Theme 1 A level business

Question 1

What is Product Orientation?

Answer 1

When a business is more focused on the product rather than the market.

Question 2

What is a dynamic market?

Answer 2

A market that is constantly changing in order to meet customer needs and wants

Question 3

What is Market segmentation?

Answer 3

A whole market divided into smaller sections to meet customer needs more efficiently

Question 4

What is a mass market?

Answer 4

A mass market is a saturated market that products and services are advertised in the same way

Question 5

What is a niche market?

Answer 5

A niche market is a small subsection of a larger market that caters for specific customer needs and wants

Question 6

What is a market

Answer 6

A market is a place where people meet to trade products

Question 7

What is market share?

Answer 7

The percentage of a market that a business, product or service has

Question 8

What is Market research?

Answer 8

Market Research is research that is done by a business to cater for new customer needs

Question 9

What is Primary market research?

Answer 9

Primary market research is research that is done by the business and is relevant to the business.

Question 10

What is secondary research?

Answer 10

Secondary research is research that has already been done and is not particularly relevant to the business

Question 11

What is qualitative data?

Answer 11

Qualitative data is the public’s judgements and opinions

Question 12

What is quantitative data?

Answer 12

Quantitative data is data that is number and statistics.

Question 13

What is risk?

Answer 13

Risk is something that can be planned for the probability of outcomes that are known or at least understood

Question 14

What is uncertainty?

Answer 14

Uncertainty is something that cannot be planned by a business such as a recession or a natural disaster

Question 15

What is Demand?

Answer 15

Demand is the amount that customers are willing and able to purchase at a given price

Question 16

What is the basic law of demand?

Answer 16

As price increases, Demand decreases

Question 17

What is Supply?

Answer 17

Sup[ply is the amount that a producer is willing and able to supply at a given price

Question 18

What is the basic law of supply?

Answer 18

When price increases supply increases

Question 19

What are the 4 P’s

Answer 19

Product, place, price and promotion

Question 20

What is the design mix?

Answer 20

Cost, Aesthetics, Function

Question 21

What is a mark up?

Answer 21

A mark up is the % of added value to a product

Question 22

What is a flat structure?

Answer 22

When leaders have a short chain of command but a wide span of control

Question 23

What is a Tall structure?

Answer 23

When leaders have a long chain of command but a narrow span of control

Question 24

What is a matrix structure?

Answer 24

A 2x2 matrix model that analyses a product portfolio according to the growth rate of the market and the relative market share of products within the market.

Question 25

What is motivation?

Answer 25

An employees desire to achieve a goal

Question 26

What was Taylor's theory?

Answer 26

Taylor believed that workers were motivated by money and should be paid on the amount of items produced (Piece rate)

Question 27

What was Maslows Theory

Answer 27

Maslow made the hierarchy of needs, a pyramid that describes levels of of human needs that motivate us

Question 28

What was Herzbergs Theory?

Answer 28

Herzberg developed the two factor theory of motivation: The hygeine factor and the Motivators

Question 29

What was Mayos Theory?

Answer 29

Mayo believed that workers wanted more than money and that staff would be more motivated to work harder if their social needs were met.

Question 30

What is online retailing?

Answer 30

When products or services are sold online

Question 31

How do customers incomes impact demand?

Answer 31

As income rises, demand should rise | However, if the product is inferior demand will fall and better alternatives will be chosen

Question 32

How do seasonal factors affect demand?

Answer 32

Most products will have seasonal peaks | E.g ice cream in the summer

Question 33

What is a normal good?

Answer 33

It is a good thats demand changes depending on price and consumer income E.g cars

Question 34

What is an inferior good?

Answer 34

It is a good that demand dosent change depending on price or income E.g pasta

Question 35

What is a demand curve?

Answer 35

The amounts of a product that is demanded in the market at different price points

Question 36

What are the four main causes of changes in supply?

Answer 36

Cost of production, External shocks, New technology and Taxation & Subsidies

Question 37

what is a supply curve?

Answer 37

A line that shows the different combinations of quantity supplied and market price.

Question 38

What is a subsidy

Answer 38

A sum of money given to a business by the government that doesn't have to be paid back.

Question 39

What is market equilibrium?

Answer 39

When there is a balance between supply and demand.

Question 40

What is disequilibrium?

Answer 40

When the balance is not correct between supply and demand.

Question 41

What is PED

Answer 41

This measures how demand is affected by a change in prce

Question 42

What is YED

Answer 42

This measures how demand of a product is affected by a change in consumer income

Question 43

How is PED measured

Answer 43

% Change in quantity demanded/ | % Change in price

Question 44

How is YED measured?

Answer 44

% Change in quantity demanded/ | % Change in income

Question 45

How do you interpret whether a product is price elastic?

Answer 45

If the value is more than 1 it is classed as elastic as the change in demand is more than the change in price

Question 46

How do you interpret whether a product is income elastic

Answer 46

If a product is Price elastic then it is likely to be income inelastic

Question 47

What is a luxury item

Answer 47

An item that is not needed and likely to be elastic

Question 48

What is a necessity

Answer 48

An item that is needed and is likely to be inelastic

Question 49

How does availability of substitutes affect PED?

Answer 49

If the product has lots of alternatives it is more likely to be inelastic

Question 50

How does Brand strength affect PED

Answer 50

Products with a high brand loyalty tend to be more inelastic.