Keywords 2

Question 1

Market

Answer 1

Any place where buyers and sellers meet to exchange goods and services

Question 2

Niche Market

Answer 2

Targets the smaller segment of a larger market where customers have specific needs and wants. This market may have less competition

Question 3

Market share

Answer 3

This measures the sales of a firm relative to the total sales in the market

Question 4

Market Share Formula

Answer 4

sales of a business/total sales in market x100

Question 5

Market Segmentation

Answer 5

A process of subdividing a market into identifiable subgroups that have similar needs, wants or characteristics and providing them with goods and services that needs their needs and wants.

Question 6

Oligopoly

Answer 6

A few large companies dominate the market in terms of sales revenue/ market share as well as which there may be many small firms

Question 7

Price elasticity

Answer 7

Measures the sensitivity of demand to a change in price

Question 8

Price elasticity formula

Answer 8

percentage change in quantity demanded/ percentage change in price

Question 9

Price elastic

Answer 9

Price elasticity is greater than one, where the quantity demanded rises or falls by a larger percentage than the price change

Question 10

Price Inelastic

Answer 10

Price elasticity value between 0 and 1, where a change in price results in a smaller % change in quantity deamanded

Question 11

Income elasticity of Demand

Answer 11

income elasticity of demand measures the responsiveness/ sensitivity of demand to a change in income

Question 12

Income of elasticity of demand formula

Answer 12

percentage change in quantity demanded/percentage change in income

Question 13

Income elastic

Answer 13

income elasticity is greater than one, when the quantity demand rises or falls by a larger percentage than the income change

Question 14

Income elastic

Answer 14

income elasticity is greater than one, when the quantity demand rises or falls by a larger percentage than the income change

Question 15

Income inelastic

Answer 15

income elastic is between 0 and 1, where the quantity demand rises or falls by a smaller percentage than the income change

Question 16

Market Research

Answer 16

the process of gathering primary and secondary data on the buying habits, lifestyles, usage and attitudes of actual and potential customers

Question 17

Primary Research

Answer 17

gathers first hand information. The data gathered is new and directly relevant to the needs of the business. Methods include questionnaires, interviews, focus groups, consumer panels, experiments, observations and test marketing.

Question 18

Secondary Research

Answer 18

Involves the use of previously collected information. The information used has not been gathered specifically for the business but instead adapted for its use. Methods include official publications, industry magazines, internal info or online desk research

Question 19

Qualitative data

Answer 19

Data referring to attitudes, opinions, intentions, motives and beliefs. Focus groups, open ended questionnaires, interviews, customer reviews.

Question 20

Public Sector

Answer 20

organisations which are owned and run by the government and aren’t run to make a profit.

Question 21

Unlimited liability

Answer 21

Where the business owner becomes personally responsible for the debts of the business. Individuals may be forced to sell personal possessions or use personal savings to meet such debts

Question 22

LTD

Answer 22

a business that is owned by its shareholders, run by directors and where the shareholders have limited liability. Shares can be sold privately.

Question 23

PLC

Answer 23

A business that is owned by its shareholders and has limited liability. shares can only be sold publicly on the stock exchange

Question 24

Limited liability

Answer 24

The owners are seen as separate to the company. personal assets are not at risk to lay debts. owners are only viable to lose the amount of money they invested into the business

Question 25

Brand

Answer 25

a brand is a business or product name/logo that can give consumers a perception of what the business stands for

Question 26

above the line promotion

Answer 26

above the line promotion is advertising. advertising that takes place through mass media such as print media and broadcast media. allows a business to reach a large audience

Question 27

cost plus pricing

Answer 27

is where a profit percentage is added to the average cost of producing the good

Question 28

competitive pricing

Answer 28

is where a business consider what their competitors are charging for a product or service, based on this, tbey will decide their pricing strategy