AS Level Business chapter 3: Marketing MCQs with answers
By Team Megalecture · Updated 4 Nov 2026
72 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. Which describes a niche market?
A
the whole population of a country buying similar goods
B
a market in which all of the products are identical
C
a market in which there are no customers at all
D
a small segment with specific needs
Show answer
Answer: D. Niche markets are small specialised parts of a larger market, such as luxury organic pet food.
2. A line graph of a firm's monthly sales shows a peak every December and higher sales each year. Which conclusion is supported?
A
sales are falling from one year to the next
B
sales are the same in every month of the year
C
the firm has no seasonal pattern in its sales
D
sales are seasonal and have an upward trend
Show answer
Answer: D. A regular December peak indicates seasonality, and rising levels each year indicate an upward trend.
3. Which is a characteristic of services rather than goods?
A
they can be stored in a warehouse for later sale
B
they are always cheaper than the goods they replace
C
they can be touched and tested before they are bought
D
they are intangible and cannot be stored
Show answer
Answer: D. Services are intangible and are produced and consumed at the same time, so they cannot be stored.
4. A firm surveys 300 people about flavours: mango 120, lemon 90, orange 60, mint 30. It will launch only flavours chosen by at least 25% of respondents. Which flavours does it launch?
A
mango only
B
mango and lemon only
C
mango, lemon and orange
D
all four flavours
Show answer
Answer: B. The shares are mango 40%, lemon 30%, orange 20% and mint 10%. Only mango and lemon reach 25%.
5. A firm plans to make 5,000 units. Fixed costs are $40,000 and variable cost is $12 per unit, so average cost at 5,000 units is $20. It sets the price at cost plus 30%, which is $26. Only 4,000 units are sold. What is the profit?
A
$24,000
B
$30,000
C
$104,000
D
$16,000
Show answer
Answer: D. Revenue = 4,000 × $26 = $104,000. Costs = $40,000 fixed + 4,000 × $12 = $88,000, so profit = $16,000. Using $20 a unit for costs gives $24,000, which forgets that fixed costs do not fall with output.
6. A focus group of eight customers discusses the design of a new package. What kind of data does this mainly produce?
A
quantitative secondary data
B
quantitative primary data
C
qualitative primary data
D
qualitative secondary data
Show answer
Answer: C. The group's opinions are collected first-hand and are about attitudes, so the data is primary and qualitative.
7. A firm asks a sample of 200 of its 5,000 customers if they would buy a new product. 60 say yes. Assuming the sample is representative, how many of all customers would be expected to buy?
A
300
B
60
C
1,500
D
1,000
Show answer
Answer: C. The sample proportion is 60 ÷ 200 = 30%, and 30% of 5,000 = 1,500. Actual results may vary because of sampling error.
8. A product's sales, in thousands of units, over six years were 20, 80, 190, 255, 262 and 264. Which stage of the product life cycle has it reached by year 6?
A
growth
B
maturity
C
introduction
D
decline
Show answer
Answer: B. Sales rose rapidly in years 2 to 4, but the rise has slowed to under 1% a year and sales have not fallen, which is maturity. Decline would show falling sales.
9. A survey of customers finds that the mean spend is $40 but the median spend is $22. What does this suggest?
A
a few high spenders pull the mean above typical spend
B
most customers spend well over $40 each
C
every customer spends about $22
D
the survey must have used a sample that was too large
Show answer
Answer: A. A mean well above the median means the distribution is skewed by a small number of large values, so the median better represents a typical customer.
10. A company's corporate objective is to raise profit by 20% within two years. Which marketing objective is most consistent with it?
A
increase the number of staff in the marketing department
B
raise sales of its higher-margin products by 15%
C
reduce the price of all of its products by 20%
D
enter every possible new market at the same time
Show answer
Answer: B. Marketing objectives must help achieve corporate objectives. Selling more high-margin products directly supports higher profit, while across-the-board price cuts would probably cut profit.
72, each with the answer and a short explanation, across 3 topics: The nature of marketing, Market research, The marketing mix. Every chapter test draws ten of them, so you can take it many times.
Is the AS Level Business 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.
