Lesson 2.1.1

2.1.1 Aspects of the Market Quiz: NCFE Business & Enterprise, Unit 2

20 questions · by Revision Ninja

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This free Aspects of the Market quiz has 20 multiple choice questions for the NCFE Level 1/2 Technical Award in Business and Enterprise (NCFE Business & Enterprise), Unit 2: Marketing. It covers lesson 2.1.1, Aspects of the Market, one of the ready-made revision sets written with Revision Ninja and organised by unit on Qwiz Rush.

Use it as a starter, a plenary or an end-of-unit check: host it live on the board and students join with a game code on their own devices — no student accounts and nothing to install — or set it for independent revision with Free Play, where each student works through the questions alone.

Every question runs on a 20-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

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The 20 questions

  1. In business, what does the term 'market' actually mean?

    • A sub-group of buyers who share needs and spending habits
    • The factory and machinery used to make a product
    • The customers for a product and the firms selling it
    • The channels used to advertise a product to buyers

  2. Why might a business divide its customers into segments?

    • It can aim its marketing at groups with shared needs
    • It lets one advert reach the whole market more cheaply
    • It shows how many rivals are active and what they charge
    • It cuts the cost of making each unit of the product

  3. Which of these is NOT a demographic way of describing a customer?

    • Their age, such as being in their early teens
    • Their income, such as earning over £40,000
    • Their values, such as caring about the planet
    • Their job, such as working as a paramedic

  4. How does a strong USP help a firm compete in its market?

    • It widens the range of products the firm offers
    • It cuts the cost of each unit the business makes
    • It sets the product apart, so buyers will pay more
    • It lowers the price, so the firm can undercut its rivals

  5. A firm improves the quality of its trainers. What is the likely effect?

    • It can charge a higher price and keep buyers loyal
    • Its costs fall, since fewer materials are used
    • It must spend more on adverts to keep sales up
    • Demand falls, as buyers prefer the cheapest goods

  6. Why does a firm often sell a whole range of products?

    • It lets the firm target a single niche closely
    • It cuts input costs, as bulk orders earn supplier discounts
    • It keeps stock levels low and speeds up delivery
    • It meets more customer needs and spreads its risk

  7. In business, what does the word 'demand' mean?

    • The amount of a product firms are able to make
    • The amount of a product customers want to buy
    • The stock of a product sitting in the warehouse
    • The number of rivals selling a similar product

  8. Little Moons mochi went viral on TikTok. What happened to demand?

    • It grew steadily, as a brand does through advertising
    • It stayed flat, because price is what drives sales
    • It shot up quickly, but the boom was short-lived
    • It fell, as shoppers saw the craze as a passing fad

  9. Why do many customers put off buying life cover?

    • Firms are not allowed to advertise it on TV
    • Thinking about their own death makes them uneasy
    • The product is seasonal, so sales come in bursts
    • It is an impulse buy, so it is soon forgotten

  10. Why does a firm study whether its market is growing?

    • It sets the price the firm must charge to break even
    • It reveals which customer segment is the most profitable
    • Winning new buyers is easier when sales are rising
    • It tells the firm how many rivals it will face

  11. In business, what is meant by 'the market' for a product?

    • The buyers of an item and the firms competing to sell it
    • The percentage of total sales that one firm holds
    • The research done before a new product is launched
    • The high street shops where customers pay for goods

  12. How does a firm work out which buyers to aim its product at?

    • Focus on its current buyers and their favourite lines
    • Copy the range of items that its closest rival sells
    • Split the market into groups by age, income and lifestyle
    • Advertise to the whole population and see who replies

  13. Why do businesses often segment a market by income?

    • Because it shows what buyers can afford to pay
    • Because it tells the firm the hobbies buyers have
    • Because it shows where its buyers live and shop
    • Because it sets the cost of making each unit

  14. A rival cuts the price of a very similar product. Why is that a threat?

    • Buyers may switch to the cheaper item, so revenue falls
    • The firm must legally match the rival's new price
    • The firm's fixed costs will rise as its output drops
    • Demand across the whole market will start to fall

  15. A firm improves the quality of its trainers. What is the likely effect on price?

    • It has to match the price its rivals are charging
    • It must sell at a lower price to shift the stock
    • It can charge more, as buyers see better value
    • It should keep its price exactly as it is now

  16. Why might a shop choose to stock a wide range of products?

    • So it can build a strong brand around one flagship item
    • So it can hold less stock and free up its working capital
    • So it can buy in bulk from suppliers and gain economies of scale
    • So it can suit different customer tastes in one visit

  17. What does 'demand' mean when a firm looks at its market?

    • How many people want the item and will pay for it
    • The price the firm sets to cover costs and make a profit
    • The number of rival firms selling a close substitute
    • How many units the firm's staff and machines can make

  18. A style of trainer suddenly goes viral online. Why does this matter to a shoe firm?

    • Sales of the style will stay high for many years
    • It proves the firm's advertising campaign has raised brand awareness
    • Demand can rise fast, so quick stock decisions pay off
    • The firm can raise prices across its whole range

  19. Why should a new bakery research demand before it opens?

    • To meet the hygiene rules and register the premises with the council
    • To work out the wages it must pay its bakers
    • To copy the layout used by the bakery next door
    • To check enough people want its cakes at that price

  20. Why is it easier to win new customers in a growing market?

    • Growing markets attract fewer new entrants, so competition falls
    • More buyers are entering, so rivals lose fewer sales
    • A shrinking market has more room to expand into
    • Firms in a growing market face fewer legal rules