A Level Business (A2) chapter 3: Marketing MCQs with answers
By Team Megalecture · Updated 4 Nov 2026
39 exam-style questions on Marketing, each with the answer and a short explanation. Ten of them are below to try. The chapter test draws ten fresh questions each time and is marked the moment you finish, with your score by topic.
Try each one, then open the answer. These ten stay the same; the test draws new ones every time.
1. A food company finds that tastes, religious rules and packaging regulations differ widely between the countries it sells in. Which approach is most appropriate?
A
use one standard product and one advertisement in every market it enters
B
stop selling in every market that is very different from the home market
C
fix a single price in all markets whatever the local costs and incomes are
D
keep local differences by adapting products and promotion in each market
Show answer
Answer: D. Where preferences and regulations differ, adapting the marketing mix to local conditions keeps products acceptable, although it raises costs.
2. Which is a benefit of marketing planning?
A
it removes all uncertainty about the market in which the firm sells
B
it guarantees that the firm will always beat its competitors in the market
C
it sets targets against which marketing performance can be measured
D
it removes the need for the firm to carry out any market research
Show answer
Answer: C. A plan sets measurable targets and coordinates activity, so results can be reviewed. It cannot remove uncertainty or guarantee success.
3. Quarterly sales (units) were: Year 1 — Q1 180, Q2 220, Q3 260, Q4 200; Year 2 — Q1 190, Q2 230, Q3 270, Q4 210. What is the four-period centred moving average for Year 1 Quarter 3?
A
216.25
B
215.00
C
217.50
D
218.75
Show answer
Answer: A. Averages of successive four quarters are 215.0 (Q1–Q4) and 217.5 (Q2–Q1 of Year 2). The centred value for Q3 is their mean, (215.0 + 217.5) ÷ 2 = 216.25. Using only one average, or the value for another quarter, is a common slip.
4. The price elasticity of demand for a firm's product is −2. The firm cuts its price by 10%. What is the effect on its total revenue?
A
it rises by 8%
B
it rises by 10%
C
it falls by 10%
D
it rises by 20%
Show answer
Answer: A. Quantity rises by 20%, so revenue = 0.90 × 1.20 = 1.08 times the old, an 8% rise. Adding the percentages (+20% − 10%) gives 10%, which ignores that the changes multiply.
5. What is the main purpose of screening ideas during product development?
A
to make sure that every idea generated is turned into a finished product
B
to decide the price at which the finished product will be sold to customers
C
to inform customers of a new product before it is launched on the market
D
to remove impractical or unprofitable ideas before large sums are spent
Show answer
Answer: D. Screening reduces cost and risk by dropping unsuitable ideas early. Only the ideas that pass go on to development and testing.
6. Which factor would make exporting through a local agent a more suitable method of entry than building a factory in the foreign market?
A
the foreign government has high import tariffs on the firm's product and similar goods
B
the expected sales in the foreign market are still uncertain and small
C
the firm wants complete control over production and quality standards abroad
D
the firm expects very large and growing sales in the foreign market for many years
Show answer
Answer: B. Exporting needs little investment, so it suits small, uncertain markets. High tariffs, wish for control and large expected sales favour local production.
7. A firm's marketing objective is to raise sales of its established soap brand in its existing market by increasing market share. Which strategy is most consistent with this objective?
A
developing a completely new product for a market unrelated to its current one
B
more promotion and discounts to persuade competitors' customers to switch
C
cutting promotion spending in order to raise its short-term profit margins
D
raising the price sharply so that the brand appears more exclusive to buyers
Show answer
Answer: B. To win share in an existing market with an existing product, the firm must attract rivals' customers, for example through promotion and price offers. The other options do not pursue that objective.
8. A firm's product has a price elasticity of demand of −0.6. It raises its price by 10%. What is the approximate effect on total revenue?
A
it falls by about 6%
B
it falls by about 3.4%
C
it stays unchanged
D
it rises by about 3.4%
Show answer
Answer: D. Quantity falls by 0.6 × 10% = 6%. New revenue = 1.10 × 0.94 = 1.034 times the old, an increase of about 3.4%. Demand is inelastic, so a price rise increases revenue.
9. A firm's promotional elasticity of demand is 0.4. What is the best interpretation for its marketing decisions?
A
a 10% rise in promotion spending raises demand by about 25%, so more promotion is always profitable
B
a 10% rise in promotion spending lowers demand by 4%, so promotion should be reduced
C
promotion spending has no effect on demand at all, so it should be cut to zero
D
a 10% rise in promotion spending raises demand by only about 4%, so extra spending may not pay
Show answer
Answer: D. A value below 1 means sales respond less than proportionally to promotion, so the extra revenue must be compared with the extra cost. It does not show that promotion is ineffective.
10. Why does a firm need to forecast its sales?
A
so that it can be certain of achieving its target sales in each period
B
so that it can plan production, staffing, stock levels and finance
C
so that it can avoid the need to prepare a budget for the coming year
D
so that it can stop carrying out any further research into its market
Show answer
Answer: B. Forecasts underpin plans in all functions. They are estimates and cannot ensure the target is met.
39, each with the answer and a short explanation, across 2 topics: Marketing analysis, Marketing strategy. Every chapter test draws ten of them, so you can take it many times.
Is the A Level Business (A2) chapter 3 test free?
Yes. The test, the answers and the explanations are free and need no sign-up. Sign in only if you want your scores kept across devices.
How is the chapter test marked?
The moment you press Finish: your score, the right answer and an explanation for every question, and the ones you got wrong saved in My mistakes to retry.
