1.1.1a Mass and niche markets, and dynamic markets Quiz: Pearson Edexcel Business, Unit 1

The 20 questions

1. Which term describes a broad market in which a business sells a standardised product to a large number of customers?

   • A shrinking market
   • A monopsony market
   • A niche market
   • A mass market

2. What term describes a single business's sales expressed as a percentage of total market sales?

   • Market size
   • Brand value
   • Sales volume
   • Market share

3. Which term describes a small, specialised market segment with specific customer needs?

   • Mass market
   • Niche market
   • Dynamic market
   • Primary market

4. What feature identifies a product and differentiates it from competitor products in customers' minds?

   • Trade mark
   • Patent label
   • Brand name
   • Unique sell

5. What key trend allows dynamic retail markets to expand without opening physical high-street stores?

   • Direct mail
   • Wholesale distribution
   • Trade fairs
   • Online retailing

6. What term refers to the total sales value or volume of all competitors in a market?

   • Sales margin
   • Capital growth
   • Market size
   • Market share

7. What process creates new consumer demand by introducing completely original products to a market?

   • Market segmentation
   • Product innovation
   • Trade credit
   • Price penetration

8. A firm sells £2.4m in a market worth £16m. What is its market share?

   • 6.7%
   • 2.4%
   • 37.5%
   • 15%

9. A firm has a 30% market share and sells 600,000 units. What is the total market size in units?

   • 200,000 units
   • 180,000 units
   • 1,800,000 units
   • 2,000,000 units

10. A market grows from 50m to 60m units and a firm's sales stay at 10m units. Its new market share is closest to:

    • 12.0%
    • 25.0%
    • 16.7%
    • 20.0%

11. A business sells hearing aids only to customers aged 60 and over through an online specialist service. Which market type best describes this?

    • A monopsony market
    • A niche market
    • A declining market
    • A mass market

12. Why might a business's market share fall even when its own sales volume is increasing?

    • Price levels dropping
    • Competitor sales falling
    • Market growing faster
    • Market size shrinking

13. A business doubles its sales while the total market quadruples. What happens to its market share?

    • It doubles
    • It stays unchanged
    • It halves
    • It quadruples

14. A firm's market share rises from 12% to 15% while the market grows by 10%. By what percentage did the firm's sales grow?

    • 27.0%
    • 25.0%
    • 12.0%
    • 37.5%

15. Why might a small firm with limited capital target a niche market rather than a mass market?

    • Broader customer reach
    • Lower unit costs
    • Less direct competition
    • Higher production volume

16. What type of new entrant rapidly changes market demand by offering innovative, alternative products?

    • Niche follower
    • Traditional supplier
    • Franchise operator
    • Disruptive entrant

17. What is a major financial advantage for a retailer shifting from physical stores to online-only selling?

    • Lower fixed costs
    • No promotional expenses
    • Zero delivery costs
    • Higher sales margins

18. A market has 4 million units of sales. Firm A sells 1.2 million units and Firm B sells 0.8 million units. What is their combined market share?

    • 30%
    • 20%
    • 70%
    • 50%

19. What advantage allows niche market businesses to charge higher prices to their target customers?

    • Economies of scale
    • Tailored products
    • Mass advertising
    • High output volume

20. A firm has an 8% market share in a market of 250 million units. How many units does it sell?

    • 3.1 million units
    • 2 million units
    • 20 million units
    • 200 million units

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