IGCSEBusinessCambridge (CIE)Exam Questions3. Marketing3.1 Customers, Marketing & Competition

Syllabus Edition

First teaching 2018

Last exams 2026

Customers, Marketing & Competition (Cambridge (CIE) IGCSE Business): Exam Questions

Exam code: 0450, 0986 & 0264, 0774

2 hours18 questions
Easy
Medium
Hard
1
4 marks

Outline two reasons why offering a high-quality service might be important for Pamela’s business.

Case Study

Pamela is a sole trader. She started her successful photography business 30 years ago. She specialises in taking pictures of people and places for use in posters, calendars and fashion magazines. It is a niche market. Pamela uses cost-plus pricing as part of her marketing mix. Offering a high quality service is important to Pamela and her 2 employees.

How did you do?

2
4 marks

Outline two reasons why building customer relationships might be important to TGH.

Case Study

Economic growth in country X has created many opportunities for new businesses such as TGH. TGH manufacture a range of personalised mobile (cell) phone cases using job production. Quality assurance is important to all 8 employees. TGH operate in a niche market. The Marketing Manager uses e-commerce as TGH’s channel of distribution. She is considering ways to build customer relationships.

How did you do?

3
2 marks

Identify two ways of segmenting a market.

How did you do?

4
2 marks

Identify two reasons why some markets can become more competitive.

How did you do?

5
2 marks

Identify two benefits to a business of using market segmentation.

How did you do?

6
2 marks

Identify two advantages to a business of maintaining customer loyalty.

How did you do?

7
2 marks

Define ‘mass market’.

How did you do?

1
6 marks

Do you think that more advertising is a better way for a business to respond to increased competition than introducing new products and services? Justify your answer.

How did you do?

2
6 marks

Explain one advantage and one disadvantage to Elton of operating in a niche market.

Case Study

Elton is a sole trader. He sells specialist clothing and equipment for sports, including baseball and hockey. It is a niche market. Elton started his business 5 years ago and it has remained small. A wide range of inventory is important. Elton has been looking at the financial performance of his business. The profit margin for 2018 was 35%. An extract of the accounts is shown in the below table.

Revenue and cost information for Elton’s business for 2018 and 2019 ($)

2018

2019

Revenue ($)

24 000

25 000

Cost of sales ($)

7 200

Y

Gross profit ($)

16 800

18 000

Expenses ($)

8 400

10 000

Profit ($)

X

8 000

How did you do?

3
6 marks

Do you think operating in a niche market will help a small business have a better chance of success than operating in a mass market? Justify your answer.

How did you do?

4
6 marks

Do you think it is a good idea for a business to have only one customer? Justify your answer.

How did you do?

5
6 marks

Do you think offering good customer service is the best way for a small business to build customer relationships? Justify your answer.

How did you do?

6
6 marks

Explain two methods Pamela’s business can use to maintain customer loyalty.

Case Study

Pamela is a successful entrepreneur. She is the owner of a gift shop selling celebration cards, toys and candy (sweets). When Pamela started her business 30 years ago she had no help to manage the shop. She now has 5 employees. Pamela knows maintaining customer loyalty is important. She uses competitive pricing. Most of her marketing budget is spent on sales promotion. Pamela does not use e-commerce.

How did you do?

7
6 marks

Explain two ways a retail business could respond to increased competition. Which would be the best way to use? Justify your answer.

How did you do?

8
6 marks

Do you think maintaining customer loyalty should be more important to a business than attracting new customers? Justify your answer.

How did you do?

9
6 marks

Do you think entering a growing market where there is a lot of competition is the best way for a business to expand? Justify your answer.

How did you do?

1
12 marks

Consider the following three roles of marketing for ET.

  • Identifying customer needs

  • Satisfying customer needs

  • Maintaining customer loyalty

Which role will be the most important for ET to be successful? Justify your answer.

Refer to the following insert when answering the question

How did you do?

2
12 marks

Consider how the following three factors could affect HealthyMunch's marketing strategy.

  • Changing customer needs

  • Increased competition

  • Use of market segmentation

Which factor is likely to have the greatest impact on HealthyMunch's future success? Justify your answer.

Refer to the following insert when answering the question

How did you do?