Lesson 2.2.1c
2.2.1c Importance of differentiating a product or service Quiz: Pearson Edexcel Business, Unit 7
20 questions
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Lesson 2.2.1c, Importance of differentiating a product or service: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 7: Making marketing decisions, written with Revision Ninja.
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The 20 questions
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What does the term product differentiation mean?
- Matching rival prices
- Making a product distinct
- Lowering unit costs
- Standardising all goods
-
What is a primary benefit of differentiating a product or service?
- Lowering production costs
- Maximising tax relief
- Eliminating all rivals
- Competing beyond price
-
Which feature is an example of design differentiation?
- The lowest price
- Standard packaging
- A unique shape
- Generic branding
-
What is a primary way a service business can successfully differentiate itself?
- Reducing opening hours
- Lowering utility bills
- Increasing staff uniforms
- Personalised customer service
-
What benefit is a successfully differentiated product most likely to provide?
- Instant market decline
- Guaranteed monopoly status
- Zero business costs
- Higher profit margins
-
Which method is commonly used to differentiate a product by brand?
- Unbranded materials
- Wholesale discounting
- Recognisable logo
- Generic packaging
-
A restaurant differentiates by offering locally sourced ingredients. Which element of the marketing mix does this mainly affect?
- Price
- Promotion
- Place
- Product
-
Two phones are sold: a well-known brand at £600 and an unbranded phone at £450. What is the price difference?
- £600
- £450
- £150
- £1,050
-
What type of advantage does a bakery gain by offering a unique gluten-free range?
- Free advertising
- Competitive advantage
- Tax exemption
- Zero overheads
-
Why might a café offer extended opening hours and free wifi?
- To encourage repeat visits
- To reduce utility bills
- To cut staff wages
- To shorten queues
-
A hotel adds a spa and a personal concierge service. What type of differentiation is this?
- Price-based discounting
- Tariff avoidance
- Service differentiation
- A merger strategy
-
A clothes brand uses a unique fabric and a recognisable logo. What is this called?
- Liquidation pricing
- Batch production
- Product differentiation
- Cost cutting
-
What should a business do if rivals quickly copy its differentiating feature?
- Lower quality
- Ignore rivals
- Keep innovating
- Stop trading
-
A firm that differentiates on quality charges 20% more. It sells 5,000 units at £10 each. What is the extra revenue from the premium?
- £50,000
- £1,000
- £100,000
- £10,000
-
Which feature best differentiates a parcel delivery service from rivals?
- Guaranteed two-hour delivery
- Delayed shipping times
- Standard postal rates
- Cash only payments
-
A supermarket offers 'click and collect'. Which element of the marketing mix is primarily affected?
- Product
- Promotion
- Place
- Price
-
What happens when a business fails to differentiate its product from rivals?
- Competes purely on price
- Eliminates all rivals
- Can set any price
- Becomes a monopoly
-
Why might differentiation be safer than a price war for a small business?
- Protects profit margins
- Guarantees free supplies
- Removes all competition
- Eliminates fixed costs
-
A product sells for £25 with a unit cost of £15. Differentiation adds £3 to unit cost and allows a £6 price rise. What is the unit profit now?
- £10
- £19
- £13
- £7
-
What is the most common reason a differentiated service loses its customers?
- Mandatory closures
- Increased tax rates
- Higher staff wages
- Rivals copy features
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