Lesson 3.3.4

3.3.4 Making marketing decisions: using the marketing mix Quiz: AQA Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.3.4, Making marketing decisions: using the marketing mix: 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. In the Boston Matrix, a product with high market growth and high market share is a:

    • Dog
    • Star
    • Cash cow
    • Question mark

  2. A cash cow in the Boston Matrix is a product that:

    • Has low market share in a high-growth market and needs investment
    • Has high market share in a low-growth market and generates surplus cash
    • Has low share and low growth and should be considered for closure
    • Has high growth and high share but costs more than it earns

  3. Price skimming involves:

    • Setting a high initial price, then lowering it over time as competition increases
    • Setting a low initial price to win market share quickly
    • Offering free trial products to all new customers
    • Setting prices equal to competitors' prices at all times

  4. Penetration pricing is best described as:

    • Setting a high initial price to recover development costs quickly
    • Setting a low initial price to attract customers and gain market share quickly
    • Setting a price that changes daily based on demand
    • Setting a price equal to production cost plus a fixed mark-up

  5. Viral marketing refers to:

    • Marketing that encourages customers to share content with others, spreading it rapidly through networks
    • Marketing that uses a single television channel for a month
    • Advertising placed only in print magazines for a set period
    • Marketing aimed at lowering a product's price to clear stock

  6. Multi-channel distribution means:

    • Sending goods directly from the factory to every customer in person
    • Using a single distributor for every market worldwide
    • Distributing products only through a company-owned website
    • Using more than one route to reach customers, such as shops and online sales

  7. The product life cycle stage in which sales growth slows and the market becomes saturated is:

    • Decline
    • Introduction
    • Maturity
    • Growth

  8. A new smartphone launches at 900 and falls to 600 within a year as rivals enter. Which pricing strategy is this?

    • Cost-plus pricing
    • Predatory pricing
    • Penetration pricing
    • Price skimming, with a high start and falling price

  9. A product has falling sales, low profit and many competitors leaving the market. Which stage of the product life cycle is it in?

    • Growth
    • Decline
    • Maturity
    • Introduction

  10. Which is an example of an extension strategy for a mature product?

    • Halting all advertising to reduce costs
    • Withdrawing the product from the market entirely
    • Cutting the price below the cost of production
    • Launching a new flavour or pack size to attract existing and new customers

  11. A question mark in the Boston Matrix should generally be:

    • Given investment to build market share, or else divested
    • Used to generate cash for the whole business indefinitely
    • Treated as a cash cow with minimal marketing
    • Given no investment and abandoned at once

  12. A firm trains its shop assistants to give expert advice to customers. Which element of the marketing mix does this mainly affect?

    • Product
    • People
    • Price
    • Promotion

  13. A firm uses social media influencers to promote a new product. Which promotional element is this?

    • Price discounts
    • Social media promotion
    • Trade press advertising
    • Direct mail to shareholders

  14. A firm cuts its price from 12 to 10 and sales rise from 5,000 units to 7,000 units. What is the effect on revenue?

    • Revenue falls from 60,000 to 50,000
    • Revenue rises by 20,000 only if costs fall
    • Revenue stays constant at 60,000
    • Revenue rises from 60,000 to 70,000

  15. Which factor most directly influences the marketing mix for an industrial product sold to other businesses?

    • The buyer being a business, so personal selling and technical specifications matter more
    • The buyer being a consumer, so mass television advertising is essential
    • The product having no competitors
    • The price being set by the government

  16. Evaluate: what is the best judgement about using penetration pricing for a new brand?

    • It is illegal for any new brand to use it
    • It always guarantees high profit margins from the first sale
    • It can win share quickly but may lower margins and make later price rises harder, so it suits price-sensitive markets
    • It should be used only for products in the decline stage

  17. Why may relying only on cash cows be risky for a business's future?

    • Cash cows have low growth, so they cannot sustain future revenue without new investment in new products
    • Cash cows always generate losses
    • Cash cows grow faster than any other product
    • Cash cows are illegal under UK competition law

  18. A product's sales fall from 80,000 to 60,000 in one year. What is the percentage fall?

    • 33%
    • 20%
    • 75%
    • 25%

  19. Which evaluation of viral marketing is most accurate?

    • It can reach large audiences cheaply, but results are unpredictable and negative messages can spread just as quickly
    • It is useful only for businesses selling industrial goods
    • It removes the need for any brand identity
    • It is guaranteed to increase sales by a fixed percentage

  20. A business sells 60% of its revenue through supermarkets and 40% through its own website. What is a key risk of relying heavily on supermarkets?

    • Supermarkets always pay in advance, so cash flow is guaranteed
    • Supermarkets reduce the business's fixed costs to zero
    • Loss of control over pricing and display, plus dependence on a few large buyers' terms
    • Supermarkets remove all competition in the market

All AQA Business quizzes