Lesson 7.1.1.4

7.1.1.4 Social Quiz: NCFE Business & Enterprise, Unit 7

20 questions

In partnership with Revision Ninja

Social and cultural change alters what customers want to buy. This lesson distinguishes lasting trends from short-lived fads and seasonal patterns, and shows how businesses research demand, refresh ranges, extend products and adapt channels to keep customers rather than lose them to quicker rivals.

Key points

  • A trend is a lasting shift in what customers buy, a fad is a craze that fades within weeks, and a seasonal pattern repeats every year.
  • A firm that keeps stocking outdated styles or formats loses shoppers to rivals and ends up discounting unsold goods.
  • Sales data and asking customers reveal shifts in taste before profit falls, so research should come before big spending.
  • Chasing a fad is risky because demand can vanish before a large stock order sells.
  • Responses to trends include adding vegan dishes, widening plant-based ranges, or relaunching a product with new flavours or colours.
  • Online shopping pushes high-street retailers to offer a website and delivery, and music labels earn by licensing catalogues to streaming services.
  • Being first to a new trend can allow a premium price until rivals copy, and ignoring trends leads to long-term sales decline.

Key terms

Trend
A lasting change in the direction of consumer tastes and buying habits.
Fad
A short-lived craze that rises quickly and disappears within weeks.
Fashion
The styles currently popular with consumers, which change quickly.
Extension strategy
A way of keeping a declining product selling, such as refreshing its design or features.
Market research
Gathering information about customers' wants, for example from sales figures and surveys.
Brand loyalty
Customers' tendency to keep buying from a business they trust and like.
Premium price
A higher price charged while a product has little close competition.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

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The 20 questions

  1. What term describes a lasting shift in customer buying habits?

    • Craze
    • Fad
    • Seasonality
    • Trend
  2. What is the likely effect when a clothing shop fails to keep up with style changes?

    • Cheaper wholesale costs
    • Higher employee wages
    • Loss of customers
    • Lower business rates
  3. What is the best first step when customers request a new eco-friendly product feature?

    • Close the business
    • Raise product prices
    • Research consumer demand
    • Ignore the request
  4. Which business action best shows a response to a social and cultural trend?

    • Adding vegan dishes
    • Lowering loan interest
    • Hiring extra staff
    • Paying corporation tax
  5. What was the likely outcome for a music shop that kept stocking CDs as customers moved to streaming?

    • Higher tax liability
    • Lower sales revenue
    • Higher profit margins
    • Lower rent payments
  6. What term describes a product that sells out rapidly for six weeks and is then forgotten?

    • Seasonal pattern
    • Market saturation
    • Short-lived craze
    • Economic trend
  7. How can a shop spot changing customer preferences before takings start to fall?

    • Dismiss loyal staff
    • Study sales data
    • Increase bank loans
    • Reduce store lighting
  8. Why is investing heavily in stock for a viral craze risky?

    • Staff costs increase
    • Taxes become higher
    • Demand ends quickly
    • Suppliers raise prices
  9. What action best tackles falling crisp sales caused by shifting consumer tastes?

    • Higher prices
    • Smaller factories
    • Fewer staff
    • New flavours
  10. What financial advantage does a firm gain by being first to sell a trending product?

    • Eliminate all costs
    • Receive government grants
    • Charge higher prices
    • Avoid paying VAT
  11. In business, what does the term trend refer to?

    • Bank interest levels
    • Shifting consumer tastes
    • Government tax rates
    • Staff turnover rates
  12. Which action is an extension strategy for clothing with falling demand?

    • Staff redundancies
    • New colours
    • Factory closure
    • Liquidation sale
  13. What is the best response when a supermarket sees an increase in plant-based food purchases?

    • Increase meat range
    • Expand vegan range
    • Close stores early
    • Reduce stock levels
  14. What must a high-street retailer do to protect sales when customers move to online shopping?

    • Reduce opening hours
    • Increase rent costs
    • Launch e-commerce website
    • Close all shops
  15. What is the main consequence when a clothing shop continues selling last season ranges?

    • Staff turnover falls
    • Profits rise instantly
    • Customers buy elsewhere
    • Supplier costs drop
  16. What is the likely short-term effect when a clothing brand's new design becomes very popular?

    • Mandatory liquidation
    • Higher sales revenue
    • Immediate bankruptcy
    • Zero customer demand
  17. What is a main business benefit of switching to recyclable packaging?

    • Reduced output
    • Lower material costs
    • Brand loyalty
    • Higher tax rates
  18. What is the likely long-term result of ignoring smartphone photography trends?

    • Increased market share
    • Lower fixed costs
    • Higher profit margins
    • Falling sales
  19. How do record labels primarily earn revenue from modern digital music consumers?

    • Broadcast licenses
    • Streaming royalties
    • Merchandise commission
    • Physical sales
  20. Which term best describes fashion as an external business influence?

    • Fixed overhead costs
    • Government legislation
    • Quickly changing styles
    • Long-term inflation

All NCFE Business & Enterprise quizzes