysis and reporting follow only after that plan exists.

Question 45Marketing Information, Research and Demand Forecasting

A company's sales have grown steadily for five years. Which forecasting approach relies purely on this historical pattern of the firm's own sales?

  1. Time-series analysis Correct answer.
  2. Survey of buyers' intentions
  3. Expert opinion method
  4. Composite of sales force opinions

Explanation

Time-series analysis projects future values from past patterns in a single series, such as the firm's own sales history. It uses the sequence of past observations rather than asking people about future intentions.

Question 46Marketing Information, Research and Demand Forecasting

Which element of the marketing information system provides decision makers with regular internal reports on orders, sales and inventory?

  1. Internal records system Correct answer.
  2. Marketing research system
  3. Marketing decision support system
  4. Marketing intelligence system

Explanation

The internal records system draws on data generated inside the firm, such as orders, sales, prices and inventory levels, and distributes routine reports. Intelligence and research systems bring in external information.

Question 47Marketing Information, Research and Demand Forecasting

A researcher selects every tenth name from a complete customer list after a random start. Which sampling method is this?

  1. Cluster sampling
  2. Systematic sampling Correct answer.
  3. Stratified random sampling
  4. Simple random sampling

Explanation

Systematic sampling chooses a random starting point and then takes every k-th element from the sampling frame. Selecting every tenth name after a random start is the textbook definition.

Question 48Marketing Information, Research and Demand Forecasting

A firm wants to estimate demand for a new product by asking a panel of households whether they would buy it. Which forecasting method is being used?

  1. Exponential smoothing
  2. Survey of buyers' intentions Correct answer.
  3. Market test method
  4. Moving average

Explanation

A survey of buyers' intentions asks potential customers directly about their likelihood of purchasing. It is a judgement-based method that draws on stated future behaviour rather than past sales data.

Question 49Marketing Information, Research and Demand Forecasting

A researcher accidentally includes only customers who responded to an online survey, missing those without internet access. Which error is most likely?

  1. Processing error
  2. Measurement error
  3. Non-response error
  4. Sampling frame error Correct answer.

Explanation

Sampling frame error arises when the list from which the sample is drawn does not cover the target population. Excluding people without internet access means the frame omits part of the population.

Question 50Marketing Information, Research and Demand Forecasting

A firm sells three products with sales of 200, 300 and 500 units in a market of 20,000 units. What is the firm's total market share?

  1. 5.0 percent Correct answer.
  2. 2.5 percent
  3. 15.0 percent
  4. 10.0 percent

Explanation

Total firm sales equal 200 plus 300 plus 500, which is 1,000 units. Dividing 1,000 by the market total of 20,000 gives 0.05, or 5 percent market share.