A Level Business: Marketing (A Level) — Practice Questions (Cambridge 9609)

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs — Cambridge International holds copyright in its own papers. Use these alongside the official past papers available from your board.

Each question practises a skill tested in the June 2024 Paper 32. After each answer there is an examiner insight, a mark-scheme insight or a tip and, where one matches, the real question to try next.

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Questions

1. A garden centre’s sales (in thousands of units) for five consecutive quarters were: Year 1 Quarter 1: 30; Quarter 2: 44; Quarter 3: 52; Quarter 4: 38; Year 2 Quarter 1: 34. Calculate the centred quarterly moving average for Year 1 Quarter 3. [3]

2. A swimwear retailer’s trend (centred moving average) value for a winter quarter is 25 600 units. Its actual sales in that quarter were 22 400 units. Calculate the seasonal variation for the quarter and explain what it shows. [2]

3. State two limitations of using moving averages from past sales data to forecast future sales. [2]

4. A café chain finds a strong positive correlation between its monthly spending on social media advertising and its monthly sales. Explain why this does not prove that the advertising caused the increase in sales. [2]

5. When a rival cinema raised its ticket prices by 10%, demand for tickets at a nearby cinema rose by 4%. Calculate the cross elasticity of demand and explain what the result shows about the two cinemas. [3]

6. Explain the difference between a pan-global marketing strategy and a global localisation marketing strategy. [2]

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Answers

1. First four-quarter moving total = 30 + 44 + 52 + 38 = 164; second four-quarter moving total = 44 + 52 + 38 + 34 = 168 [1]. Eight-period moving total = 164 + 168 = 332 [1]. Centred moving average = 332 ÷ 8 = 41.5 thousand units (41 500 units) [1].

Examiner insight (Cambridge 9609 June 2024 examiner report, Paper 32, Question 3(b)): most candidates could not work out the centred quarterly moving average, many did not attempt it, and many answers gave no working. Showing even one correct four-period moving total earned credit, so always write down your working.

Source for the examiner insights on this page: Cambridge International AS & A Level Business 9609 June 2024 Principal Examiner Report for Teachers, Paper 9609/32 section, paraphrased.

Try the real question next: Cambridge International AS & A Level Business 9609, June 2024, Paper 32, Question 3(b).

2. Seasonal variation = actual sales − trend = 22 400 − 25 600 = −3 200 units [1]. The negative value shows that sales in this quarter are 3 200 units below the trend, as expected for swimwear in winter [1].

Examiner insight (Cambridge 9609 June 2024 examiner report, Paper 32, Question 3(a)): many candidates reversed the formula (trend − actual) and gave a positive answer, which could not be credited. The sign matters: a negative seasonal variation means sales are below the trend.

Try the real question next: Cambridge International AS & A Level Business 9609, June 2024, Paper 32, Question 3(a).

3. Any two from: the past may not be a good guide to the future because markets are dynamic (for example, a new competitor or a change in tastes) [1]; the method ignores qualitative factors such as consumer confidence or the weather [1]; unexpected external events can make the forecast inaccurate, and the further ahead the forecast, the less reliable it is [1]. (Maximum 2 marks.)

Mark-scheme insight (Cambridge 9609 June 2024 mark scheme, Paper 32, Question 3(c)): the drawbacks of sales forecasting listed in the mark scheme include inaccuracy, dynamic markets, reliance on past data and ignoring qualitative factors.

Source for the mark-scheme insights on this page: Cambridge International AS & A Level Business 9609 June 2024 mark scheme for Paper 32 (9609/32), paraphrased. Cambridge’s 9609 past papers page publishes the Paper 31 mark scheme from this series, not the Paper 32 one.

Try the real question next: Cambridge International AS & A Level Business 9609, June 2024, Paper 32, Question 3(c).

4. Correlation only shows that two variables move together; it does not show cause and effect [1]. Another factor could have raised sales at the same time, for example warmer weather, a price cut or a rival café closing, so the increase may not be due to the advertising at all [1].

Tip: in any correlation question, name a specific other variable that could explain the link. It turns a general point into a developed one.

5. Cross elasticity of demand = % change in quantity demanded of one good ÷ % change in price of the other good = +4% ÷ +10% [1] = +0.4 [1]. The positive value shows the two cinemas are substitutes, but because it is less than 1 the link is fairly weak: customers do not switch much between them [1].

Tip: the sign of cross elasticity tells you the relationship (positive for substitutes, negative for complements); the size tells you how strong it is.

6. A pan-global strategy uses the same, standardised marketing mix in every country, treating the world as one market [1]. Global localisation adapts the marketing mix (such as the product, promotion or price) to suit local tastes, culture and laws in each country [1].

Tip: a quick example helps, such as a fast-food chain keeping the same brand worldwide but changing menu items for local tastes (global localisation).

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Where marks are usually lost

• Not knowing the centred moving average method: add two four-quarter totals, then divide the eight-quarter total by 8.
• Calculating seasonal variation as trend − actual; it is actual − trend, and the sign must be kept.
• Assuming that correlation proves cause and effect.
• Forgetting the sign or the interpretation in elasticity answers.
• Giving no working in calculation questions, which throws away method marks.