Edexcel GCSE Business: Spotting a business opportunity and customer needs (1BS0) – Practice Questions

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 – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions follow the Pearson Edexcel Level 1/Level 2 GCSE (9-1) in Business (1BS0) specification, Issue 2, July 2022, Theme 1, Topic 1.2 Spotting a business opportunity (items 1.2.1 to 1.2.4). All businesses and figures are invented. Calculators may be used, and workings should be shown. Learn from the study guide and the revision notes. Course links: the Business hub, the printable checklist and the free diagnostics.

Questions

1. Dosa Dash is a takeaway that now delivers within 20 minutes and opens until midnight.

(a) Define the term market research. [2] (b) State the customer need that Dosa Dash’s new service mainly meets. [1]

2. Gorse Hill Print Shop surveyed 150 students. Each chose the one need that mattered most when buying a notebook.

Need	Students
Price	51
Quality	39
Choice	24
Convenience	36

(a) Identify the need chosen by most students. [1] (b) Calculate the percentage who chose convenience. [2] (c) Calculate how many more students chose price than choice. [1]

3. Ashby Candles sells scented candles from a market stall. Sales have fallen over three months and customers keep asking for smaller, cheaper candles. Outline two ways that identifying customer needs could help Ashby Candles survive. [4]

4. Explain one advantage of using a focus group as a method of primary research. [3]

5. Tarn Planners wants to sell a homework planner app to pupils aged 11 to 16. There are 18,000 pupils of this age in the county. The owner gave a questionnaire to 50 pupils at one school and 35 said they would pay for the app. She then surveyed 200 pupils from four schools and 84 said they would pay.

(a) Calculate the percentage who said yes in the first survey. [2] (b) Using the second survey, estimate how many of the 18,000 pupils would pay. [2] (c) State one reason why the first survey was less reliable. [1]

6. Bracken Bakery surveyed customers.

(a) Define the term qualitative data. [2] (b) State which two statements are quantitative. [2]

• A: 48 of 80 customers rated the queue as too long.
• B: Several customers said the staff seemed rushed.
• C: The mean spend per customer was £7.40.
• D: Some customers said the shop smelled wonderful.

7. Thorne Jewellery sells online. The owner posted a poll on social media asking followers to choose between recycled silver and new silver. Of her 3,500 followers, 400 voted and 248 chose recycled silver. Analyse how social media research could help Thorne Jewellery, and one limitation of using it. [6]

8. A new takeaway plans to sell 12-inch pizzas. The owner mapped five rivals by price and by review score out of 5.

Rival	Price (£)	Review score
FastFold	5.50	2.1
Corner Slice	6.00	2.5
Dough Bros	7.50	3.0
Crust & Co	9.00	3.4
Napoli Nights	14.50	4.6

(a) Identify one possible gap in the market shown by the data. [1] (b) Calculate the mean price of the five rivals. [2] (c) Outline why market mapping helps a new business. [2]

9. Calder Fitness Studio is planning to open in a town of 24,000 adults. A survey estimated the share of each age segment interested in joining.

Age segment	Adults	Interested
18 to 29	6,000	30%
30 to 49	9,600	15%
50 and over	8,400	10%

(a) Calculate the number of adults aged 30 to 49 who are interested. [2] (b) Calculate the total number of interested adults across all three segments. [2] (c) Calculate this total as a percentage of the 24,000 adults. [1] (d) State one basis for segmentation, other than age, that Calder could use. [1]

10. Meadowbank Bike Repairs is opening in a town where its only rival, Spoke & Chain, charges £28 a service, is in the town centre and has good reviews but a five-day wait. Meadowbank can choose one option. Variable cost is £9 for every service under both options.

• Option A: charge £28 and expect 30 services a week.
• Option B: charge £22 and expect 42 services a week.

Justify which option Meadowbank should choose. [6]

11. Ottoline plans children’s cooking classes. A government report shows that children aged 6 to 12 in the district rose from 9,100 to 9,800. She asked 40 parents and 26 said they would pay for a weekly class. The one rival, Whisk Club, is eight miles away, charges £14 a session and has good reviews. Evaluate whether Ottoline should rely mainly on secondary research when deciding whether to start. [9]

Answers

1. (a) Gathering information about customers, competitors and the market [1] to help the business make decisions [1]. [2] (b) Convenience [1]. [1] Examiner insight: A definition is likely to gain more when it says what is collected and why; “finding things out” is too vague.

2. (a) Price [1]. [1] (b) 36 ÷ 150 × 100 [1] = 24% [1]. [2] (c) 51 - 24 = 27 [1]. [1] Examiner insight: In a Calculate question, the working line shows the method; a wrong final answer with correct working can still show understanding.

3. Way 1: research could show whether customers mainly need a lower price [1], so Ashby can sell smaller, cheaper candles and win back sales [1]. Way 2: it could find out whether choice or quality matters more, such as scents [1], so it keeps loyal customers and stays in business [1]. [4] Examiner insight: Outline needs two linked points in the context, so each way should link a need to the stall’s falling sales.

4. A focus group gives detailed opinions and reasons [1] because members discuss a product and explain their views [1], so the business learns why customers like or dislike it and can improve it before launch [1]. [3] Examiner insight: Explain has no context, so a statement followed by two expansion points is likely to do better than one general sentence.

5. (a) 35 ÷ 50 × 100 [1] = 70% [1]. [2] (b) 84 ÷ 200 × 100 = 42% [1]; 42% of 18,000 = 7,560 pupils [1]. [2] (c) The first survey asked only 50 pupils at one school, so they may not represent all pupils in the county [1]. [1] Examiner insight: A State answer is a single sentence; naming the weakness (small sample or one school) matters more than describing the survey.

6. (a) Descriptive data such as opinions, feelings or reasons [1], not numbers [1]. [2] (b) A [1] and C [1]. [2] Examiner insight: Look for numbers: B and D are opinions even though several people shared them.

7. A poll is cheap and quick [1], so Thorne can collect 400 votes without paying for printing or interviewers [1]. The result shows 248 of 400, which is 62%, prefer recycled silver [1], which can guide which materials she buys and promotes [1]. A limitation is that voters are followers who already like the brand [1], and only 400 of 3,500 voted, so the 3,100 who did not vote may think differently [1]. [6] Examiner insight: Analyse answers tend to do better when each point is developed with a figure from the stem.

8. (a) A good-quality pizza (score above 4) priced between £9 and £14.50, for example around £11 [1]. [1] (b) 5.50 + 6.00 + 7.50 + 9.00 + 14.50 = 42.50 [1]; 42.50 ÷ 5 = £8.50 [1]. [2] (c) It shows where rivals are crowded together [1], so the business can avoid head-on competition and aim at a gap [1]. [2] Examiner insight: A gap on a map is only a possible opportunity; answers that add “check demand” show more awareness.

9. (a) 15% of 9,600 [1] = 1,440 [1]. [2] (b) 18 to 29: 1,800; 50 and over: 840 [1]; total 1,800 + 1,440 + 840 = 4,080 [1]. [2] (c) 4,080 ÷ 24,000 × 100 = 17% [1]. [1] (d) Any one of location, demographics, lifestyle or income [1]. [1] Examiner insight: A table with percentages needs the percentage applied to the number in each row, not to the town total.

10. Contribution per week under A: 30 × (28 - 9) = £570 [1]. Under B: 42 × (22 - 9) = £546 [1]. Option A earns £24 more a week [1]. Option B would attract more customers and undercut Spoke & Chain, but it gives up £6 per service and needs 12 more repairs a week [1]. Option A risks losing customers who pay the same for a rival with good reviews, but Meadowbank could win them with a faster service than a five-day wait [1]. I recommend Option A because it gives the higher return for less work and does not depend on a price war, provided Meadowbank can promise quick repairs [1]. [6] Examiner insight: A Justify answer tends to do better if it compares both options using the figures and then recommends one.

11. The government report shows children aged 6 to 12 up by 700, which is 7.7% (700 ÷ 9,100 × 100) [1]. Secondary research is quick and cheap and shows a growing market [1], but it does not show whether parents in her area would pay for classes, and it may not be local [1]. Her primary survey shows 26 of 40, which is 65%, would pay [1]. Primary research asks the exact question about her product and price, and comments can give reasons [1], but 40 parents is a small sample and they may be friends, so it may not be reliable [1]. Whisk Club shows that there is demand but is eight miles away, so a local class offers convenience [1], though its good reviews and the £14 price mean she must match quality [1]. Overall, secondary research is useful background but should not be relied on mainly, because the decision depends on whether local parents will pay; a larger primary survey, supported by the report, would be the most reliable basis [1]. [9] Examiner insight: Evaluate answers tend to do better if both sources are weighed with the figures and a conclusion is reached.

Where marks are usually lost

• Defining market research as “asking people”, which leaves out secondary research.
• Naming a need without tying it to the firm in the case.
• Giving one point in an Explain answer instead of a statement and two expansions.
• Applying a percentage to the wrong total, or leaving out the unit or sign.
• Treating a larger number of replies as reliable even when everyone asked is alike.
• Calling a gap in a market map an opportunity without checking demand.
• Writing “they are better” about rivals without naming price, quality, location, range or service.
• Giving a Justify or Evaluate answer with no recommendation or conclusion.

Next steps

• Recap the revision notes and re-read the study guide.
• Course hub: Edexcel GCSE Business and the printable checklist.
• Take the free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

What do these market research and customer needs questions cover? They follow Pearson Edexcel GCSE Business (1BS0) Theme 1 items 1.2.1 to 1.2.4: customer needs, market research, market segmentation, market mapping and the competitive environment.

Why is “asking people” a weak definition of market research? It leaves out secondary research. Market research means gathering and studying information on customers, rivals and the market, using both primary methods and existing secondary sources.

Is a larger number of survey replies always more reliable? Not if everyone asked is alike. Reliability also depends on a representative sample, unbiased questions, up-to-date data and a trusted source.

How should you compare a business with its rivals in an answer? Name the specific factors, such as price, quality, location, product range or customer service, rather than writing “they are better”. Then link the comparison to the decision in the case.

Official syllabus

Pearson Edexcel Level 1/Level 2 GCSE (9-1) in Business (1BS0), Specification, Issue 2, July 2022, published by Pearson Education Limited. Theme 1: Investigating small business, Topic 1.2 Spotting a business opportunity, items 1.2.1 to 1.2.4.