Lesson 3.3.2

3.3.2 Understanding markets and customers Quiz: AQA Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.3.2, Understanding markets and customers: 20 multiple choice questions for the AQA Business (7132), Unit 3: Marketing management, written with Revision Ninja.

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The 20 questions

  1. Primary market research is:

    • Data already published by government statistics offices
    • Data taken from the annual reports of competitors
    • Data purchased from a market research agency's archive
    • Data collected first-hand by the business for its specific purpose, such as a survey

  2. Qualitative marketing data is:

    • Data always gathered from government sources
    • Non-numerical data, such as opinions or reasons gathered from focus groups
    • Data that can be counted exactly, such as the number of customers
    • Numerical data, such as sales totals from a till system

  3. Random sampling means that:

    • A sample is taken only from the top 10% of respondents
    • Interviewers fill quotas using their own choice of respondents
    • Every member of the population has an equal chance of being selected
    • Only the customers who have bought the most are chosen

  4. Stratified sampling involves:

    • Filling a fixed number from each group with no random selection
    • Dividing the population into subgroups and drawing the sample proportionally from each subgroup
    • Including only people who volunteer for the survey
    • Choosing each person on a list at random and ignoring the rest

  5. Quota sampling involves:

    • Interviewers filling fixed numbers from set subgroups, choosing respondents using their own judgement
    • Selecting every tenth customer on a list
    • Surveying all customers in one geographic area
    • Random sampling of each subgroup in proportion to its size

  6. Positive correlation means that:

    • As one variable increases, the other tends to decrease
    • One variable causes the other to change in a fixed ratio always
    • As one variable increases, the other tends to increase as well
    • The two variables are unrelated at all times

  7. Price elasticity of demand measures:

    • The responsiveness of quantity demanded to a change in price
    • The fixed cost per unit when prices are set
    • The responsiveness of supply to a change in price
    • The total revenue earned from selling at different prices

  8. A stratified sample of 200 is to reflect a population in which 60% are under 30. How many respondents should be under 30?

    • 200
    • 140
    • 60
    • 120

  9. A survey finds 45% of respondents would buy a product, with a 95% confidence interval of plus or minus 3 percentage points. Which conclusion is valid?

    • There is a 100% chance that 48% of the population will buy
    • The true proportion in the population is likely to be between 42% and 48%
    • Exactly 45% of the whole population would buy the product
    • The survey is invalid because it has a margin of error

  10. A firm uses a trend from past data and extends it beyond the observed range to forecast next year. This is called:

    • Extrapolation
    • Interpolation
    • Correlation
    • Sampling

  11. A business finds that the income elasticity of demand for its product is negative. What type of good is it?

    • A normal good, whose demand rises as income rises
    • A necessity whose demand is perfectly inelastic
    • A luxury good whose demand is highly elastic
    • An inferior good, whose demand falls as income rises

  12. Demand for a product is price inelastic. If its price rises by 10%, what is the most likely effect on total revenue?

    • Total revenue falls, because quantity demanded falls by more
    • Quantity demanded rises by 10%
    • Total revenue stays exactly the same
    • Total revenue rises, because quantity demanded falls by proportionally less

  13. A correlation coefficient of -0.9 indicates:

    • A strong negative correlation
    • No correlation between the variables
    • A weak positive correlation
    • A perfect positive correlation

  14. A business finds that customers who earn more buy premium products more often. This relationship is best described as:

    • A positive correlation between income and premium product purchases
    • A negative correlation between income and premium product purchases
    • Causation proving all customers will buy premium products
    • No relationship, since income is not a sales factor

  15. What is a main advantage of secondary research for a small firm?

    • It always provides data tailored exactly to the firm's needs
    • It is cheap and quick to access compared with collecting new data
    • It guarantees the data is up to date at the time of use
    • It removes any need to check the reliability of sources

  16. Evaluate: what is the best limitation of using a small quota sample?

    • Interviewer bias may affect who is selected, so the sample may not represent the population accurately
    • Quota samples always produce the same results as random samples
    • Quota samples cannot be used for any kind of market research
    • Quota samples cost more than any other method in every case

  17. Which statement about a confidence interval is correct?

    • It gives the exact population value with certainty
    • It gives a range within which the true population value is likely to fall at a stated level of confidence
    • It shows the probability that the survey was biased
    • It is the average of all responses in the survey

  18. A firm uses past sales data to forecast future demand, but market conditions have since changed. Which concern is most valid?

    • Extrapolating past trends can mislead if market conditions have changed and the trend no longer holds
    • Changes in the market have no effect on demand forecasts
    • Extrapolation is not a valid statistical method under any conditions
    • Past data is always more accurate than current data

  19. A firm with elastic demand (price elasticity of -2.5) cuts its price by 4%. Which result is most likely?

    • Quantity demanded rises by more than 4%, so total revenue rises
    • Quantity demanded falls by more than 4%, so total revenue falls
    • Quantity demanded rises by less than 4%, so total revenue rises
    • Quantity demanded stays the same, so total revenue falls

  20. Why is a positive correlation between two variables not proof of causation?

    • A third factor may drive both variables, so the link may be coincidental or indirect
    • Causation always requires a negative correlation
    • Correlation can only be measured using currency values
    • Correlation can only be found between two variables measured in units

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