Section A - Multiple Choice Questions - 2 marks each (10 marks)
1.__________________ is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
2. _______________ factors are the most popular bases for segmenting customer groups.
3. The stage is the product life cycle that focuses on expanding market and creating product awareness and trial is the:
4. A price reduction to buyers who buy in large volumes is called a(n):
5. A company is practicing ________________ if it focuses on subsegments with distinctive traits that may seek a special combination of benefits.
Section B : Case Study
Read Item A and then answer the questions that follow.
Jenny is studying for her A-levels. At the same time, she enjoys working part time in a local café in the village where she lives. She has noticed that the prices charged to customers in the café seem to be much higher than the actual costs of making the meals and drinks. She is sure that the owners must be making a good profit. Jenny is now considering whether she should carry on with her studies or whether she should just leave school and set up her own café. Jenny could set up the café in the village where she lives which is in a tourist area. She is also considering a busier but more expensive location such as the shopping centre in the town near to where she goes to school.