This set mixes the five lessons of the marketing choices module. The questions are original, set in fictional Malaysian businesses, and ordered from easier to harder. They are not exam questions.
Write each answer on paper first, in full sentences, with your working. Then open the answer and compare your reasoning chain, not only your final choice. Check your Cambridge syllabus page for your own code, since Business Studies 0450 and Business 0264 may use different wording for some terms.
1. Kedai Buku Rimba surveyed 50 customers about what they want most. 20 want cheap second-hand textbooks, 15 want a reading corner, and 15 want rare titles. Find the share for each need and name the largest segment.
Show answer
20 ÷ 50 = 0.40, so 40% want cheap second-hand textbooks. 15 ÷ 50 = 0.30, so 30% want a reading corner and 30% want rare titles. The shares add to 100%. The largest segment is customers who want cheap second-hand textbooks. The sample is only 50 existing customers, which is a limit.
2. A student writes: “Our target segment is teenagers.” Rewrite it as a stronger answer using the Rimba figures above.
Show answer
One strong version: “The target segment is students who want cheap second-hand textbooks. 40% of the 50 customers surveyed named this as their main need, which was the largest share.” It names a need, a group and a piece of evidence. The original gave only an age group with no need or evidence.
3. A bubble tea shop opens near two rivals. One sells basic drinks at RM8. The other sells premium drinks at RM22. The new shop plans RM14 drinks made with fresh fruit. State its position and give one risk.
Show answer
Its position is a mid-priced drink with fresh fruit, between a basic and a premium rival. This fills a gap if customers want better quality than RM8 but will not pay RM22. One risk is that customers may see RM14 as too expensive for ordinary tea but not special enough to compete with the premium shop, so the fresh fruit must be clearly visible in the product and message.
4. A pack of sambal costs RM6.40 to make. The owner adds a 25% markup. Find the selling price.
Show answer
25% of RM6.40 = 0.25 × 6.40 = RM1.60. Price = RM6.40 + RM1.60 = RM8.00. As a check, RM8.00 ÷ RM6.40 = 1.25, which is the cost plus 25%.
5. A product costs RM9.50 to make. A rival sells at RM12.90. At RM12.90 the business expects to sell 700 units a month. At RM11.50 it expects to sell 1,200. Find the monthly profit at each price and make a judgement.
Show answer
At RM12.90: profit per unit = RM12.90 − RM9.50 = RM3.40. 3.40 × 700 = RM2,380.
At RM11.50: profit per unit = RM11.50 − RM9.50 = RM2.00. 2.00 × 1,200 = RM2,400.
The lower price earns only RM20 more (RM2,400 − RM2,380 = RM20). The gain is very small and depends on an estimate of 1,200 sales. If the brand wants to build a reputation for fair pricing, RM11.50 may be worth testing. Otherwise the risk is not clearly worth the extra work.
6. A company launches a new smart pen that no rival can copy for a year. A different company launches a plain notebook into a market with many similar products. Which would you suggest for each: skimming or penetration pricing? Give a reason each.
Show answer
The smart pen suits skimming. It has no close rival for a year, so early buyers who want it may pay a high price. The notebook suits penetration. It looks like many rivals, so a low launch price may win trial. Both suggestions depend on customer response, and neither is certain.
7. A restaurant wants to keep its current customers visiting more often. Choose between a loyalty stamp card and a one-month radio campaign, and explain why.
Show answer
The loyalty stamp card fits better. The objective is retaining current customers, and the card rewards repeat visits directly. A radio campaign is better for awareness among people who do not yet know the restaurant. It would also cost more and reach many people who are not customers.
8. A school bulletin advert costs RM250 and reaches 500 parents, all of whom are the target audience. A social media advert costs RM400 and reaches 8,000 people, of whom 10% are the target. Find the cost per target person for each and give a judgement.
Show answer
Bulletin: RM250 ÷ 500 = RM0.50 per parent.
Social media: 10% of 8,000 = 800 target people. RM400 ÷ 800 = RM0.50 per target person.
The cost per target person is equal, so cost does not separate them. The social media advert reaches 800 target people against 500, so it may suit a wider aim. The bulletin is more precise and has no wasted reach. The choice depends on how many target customers the business wants to reach and its budget.
9. Handmade soap costs RM6 a bar. At a market stall the owner sells at RM15, pays RM400 a month stall rent, and sells 120 bars. On an online marketplace she sells at RM15, the platform takes 12% of the price, and she expects to sell 200 bars with no rent. Find the monthly profit for each channel and make a judgement.
Show answer
Stall: profit per bar before rent = RM15 − RM6 = RM9. 120 × RM9 = RM1,080. Subtract rent: RM1,080 − RM400 = RM680.
Marketplace: 12% of RM15 = RM1.80. Profit per bar = RM15 − RM6 − RM1.80 = RM7.20. 200 × RM7.20 = RM1,440.
The marketplace gives RM760 more a month (RM1,440 − RM680 = RM760) and may reach more customers. But 200 is an estimate and the platform may change its fee. The stall gives direct contact with customers, which can build loyalty. A sensible conclusion is to use the marketplace as the main channel if the sales estimate is realistic.
10. A snack maker can sell 1,000 boxes to a wholesaler at RM9 a box. Each box costs RM6 to make. The wholesaler pays 45 days after delivery. Find the profit on the order, the cash the maker must spend first, and judge whether to accept.
Show answer
Profit per box = RM9 − RM6 = RM3. Profit on the order = 1,000 × RM3 = RM3,000.
Cash spent first on making the boxes = 1,000 × RM6 = RM6,000, paid before the wholesaler pays anything.
The order looks profitable, but the maker needs RM6,000 to fund 45 days. Accept if the business can cover that gap, for example from savings, and if the wholesaler is reliable. If not, a smaller first order may be safer. The cash versus profit bridge shows how profit and cash differ in a case like this.
If you got these wrong
| Where you slipped | Go to |
|---|---|
| Q1 and Q2, or naming a group with no stated need | Define a target segment from stated needs |
| Q3, or describing a product without comparing rivals | Explain a product-positioning choice |
| Q4 to Q6, or comparing volume but not profit | Compare price approaches in a fictional market |
| Q7 and Q8, or choosing a method without the audience | Link promotion to objective and audience |
| Q9 and Q10, or ignoring reach and payment timing | Evaluate distribution choices using cost and access |
Record each slip in a mistake log, noting whether it was a calculation, a missing case link or a conclusion that went too far. Retry that kind of question after a few days. The ratios tool helps if markup and margin are mixing together.
Where you can state the right idea but cannot yet write it as a case-based paragraph, our teachers can work on that with you in online one-to-one Business tuition.